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what it is
Kenvue sells everyday health brands like Tylenol, Neutrogena, Listerine, and Band-Aid.
how it gets paid
Last year Kenvue made $15.1B in revenue. Self Care was the main engine at $6.3B, or 42% of sales.
why growth slowed
Revenue fell 2.1% last year. The 1-cent EPS beat mattered more than the 2.1% full-year revenue decline because it kept the quarter from landing as a miss.
what just happened
Kenvue posted $0.27 EPS, 1 cent above estimates, on about $3.8B of revenue.
At a glance
A balance sheet — strong enough to weather a downturn
17.5x trailing p/e — the market's not buying it — or you found a deal
5.3% dividend yield — cash in your pocket every quarter
12.0% return on capital — nothing to write home about
$1.35 fy2029 eps est
xvary composite: 80/100 — above average
What they do
Kenvue sells everyday health brands like Tylenol, Neutrogena, Listerine, and Band-Aid.
People do not re-shop Tylenol every week. Kenvue gets 42% of sales from Self Care and 31% from Essential Health, so your headache and your mouthwash sit in different drawers, not different businesses. With 52% of 2025 sales outside the U.S., one country does not control the whole cash stream.
How they make money
$15.1B
annual revenue · their business grew -2.1% last year
Self Care
$6.3B
Skin Health and Beauty
$4.1B
Essential Health
$4.7B
The products that matter
skincare brand
Aveeno
supports a $15.1B revenue base
this is one of the brands carrying a $15.1B annual business. the page does not break out sales by brand, so the real question is shelf strength, not segment math.
brand equity
first-aid category leader
BAND-AID
helps support 25.0% operating margin
you own a brand portfolio that still converts sales into a 25.0% operating margin. BAND-AID matters because boring products with habit purchases are how consumer health companies defend pricing.
pricing power
baby care franchise
Johnson's
global household name
this brand helps explain why Kenvue still earns a 14.7% net margin even in a down sales year. the page is thin on brand-by-brand numbers, so the moat case lives in profitability, not disclosed mix.
defensive demand
Key numbers
$22
18m target
That is $3.11 above $18.89, or 16% upside from the current price.
5.3%
dividend yield
You get paid 5.3% while annual revenue still fell 2.1%.
25.0%
operating margin
That means 25 cents of profit on each sales dollar.
12.0%
return on capital
The company turns each dollar tied up in the business into 12 cents of profit.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $7.1B (16% of capital)
- net profit margin 14.7% — keeps 15 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
Return history isn't available for KVUE right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Kenvue posted $0.27 EPS, 1 cent above estimates, on about $3.8B of revenue.
Revenue came in at $3.8B. Gross margin was 58.7%, which means 58.7 cents of every sales dollar stayed after product costs.
$3.8B
quarter revenue
$0.27
eps
58.7%
gross margin
the number that mattered
The 1-cent EPS beat mattered more than the 2.1% full-year revenue decline because it kept the quarter from landing as a miss.
-
kenvue is moving ahead with a proposed takeover.in early november, the company agreed to be acquired by household products giant kimberly-clark in a cash-and-stock deal valued at roughly $48.7 billion.
-
under the terms of the proposal, kvue stockholders would receive $3.50 in cash and 0.14625 kmb shares, and would own 46% of the combined entity.the deal was approved by shareholders in january, and pending other regulatory and closing conditions, will probably close in the back half of 2026. overall, the combination appears to be a good match and should precipitate robust growth opportunities. it creates a complementary roster of global consumer health and wellness products, which includes 10 billion-dollar brands. the merger should also lead to significant cost synergies and sales synergies within a couple of years of the deal’s completion.
-
on its own, the company took a step back in 2025.
-
for the full year, share earnings fell 5%, on a 2% sales decline.
-
even though kenvue recorded decent year-to-year comparisons during the fourth quarter, it had been struggling to find its footing as a standalone entity for much of the year (the company was spun off from johnson & johnson in may 2023).too, it experienced a challenging operating environment and wavering consumer sentiment over the past few months.
source: company earnings report, 2026
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What could go wrong
the #1 risk is sales stagnation before the kimberly-clark deal closes. Kenvue already posted a 2.1% revenue decline on $15.1B in annual sales, so another soft stretch would pressure both the standalone thesis and merger optimism.
med
the Q4 bounce might be a bounce
Q4 revenue rose 3.2%, but full-year revenue still fell 2.1% to $15.1B. One better quarter does not settle the growth debate.
If sales slip back after management points to improvement, the stock loses the cleanest argument for multiple expansion.
med
merger math works only if the merger happens
the page frames the Kimberly-Clark deal at roughly $48.7B, with KVUE holders set to receive $3.50 in cash and 0.14625 KMB shares if conditions are met.
Until closing, you are exposed to delays, regulatory friction, or a change in market sentiment around the combined company.
med
the sell side already trimmed expectations
Jefferies cut its price target from $23 to $18 on January 30, 2026. That's a 22% reduction in what one firm thought the stock was worth.
Price targets do not run the business, but cuts like that tell you patience is thinning.
med
institutions have been distributing stock
421 institutions bought versus 451 that sold in 4Q2025, and the page says net selling has lasted two straight quarters.
With 1.9B shares in institutional hands, marginal sellers still matter even in a defensive name.
The combined risk picture is simple: $15.1B in annual sales shrank 2.1%, one bank cut its target 22%, and the stock now needs both operating improvement and deal execution to keep the case clean.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
does sales growth stay above zero
Q4 grew 3.2%. If the next update drops back below flat, the turnaround story gets a lot less interesting.
calendar
Q1 2026 earnings report
the next quarterly print matters more than usual because you need to know whether Q4 was the start of a trend or a one-off improvement.
deal
merger closing conditions
shareholders approved the Kimberly-Clark transaction in january. now the watch item is regulatory and closing progress into the back half of 2026.
income
dividend support at 5.3%
that yield is doing real work in the story. if investors stop treating KVUE as a stable income name, the stock loses one of its cleanest supports.
Analyst rankings
risk profile
above average
risk rank 2 — safer than roughly 80% of stocks.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 421 buyers vs. 451 sellers in 4q2025. total institutional holdings: 1.9B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$16
$28
$19
current price
$22
target midpoint · +16% from current · 3-5yr high: $35 (+85% · 19% ann'l return)
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