Kimberly Clark reports $1.79 billion net income for Q3 2026

Cover page 2 changes

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For the quarterly period ended June September 30, 2026

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As of July 28, October 29, 2026, there were 332,579,038 332,614,474 shares of the Corporation's common stock outstanding.

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Financial statements 442 changes

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June 30 Six Months Ended

September 30 Nine Months Ended

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Net Sales $ 4,189 $ 4,163 $ 8,352 $ 8,217

Cost of products sold 2,586 2,707 5,215 5,252

Gross Profit 1,603 1,456 3,137 2,965

Marketing, research and general expenses 1,004 863 1,924 1,718

Operating Profit 633 592 1,386 1,223

Nonoperating expense ( 12 ) ( 17 ) ( 27 ) ( 34 )

Interest income 4 5 9 12

Interest expense ( 53 ) ( 67 ) ( 111 ) ( 131 )

Provision for income taxes ( 217 ) ( 116 ) ( 381 ) ( 247 )

Income from Continuing Operations 410 444 984 914

Net Income 350 512 1,025 1,085

Net Sales $ 4,134 $ 4,150 $ 12,486 $ 12,367

Cost of products sold 2,693 2,657 7,908 7,909

Gross Profit 1,441 1,493 4,578 4,458

Marketing, research and general expenses 912 855 2,836 2,573

Other (income) and expense, net ( 34 ) 1 13 17 ( 173 160 ) 24 41

Operating Profit 516 621 1,902 1,844

Nonoperating expense ( 13 ) ( 16 ) ( 40 ) ( 50 )

Interest income 16 6 25 18

Interest expense ( 48 ) ( 65 ) ( 159 ) ( 196 )

Income from Continuing Operations Before Income Taxes and Equity Interests 572 513 1,257 1,070 471 546 1,728 1,616

Provision for income taxes ( 95 ) ( 248 ) ( 476 ) ( 495 )

Income from Continuing Operations Before Equity Interests 355 397 876 823 376 298 1,252 1,121

Share of net income of equity companies 55 47 108 91 29 46 137 137

Income from Continuing Operations 405 344 1,389 1,258

Income (Loss) from Discontinued Operations, Net of Income Taxes ( 60 ) 68 41 171 1,395 110 1,436 281

Net Income 1,800 454 2,825 1,539

Net income attributable to noncontrolling interests ( 5 7 ) ( 3 8 ) ( 15 22 ) ( 9 17 )

Net Income Attributable to Kimberly-Clark Corporation $ 345 1,793 $ 509 446 $ 1,010 2,803 $ 1,076 1,522

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Continuing operations $ 1.22 $ 1.33 $ 2.92 $ 2.73

Discontinued operations ( 0.18 ) 0.20 0.12 0.51

Basic Earnings per Share $ 1.04 $ 1.53 $ 3.04 $ 3.24

Continuing operations $ 1.22 $ 1.33 $ 2.91 $ 2.72

Discontinued operations ( 0.18 ) 0.20 0.12 0.51

Diluted Earnings per Share $ 1.04 $ 1.53 $ 3.03 $ 3.23

Continuing operations $ 1.20 $ 1.01 $ 4.11 $ 3.74

Discontinued operations 4.19 0.33 4.33 0.85

Basic Earnings per Share $ 5.39 $ 1.34 $ 8.44 $ 4.59

Continuing operations $ 1.19 $ 1.01 $ 4.10 $ 3.73

Discontinued operations 4.18 0.33 4.31 0.84

Diluted Earnings per Share $ 5.37 $ 1.34 $ 8.41 $ 4.57

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June 30 Six Months Ended

September 30 Nine Months Ended

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Net Income $ 350 $ 512 $ 1,025 $ 1,085

Net Income $ 1,800 $ 454 $ 2,825 $ 1,539

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Unrealized currency translation adjustments 25 224 ( 8 ) 372

Employee postretirement benefits 27 ( 5 ) 41 ( 9 )

Cash flow hedges ( 27 ) ( 86 ) 21 ( 99 )

Comprehensive Income 375 645 1,079 1,349

Unrealized currency translation adjustments ( 330 ) ( 11 ) ( 338 ) 361

Employee postretirement benefits 7 13 48 4

Cash flow hedges 112 5 133 ( 94 )

