Q2 2025 Financial Performance - Worldwide sales reached $23.7 billion, a 5.8% increase compared to Q2 2024, with operational sales growth of 4.6%[47] - U S sales increased by 7.8% to $13.5 billion in Q2 2025 from $12.6 billion in Q2 2024[47] - Adjusted earnings were $6.7 billion, and adjusted EPS was $2.77[49] - GAAP net earnings increased to $5.5 billion, a rise of 18.2%[49] Innovative Medicine - Innovative Medicine sales reached $15.202 billion, with operational growth of 3.8%[51] - Oncology sales grew by 22.3% operationally, reaching $6.312 billion[51] - Immunology sales declined by 16% operationally, totaling $3.993 billion, impacted by STELARA biosimilar competition[51] MedTech - MedTech sales were $8.541 billion, with operational growth of 6.1%[53] - Cardiovascular sales increased by 22.3% operationally, reaching $2.313 billion[53] - Orthopaedics sales decreased by 1.6% operationally, totaling $2.305 billion[53] Guidance - The company increased its operational sales guidance for 2025 to 4.8% and adjusted operational EPS guidance to 7.0% (midpoints)[62] - Operational sales are projected to be between $92.7 billion and $93.1 billion[62]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Overall Sales Performance](index=1&type=section&id=Overall%20Sales%20Performance) Worldwide sales grew 5.8% to $23.7 billion in Q2 2025, driven by U.S. market and MedTech segment strength Q2 2025 Sales Performance by Geography (vs. Q2 2024) | Geographic Area | 2025 Sales ($M) | 2024 Sales ($M) | Total Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | U.S. | $13,544 | $12,569 | 7.8% | 7.8% | | International | $10,199 | $9,878 | 3.2% | 0.6% | | **Worldwide** | **$23,743** | **$22,447** | **5.8%** | **4.6%** | Six Months 2025 Sales Performance by Geography (vs. Six Months 2024) | Geographic Area | 2025 Sales ($M) | 2024 Sales ($M) | Total Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | U.S. | $25,849 | $24,189 | 6.9% | 6.9% | | International | $19,787 | $19,641 | 0.7% | 1.4% | | **Worldwide** | **$45,636** | **$43,830** | **4.1%** | **4.4%** | Q2 2025 Sales Performance by Business Segment (vs. Q2 2024) | Business Segment | 2025 Sales ($M) | 2024 Sales ($M) | Total Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | Innovative Medicine | $15,202 | $14,490 | 4.9% | 3.8% | | MedTech | $8,541 | $7,957 | 7.3% | 6.1% | | **Worldwide** | **$23,743** | **$22,447** | **5.8%** | **4.6%** | Six Months 2025 Sales Performance by Business Segment (vs. Six Months 2024) | Business Segment | 2025 Sales ($M) | 2024 Sales ($M) | Total Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | Innovative Medicine | $29,075 | $28,052 | 3.6% | 4.0% | | MedTech | $16,561 | $15,778 | 5.0% | 5.1% | | **Worldwide** | **$45,636** | **$43,830** | **4.1%** | **4.4%** | [Condensed Consolidated Statement of Earnings](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Earnings) Q2 2025 GAAP net earnings rose 18.2% to $5.5 billion, while adjusted net earnings declined 2.1% to $6.7 billion Q2 2025 Statement of Earnings Highlights (vs. Q2 2024) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Sales to customers | $23,743 | $22,447 | 5.8% | | Gross Profit | $16,115 | $15,578 | 3.4% | | Net Earnings (GAAP) | $5,537 | $4,686 | 18.2% | | Diluted EPS (GAAP) | $2.29 | $1.93 | 18.7% | | Adjusted Net Earnings (Non-GAAP) | $6,699 | $6,840 | (2.1)% | | Adjusted Diluted EPS (Non-GAAP) | $2.77 | $2.82 | (1.8)% | Six Months 2025 Statement of Earnings Highlights (vs. Six Months 2024) | Metric | Six Months 2025 ($M) | Six Months 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Sales to customers | $45,636 | $43,830 | 4.1% | | Gross Profit | $30,651 | $30,450 | 0.7% | | Net Earnings (GAAP) | $16,536 | $7,941 | 108.2% | | Diluted EPS (GAAP) | $6.82 | $3.27 | 108.6% | | Adjusted Net Earnings (Non-GAAP) | $13,405 | $13,420 | (0.1)% | | Adjusted Diluted EPS (Non-GAAP) | $5.53 | $5.53 | 0.0% | [Detailed Segment Sales Analysis](index=13&type=section&id=Detailed%20Segment%20Sales%20Analysis) Innovative Medicine growth was offset by Immunology decline, while MedTech surged, driven by Cardiovascular and Shockwave [Innovative Medicine Segment](index=13&type=section&id=Innovative%20Medicine%20Segment) Innovative Medicine sales grew 4.9% operationally, led by Oncology, but offset by a significant decline in Immunology Q2 2025 Innovative Medicine Sales by Therapeutic Area (Worldwide, $M) | Therapeutic Area | Q2 2025 