Johnson & Johnson (JNJ) Earnings

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Sep 2026upcoming

Next quarter

Reports Oct 13, 2026, before the open.

Consensus is $2.95 EPS for Sep 2026 across 6 estimates, ranging $2.49 to $3.14.

JNJ Jun 2026

Reported Jul 15, 2026

: 2.11%
: +1.19%

: $2.84
: $2.90
: —
: $25.31B

Reported results

: $25.31B; from $23.74B
: 68.19%; from 67.87%
: $5.53B; from $5.54B
: $2.27; from $2.29

Highlights

Adjusted earnings: Adjusted diluted EPS was $2.90, up 4.7% from $2.77 a year ago and $0.06 above the $2.84 consensus estimate.
Revenue growth: Worldwide sales rose 6.6% year over year to $25.31 billion, including 5.6% operational growth and a 1.0% currency benefit; revenue increased 5.2% from $24.06 billion in Q1.
GAAP earnings: Net income was $5.53 billion, essentially unchanged from $5.54 billion a year ago and up from $5.24 billion in Q1; GAAP diluted EPS was $2.27 versus $2.29 a year ago and $2.14 in Q1.
Innovative Medicine: Sales grew 7.8% to $16.38 billion, led by oncology growth of 17.3%, including Darzalex sales up 18.9% to $4.21 billion and strong growth from Tremfya, Carvykti and newer oncology products.
Stelara erosion: Stelara sales fell 55.2% to $740 million as biosimilar competition reduced worldwide operational Innovative Medicine growth by approximately 7.6%.
MedTech: Sales increased 4.5% to $8.93 billion, with growth in cardiovascular, electrophysiology, surgery, vision and orthopaedics partly offset by a 2.0% decline in Abiomed sales.
Margin and tax pressure: Gross margin improved to 68.2% from 67.9%, but selling, marketing and administrative expense rose 9.2% and the effective tax rate increased to 18.0% from 14.7%, limiting GAAP profit growth.
Restructuring: Johnson & Johnson recorded $276 million of restructuring charges, including $200 million for a new Innovative Medicine supply-chain program expected to cost $650 million-$750 million through 2029.
Cash and shareholder returns: Operating cash flow reached $11.13 billion in the first half, while Johnson & Johnson paid $6.36 billion in dividends and repurchased $4.25 billion of stock.

Analysis

Johnson & Johnson's fiscal second quarter was a modest earnings beat built on solid underlying sales growth and a favorable product mix, but reported profit remained constrained by taxes, litigation and restructuring. Adjusted diluted EPS was $2.90, ahead of the $2.84 consensus and up 4.7% from $2.77 a year ago. GAAP diluted EPS was $2.27, down from $2.29, while net income was $5.53 billion versus $5.54 billion a year ago. Revenue rose 6.6% to $25.31 billion from $23.74 billion and increased 5.2% sequentially from $24.06 billion in Q1.

The core business was led by Innovative Medicine, where sales grew 7.8% to $16.38 billion as oncology expanded 17.3% and newer products such as Tremfya, Carvykti and Darzalex more than offset the 55.2% decline in Stelara. MedTech grew 4.5% to $8.93 billion, with broad procedure and device growth but weaker Abiomed sales. The quarter also marked the start of a $650 million-$750 million supply-chain restructuring program and included $276 million of restructuring charges. Talc litigation added $267 million of pre-tax adjustments, and the company ended the quarter with a $3.7 billion present-value talc reserve.

Earnings and margins

Sales growth translated into only marginal GAAP earnings growth because expense and tax pressures offset the gross-profit improvement. Adjusted results provide the cleaner year-over-year comparison, although they exclude significant litigation, amortization, restructuring and other items.

