Johnson & Johnson
JNJ · NYSE
Next quarter
Expected to report Jan 20, 2027 — estimated from last year’s reporting date.
Consensus is $2.91 EPS for Dec 2026 across 7 estimates, ranging $2.86 to $2.95.
JNJ Sep 2026
- 2.37%
- $2.53
- $2.59
- —
- $25.40B
Reported results
- $25.40B
- 68.12%
- $210.00M
- $0.09
Highlights
- Sales: Third-quarter revenue was $25.399 billion, up 5.9% year over year and about 0.4% from the prior quarter; operational growth was 6.0%.
- Adjusted EPS: Diluted adjusted EPS of $2.59 beat the $2.53 consensus by 2.4%, but fell 7.5% from $2.80 a year earlier; operational adjusted EPS was $2.61.
- GAAP results: Net earnings were $210 million and diluted EPS was $0.09, against $5.152 billion and $2.12 a year earlier, primarily reflecting $5.519 billion of litigation-related adjustments.
- Innovative Medicine: Sales rose 7.7% to $16.757 billion, led by oncology, up 16.4%, and immunology, up 1.3%; MedTech grew 2.5% to $8.642 billion.
- Growth products: Tremfya sales increased 68.3% to $2.396 billion, Darzalex rose 15.4% to $4.239 billion and Carvykti rose 35.5% to $710 million.
- Portfolio offsets: Stelara sales fell 54.4% to $716 million, while pulmonary hypertension sales declined 19.5% to $897 million.
- Margins and investment: Gross margin declined to 68.1% from 69.6%; R&D expense rose 26.7% to $4.652 billion, including $339 million of in-process R&D impairments.
Analysis
Johnson & Johnson’s third quarter combined solid sales growth with sharply lower GAAP earnings because of a large litigation-related charge. Revenue of $25.399 billion increased 5.9% year over year, with 6.0% operational growth, and was slightly above the prior quarter’s $25.31 billion. Adjusted diluted EPS of $2.59 exceeded the $2.53 consensus by 2.4%, though it was down 7.5% from $2.80 a year ago. GAAP net earnings fell to $210 million from $5.152 billion, and GAAP EPS was $0.09 versus $2.12, reflecting $5.519 billion of litigation-related adjustments and other special items.
The operating picture was led by Innovative Medicine, where sales advanced 7.7% to $16.757 billion, particularly on oncology growth and strong Tremfya demand. Stelara’s 54.4% sales decline and weakness in pulmonary hypertension were notable offsets. MedTech grew a more modest 2.5% to $8.642 billion, with cardiovascular and electrophysiology growth partly countered by softer surgery. Underlying profitability also faced pressure: adjusted net earnings declined 6.8% year over year to $6.339 billion, gross margin narrowed 150 basis points to 68.1%, and R&D expense increased 26.7% to $4.652 billion. U.S. sales growth of 9.1% substantially outpaced international growth of 1.5% in the quarter.
Litigation and earnings
- GAAP impact: Net earnings were $210 million and diluted EPS was $0.09, compared with $5.152 billion and $2.12 in the year-ago quarter. Earnings before tax were $34 million, versus $7.493 billion.
- Litigation adjustment: The reconciliation lists $5.519 billion of pre-tax litigation-related adjustments. Other expense was $5.780 billion, compared with $478 million of other income a year earlier.
- Adjusted earnings: Adjusted net earnings were $6.339 billion, down 6.8% from $6.801 billion; adjusted diluted EPS of $2.59 was down 7.5% from $2.80 but beat the $2.53 consensus. Operational adjusted EPS was $2.61.
Innovative Medicine growth
- Segment result: Sales increased 7.7% to $16.757 billion, including 7.9% operational growth. U.S. sales rose 11.1% to $10.447 billion; international sales increased 2.4% to $6.310 billion.
- Oncology: Worldwide oncology sales grew 16.4% to $7.602 billion. Darzalex rose 15.4% to $4.239 billion, Carvykti 35.5% to $710 million, and Rybrevant/Lazcluze 62.3% to $320 million.
- Immunology and neuroscience: Tremfya sales increased 68.3% to $2.396 billion, while Spravato grew 36.1% to $624 million and Caplyta reached $398 million, up from $240 million. These gains were partly offset by Stelara, down 54.4% to $716 million, and Simponi/Simponi Aria, down 17.3% to $568 million.
- Other pressure: Pulmonary hypertension sales declined 19.5% to $897 million, including a 35.7% fall in Opsumit/Opsynvi to $372 million.
MedTech performance
- Segment result: MedTech sales rose 2.5% to $8.642 billion, with U.S. sales up 4.8% to $4.512 billion and international sales essentially flat at $4.130 billion.
- Growth areas: Cardiovascular sales increased 4.3% to $2.307 billion, electrophysiology rose 4.9% to $1.487 billion, and Shockwave grew 16.8% to $325 million.
- Slower franchises: Surgery declined 0.6% to $2.528 billion and Advanced declined 0.9% to $1.155 billion. Vision grew 4.4% to $1.461 billion, while Orthopaedics increased 3.2% to $2.345 billion.
Sales and cost trends
- Geographic mix: U.S. sales rose 9.1% to $14.959 billion, compared with 1.5% growth in international sales to $10.440 billion. Currency reduced worldwide reported growth by 0.1 percentage point from operational growth of 6.0%.
- Margin and spending: Gross profit increased 3.7% to $17.302 billion, slower than sales growth, and gross margin fell to 68.1% from 69.6%. Cost of products sold rose 10.9% to $8.097 billion.
- R&D: Research and development expense increased 26.7% to $4.652 billion, or 18.3% of sales versus 15.3% a year earlier; the quarter also included $339 million of in-process R&D impairments.
