v3.26.3
Segments of Business
 9 Months Ended
Sep. 27, 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 nine months ended September 27, 2026 and September 28, 2025 were as follows:

Fiscal Three Months EndedFiscal Nine Months Ended
Product CategoriesSeptember 27, 2026September 28, 2025September 27, 2026September 28, 2025
Cough, Cold, and Allergy13 %13 %13 %14 %
Pain Care14 13 13 13 
Other Self Care15 16 16 15 
Face and Body Care19 20 18 19 
Hair, Sun, and Other8 8 9 8 
Oral Care10 10 10 11 
Baby Care10 9 10 9 
Other Essential Health11 11 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 nine months ended September 27, 2026 and September 28, 2025 were as follows:

Fiscal Three Months Ended
September 27, 2026September 28, 2025
(Dollars in Millions)Self CareSkin Health and BeautyEssential HealthTotalSelf CareSkin Health and BeautyEssential HealthTotal
Net sales$1,656 $1,039 $1,191 $3,886 $1,564 $1,038 $1,162 $3,764 
Segment adjusted Cost of sales(1)
594 400 502 1,496 546 401 512 1,459 
Other segment expense items(2)
525 490 374 1,389 498 500 343 1,341 
Segment adjusted operating income$537 $149 $315 $1,001 $520 $137 $307 $964 
Reconciliation to Income before taxes
Less:
Depreciation(3)
77 75 
Amortization of intangible assets(4)
64 66 
Separation-related costs(5)
6 17 
Restructuring expenses and operating model optimization initiatives(6)
41 97 
Conversion of stock-based awards(7)
— 1 
Founder Shares(8)
— (4)
Pending Transaction and other related costs(9)
28 — 
Skillman sale-leaseback2 — 
Other operating expense, net6 1 
General corporate/unallocated expenses71 82 
Operating income$706 $629 
Other expense, net8 10 
Interest expense, net89 93 
Income before taxes$609 $526 
Fiscal Nine Months Ended
September 27, 2026September 28, 2025
(Dollars in Millions)Self CareSkin Health and BeautyEssential HealthTotalSelf CareSkin Health and BeautyEssential HealthTotal
Net sales $4,944 $3,211 $3,595 $11,750 $4,786 $3,074 $3,484 $11,344 
Segment adjusted Cost of sales(1)
1,722 1,287 1,594 4,603 1,681 1,236 1,539 4,456 
Other segment expense items(2)
1,548 1,421 1,072 4,041 1,492 1,460 1,048 4,000 
Segment adjusted operating income$1,674 $503 $929 $3,106 $1,613 $378 $897 $2,888 
Reconciliation to Income before taxes
Less:
Depreciation(3)
234 226 
Amortization of intangible assets(4)
193 193 
Separation-related costs(5)
16 79 
Restructuring expenses and operating model optimization initiatives(6)
188 232 
Conversion of stock-based awards(7)
1 5 
Founder Shares(8)
3 4 
Pending Transaction and other related costs(9)
60 — 
Skillman sale-leaseback6 — 
Other operating expense, net23 19 
General corporate/unallocated expenses210 251 
Operating income$2,172 $1,879 
Other expense, net19 26 
Interest expense, net274 281 
Income before taxes$1,879 $1,572 
(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 nine months ended September 27, 2026 and the 2024 Multi-Year Restructuring Initiative for the fiscal three and nine months ended September 28, 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 nine months ended September 27, 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 nine months ended September 27, 2026 and September 28, 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 nine months ended September 27, 2026 and September 28, 2025 were as follows:

Fiscal Three Months EndedFiscal Nine Months Ended
(Dollars in Millions)September 27, 2026September 28, 2025September 27, 2026September 28, 2025
Self Care$51 $52 $156 $154 
Skin Health and Beauty30 32 92 94 
Essential Health60 57 179 171 
Total depreciation and amortization(1)
$141 $141 $427 $419 
(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.