That has shielded margins as Kimberly-Clark expands its affordable ranges and offers lower-priced products that still carry premium features to attract cost-conscious customers and fight competition.
The company, which had warned that steep U.S. import duties, especially on Chinese goods, would pressure profits, posted an adjusted gross margin of 37%, in line with a year earlier.
"We're encouraged that Kimberly's rhetoric stressed the importance of consumer-valued innovation and marketing alongside its reluctance to rent share by relying on promotions to drive volume," said Morningstar analyst Erin Lash.
Adjusted earnings per share of $1.86 came in above analysts' estimates of $1.81, according to data compiled by LSEG.
Net sales for the quarter ended December 30 totaled $4.08 billion, slightly shy of expectations of $4.09 billion.
Consumer goods bellwether Procter & Gamble also exceeded quarterly earnings expectations last week, despite revenue being slightly short of expectations.
Kimberly-Clark projects 2026 organic sales to be in line with or ahead of the roughly 2% average growth seen across the categories and markets it competes in.
It expects adjusted profit per share to grow at a double-digit rate, with margins expanding as it improves efficiencies.