Kenvue posts Q2 earnings miss as inflation and tariffs squeeze margins

Consumer‑health company Kenvue, maker of Tylenol painkillers and Neutrogena skincare, reported second‑quarter results that fell short of Wall Street expectations. Adjusted profit came in at 31 cents per share versus the consensus estimate of 32 cents, and quarterly sales reached $3.96 billion, just under the $3.97 billion forecast.

The company’s adjusted gross margin slipped to 60.2% from 60.9% a year earlier, pressured by higher inflation, tariff duties and currency‑related costs that outweighed supply‑chain savings and price hikes. Self‑care sales grew 2.2% to $1.59 billion, helped by stronger Tylenol performance in the United States, while skin‑health and beauty sales rose 5.1% to $1.11 billion.

Kenvue remains in the midst of a $40 billion acquisition by Kimberly‑Clark, expected to close in the fourth quarter of 2026, and plans about $250 million in pre‑tax restructuring charges that year to simplify operations and lower costs.