Total Other Comprehensive Income (Loss), Net of Tax 25 133 54 264 ( 211 ) 7 ( 157 ) 271

Comprehensive Income 1,589 461 2,668 1,810

Comprehensive income attributable to noncontrolling interests ( 4 17 ) ( 9 5 ) ( 11 28 ) ( 15 20 )

Comprehensive Income Attributable to Kimberly-Clark Corporation $ 371 1,572 $ 636 456 $ 1,068 2,640 $ 1,334 1,790

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TOTAL ASSETS $ 18,554 $ 17,098

(In millions, except par value) June September 30, 2026 December 31, 2025

Cash and cash equivalents $ 956 1,874 $ 688

Accounts receivable, net 1,858 1,975 1,892

Inventories 1,539 1,579 1,475

Other current assets 636 517 535

Current assets of discontinued operations 1,365 — 720

Total Current Assets 6,354 5,945 5,310

Property, Plant and Equipment, Net 6,948 7,067 6,775

Investments in Equity Companies 381 1,592 330

Goodwill 1,831 1,828 1,839

Other Intangible Assets, Net 73 72 77

Other Assets 1,036 1,215 1,062

Non-current Assets of Discontinued Operations 1,931 — 1,705

TOTAL ASSETS $ 17,719 $ 17,098

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Debt payable within one year $ 43 621 $ 694

Trade accounts payable 3,372 3,417 3,388

Accrued expenses and other current liabilities 2,269 2,205 1,888

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Other Liabilities 622 646

Current liabilities of discontinued operations 881 — 740

Total Current Liabilities 6,988 6,666 7,125

Long-Term Debt 6,474 5,870 6,474

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MD&A 192 changes

This Management's Discussion and Analysis ("MD&A") of Financial Condition and Results of Operations is intended to provide investors with an understanding of our recent performance, financial condition, cash flows and future prospects. The following MD&A should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 and the Unaudited Interim Condensed Consolidated Financial Statements and related notes contained in this Quarterly Report on Form 10-Q. Our analysis compares results for the three and six nine months ended June September 30, 2026 to the same periods in 2025. As discussed in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements, the results and related assets and liabilities of the IFP Business are reported as discontinued operations. As a result, unless specifically stated, all discussions included below reflect continuing operations for all periods presented. Any reference to "N.M." indicates the calculation is not meaningful. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted. The following will be discussed and analyzed:

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During the second quarter of 2026, false allegations regarding the quality of certain diaper brands in the China market emerged and were carried across social media channels. Independent testing conducted by a government-certified third party Recent findings from Chinese authorities refuted these allegations and confirmed the quality and safety of our such products. refuting the false allegations. While we are effectively navigating the situation, the impact from recovery will take time, these findings reinforce our confidence in the spread safety of our products. These false claims across social media allegations significantly impacted affected our diaper sales in China in during the second quarter and third quarters of 2026 and is are expected to further impact sales and profits in the near term. As consumer demand stabilizes, we remain focused on rebuilding trust through transparent communication, continued investment behind our brands, and disciplined execution.

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Ongoing geopolitical conflicts in the Middle East have led to disruptions in global energy supplies and volatility in global energy prices, including the prices for certain raw materials that are principally derived from petroleum, which may contribute to inflationary pressures, disrupt global supply chains and adversely impact consumer spending patterns. Based on the current market environment and assuming oil prices remain at current levels For the remainder of the full year, we estimate incremental input costs of approximately $150 $250 (prior to consideration of mitigation actions). during the remainder of 2026. We are continuing to evaluate the evolving macroeconomic environment and our ability to mitigate the impact on our business, consolidated results of operations and financial condition.

Pending Acquisition of Kenvue, Inc.

