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Stock-Based Compensation (Tables) | 12 Months Ended
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Dec. 28, 2025
Share-Based Payment Arrangement [Abstract] |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | Each stock option has a weighted-average exercise price of approximately $21.01 as of the Conversion Date. The fair value of each stock option was estimated using the Black-Scholes option valuation model. The assumptions used in calculating the fair value of the converted stock options were as follows:
Assumption |  | August 2023 Converted Stock Options
Expected volatility(1) |  | 16.5% – 21.4%
Expected dividend yield(2) |  | 3.2 | %
Risk-free rate(3) |  | 4.2% – 5.4%
Expected term(4) |  | 0.5 years – 6.5 years
(1) Expected volatility was based on the historical volatility of a selected group of the Company’s peers and other factors. (2) Expected dividend yield was calculated using the assumed dividend payout per common share as a percentage of the average Kenvue common share price for the prior three-month period, which was then annualized. (3) Risk-free rate was based on the U.S. Treasury yield curve in effect as of the Conversion Date. (4) Expected term was consistent with the historical experiences of J&J for awards similar to those in the Kenvue population. The grant date fair value of each stock option granted is estimated on the grant date using the Black-Scholes option valuation model. The weighted-average assumptions used in calculating the grant date fair value of stock options granted during the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023, were as follows:
|  |  |  |  |  |  |  | Fiscal Twelve Months Ended
|  |  |  |  |  |  |  | December 28, 2025 |  | December 29, 2024 |  | December 31, 2023
Expected volatility(1) |  |  |  |  |  |  |  | 22.7 | % |  | 21.3 | % |  | 20.8 | %
Expected dividend yield(2) |  |  |  |  |  |  |  | 3.7 | % |  | 3.9 | % |  | 3.5 | %
Risk-free rate(3) |  |  |  |  |  |  |  | 4.1 | % |  | 4.1 | % |  | 4.5 | %
Expected term(4) |  |  |  |  |  |  |  | 6 years |  | 6 years |  | 6 years
(1) For awards granted under the Kenvue 2023 Plan, expected volatility is based on the six-year historical volatility of a selected group of the Company’s peers and other factors. For stock options granted under the J&J Plans, expected volatility was based on a blended rate of 10-year weekly historical overall volatility rate and a five-week average implied volatility rate based on at-the-money traded J&J stock options with a contractual term of two years. (2) For stock options granted under the Kenvue 2023 Plan, expected dividend yield is calculated using the assumed dividend payout per common share as a percentage of the average Kenvue common share price for the prior three-month period, which is then annualized. For stock options granted under the J&J Plans, expected dividend yield was calculated using the assumed dividend payout per common share as a percentage of the spot J&J common share price as of the grant date. (3) Risk-free rate is based on the U.S. Treasury yield curve in effect as of the grant date for stock options granted under both the Kenvue 2023 Plan and the J&J Plans. (4) For stock options granted under the Kenvue 2023 Plan during the fiscal twelve months ended December 28, 2025 and December 29, 2024, expected term is calculated as the average of the vesting periods and the contractual terms of the stock options given the lack of trading history of Kenvue common stock as of the time of valuation. For stock options granted under the Kenvue 2023 Plan during the fiscal twelve months ended December 31, 2023, expected term was consistent with the historical experiences of J&J for awards similar to those in the Kenvue population. For stock options granted under the J&J Plans, expected term was calculated based on J&J’s historical data.
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | The components and classification of stock-based compensation expense for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023, were as follows:
|  |  |  | Fiscal Twelve Months Ended
(Dollars in Millions) |  |  |  |  | December 28, 2025 |  | December 29, 2024 |  | December 31, 2023(4)
Stock options |  |  |  |  |  | $ | 41 |  |  | $ | 84 |  |  | $ | 90 |
RSUs |  |  |  |  |  | 97 |  |  | 152 |  |  | 76 |
PSUs(1) |  |  |  |  |  | (2) |  |  | 18 |  |  | 22 |
Total stock-based compensation expense(2) |  |  |  |  |  | $ | 136 |  |  | $ | 254 |  |  | $ | 188 |
Cost of sales(3) |  |  |  |  |  | $ | 26 |  |  | $ | 100 |  |  | $ | 67 |
Selling, general, and administrative expenses(3) |  |  |  |  |  | 110 |  |  | 154 |  |  | 121 |
Total stock-based compensation expense(2) |  |  |  |  |  | $ | 136 |  |  | $ | 254 |  |  | $ | 188 |
