KVUE Kenvue Inc.

Overview and Growth

In fiscal 2025, Kenvue Inc. recorded $15.12B of revenue, net income of $1.47B, and an operating cash inflow of $2.20B. Revenue of $15.12B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line contracted 2.1% from $15.46B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of $0.76, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $0.54 in fiscal 2024, the current result was 40.7% higher. Revenue equaled 0.56x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $8.79B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 58.1% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $2.41B of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 16.0% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $1.47B, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 9.7% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $2.00B of earnings, providing a bridge between the operating result and final net income. The pretax margin was 13.2%, relating income before taxes directly to revenue. Income tax expense totaled $529.00M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 26.5%, without assuming a statutory-rate comparison. Return on period-end equity was 13.7%, relating annual net income to the equity capital on the balance sheet. Net income represented 5.4% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

Total assets were $27.08B, supported by $16.31B of liabilities and $10.77B of shareholder equity. The near-term balance sheet paired $5.70B of current assets with $5.95B of current liabilities at the reporting date. Current assets covered only 0.96x of current liabilities, so current liabilities exceeded current assets at period end. Reported cash and equivalents were $1.06B, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 17.9% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The liabilities-to-assets relationship was 60.2%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 3.9%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 5.8% from $25.60B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

The company reported $2.20B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.49x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $475.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 21.6% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $1.72B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 11.4% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 6.4%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 28, 2025. Analysis generated Oct 21, 2026.