Household products company Kimberly-Clark (NYSE: KMB) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $4.15 billion. Its non-GAAP profit of $1.82 per share was 3.9% above analysts’ consensus estimates.
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Kimberly-Clark (KMB) Q3 CY2025 Highlights:
- Revenue: $4.15 billion vs analyst estimates of $4.15 billion (flat year on year, in line)
- Adjusted EPS: $1.82 vs analyst estimates of $1.75 (3.9% beat)
- Operating Margin: 15%, down from 24.8% in the same quarter last year
- Free Cash Flow Margin: 8.9%, down from 19.3% in the same quarter last year
- Organic Revenue rose 2.5% year on year vs analyst estimates of 1.5% growth (99.2 basis point beat)
- Market Capitalization: $38.73 billion
"The operating environment remains dynamic, but we continue to execute our strategy with discipline and excellence as we play to win," said Kimberly-Clark Chairman and CEO, Mike Hsu.
Company Overview
Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE: KMB) is now a household products powerhouse known for personal care and tissue products.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $16.47 billion in revenue over the past 12 months, Kimberly-Clark is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only so many big store chains to sell into, making it harder to find incremental growth. For Kimberly-Clark to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.
As you can see below, Kimberly-Clark’s demand was weak over the last three years. Its sales fell by 6.5% annually despite consumers buying more of its products. We’ll explore what this means in the "Volume Growth" section.
This quarter, Kimberly-Clark’s $4.15 billion of revenue was flat year on year and in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 2.2% over the next 12 months. Although this projection implies its newer products will spur better top-line performance, it is still below the sector average.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Kimberly-Clark’s products has generally risen over the last two years but lagged behind the broader sector. On average, the company’s organic sales have grown by 2.6% year on year. 
In the latest quarter, Kimberly-Clark’s organic sales rose by 2.5% year on year. This performance was more or less in line with its historical levels.
Key Takeaways from Kimberly-Clark’s Q3 Results
It was good to see Kimberly-Clark narrowly top analysts’ organic revenue expectations this quarter. EPS also exceeded expectations. On the other hand, its gross margin fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 3% to $120.30 immediately after reporting.
Big picture, is Kimberly-Clark a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
