Kenvue Inc. (NYSE:KVUE) Reports Mixed Q2 2025 Results with Revenue Miss and Narrow EPS Beat

Kenvue Inc. (NYSE:KVUE) reported its second-quarter 2025 financial results, revealing a mixed performance relative to analyst expectations. The consumer health company posted net sales of $3.84 billion, a 4.0% decline year-over-year, falling short of the consensus estimate of $3.93 billion. Adjusted diluted earnings per share (EPS) came in at $0.29, slightly above the $0.2873 forecast but down from $0.32 in the prior-year period.

Key Financial Highlights

• Revenue Miss: Net sales of $3.84 billion fell below expectations, driven by a 4.2% organic sales decline.
• EPS Slightly Beats: Adjusted EPS of $0.29 edged past estimates but reflected a year-over-year decrease.
• Gross Margin Pressure: Adjusted gross margin contracted 70 basis points to 60.9%, impacted by unfavorable mix and inflationary pressures.
• Operating Income Stability: Adjusted operating income margin held steady at 22.7%, down only 10 basis points from the prior year.

Market Reaction

In pre-market trading, KVUE shares declined 2.05%, signaling investor disappointment with the revenue miss and downward revision in full-year guidance. Over the past month, the stock had gained 3.28%, but the post-earnings reaction suggests concerns about near-term growth prospects.

Outlook vs. Analyst Estimates

Kenvue revised its full-year 2025 outlook, now expecting:

• Net sales and organic sales to decline in the low-single digits (analysts had projected full-year sales of $15.82 billion).
• Adjusted EPS in the range of $1.00 to $1.05, including a low-single-digit currency headwind (compared to the consensus estimate of $1.1586).

This guidance implies weaker-than-anticipated performance, reinforcing the market’s negative reaction.

Strategic Review and Leadership Changes

The company continues to evaluate strategic alternatives, including portfolio optimization, to unlock shareholder value. Recent leadership appointments include:

• Kirk Perry as Interim CEO, effective July 14, 2025.
• Anindya Dasgupta as Group President, Asia Pacific, and Michael Wondrasch as Chief Technology & Data Officer.

Conclusion

While Kenvue’s adjusted EPS narrowly surpassed expectations, the revenue miss and lowered guidance have weighed on investor sentiment. The ongoing strategic review could present future catalysts, but near-term challenges in sales growth and margins remain a concern.

For more detailed earnings estimates and historical performance, visit Kenvue’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.