KMB changes
Pick any two versions below to diff them.
- Price
- $107.94 → $108.86(+0.9%)
- Next earnings
- Nov 5, 2026 → Feb 5, 2027
- Next earnings is estimate
- No → Yes
- Thesis
- The market prices Kimberly-Clark for two concerns. The first is slow growth in its current business. In removed: its preliminary Q3 removed: 2026 data, added: 2026, organic sales fell 1.3%, and false social media claims about the quality of its diapers in China lowered removed: sales. added: organic sales by about 2.7 percentage points. The second is the Kenvue purchase, which closed on November 2, 2026. Kimberly-Clark issued about 281 million new shares and paid about $6.7 billion in cash, which it funded partly with new debt. Investors fear that the company paid too much, took on too much debt, and must combine two large companies while its own sales are weak. For the gap to close, two things must be true. Organic sales must return to growth as the effect of the China disruption fades. The combined company must show that it can get its planned run-rate synergies of about $2.1 billion and pay down the new debt. The final Q3 2026 report on November 5, 2026 removed: is added: matched the removed: first test, added: preliminary data and added: kept the added: 2026 outlook. The 2027 outlook of the combined company added: with the Q4 2026 report, expected in early removed: 2027 added: February 2027, is the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a weak start for the combined company, which would leave Kimberly-Clark with more debt and slow growth.
- Risks
- The Kenvue purchase is large. Kimberly-Clark issued about 281 million new shares and paid about $6.7 billion in cash, and it expects about $3.1 billion of pre-tax integration charges through 2029. If the combined company does not get the cost savings it expects, or if the integration is slow, earnings per share can fall and the new debt can stay high for a long time. Organic sales fell removed: about 1.3% in Q3 removed: 2026, based on preliminary data. added: 2026. False claims about diaper quality in China lowered sales, and the company expects that this disruption lowers its 2026 organic growth by about 1 percentage point. The President and Chief Operating Officer leaves on November 2, 2026, the day the Kenvue purchase closed. A change in senior management during a large integration can slow decisions.
- Balance sheet
- Cash: removed: $956M added: $1.9B Debt: $6.5B Net debt: removed: $5.6B added: $4.6B Interest cover: removed: 13× added: 12× Debt due within 12 months: removed: $43M added: $621M At removed: June added: September 30, 2026, added: before the Kenvue purchase closed, debt of continuing operations was removed: $6.52 added: $6.49 billion: long-term debt of removed: $6.47 added: $5.87 billion and debt payable within one year of removed: $43 added: $621 million. Cash was removed: $956 million, and the preliminary data shows cash of about $1.87 removed: billion at September 30, 2026. added: billion. Interest cover is operating profit divided by interest expense for the removed: first half of added: nine months to September 30, 2026. Kimberly-Clark has a $4.0 billion revolving credit facility that matures in December 2030 and a $1.0 billion facility that matures in June 2028. removed: For added: After the removed: Kenvue purchase, it had a bridge loan commitment of $7.7 billion, a delayed draw term loan facility, and $4.3 added: quarter, debt rose much. On October 29, 2026, Kimberly-Clark sold $4.9 billion of removed: forward-starting interest rate swaps for new fixed-rate debt. It added: senior notes due from 2028 to 2036, and it ended the last removed: $3.9 billion of removed: the added: its bridge loan removed: commitment after it sold $4.9 billion added: commitment. It paid the cash part of removed: senior notes in October 2026. The debt increased much when the removed: purchase closed added: Kenvue purchase, about $6.7 billion, on November 2, 2026, removed: because Kimberly-Clark also took added: with these notes, cash on removed: Kenvue's notes. added: hand and about $1.0 billion of commercial paper. On November 4, 2026, it issued about $6.4 billion of new notes in exchange for Kenvue notes, and about $0.6 billion of Kenvue notes stay outstanding. These amounts are not in the figures, which are at September 30, 2026. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Nov 2, 2026: Kenvue purchase closes. Passed. Watch: A close by the end of 2026 on the agreed terms passes; a delay into 2027 or new conditions from regulators fail. Outcome: Kimberly-Clark completed the purchase on November 2, 2026, on the agreed terms of 0.14625 Kimberly-Clark shares and $3.50 in cash for each Kenvue share. Nov 5, 2026: Q3 2026 earnings: organic sales. removed: Pending. added: Passed. Watch: Final results that match the preliminary data and an unchanged 2026 outlook pass; a cut to the outlook or a larger fall in organic sales fails. removed: Jan added: Outcome: Final Q3 2026 results matched the preliminary data, with organic sales down 1.3% and adjusted EPS from continuing operations of $1.70, and the 2026 outlook stayed the same. Feb 5, 2027 (estimate): added: Q4 2026 results and 2027 outlook of the combined company. Pending. Watch: A 2027 outlook that keeps the synergy target of about $2.1 billion and shows a plan to reduce debt passes; a lower synergy target or slow integration fails.