On November 2, 2025, we entered into an Agreement and Plan of Merger (the "Merger Agreement") to acquire the outstanding equity interests of Kenvue, Inc. ("Kenvue"), a global consumer health leader, for stock and cash consideration (the "Kenvue Acquisition"). Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of each of Kimberly-Clark and Kenvue, each share of Kenvue common stock, par value $0.01 per share, issued and outstanding at the close of the Kenvue Acquisition (subject to certain provisions within of the Merger Agreement) will be converted into the right to receive (i) 0.14625 shares of Kimberly-Clark common stock, par value $1.25 per share (the "Stock Consideration"), plus (ii) $3.50 in cash (the "Cash Consideration" and, together with the Stock Consideration, the "Merger Consideration"). 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. The Cash Consideration is expected Furthermore, each Kenvue equity award outstanding immediately prior to be funded through a combination of cash on hand, proceeds from new debt issuance, and proceeds from the IFP Transaction (as defined below). The actual value close of the transaction Kenvue Acquisition will fluctuate based upon changes in the price of Kimberly-Clark common stock be converted into an equivalent K-C equity award, subject to and in accordance with the number of shares provisions of Kenvue common stock outstanding at the time of closing. Merger Agreement.

On November 2, 2026, we completed the Kenvue Acquisition for Cash Consideration of approximately $6.7 billion. In respect of the Kenvue common stock issued and outstanding immediately prior to the effective time of the Kenvue Acquisition, we have delivered or caused to be delivered approximately 281.1 million shares of K-C common stock to Kenvue shareholders. The Cash Consideration was funded through a combination of cash on hand, proceeds from new debt issuance, and borrowings under our commercial paper program.

During the three and six nine months ended June September 30, 2026, we incurred $109 $106 and $157, $263, respectively, of acquisition-related costs in connection with the Kenvue Acquisition, which are included in Marketing, research and general expenses. See Item 1, Note Notes 4 and 12 to the Unaudited Interim Condensed Consolidated Financial Statements for further details. information.

Kenvue Integration Program

On October 30, 2026, in connection with the Kenvue Acquisition, our Board of Directors approved the Kenvue Integration Program (the "Program") which is intended to achieve certain operating profit synergies by 2030. Actions contemplated under the Program commenced on November 2, 2026 and are expected to be completed by December 31, 2029. The Program is expected to result in cumulative pre-tax charges of approximately $3.1 billion ($2.5 billion cash and $0.6 billion non-cash) over this period, with cash charges primarily related to supply chain network optimization (approximately $800), enterprise resource planning and technology integration (approximately $600), workforce optimization (approximately $400), advisory services (approximately $400) and program management and other restructuring and integration costs (approximately $300). Non-cash charges are primarily related to supply chain network optimization.

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As a result of the IFP Transaction discussed above, the Company's continuing operations are now organized into two reportable segments defined by geographic region: North America ("NA") and International Personal Care ("IPC"). The results of the IFP Business are excluded from segment results for all periods presented. Segments are described in greater detail in Item 1, Note 9 to the Unaudited Interim Condensed Consolidated Financial Statements.

On June 5, 2025, we announced that July 1, 2026, all consultation requirements and customary closing conditions set forth in the Company will form a joint venture with Suzano S.A. ("Suzano") Equity and Asset Purchase Agreement (the "Purchase Agreement") with Suzano International Holding B.V. ("Buyer"), a wholly-owned subsidiary of Suzano ("Buyer"), comprised of S.A. ("Suzano"), were satisfied and the transaction was completed. Pursuant to the Purchase Agreement, we contributed substantially all of the operations assets and liabilities of the Company's former IFP segment (the "IFP Business") At to FamPro Tissue Holdings B.V. (formerly known as Kimberly-Clark IFP NewCo B.V.), a newly formed joint venture (the time of "Arbex Joint Venture"). At closing, Buyer will acquire acquired a 51% interest in the Arbex Joint Venture for a cash purchase price of approximately $1.7 $1.3 billion, subject to certain closing post-closing adjustments, set forth in the Equity and Asset Purchase Agreement (the "Purchase Agreement"), and we will retain retained a 49% equity interest (the "IFP Transaction"). As a result, the results of operations the IFP Business through the closing date and applicable assets and liabilities as of the IFP Business December 31, 2025 are reported as discontinued operations in the Company's financial statements and excluded from segment results for all periods presented. On July 1, 2026, subsequent to Beginning in the third quarter ended June 30, of 2026, all consultation requirements and customary closing conditions set forth in our share of the Purchase Agreement were satisfied and Arbex Joint Venture's income is reported in Share of net income of equity companies in the IFP Transaction was completed. Condensed Consolidated Statements of Income. See Item 1, Note Notes 1 Note 3 and Note 11 3 to the Unaudited Interim Condensed Consolidated Financial Statements for further details. information.