Profitability: Gross profit increased 7.1% to $17.26 billion, and gross margin expanded to 68.2% from 67.9%.
Operating investment: Selling, marketing and administrative expense rose 9.2% to $6.43 billion, while research and development expense increased 3.9% to $3.65 billion.
Taxes: The effective tax rate rose to 18.0% from 14.7%, and the tax provision increased 27.1% to $1.21 billion.
Adjusted bridge: Adjusted net earnings were $7.08 billion versus $6.70 billion a year ago; the $2.90 adjusted EPS included $1.25 billion of intangible amortization, $267 million of litigation-related items and $276 million of restructuring-related adjustments before tax.

Innovative Medicine growth

Innovative Medicine remained the main growth engine, with oncology and newer launches replacing much of the revenue lost from Stelara. The segment's 6.8% operational growth was achieved despite Stelara reducing worldwide operational growth by approximately 7.6%.

Oncology: Worldwide sales rose 17.3% to $7.41 billion, with Darzalex up 18.9% to $4.21 billion, Carvykti up 49.4% to $657 million, Tecvayli up 56.5% to $260 million and Talvey up 63.3% to $174 million.
Immunology transition: Tremfya sales increased 72.5% to $2.05 billion, but worldwide immunology declined 3.7% to $3.84 billion as Stelara fell 55.2% to $740 million and Simponi/Simponi Aria declined 10.5% to $618 million.
Neuroscience: Sales grew 14.0% to $2.34 billion, led by Spravato up 40.8% to $584 million and Caplyta at $361 million, compared with $211 million a year ago.
Six-month trend: First-half Innovative Medicine sales rose 9.4% to $31.81 billion, including 7.1% operational growth, while Stelara reduced full-year segment operational growth by approximately 8.4%.

MedTech performance

MedTech delivered steady, broad-based growth, although it lagged Innovative Medicine. International sales grew 5.2% and U.S. sales 3.9%, with cardiovascular and procedure-driven categories doing most of the work.

Cardiovascular and electrophysiology: Worldwide sales increased 4.0% to $2.40 billion in cardiovascular and 4.4% to $1.53 billion in electrophysiology.
Growth products: Shockwave sales rose 14.6% to $335 million, while surgery increased 3.9% to $2.65 billion and orthopaedics increased 4.9% to $2.42 billion.
Abiomed: Worldwide sales declined 2.0% to $440 million, reflecting a 4.8% U.S. decline that outweighed 9.5% international growth.
Segment earnings: MedTech pre-tax segment income fell to $1.18 billion from $1.20 billion, despite the 4.5% sales increase, partly reflecting $258 million of orthopaedics separation-related costs.

Restructuring and separation

The quarter added another layer of portfolio and manufacturing reorganization. Johnson & Johnson began a supply-chain program centered primarily on Innovative Medicine and continued its planned Orthopaedics separation and MedTech product exits.

Supply chain: The new program recorded $200 million of largely asset-impairment charges in Q2 and is expected to cost $650 million-$750 million through substantial completion by the end of 2029.
MedTech programs: Surgery restructuring charges were $59 million in Q2, while Orthopaedics charges were $17 million; total Q2 restructuring expense was $276 million versus $79 million a year ago.
Orthopaedics separation: The company continues to evaluate separation paths, targeting completion 18-24 months after the October 2025 announcement; Q2 separation-related costs were $258 million.

Litigation and cash

Litigation remained a meaningful difference between adjusted and GAAP earnings, while cash generation supported dividends, repurchases and balance-sheet flexibility.

Talc matters: Johnson & Johnson recorded $267 million of litigation-related pre-tax adjustments in Q2 and held a talc reserve with a present value of approximately $3.7 billion; about 40% was classified as current.
Cash generation: First-half operating cash flow was $11.13 billion, up from $8.05 billion a year ago, despite higher capital spending of $2.37 billion versus $1.84 billion.
Capital returns: First-half dividends were $6.36 billion and share repurchases were $4.25 billion; cash and cash equivalents ended the quarter at $20.42 billion.
Acquisition pipeline: Johnson & Johnson agreed to acquire Firefly Bio for $1.0 billion in cash, with closing expected in Q3 2026, adding its Firelink degrader antibody-conjugate platform to Innovative Medicine.

Johnson & Johnson

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