Kimberly-Clark Q3 Adjusted EPS of $1.70 Beats Estimates as China Disruption Weighs on Sales

Kimberly-Clark reported preliminary third-quarter 2026 adjusted earnings per share from continuing operations of $1.70, topping the Wall Street consensus of $1.66, while confirming its full-year 2026 outlook remains unchanged. Net sales came in at $4.13 billion, slightly below the $4.15 billion recorded in the same period a year earlier, and organic sales declined 1.3 percent compared with growth of 2.5 percent in Q3 2025. Adjusted operating profit was $677 million versus $683 million a year ago, and adjusted gross profit fell to $1.47 billion from $1.53 billion, though both figures came in ahead of expectations. Reported diluted EPS attributable to Kimberly-Clark reached $5.37, up sharply from $1.34 in the prior-year quarter, reflecting items beyond continuing operations.

The company attributed part of the sales softness to a social-media firestorm in China over its diapers during the summer, which disrupted demand in that market. For full-year 2026, Kimberly-Clark guided organic sales growth of 100 basis points below category growth, adjusted EPS from continuing operations growing high single digits in constant currency, and adjusted EPS attributable to Kimberly-Clark declining low single digits in constant currency, all consistent with prior expectations.

Shares climbed roughly 3 percent in premarket trading and continued rising into midday on the earnings beat and guidance confirmation. UBS, however, cut its price target on the stock to $106 from $116 following the results.