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60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. For the three months ended June 30, 2026 and 2025, total 2024 Transformation Initiative charges were $54 pre-tax ($40 after-tax) and $122 pre-tax ($95 after-tax), respectively. For the six months ended June 30, 2026 and 2025, total 2024 Transformation Initiative charges were $105 pre-tax ($72 after-tax), and $199 pre-tax ($172 after-tax), respectively. 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.

The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4% to 5%. Certain actions under the 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution. During the second quarter of 2026, our Board of Directors approved an extension of the 2024 Transformation Initiative through the end of 2028. Total pre-tax savings are expected to be $3.0 billion in gross productivity; inclusive of input cost and manufacturing cost savings, and $200 in selling, general and administrative expenses. Total pre-tax costs are anticipated to be approximately $1.5 billion, with cash costs expected to be approximately 60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. For the three months ended September 30, 2026 and 2025, total 2024 Transformation Initiative charges were $55 pre-tax ($44 after-tax) and $62 pre-tax ($50 after-tax), respectively. For the nine months ended September 30, 2026 and 2025, total 2024 Transformation Initiative charges were $160 pre-tax ($116 after-tax), and $261 pre-tax ($222 after-tax), respectively. Through September 30, 2026, cumulative pre-tax charges for the 2024 Transformation Initiative were $968 ($750 after-tax), and substantially all expected selling, general and administrative expense savings have been realized or approved for action program to date.

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Three Months Ended June 30 Six Months Ended June 30

Three Months Ended September 30 Nine Months Ended September 30

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Net Sales $ 4,189 $ 4,163 0.6 % $ 8,352 $ 8,217 1.6 %

Gross Profit 1,603 1,456 10.1 % 3,137 2,965 5.8 %

Operating Profit 633 592 6.9 % 1,386 1,223 13.3 %

Provision for income taxes (217) (116) 87.1 % (381) (247) 54.3 %

Income from Continuing Operations 410 444 (7.7) % 984 914 7.7 %

Income (Loss) from Discontinued Operations, Net of Income Taxes (60) 68 (188.2) % 41 171 (76.0) %

Net Income Attributable to Kimberly-Clark Corporation 345 509 (32.2) % 1,010 1,076 (6.1) %

Diluted Earnings per Share from Continuing Operations 1.22 1.33 (8.3) % 2.91 2.72 7.0 %

Diluted Earnings per Share from Discontinued Operations (0.18) 0.20 (190.0) % 0.12 0.51 (76.5) %

Net Sales $ 4,134 $ 4,150 (0.4) % $ 12,486 $ 12,367 1.0 %

Gross Profit 1,441 1,493 (3.5) % 4,578 4,458 2.7 %

Operating Profit 516 621 (16.9) % 1,902 1,844 3.1 %

Provision for income taxes (95) (248) (61.7) % (476) (495) (3.8) %

Income from Continuing Operations 405 344 17.7 % 1,389 1,258 10.4 %

Income from Discontinued Operations, Net of Income Taxes 1,395 110 N.M. 1,436 281 411.0 %

Net Income Attributable to Kimberly-Clark Corporation 1,793 446 302.0 % 2,803 1,522 84.2 %

Diluted Earnings per Share from Continuing Operations 1.19 1.01 17.8 % 4.10 3.73 9.9 %

Diluted Earnings per Share from Discontinued Operations 4.18 0.33 N.M. 4.31 0.84 413.1 %

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Three Months Ended June 30 Six Months Ended June 30

Three Months Ended September 30 Nine Months Ended September 30

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Six Months Ended 1.3 0.4 (0.5) (1.1) 1.5 1.6 1.2

Three Months Ended (0.3) 0.1 0.4 (0.5) (0.4) (1.1) 0.6 (0.1) 0.7 0.3 (0.4) (1.3)

Nine Months Ended 0.7 0.3 (0.7) (0.5) 1.1 1.0 0.3

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Net sales of $4.2 billion for the three months ended June 30, 2026 increased 0.6% primarily driven by favorable currency impacts, while organic sales growth was relatively flat compared to the prior year, including an approximately 50 basis point negative impact from the China social media disruption.

