Investing.com -- Kenvue Inc. (NYSE: KVUE) reported third-quarter results that missed analyst profit expectations despite revenue growth, as the consumer health company posted adjusted earnings per share of $0.29 compared to the consensus estimate of $0.37.
Revenue for the quarter reached $3.89 billion, slightly exceeding the $3.86 billion analyst consensus and representing a 3.2% increase YoY. Organic sales grew 2.9%, driven by volume growth of 1.6% and favorable pricing of 1.3%. The company did not provide forward-looking guidance due to its pending transaction with Kimberly-Clark. Shares rose 0.7% following the announcement.
"We are pleased to have delivered our fourth consecutive quarter of net and organic sales growth, with strong performance in Self Care and Essential Health, along with margin expansion and strong cash generation," said Kirk Perry, Chief Executive Officer.
The company's Self Care segment led performance with net sales increasing 5.9% YoY to $1.66 billion, reflecting organic sales growth of 5.4%. Strong demand for Nicorette and Pepcid contributed to the segment's performance, while Tylenol gained market share despite lower seasonal illness incidences.
Skin Health and Beauty posted modest net sales growth of 0.1% to $1.04 billion, with organic sales declining 0.5% due to distribution losses and promotional timing in the U.S. and retailer negotiations in Europe. Essential Health net sales increased 2.5% to $1.19 billion, with growth across all regions driven by Johnson's Baby and Stayfree.
Adjusted operating income margin expanded to 21.9% from 21.5% in the prior year period, reflecting productivity gains and cost optimization initiatives. For the nine months ended September 27, 2026, free cash flow increased to $1.6 billion from $1.0 billion in the prior year period.
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