Kenvue Beats Quarterly Estimates, Announces Job Cuts

Tylenol-maker Kenvue on Tuesday beat Wall Street estimates for fourth-quarter results and announced a global workforce reduction, as it proceeds toward a planned takeover by Kimberly-Clark.

Kenvue said its board has approved a plan to optimise its operating model, resulting in a net reduction of its global workforce by ​about 3.5 percent. ⁠The company had about 22,000 employees as of last year.

Kleenex-maker Kimberly-Clark ⁠in early November proposed buying Kenvue for more than $40 billion to create a global consumer health company with brands like Band-Aid and Huggies diapers.

The ​merger is expected to close in the second half of 2026.

The company’s quarterly results highlight a turnaround for the company, on strength in its ​self-care and essential health segments.

“We ended 2025 with stronger ⁠top- and bottom-line performance in the fourth quarter, which reflected both disciplined execution ⁠against our strategic priorities, as well as a more favourable year-ago comparison on sales,” said CEO ‌Kirk Perry.

Kenvue’s largest segment, self-care — home ​to brands such as Tylenol and Benadryl — reported a 1.5 percent increase in net sales to $1.59 billion, beating ⁠estimates of $1.52 billion, according to data compiled by LSEG.

The company said consumption and share ‌performance trends for Tylenol improved in December.

Its essential health ​unit, which ‌houses brands such as Listerine and Band-Aid, brought in net sales of $1.15 billion in the ‌quarter, a 6.1 percent rise year-over-year. This compares to ⁠the ⁠analysts’ average estimate of $1.12 billion.

The company’s fourth-quarter net sales rose 3.2 percent to $3.78 billion, above analysts’ consensus of $3.68 billion.

The Band-Aid maker posted a quarterly adjusted profit of 27 cents per share, while analysts estimated 22 cents per share.

The planned job ​cuts are expected to result in pre-tax restructuring expenses and other charges totalling about $250 million ⁠in 2026, ‌Kenvue said.

By Gnaneshwar Rajan, Sneha ​S ‌K

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Kimberly-Clark to Buy Tylenol Owner Kenvue in $40 Billion Deal

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