Net sales of $8.4 billion for the six months ended June 30, 2026 increased 1.6% primarily driven by organic sales growth and favorable currency impacts, partially offset by divestitures and business exits. Organic sales increased 1.2% primarily from volume gains of 1.3%.

Gross and Operating Profits

(c) Impact of the exit of the Company's private label diaper business in the United States and other exited businesses and markets in conjunction with the 2024 Transformation Initiative. Also includes the impact of sales recognized under the Supply Agreements with the Arbex Joint Venture formed as part of the IFP Transaction.

Net sales of $4.1 billion for the three months ended September 30, 2026 were relatively flat compared to the prior year, as favorable impacts from sales recognized under the Supply Agreements with the Arbex Joint Venture and favorable currency impacts were offset by a decline in organic sales. Organic sales decreased 1.3%, primarily driven by lower pricing, while volumes were slightly down 0.3% driven by an approximately 270 basis point headwind from the China social media disruption.

Net sales of $12.5 billion for the nine months ended September 30, 2026 increased 1.0% primarily driven by favorable currency impacts. Organic sales increased 0.3%, as volume and mix gains were partially offset by lower pricing.

Gross profit of $1.6 $1.4 billion for the three months ended June September 30, 2026 increased 10.1%, decreased 3.5%, while gross margin of 38.3% increased 330 34.9% decreased 110 basis points. Gross margin in the current and prior year included approximately 50 70 basis points and 200 80 basis points, respectively, of charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense and asset write-offs. Excluding these charges, adjusted gross margin increased 190 decreased 130 basis points to 38.8%. 35.5%. The increase decrease was primarily due to one-time tariff refunds unfavorable pricing net of cost inflation and supply chain related investments, partially offset by gross productivity savings from integrated margin management of approximately $120, partially offset by unfavorable pricing net of cost inflation. $115.

Gross profit of $3.1 $4.6 billion for the six nine months ended June September 30, 2026 increased 5.8%, 2.7%, while gross margin of 37.6% 36.7% increased 150 70 basis points. Gross margin in the current and prior year included approximately 80 70 basis points and 160 140 basis points, respectively, of charges related to the 2024 Transformation Initiative, primarily for incremental depreciation expense and asset write-offs. Excluding these charges, adjusted gross margin increased 60 basis points to 38.3%. The increase of 37.4% was primarily due flat compared to the prior year, as one-time tariff refunds and gross productivity savings from integrated margin management of approximately $235, partially $350 were largely offset by supply chain related investments and unfavorable pricing net of cost inflation and supply chain related investments.

Operating profit for the three months ended June September 30, 2026 was $633 $516 compared to $592 $621 in the prior year. Results included charges related to the 2024 Transformation Initiative of $54 $55 and $121 $62 for the three months ended June September 30, 2026 and 2025, respectively. Results in current quarter also included charges of $109 $106 related to the Kenvue Acquisition. and a benefit of $39 related to Brazil business tax credits.

Operating profit for the six nine months ended June September 30, 2026 was $1.4 $1.9 billion compared to $1.2 $1.8 billion in the prior year. Results included charges related to the 2024 Transformation Initiative of $105 $160 and $196 $258 for the six nine months ended June September 30, 2026 and 2025, respectively. Results in the current year also included charges of $157 $263 related to the Kenvue Acquisition, a benefit of $120 related to the settlement of insurance claims from a previous acquisition and a benefit of $39 $37 related to Brazil business tax credits.

Excluding these items, adjusted operating profit for the three and six nine months ended June September 30, 2026 was $757 $677 and $1.5 $2.2 billion, respectively, compared to $713 $683 and $1.4 $2.1 billion in the prior year.

