Kimberly-Clark (KMB): EU clears Kenvue deal with tampon-brand sale; Q3 adjusted profit per share rises to $1.70

The European Commission cleared Kimberly-Clark's purchase of Kenvue on 13 October on condition that it sells its European tampon brands. Two days later the company gave preliminary third-quarter figures: sales slipped 0.4% to $4,134m, while adjusted profit per share rose 17% to $1.70.

What happened

On 13 October 2026 the European Commission, which enforces EU competition law, approved Kimberly-Clark's acquisition of Kenvue subject to conditions. Kimberly-Clark makes Huggies, Kleenex and Kotex products; Kenvue, spun out of Johnson & Johnson, makes consumer health brands such as Tylenol. According to trade outlet Personal Care Insights, the Commission's concern was tampons, particularly in Czechia, Estonia and Slovakia, where few suppliers operate. To remove the overlap, Kimberly-Clark committed to sell its tampon and feminine hygiene business in the European Economic Area: the Kotex (including Lidie), Camelia and Record brands, with related intellectual property, know-how and key staff. The Commission approved Turkish company Dilek Gida Üretim as the buyer.

On 15 October Kimberly-Clark filed an 8-K (the form US companies use to report significant events) with estimated, unaudited figures for the quarter ended 30 September 2026, and reaffirmed its full-year outlook. Final results are due on 5 November. The deal itself was announced on 3 November 2025: Kenvue shareholders receive $3.50 in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share, which the companies valued at $21.01 a share on the day, or about $48.7bn including debt, per Financier Worldwide. Shareholders of both companies approved it on 29 January 2026, and the US antitrust waiting period expired on 4 February 2026, according to Kimberly-Clark's quarterly report. Some outlets quote about $40bn for the deal; we use the $48.7bn that Financier Worldwide reports.

The numbers, explained

All figures are US dollars and, unless stated, are from Kimberly-Clark's 15 October 8-K, compared with the third quarter of 2025. Net sales were $4,134m against $4,150m, a fall of $16m or 0.4% (16 divided by 4,150). Organic sales growth, which strips out currency moves and businesses sold or exited, was a decline of 1.3% against growth of 2.5% a year earlier. Operating profit, the profit left after running costs but before interest and tax, fell from $621m to $516m, down 16.9% (105 divided by 621), partly because the company counted $106m of Kenvue deal costs. Excluding that and other items it treats as one-off, adjusted operating profit was $677m against $683m, down 0.9% (6 divided by 683). Adjusted measures are the company's own, not GAAP, the standard US accounting rules.

Profit per share is where the quarter looks different. Adjusted earnings per share from continuing operations, meaning the businesses Kimberly-Clark still owns outright, rose from $1.45 to $1.70, up $0.25 or 17.2% (0.25 divided by 1.45). Two outlets put analysts' estimates at about $1.58 to $1.60, so the result was above them; that is an analyst estimate, not a company figure. The main reason is tax: the adjusted tax rate fell from 26.5% to 19.5%, and adjusted tax charges fell from $161m to $123m, a $38m drop that is about $0.11 a share on 333.7m shares (our working). The adjusted gross margin, adjusted gross profit divided by sales, slipped from 36.8% (1,527 divided by 4,150) to 35.5% (1,468 divided by 4,134). Reported (GAAP) diluted earnings per share attributable to the company were $5.37 against $1.34, but $4.33 of that is a one-time gain from selling a majority stake in its international family care and professional business, so we do not treat it as a measure of trading.

Why it matters

Kimberly-Clark earns money by selling everyday paper-based products such as diapers, tissues and bathroom tissue, where large retailers hold strong buying power and input costs for pulp, plastics and energy move prices. Kenvue sells health and personal-care brands, including pain relief, skin care and baby care. Combined, the two would add consumer health products to a portfolio now centred on paper goods. The quarter shows the pressure on the existing business: organic sales fell, and the company said in its outlook that China social media disruptions are costing about 100 basis points (one hundredth of a percentage point each) of organic growth.

For customers, the European remedy means Kotex, Camelia and Record tampons will move to a different owner in the EEA, with the Commission's stated aim of preserving competition, choice and affordable prices. For rivals, the decision shows that regulators will accept a targeted sale instead of blocking a deal this size. The company's outlook, which excludes the Kenvue deal, is its own forecast: organic sales growth about 100 basis points below category growth of about 1.7%, adjusted operating profit growing mid-single digits and adjusted earnings per share from continuing operations growing high single digits, both in constant currency (exchange rates held steady). Those are company expectations, not ours.

What to watch next

Kimberly-Clark will publish final third-quarter and nine-month results on Thursday 5 November 2026, with an analyst question session at 8:00 a.m. Eastern time; the figures above may change when the quarter's books are finalised. The Kenvue purchase is described in the company's filings as pending: the company's first-half filings expect completion in the second half of 2026, subject to other customary conditions, and the 15 October 8-K does not give a new date. The sale of the European tampon brands to Dilek must also be carried out under the Commission's supervision. We make no forecast about any of these.

• Organic sales growth: change in sales excluding currency effects and business sales or exits.
• Adjusted (non-GAAP): a company-defined profit measure that removes items management treats as one-off.
• Divestiture remedy: a sale of overlapping businesses that a regulator requires to approve a merger.
• Basis point: one hundredth of a percentage point.

Sources

• Kimberly-Clark 8-K with preliminary Q3 2026 data (SEC, 15 Oct 2026)
• Kimberly-Clark press release reaffirming 2026 outlook (SEC exhibit 99.1)
• European Commission: Commission approves Kimberly-Clark's acquisition of Kenvue, subject to conditions
• Personal Care Insights: EU clears Kimberly-Clark Kenvue deal pending feminine hygiene divestments
• MarketScreener: Kimberly-Clark gets EU approval to acquire Kenvue with divestiture conditions
• Tradingpedia: KMB surges on Q3 earnings beat and EU Kenvue clearance
• Financier Worldwide: Kimberly-Clark to acquire Kenvue in $48.7bn deal