Sales | Q2 2024 Sales | Reported Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | Oncology | $6,312 | $5,090 | 24.0% | 22.3% | | Immunology | $3,993 | $4,722 | (15.4)% | (16.0)% | | Neuroscience | $2,051 | $1,782 | 15.1% | 14.4% | | Pulmonary Hypertension | $1,113 | $1,039 | 7.1% | 6.2% | | Infectious Diseases | $803 | $965 | (16.8)% | (19.0)% | | **Total Innovative Medicine** | **$15,202** | **$14,490** | **4.9%** | **3.8%** | Six Months 2025 Innovative Medicine Sales by Therapeutic Area (Worldwide, $M) | Therapeutic Area | Six Months 2025 Sales | Six Months 2024 Sales | Reported Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | Oncology | $11,990 | $9,904 | 21.1% | 21.3% | | Immunology | $7,700 | $8,969 | (14.1)% | (13.6)% | | Neuroscience | $3,698 | $3,585 | 3.2% | 3.6% | | Pulmonary Hypertension | $2,138 | $2,088 | 2.4% | 2.5% | | Infectious Diseases | $1,605 | $1,786 | (10.1)% | (10.2)% | | **Total Innovative Medicine** | **$29,075** | **$28,052** | **3.6%** | **4.0%** | [MedTech Segment](index=20&type=section&id=MedTech%20Segment) MedTech sales grew 6.1% operationally, driven by Cardiovascular, Electrophysiology, and Shockwave, despite Orthopaedics decline Q2 2025 MedTech Sales by Franchise (Worldwide, $M) | Franchise | Q2 2025 Sales | Q2 2024 Sales | Reported Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | Cardiovascular | $2,313 | $1,873 | 23.5% | 22.3% | | Orthopaedics | $2,305 | $2,312 | (0.3)% | (1.6)% | | Surgery | $2,555 | $2,488 | 2.7% | 1.8% | | Vision | $1,369 | $1,285 | 6.5% | 4.6% | | **Total MedTech** | **$8,541** | **$7,957** | **7.3%** | **6.1%** | Six Months 2025 MedTech Sales by Franchise (Worldwide, $M) | Franchise | Six Months 2025 Sales | Six Months 2024 Sales | Reported Change | Operational Change | | :--- | :--- | :--- | :--- | :--- | | Cardiovascular | $4,416 | $3,679 | 20.0% | 20.0% | | Orthopaedics | $4,546 | $4,652 | (2.3)% | (2.3)% | | Surgery | $4,951 | $4,904 | 1.0% | 1.5% | | Vision | $2,648 | $2,543 | 4.1% | 4.2% | | **Total MedTech** | **$16,561** | **$15,778** | **5.0%** | **5.1%** | - The acquisition of **Shockwave** on May 31, 2024, contributed significantly to Cardiovascular sales, with **$292 million** in Q2 2025 and **$550 million** in the first six months of 2025[23](index=23&type=chunk)[31](index=31&type=chunk)[33](index=33&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Non-GAAP measures provide clarity on underlying performance, with significant adjustments for amortization, restructuring, and litigation costs Q2 2025 Reconciliation of GAAP to Non-GAAP Net Earnings ($M) | Description | Amount | | :--- | :--- | | Net Earnings, after tax- as reported (GAAP) | $5,537 | | Intangible Asset Amortization expense | $1,267 | | Acquisition, integration and divestiture related | $246 | | Litigation related | $57 | | Other Adjustments (Net) | ($233) | | **Adjusted Net Earnings, after tax (Non-GAAP)** | **$6,699** | Six Months 2025 Reconciliation of GAAP to Non-GAAP Net Earnings ($M) | Description | Amount | | :--- | :--- | | Net Earnings, after tax- as reported (GAAP) | $16,536 | | Litigation related | ($6,909) | | Intangible Asset Amortization expense | $2,387 | | Acquisition, integration and divestiture related | $378 | | Other Adjustments (Net) | $13 | | **Adjusted Net Earnings, after tax (Non-GAAP)** | **$13,405** | - The company is undergoing several restructuring programs: - A program in the Orthopaedics franchise, initiated in fiscal 2023, to exit certain markets and product lines, incurring **$50M** in costs in Q2 2025[8](index=8&type=chunk) - A new restructuring program in the Surgery franchise, initiated in fiscal 2025, to simplify operations, incurring **$29M** in costs in Q2 2025[9](index=9&type=chunk) Q2 2025 Adjusted Operational Sales Growth (Excluding A&D) | Segment | WW Adjusted Operational Growth | | :--- | :--- | | Innovative Medicine | 2.4% | | MedTech | 4.1% | | **Total Company** | **3.0%** |

