AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 31/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Reported leading brand positions, recent personal-care share gains and the substantial spending required to establish recognition support a demonstrated brand advantage. Intellectual property ownership adds support without proving patent exclusivity or superior relative costs.
durability · 2/4 · Leading positions and continuing volume demand support persistence. Ongoing promotional requirements and realized intangible impairments show that protection requires reinvestment and can erode; exceptional durability is unproven.
customer dependency · 1/4 · Historical price elasticity indicates responsive demand rather than strong dependency. Walmart accounts for approximately 16% of continuing sales, while disclosed retailer bargaining power constrains the issuer. Brand preference exists, but switching friction is not established.
erosion resilience · 2/4 · First-half volume growth, reported personal-care share gains and realized productivity demonstrate resilience. Falling net prices, significant China diaper disruption and historical impairments establish meaningful erosion channels.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · Pricing supported North American earnings in 2023, but 2024 IPC increases primarily reflected hyperinflationary economies. Net pricing declined in 2025 and first-half 2026, with recent pricing unfavorable net of cost inflation. Trial investments explain some reductions without establishing strong realized pricing power.
retention · 2/4 · 2025 and first-half 2026 volume gains and reported personal-care share gains indirectly demonstrate continuing demand. Price-related trial support, historical elasticity and China disruption temper that evidence. No repeat-purchase rate is inferred.
margin resilience · 2/4 · Adjusted gross margin fell 100 basis points in 2025 and improved 60 basis points in first-half 2026. Productivity and one-time tariff refunds supported recovery despite unfavorable pricing net of inflation. This demonstrates mixed operating resilience rather than durable pricing protection.
contractual freedom · 2/4 · The disclosed practice of adjusting prices and actual trial-related price investments establish some discretion. Demand, competition and retailer bargaining power constrain it; protected pricing terms or contractual cost pass-through are not established.
Predictability85
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 8.50
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.88
- observedAnnualPeriods
- 5.00
Financial strength43
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 51.81
- netDebtEbitGrade
- 44.87
- interestCoverageGrade
- 74.40
- currentRatioGrade
- 0.00
- Debt / FCF (x)
- 4.37
- Net debt / operating income (x)
- 2.76
- Interest coverage (x)
- 9.18
- Current ratio (x)
- 0.75
Capital allocation100
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 33.43
- 3-year average dilution (%)
- -0.55
- 3-year average SBC / revenue (%)
- 0.78
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half consolidated operating cash of $1.653 billion covered $776 million of capital spending and $843 million of dividends, with no repurchases. Cash improvement benefited from insurance and working-capital timing. Completed IFP monetization provides an outcome, but historical impairments and a large pending cash-and-stock acquisition commitment make allocation evidence mixed; future acquisition returns remain unproven.
incentive alignment · 3/4 · Actual approved 2025 grants allocate 60% of target value to performance-based units. Disclosed awards have three-year vesting and payouts ranging from zero to 200% of target based on performance goals. This supports meaningful alignment, tempered by adjustment discretion and incomplete evidence of executive ownership or eventual vesting.
execution · 2/4 · Reported productivity savings and the completed IFP transaction demonstrate delivery through operating and transaction outcomes. Missed 2025 incentive targets, China disruption and extension of the transformation through 2028 temper performance. The 95% savings figure combines realized savings with actions merely approved.
governance · 3/4 · Twelve of thirteen directors and the principal oversight committees are disclosed as independent, with special-meeting and proxy-access rights. Completed shareholder votes confirm electoral and advisory processes. Combined Chairman and CEO roles remain, and structural protections do not establish exceptional oversight effectiveness.
Evidence
Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No.
2025 Annual Report, Item 1, brand portfolio · Filed 12/02/2026
1 or No. 2 share positions in approximately 70 countries and encompass five global daily-need product categories: Baby & Child Care, Adult Care, Feminine Care, Family Care, and Professional.
