v3.26.1
Segments of Business
 6 Months Ended
Jun. 28, 2026
Segment Reporting [Abstract]  
Segments of Business Segments of Business
The Company is organized into three reportable business segments: Self Care, Skin Health and Beauty, and Essential Health.

The Company’s Chief Operating Decision Maker (the “CODM”), the Chief Executive Officer, uses Segment adjusted operating income as the measure of profit or loss and to evaluate the performance of the Company’s segments. For each segment, the CODM uses this information to assist in evaluating underlying trends, to monitor budget and forecast versus actual results, to make investment decisions to allocate resources both in total, and between the segments, and to make key segment personnel decisions. Segment profit is based on Operating income, excluding depreciation, amortization of intangible assets, Separation-related costs, restructuring expenses and operating model optimization initiatives, the impact of the conversion of stock-based awards, issuance of Founder Shares (as defined below), Pending Transaction and other related costs (as defined below), Skillman sale-leaseback, Other operating expense, net, and unallocated general corporate administrative expenses (referred to herein as “Segment adjusted operating income”), as the CODM excludes these items in assessing segment financial performance. General corporate/unallocated expenses, which include expenses related to treasury, legal operations, and certain other expenses, along with gains and losses related to the overall management of the Company, are not allocated to the segments. In assessing segment performance and managing operations, the CODM does not review segment assets.

The Company operates the business through the following three reportable business segments based on product categories:

Reportable SegmentsProduct Categories
Self Care
Cough, Cold, and Allergy
Pain Care
Other Self Care (Digestive Health, Smoking Cessation, Eye Care, and Other)
Skin Health and BeautyFace and Body Care
Hair, Sun, and Other
Essential HealthOral Care
Baby Care
Other Essential Health (Women’s Health, Wound Care, and Other)

The Company’s product categories as a percentage of Net sales for the fiscal three and six months ended June 28, 2026 and June 29, 2025 were as follows:

Fiscal Three Months EndedFiscal Six Months Ended
Product CategoriesJune 28, 2026June 29, 2025June 28, 2026June 29, 2025
Cough, Cold, and Allergy12 %12 %14 %14 %
Pain Care11 12 12 12 
Other Self Care17 17 16 16 
Face and Body Care18 18 18 18 
Hair, Sun, and Other10 9 10 9 
Oral Care10 11 10 11 
Baby Care10 9 9 9 
Other Essential Health12 12 11 11 
Total100 %100 %100 %100 %
Segment Net Sales and Segment Adjusted Operating Income

Segment net sales and Segment adjusted operating income for the fiscal three and six months ended June 28, 2026 and June 29, 2025 were as follows:

Fiscal Three Months Ended
June 28, 2026June 29, 2025
(Dollars in Millions)Self CareSkin Health and BeautyEssential HealthTotalSelf CareSkin Health and BeautyEssential HealthTotal
Net sales$1,589 $1,113 $1,253 $3,955 $1,555 $1,059 $1,225 $3,839 
Segment adjusted Cost of sales(1)
550 450 574 1,574 548 422 531 1,501 
Other segment expense items(2)
527 477 364 1,368 480 488 343 1,311 
Segment adjusted operating income$512 $186 $315 $1,013 $527 $149 $351 $1,027 
Reconciliation to Income before taxes
Less:
Depreciation(3)
79 78 
Amortization of intangible assets(4)
64 64 
Separation-related costs(5)
7 24 
Restructuring expenses and operating model optimization initiatives(6)
69 68 
Conversion of stock-based awards(7)
— 1 
Founder Shares(8)
1 5 
Pending Transaction and other related costs(9)
16 — 
Skillman sale-leaseback
2 — 
Other operating expense, net6 5 
General corporate/unallocated expenses70 90 
Operating income$699 $692 
Other expense, net11 10 
Interest expense, net90 94 
Income before taxes$598 $588 
Fiscal Six Months Ended
June 28, 2026June 29, 2025
(Dollars in Millions)Self CareSkin Health and BeautyEssential HealthTotalSelf CareSkin Health and BeautyEssential HealthTotal
Net sales $3,288 $2,172 $2,404 $7,864 $3,222 $2,036 $2,322 $7,580 
Segment adjusted Cost of sales(1)
1,128 887 1,092 3,107 1,135 835 1,027 2,997 
Other segment expense items(2)
1,023 931 698 2,652 994 960 705 2,659 
Segment adjusted operating income$1,137 $354 $614 $2,105 $1,093 $241 $590 $1,924 
Reconciliation to Income before taxes
Less:
Depreciation(3)
157 151 
Amortization of intangible assets(4)
129 127 
Separation-related costs(5)
10 62 
Restructuring expenses and operating model optimization initiatives(6)
147 135 
Conversion of stock-based awards(7)
1 4 
Founder Shares(8)
3 8 
Pending Transaction and other related costs(9)
32 — 
Skillman sale-leaseback
4 — 
Other operating expense, net17 18 
General corporate/unallocated expenses139 169 
Operating income$1,466 $1,250 
Other expense, net11 16 
Interest expense, net185 188 
Income before taxes$1,270 $1,046 
(1) The Company defines Segment adjusted cost of sales as Cost of sales adjusted for amortization of intangible assets, operating model optimization initiatives, Separation-related costs, Pending Transaction and other related costs (as defined below), Founder Shares (as defined below), conversion of stock-based awards, and general corporate/unallocated expenses.
(2) Other segment expense items for each reportable business segment include brand support, employee-related costs, shipping and handling costs, research and development costs, and certain other operating expenses (income).
(3) Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements.
(4) Relates to the amortization of definite-lived intangible assets (primarily trademarks, trade names, and customer lists) over their estimated useful lives.
(5) See Note 1, “Description of the Company and Summary of Significant Accounting Policies—Separation-Related Costs,” for additional information regarding Separation-related costs.
(6) Restructuring expenses and operating model optimization initiatives relate to the 2026 Restructuring Initiative for the fiscal three and six months ended June 28, 2026 and the 2024 Multi-Year Restructuring Initiative for the fiscal three and six months ended June 29, 2025. See Note 15, “Restructuring Expenses and Operating Model Optimization Initiatives,” for additional information. Restructuring expenses and operating model optimization initiatives include accelerated depreciation expense on assets related to the 2026 Restructuring Initiative for the fiscal three and six months ended June 28, 2026.
(7) Segment adjusted operating income excludes the impact of the conversion of stock-based awards that occurred on August 23, 2023. The adjustment represents the net impact of the gain on reversal of previously recognized stock-based compensation expense, offset by stock-based compensation expense recognized in the fiscal three and six months ended June 28, 2026 and June 29, 2025 relating to employee services provided prior to the Separation.
(8) On August 25, 2023, the Company’s Compensation & Human Capital Committee approved equity grants to individuals employed by Kenvue as of October 2, 2023 (the “Founder Shares”). On October 2, 2023, the Founder Shares were granted to all Kenvue employees in the form of stock options and performance stock units to executive officers and either stock options and performance stock units or restricted stock units to non-executive individuals.
(9) Pending Transaction and other related costs consist of expenses incurred in connection with the Pending Transaction, including advisory fees, legal costs, professional service costs, and other related costs (the “Pending Transaction and other related costs”).

Depreciation and Amortization

Depreciation and amortization by reportable business segment for the fiscal three and six months ended June 28, 2026 and June 29, 2025 were as follows:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Self Care$52 $53 $105 $102 
Skin Health and Beauty32 33 62 62 
Essential Health59 56 119 114 
Total depreciation and amortization(1)
$143 $142 $286 $278 
(1) Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements. Amortization relates to the amortization of definite-lived intangible assets over their estimated useful lives.