- Recent events
- Nov added: 5, 2026: Kimberly-Clark reported Q3 2026 results. Net sales from continuing operations were $4.1 billion, down 0.4%, and organic sales fell 1.3%, with a headwind of about 2.7 percentage points from the China social media disruption. The adjusted gross margin fell 1.3 percentage points to 35.5%. Adjusted EPS from continuing operations was $1.70, up 17.2%, because of lower interest expense and a lower tax rate. The company kept its 2026 standalone outlook. Nov 4, 2026: Kimberly-Clark completed its exchange offers for Kenvue's $7.0 billion of senior notes. Holders exchanged about $6.4 billion, or 91.1%, for new Kimberly-Clark notes, and about $0.6 billion of Kenvue notes stay outstanding. Nov 2, 2026: Kimberly-Clark completed its purchase of Kenvue. Each Kenvue share became 0.14625 Kimberly-Clark shares and $3.50 in cash, and Kimberly-Clark issues about 281 million new shares for them. The company repeated its target of about $2.1 billion of yearly run-rate synergies: about $1.9 billion of cost savings within three years, and about $500 million of profit from added sales less about $300 million of reinvestment within four years. Three Kenvue directors joined the board, and three Kimberly-Clark directors left it, so the board now has 13 directors. Nov 2, 2026: Kimberly-Clark started the Kenvue Integration Program, which its board approved on October 30, 2026. The company expects pre-tax charges of about $3.1 billion through 2029, of which about $2.5 billion is cash, mostly for supply chain changes, technology integration, job cuts and advisers. It also expects to spend about $1.4 billion of capital on the program. Oct 29, 2026: Kimberly-Clark sold $4.9 billion of senior notes, due from 2028 to 2036, with interest rates from 5.100% to 5.800%. With the money, it ended the last $3.9 billion of its bridge loan for the cash part of the Kenvue purchase. It also extended its exchange offer for Kenvue notes to November 2, 2026. Oct 15, 2026: Kimberly-Clark gave preliminary Q3 2026 data. Net sales were about $4.13 billion, and organic sales fell about 1.3%. Adjusted EPS from continuing operations was about $1.70, up from $1.45 a year earlier. The company said that its 2026 outlook stays the same, and it will report final Q3 results on November 5, 2026. Oct 13, 2026: Kimberly-Clark received the necessary consents from holders of Kenvue notes in its offer to exchange up to $7.0 billion of Kenvue notes for new Kimberly-Clark notes. The company does not expect the exchange to settle before November 2, 2026, and it expects settlement at about the close of the Kenvue purchase. Oct 1, 2026: Kimberly-Clark said that Russell Torres, its President and Chief Operating Officer, will leave the company on November 2, 2026. Aug 4, 2026: Kimberly-Clark reported Q2 2026 results. Net sales from continuing operations were $4.19 billion, up 0.6%, and adjusted EPS from continuing operations was $1.80, up 10.4%. False claims on social media about the quality of its diapers in China lowered sales in the quarter. Management said that the Kenvue purchase was on track to close by the end of 2026. Jul 1, 2026: Kimberly-Clark completed the Arbex joint venture with Suzano. Suzano bought 51% of the former International Family Care and Professional business for about $1.7 billion, and Kimberly-Clark kept 49%.