2025 Annual Report, Item 1, reported market positions · Filed 12/02/2026
Patents and Trademarks
We own various patents and trademarks registered domestically and in many foreign countries.
2025 Annual Report, Patents and Trademarks · Filed 12/02/2026
The principal methods and elements of competition include brand recognition and loyalty, product innovation, quality and performance, price, and marketing and distribution capabilities.
2025 Annual Report, Competition · Filed 12/02/2026
The introduction of a new consumer product (whether improved or newly developed) usually requires substantial expenditures for advertising and marketing to gain recognition in the marketplace.
2025 Annual Report, Competition, product introduction spending · Filed 12/02/2026
If a product gains consumer acceptance, it normally requires continued advertising and promotional support to maintain its relative market position.
2025 Annual Report, Competition, ongoing brand support · Filed 12/02/2026
With the consolidation of retail trade, both traditional retailers and e-tailers, we are dependent on key customers, and some of these customers, including large-format retailers and large e-tailers, may have significant bargaining power.
2025 Annual Report, retailer concentration and bargaining power · Filed 12/02/2026
Our largest customer, Walmart Inc., represented approximately 16% in 2025 and 2024 and 15% in 2023 of our net sales from continuing operations.
2025 Annual Report, Distribution and Customers · Filed 12/02/2026
These reviews and the subsequent revisions in the projections highlighted challenges for the Softex business arising from modified consumer shopping behavior in the post-COVID-19 period, inflationary pressures and other macroeconomic factors and increased competitive activity in the region.
2025 Annual Report, Softex impairment assessment · Filed 12/02/2026
As a result of separate management reviews, we also have revised internal financial projections associated with our acquisition of a controlling interest in Thinx as a result of performance below expectations due to the impact of modified consumer shopping behavior in the post-COVID-19 period.
2025 Annual Report, Thinx underperformance assessment · Filed 12/02/2026
As a result of the interim impairment assessments, we recognized impairment charges, principally arising from the impairment charge of $593 related to the Softex business, totaling $658 pre-tax ($483 after-tax) to write-down these intangible assets to their respective fair values aggregating to $188 as of June 30, 2023.
2025 Annual Report, historical intangible asset impairments · Filed 12/02/2026
Organic sales increased 1.7% driven by volume gains of 2.5%, partially offset by lower pricing.
2025 Annual Report, Net Sales · Filed 12/02/2026
Excluding these charges, adjusted gross margin was 37.3%, a decrease of 100 basis points primarily due to unfavorable pricing net of cost inflation, including tariff impacts, and supply chain related investments, partially offset by gross productivity savings from integrated margin management of approximately $460.
2025 Annual Report, adjusted gross margin and productivity · Filed 12/02/2026
We adjust our product prices based on a number of variables including demand, the competitive environment, technological improvements, product innovations and changes in our raw material, distribution, energy and other input costs.
2025 Annual Report, product pricing discretion · Filed 12/02/2026
In total, we expect approximately 280 million shares of common stock to be issued and approximately $6.7 billion to be paid for the Merger Consideration.
2025 Annual Report, expected merger consideration · Filed 12/02/2026
Net Sales
Drivers of the changes in net sales were:
Percent Change in Net Sales
Volume
Mix/Other
Net Price
Divestitures and Business Exits(c)
Currency Translation
Total(a)
Organic(b)
Three Months Ended
(0.1)
0.4
(0.5)
(0.4)
1.1
0.6
(0.1)
Six Months Ended
1.3
0.4
(0.5)
(1.1)
1.5
1.6
1.2
(a) Total may not sum across due to rounding.
June 2026 Form 10-Q, Net Sales, quarterly and first-half drivers · Filed 04/08/2026
While we are effectively navigating the situation, the impact from the spread of false claims across social media significantly impacted our diaper sales in China in the second quarter of 2026 and is expected to further impact sales and profits in the near term.
June 2026 Form 10-Q, China diaper sales disruption · Filed 04/08/2026
The increase was primarily due to one-time tariff refunds and gross productivity savings from integrated margin management of approximately $235, partially offset by supply chain related investments and unfavorable pricing net of cost inflation.