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Three Months Ended (3.0) (2.8) — 14.2 1.2 (3.4) 6.2

Six Months Ended (1.3) (2.9) (2.3) 9.5 1.9 — 4.9

Three Months Ended (1.0) (6.7) (11.1) 10.1 0.2 7.6 (0.9)

Nine Months Ended (1.2) (4.1) (5.1) 9.7 1.3 2.4 3.0

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Adjusted operating profit for the three and six months ended June 30, 2026 increased 6.2% and 4.9%, respectively, driven by the increase in adjusted gross profit discussed above and favorable currency impacts. These gains were partially offset by impacts of approximately 210 basis points and 340 basis points for the three and six months ended June 30, 2026, respectively, from a combination of business exits and the China social media disruption.

Adjusted operating profit for the three months ended September 30, 2026 decreased 0.9% driven by unfavorable pricing net of cost inflation and headwinds from the China social media disruption of approximately 530 basis points, partially offset by lower marketing, research and general expenses.

Adjusted operating profit for the nine months ended September 30, 2026 increased 3.0%, primarily driven by favorable currency impacts, partially offset by headwinds from the China social media disruption of approximately 210 basis points.

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Income from Continuing Operations for the three months ended June 30, 2026 was $410 compared to $444 in the prior year, as the increase in operating profit drivers discussed above was more than offset by higher income tax expense.

Income from Continuing Operations for the six months ended June 30, 2026 was $984 compared to $914 in the prior year, as the increase in operating profit drivers discussed above, coupled with higher income from equity companies, was partially offset by higher income tax expense.

Our share of net income of equity companies for the three and six months ended June 30, 2026 was $55 and $108, respectively, compared to $47 and $91 in the prior year. The increases for each period were primarily due to favorable currency impacts and pricing net of cost inflation, partially offset by higher general and administrative expenses.

The effective tax rate for the three and six months ended June 30, 2026 was 37.9% and 30.3%, respectively, compared to 22.6% and 23.1% in the prior year. The adjusted effective tax rate for the three and six months ended June 30, 2026 was 21.1% and 23.6%, respectively, compared to 20.9% and 20.8% in the prior year. The increase was driven by the lapping of benefits from the resolution of certain tax matters in the first half of 2025.

Diluted earnings per share for the six months ended June 30, 2026 were $2.91 compared to $2.72 in the prior year, reflective of the increase in income from continuing operations discussed above. Adjusted diluted earnings per share for the six months ended June 30, 2026 were $3.40, representing a 4.6% increase compared to the prior year, driven by higher adjusted operating profit, lower net interest expense and higher income from equity companies, partially offset by a higher adjusted effective tax rate.

Income (loss) from discontinued operations, net of income taxes for the three and six months ended June 30, 2026 was $(60) and $41, respectively, compared to $68 and $171 in the prior year. The decrease was driven by pre-tax separation costs of $72 and $104 for the three and six months ended June 30, 2026, respectively, compared to $33 in the prior year. Current year results also included net tax charges of $107 million related to the impacts from certain reorganization activities associated with the IFP Transaction. The incremental charges in the current year were partially offset by lower depreciation expense due to reporting requirements for discontinued operations.

Income from Continuing Operations for the three and nine months ended September 30, 2026 was $405 and $1.4 billion, respectively, compared to $344 and $1.3 billion in the prior year, driven primarily by changes in operating profit discussed above and lower income tax expense.

The effective tax rate for the three and nine months ended September 30, 2026 was 20.2% and 27.5%, respectively, compared to 45.4% and 30.6% in the prior year. The decreases in each period were primarily driven by incremental tax charges in the prior year as a result of the One Big Beautiful Bill Act ("OBBBA") relating to a valuation allowance on U.S. foreign tax credits and benefits in the current year from certain tax initiatives. The adjusted effective tax rate for the three and nine months ended September 30, 2026 was 19.5% and 22.3%, respectively, compared to 26.5% and 22.6% in the prior year.

Our share of net income of equity companies for the three and nine months ended September 30, 2026 was $29 and $137, respectively, compared to $46 and $137 in the prior year. The decrease for the three months ended September 30, 2026 was primarily driven by our share of the Arbex Joint Venture's net loss of $20, which was inclusive of $51 pre-tax ($38 after-tax) of acquisition accounting and restructuring charges. This loss was offset in the year to date period by higher earnings from Kimberly-Clark de Mexico, S.A.B. de C.V., primarily reflecting favorable currency impacts.

