Kimberly-Clark (KMB) shares surged 5.08% in pre-market trading on Friday following the release of its impressive second-quarter 2025 results and an upgraded full-year outlook. The maker of Kleenex tissues and Huggies diapers demonstrated strong performance across its product lines, defying broader economic challenges.
The company reported adjusted earnings per share of $1.92 for the quarter, significantly beating analysts' expectations of $1.67. Organic sales growth stood at a robust 3.9%, primarily driven by a noteworthy 5% increase in overall volumes. This growth came despite a slight 1.2% decline in prices compared to the previous year, highlighting the effectiveness of Kimberly-Clark's strategy to offer products across various price tiers to meet diverse consumer needs.
In light of the strong results, Kimberly-Clark raised its 2025 outlook. The company now expects adjusted earnings per share to grow at a low- to mid-single-digit rate on a constant-currency basis, an improvement from its previous forecast of flat-to-positive growth. This upgraded guidance reflects the company's confidence in its business model and market position, even as it navigates ongoing economic uncertainties and competitive pressures in the consumer goods sector.