June 2026 Form 10-Q, gross profit improvement drivers · Filed 04/08/2026
Excluding these charges, adjusted gross margin increased 60 basis points to 38.3%.
June 2026 Form 10-Q, first-half adjusted gross margin · Filed 04/08/2026
5 KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30 (In millions) 2026 2025 Operating Activities Net income $ 1,025 $ 1,085 Depreciation and amortization 360 440 Stock-based compensation 64 73 Deferred income taxes (83) (30) Net (gains) losses on asset and business dispositions (7) 36 Equity companies' earnings (in excess of) less than dividends paid (65) (50) Operating working capital 399 (471) Postretirement benefits (2) 9 Other (38) 5 Cash Provided by Operations 1,653 1,097 Investing Activities Capital spending (776) (401) Proceeds from asset and business dispositions 28 12 Investments in time deposits (166) (227) Maturities of time deposits 132 282 Other 17 22 Cash Used for Investing (765) (312) Financing Activities Cash dividends paid (843) (824) Change in short-term debt (252) 51 Debt proceeds 1,329 — Debt repayments (400) (250) Proceeds from exercise of stock options — 36 Repurchases of common stock — (120) Cash dividends paid to noncontrolling interests (15) (18) Other (41) (58) Cash Used for Financing (222) (1,183) Effect of Exchange Rate Changes on Cash and Cash Equivalents (4) 34 Change in Cash and Cash Equivalents 662 (364) Cash and cash equivalents from continuing operations - beginning of period 688 1,010 Cash and cash equivalents from discontinued operations - beginning of period(a) 13 11 Cash and Cash Equivalents - Beginning of Period 701 1,021 Cash and cash equivalents from continuing operations - end of period 956 634 Cash and cash equivalents from discontinued operations - end of period(a) 407 23 Cash and Cash Equivalents - End of Period $ 1,363 $ 657 (a) Included in Current assets of discontinued operations.
June 2026 Form 10-Q, consolidated first-half cash flows · Filed 04/08/2026
The increase was driven primarily by an insurance recovery associated with the settlement of claims from a previous acquisition and favorable changes in operating working capital, due in part to timing and lower incentive payments in the current year.
June 2026 Form 10-Q, operating cash flow improvement drivers · Filed 04/08/2026
During the second quarter of 2026, our Board of Directors approved an extension of the 2024 Transformation Initiative through the end of 2028.
June 2026 Form 10-Q, transformation extension · Filed 04/08/2026
Through June 30, 2026, cumulative pre-tax charges for the 2024 Transformation Initiative were $913 ($706 after-tax), and approximately 95% of the total expected selling, general and administrative expense savings have been realized or approved for action program to date.
June 2026 Form 10-Q, cumulative transformation charges and savings status · Filed 04/08/2026
Note 11. Subsequent Events
On July 1, 2026, all consultation requirements and customary closing conditions set forth in the Purchase Agreement were satisfied and the IFP Transaction was completed for a cash purchase price of approximately $1.3 billion, subject to certain post-closing adjustments.
June 2026 Form 10-Q, Note 11, July 1 IFP closing · Filed 04/08/2026
A portion of the cash proceeds is expected to be attributed to a long-term license granted to the Joint Venture for the use of certain of Kimberly-Clark’s global brands, patents, and know-how in manufacturing.
June 2026 Form 10-Q, Note 11, long-term intellectual property license · Filed 04/08/2026
Completion of the Kenvue Acquisition, which is expected to take place in the second half of 2026, remains subject to the satisfaction of other customary closing conditions, as described in the Merger Agreement, including the receipt of foreign regulatory approvals.
June 2026 Form 10-Q, pending Kenvue acquisition · Filed 04/08/2026
Personal Care categories gained weighted share in the quarter with strong gains in Diapers and Pants.