(1) The reversal in stock-based compensation expense attributable to PSUs during the fiscal twelve months ended December 28, 2025 is primarily driven by a reduction in the estimated achievement of the specified performance metrics for certain Performance PSUs. (2) The decrease in stock-based compensation expense during the fiscal twelve months ended December 28, 2025 as compared to the fiscal twelve months ended December 29, 2024 was driven primarily by forfeitures of unvested stock-based awards and the vesting of J&J stock-based awards that were converted into Kenvue awards, which had a higher grant date fair value and shorter expense attribution period as compared to stock-based awards outstanding as of December 28, 2025. (3) During the fiscal three months ended March 30, 2025, the Company made a refinement to the methodology of its stock-based compensation expense allocations, which resulted in a reduction to Cost of sales and an increase to Selling, general, and administrative expenses for the fiscal twelve months ended December 28, 2025 as compared to the fiscal twelve months ended December 29, 2024 and December 31, 2023. (4) Stock-based compensation expense includes $2 million for the fiscal twelve months ended December 31, 2023 of allocated charges from J&J based on percentage attribution related to J&J employees providing services to the Company. No allocations were made subsequent to the fiscal three months ended July 2, 2023, during which Kenvue became a fully independent company. The Company’s unrecognized stock-based compensation expense and the related weighted-average remaining requisite service periods for stock options, RSUs, and PSUs outstanding as of December 28, 2025 were as follows:
(Dollars in Millions) |  |  |  |  |  |  |  |
Stock Options |  |  |  |  |  |  |  | December 28, 2025
Unrecognized stock-based compensation expense |  |  |  |  |  |  |  | $ | 38 |
Weighted-average remaining requisite service period |  |  |  |  |  |  |  | 1.09 years
RSUs |  |  |  |  |  |  |  |
Unrecognized stock-based compensation expense |  |  |  |  |  |  |  | $ | 100 |
Weighted-average remaining requisite service period |  |  |  |  |  |  |  | 1.45 years
PSUs(1) |  |  |  |  |  |  |  |
Unrecognized stock-based compensation expense |  |  |  |  |  |  |  | $ | 5 |
Weighted-average remaining requisite service period |  |  |  |  |  |  |  | 0.79 years
(1) Unrecognized stock-based compensation expense and the related weighted-average remaining requisite service period for the Performance PSUs is calculated based on the Company’s best estimate of achievement of the specified performance metrics.
Share-Based Payment Arrangement, Option, Activity | A summary of stock option activity under the Kenvue 2023 Plan during the fiscal twelve months ended December 28, 2025 is presented below:
|  |  |  |  |  |  |  |  |  |  |  |  |  | Aggregate Intrinsic Value
(Options in Thousands) |  |  |  |  |  |  |  | Options |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term |  | (Dollars in Millions)
Options outstanding as of December 29, 2024 |  |  |  |  |  |  |  | 66,885 |  | $ | 20.42 |  |  | 6.9 years |  | $ | 95 |
Options granted |  |  |  |  |  |  |  | 9,826 |  | 23.29 |  |  |  |  |
Options exercised |  |  |  |  |  |  |  | (6,413) |  | 19.55 |  |  |  |  |
Options canceled/forfeited |  |  |  |  |  |  |  | (7,177) |  | 21.37 |  |  |  |  |
Options outstanding as of December 28, 2025 |  |  |  |  |  |  |  | 63,121 |  | $ | 20.85 |  |  | 6.2 years |  | $ | 5 |
Options exercisable as of December 28, 2025 |  |  |  |  |  |  |  | 39,814 |  | $ | 20.68 |  |  | 5.1 years |  | $ | 5 |
Schedule of Share-Based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The grant date fair value of each Performance PSU granted, inclusive of the fair value associated with the achievement of the specified performance metrics and the relative total shareholder return goal, is estimated on the grant date using the Monte Carlo valuation model. The weighted-average assumptions used in calculating the fair value of Performance PSUs granted during the fiscal twelve months ended December 28, 2025 and December 29, 2024 were as follows:
|  |  |  |  |  |  |  | Fiscal Twelve Months Ended
|  |  |  |  |  |  |  | December 28, 2025 |  | December 29, 2024 |  |
Expected volatility(1) |  |  |  |  |  |  |  | 22.5 | % |  | 21.3 | % |  |
Risk-free rate(2) |  |  |  |  |  |  |  | 3.8 | % |  | 4.3 | % |  |
(1) Expected volatility is based on the historical volatility of a selected group of the Company’s peers and other factors over the prior three fiscal years. (2) Risk-free rate is based on the U.S. Treasury yield curve in effect as of the grant date for Performance PSUs granted.
Share-Based Payment Arrangement, Activity | A summary of unvested RSU and PSU activity under the Kenvue 2023 Plan during the fiscal twelve months ended December 28, 2025 is presented below:
(Shares in Thousands) |  |  |  |  |  | Outstanding Restricted Stock Units |  | Weighted-Average Grant Date Fair Value |  | Outstanding Performance Stock Units |  | Weighted-Average Grant Date Fair Value
Shares as of December 29, 2024 |  |  |  |  |  | 13,633 |  |  | $ | 20.77 |  |  | 2,675 |  |  | $ | 21.43 |
Granted |  |  |  |  |  | 4,966 |  |  | 23.16 |  |  | 1,319 |  |  | 25.44 |
Issued |  |  |  |  |  | (7,121) |  |  | 21.46 |  |  | (2) |  |  | 23.22 |
Canceled/forfeited |  |  |  |  |  | (1,537) |  |  | 21.32 |  |  | (1,093) |  |  | 22.80 |
Change due to performance and/or market condition achievement |  |  |  |  |  | — |  |  | — |  |  | (1,809) |  |  | 21.97 |
Shares as of December 28, 2025 |  |  |  |  |  | 9,941 |  |  | $ | 21.31 |  |  | 1,090 |  |  | $ | 22.61 |

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