Diluted earnings per share for the three months ended June September 30, 2026 were $1.22 $1.19 compared to $1.33 $1.01 in the prior year, reflective of the decrease in income from continuing operations lower effective tax rate during the period discussed above. Adjusted diluted earnings per share for the three months ended June September 30, 2026 were $1.80, $1.70, representing a 10.4% 17.2% increase compared to the prior year, primarily driven by higher adjusted operating profit, lower net interest expense and higher income from equity companies. a lower adjusted effective tax rate.

Diluted earnings per share for the nine months ended September 30, 2026 were $4.10 compared to $3.73 in the prior year, reflective of higher operating profit and lower net interest expense. Adjusted diluted earnings per share for the nine months ended September 30, 2026 were $5.10, representing an 8.5% increase compared to the prior year, driven by higher adjusted operating profit and lower net interest expense.

Income (Loss) from Discontinued Operations, Net of Income Taxes

Income from discontinued operations, net of income taxes for the three and nine months ended September 30, 2026 was $1.4 billion compared to $110 and $281 in the prior year. The increase was primarily driven by the pre-tax gain of approximately $1.4 billion recognized upon completion of the IFP Transaction, partially offset by the inclusion of a full nine months of results for the IFP Business in the prior year. In addition, results for the nine months ended September 30, 2026 included net tax charges of $104 related to the impacts from certain reorganization activities associated with the IFP Transaction.

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IPC 2.2 1.2 (0.8) — 4.1 6.5 2.5

IPC (4.6) — 0.1 0.9 0.9 (2.8) (4.6)

IPC (0.1) 0.8 (0.5) 0.3 0.9 (0.2) 3.0 3.4 0.1 3.1 4.0 1.0

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IPC (1.3) (1.4) (12.0) 13.1 4.6 (0.8) 2.2

IPC 2.8 (6.2) (10.2) 14.2 6.2 5.7 12.5

IPC (16.2) 0.8 (23.0) 1.5 1.2 3.0 (32.7)

IPC (4.0) (3.7) (14.8) 9.6 4.4 4.8 (3.7)

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(c) Impact of the exit of the Company's private label diaper business in the United States and other exited businesses and markets in conjunction with the 2024 Transformation Initiative. Also includes the impact of sales recognized under the Supply Agreements with the Arbex Joint Venture formed as part of the IFP Transaction.

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Three Months Ended June 30 Six Months Ended June 30

Three Months Ended September 30 Nine Months Ended September 30

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Net Sales $ 2,698 $ 2,730 (1.2) % $ 5,349 $ 5,398 (0.9) %

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Controls and procedures 1 change

As of June September 30, 2026, an evaluation was performed under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of June September 30, 2026. There were no changes in our internal control over financial reporting during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Unregistered sales of stock 1 change

1 unchanged paragraph

We repurchase shares of Kimberly-Clark common stock from time to time pursuant to publicly announced share repurchase programs. On January 22, 2021, our Board of Directors authorized a share repurchase program that allows for the repurchase of 40 million shares in an amount not to exceed $5 billion. As of June September 30, 2026, the Company has repurchased approximately 9.2 million shares and approximately 30.8 million shares remain available for repurchase under the program. No shares were repurchased during the three months ended June September 30, 2026.

Other information 1 change

(c) Our directors and officers may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Securities Exchange Act of 1934, as amended. During the three months ended June September 30, 2026, no such plans or other arrangements were adopted or terminated .

Exhibits 4 changes

Exhibit No. (10)q. Form of Award Agreements under 2021 Equity Participation Plan for Performance Restricted Stock Units, filed herewith.

Exhibit No. (10)r. Form of Award Agreements under 2021 Equity Participation Plan for Off-Cycle Time-Vested Restricted Stock Units, filed herewith.

Exhibit No. (10)t. Form of Award Agreements under 2021 Equity Participation Plan for Annual Time-Vested Restricted Stock Units, filed herewith.

Exhibit No. (10)v. Joi nt Ven ture Agreement Dated July 1, 2026 Among Suzano S.A., Kimberly-Clark Corporation and Certain of their Respected Aff iliated Entities, filed herewith.

16 unchanged paragraphs