Second-quarter 2026 earnings release, IPC weighted share gains · Filed 04/08/2026
Year-to-date organic sales increased 0.5 percent, as volume growth of 0.8 percent, led by gains in Consumer Tissue and Professional categories, was partially offset by price-related investments to drive consumer trial of new products.
Second-quarter 2026 earnings release, North America volume and trial pricing · Filed 04/08/2026
Operating profit of $2.5 billion increased 18.8% primarily due to favorable pricing net of inflation and gross productivity savings.
2024 Annual Report, North America 2023 profit drivers · Filed 13/02/2025
Organic sales benefited from higher net selling prices of 7.8%, primarily from hyperinflationary economies, and volume growth of 0.9%, led by China.
2024 Annual Report, IPC 2024 pricing and volume · Filed 13/02/2025
The decrease in volumes primarily reflected expected elasticity from pricing actions.
2023 Annual Report, volume elasticity from pricing · Filed 08/02/2024
Target grant values were approved in February 2025 and were divided into two types: •Performance-based restricted share units (60 percent of the target grant value) which will vest on the third anniversary of the grant date.
2026 Proxy Statement, approved 2025 equity grant allocation · Filed 23/03/2026
Subject to accelerated vesting as described in “Potential Payments on Termination or Change of Control,” performance-based restricted share unit awards granted in 2023, 2024 and 2025 vest on the third anniversary of the grant date, in a range from zero to 200 percent of the target levels indicated based on the achievement of specific performance goals.
2026 Proxy Statement, performance-based award vesting conditions · Filed 23/03/2026
Under the Committee’s exception guidelines regarding our annual and long-term equity incentive program measures, the Committee has adjusted in the past, and may adjust in the future, the calculation of financial measures for these incentive programs to eliminate the effect of the types of items or events described above.
2026 Proxy Statement, incentive measure adjustment discretion · Filed 23/03/2026
88 2026 Proxy Statement Proposal 4 – Stockholder proposal to require independent board chair In addition to the strong Independent Lead Director role, our Board structure and corporate governance practices demonstrate our commitment to effective governance and accountability to our stockholders, including: •a majority of our directors (12 out of 13) are independent; •all of the members and Chairs of the Audit Committee, Management Development and Compensation Committee and Nominating and Corporate Governance Committee are independent; •the Board and each Board committee have the authority to hire independent legal, financial or other advisors at the company's expense; •our independent directors hold regular meetings in executive sessions to discuss matters important to the company, including matters related to management; •our stockholders have access to strong stockholder rights, including the right to call a special meeting of stockholders and proxy access; and •we regularly engage with investors to understand their perspective on a variety of topics, including our approach to director refreshment, our corporate governance practices, and our executive compensation program.
2026 Proxy Statement, board independence and shareholder rights · Filed 23/03/2026
Chairman and CEO Positions The Board’s current view is that a combined Chairman and CEO position, coupled with a predominantly independent board and a proactive, independent Lead Director, promotes candid discourse, informed business considerations and responsible corporate governance.
2026 Proxy Statement, combined Chairman and CEO positions · Filed 23/03/2026
Performance Measure 2025 Results 2025 Target Organic sales growth* 1.1 % 2.5 % Adjusted EPS** $ 7.37 $ 7.56 * Organic sales growth and Adjusted EPS are non-GAAP financial measures.
2026 Proxy Statement, 2025 incentive results versus targets · Filed 23/03/2026
(b) The stockholders (1) elected all of the Corporation’s nominees for director, (2) ratified the selection of Deloitte & Touche LLP as our independent auditors for 2026, (3) approved the compensation of our named executive officers on an advisory basis, and (4) did not approve the stockholder proposal to require an independent Board Chair.
May 14, 2026 Form 8-K, completed shareholder votes · Filed 14/05/2026
Adjusted Earnings per Share Attributable to Kimberly-Clark to see a low single digit decline on a constant-currency basis.
October 15, 2026 filed release, forward-looking adjusted EPS outlook · Filed 15/10/2026
