Kenvue, the consumer health company spun off from Johnson and Johnson, has reported a strong opening quarter for 2026, with its Skin Health and Beauty division posting net sales of $1 billion, up 8.4 percent compared to the same period last year. Overall net sales grew 4.5 percent to $3.9 billion, with gross profits climbing to $2.3 billion.
The beauty division’s performance was driven by strong brand activations across EMEA, Latin America, and Asia Pacific. A standout sun care season in Latin America boosted Neutrogena’s Sun range, while hair care brand OGX contributed meaningfully through the launch of its new Pro Growth collection across North America and EMEA. The results mark the second consecutive quarter of net and organic sales growth for the company, alongside year-on-year improvements in gross margin, operating margin, and earnings per share.
Looking ahead, Kenvue is intensifying its focus on scalp health, with new product lines from both OGX and Neutrogena set to feature scalp-first formulations powered by peptides and skincare-led ingredients. The move aligns with a broader industry shift towards treating the scalp with the same rigour as facial skin.
The Q1 results come as Kenvue progresses towards its acquisition by Kimberly-Clark in a $48.7 billion deal, expected to close in the second half of 2026. The combination will bring Kenvue’s portfolio, including Neutrogena, Aveeno, OGX, and Listerine, under the same umbrella as Kimberly-Clark’s personal care brands.
Kenvue is also advancing a strategic overhaul initiated in July 2025, aimed at optimising its operating model, streamlining its supply chain, and driving operational efficiencies. Restructuring charges related to the initiative are expected to total approximately $250 million for fiscal year 2026. The company has not provided forward-looking guidance pending the completion of the Kimberly-Clark transaction.