Core Viewpoint - Johnson & Johnson (JNJ.US) reported second-quarter earnings that exceeded Wall Street expectations and raised its full-year guidance amidst threats of tariffs and drug price reductions in the pharmaceutical industry [1]. Financial Performance - The company's second-quarter sales reached $23.7 billion, surpassing analysts' average expectation of $22.8 billion [1]. - The adjusted non-GAAP earnings per share for the quarter were $2.77, exceeding market expectations by $0.09 [1]. - Johnson & Johnson raised its 2025 revenue guidance midpoint by $2 billion to $93.4 billion and adjusted its full-year earnings per share guidance upward by $0.25 to a range of $10.80 to $10.90 [1]. Market Context - The earnings report coincided with President Trump's consideration of imposing tariffs on the pharmaceutical industry, with potential initial low rates that could gradually increase [1]. - Trump indicated that if pharmaceutical companies do not shift more production capacity to the U.S. within the next 12 to 18 months, they could face tariffs as high as 200% [1]. Management Insights - Johnson & Johnson's CFO, Joseph Wolk, expressed optimism regarding the gradual imposition of tariffs, suggesting it indicates government understanding of the complexities involved in building biopharmaceutical facilities [1]. - The stock price of Johnson & Johnson rose by 2.1% in pre-market trading following the earnings announcement [1]. Challenges Ahead - Johnson & Johnson faces a patent cliff for its key psoriasis drug Stelara, which is experiencing competition from generics in the U.S. and Europe [3]. - The company is relying on new products like the cancer drug Darzalex and the immunology drug Tremfya to offset the decline of Stelara [3]. - Darzalex achieved sales of $3.54 billion in the quarter, while Tremfya sales reached $1.19 billion, both exceeding expectations [3]. - The medical devices segment contributed $8.54 billion, also surpassing expectations, while Stelara's sales of $1.65 billion fell short of analyst predictions [3]. Regulatory Environment - The White House has threatened to implement a policy requiring pharmaceutical companies to charge the U.S. government the lowest prices offered to patients in wealthier countries [3]. - An executive order from May mandates that drug companies either voluntarily lower prices or face regulatory measures, while also pushing for other countries to increase prescription drug prices [3]. Investment Commitment - In March, Johnson & Johnson announced plans to invest over $55 billion in the U.S. over the next four years, joining other pharmaceutical companies in increasing domestic investments since Trump's inauguration [4].

Financial Performance - Johnson & Johnson reported earnings and revenue that beat estimates and raised guidance for the full year [1] - Pharmaceutical portfolio (excluding Stellara) experienced 155% growth, reaching a record revenue of over $15 billion [4] - Topline guidance is up about $2 billion for the full year, with half attributed to the weaker dollar and half to operational performance [25] - Reaffirming commitment from January for a 300 basis point improvement on operating margin, including $200 million of tariff costs [26] Product & Pipeline - Stellara, a $11 billion product, experienced a decline of $12 billion from Q2 last year to Q2 this year due to loss of patent exclusivity in the US [3][4] - TMIA is expected to be a $10 billion product, succeeding Stellara, with indications for ulcerative colitis and Crohn's disease [8][9] - Carvicti shows an overall median survival of 607% months better than five years with one treatment [7] - The company has 26, soon to be 27, platforms or products that generate more than $1 billion in revenue [20] Market Dynamics & Strategy - The spin-off of the consumer products group (Kenvue) in 2023 was the right decision, allowing for greater focus on pharmaceuticals and medtech [20][23] - Good tax policy translates into bringing manufacturing jobs back to the US, as evidenced by the 221% increase in bioarmal manufacturing since 2016 [13][14] - The company committed to $55 billion of investment in the US to supply medicines to US citizens out of US facilities by the end of the decade [14]

Johnson & Johnson beats Wall Street’s quarterly sales expectations and raises its full-year outlook https://t.co/PDuFotArPT ...

Group 1 - The core viewpoint of the article highlights Johnson & Johnson's strong second-quarter performance, with sales exceeding expectations and an increase in full-year guidance [1] - The company reported second-quarter sales of $23.74 billion, surpassing the forecast of $22.84 billion [1] - Adjusted earnings per share for the second quarter were $2.77, indicating solid profitability [1] Group 2 - STELARA, a key product, generated $1.65 billion in revenue for the second quarter, slightly below the expected $1.77 billion [1] - Johnson & Johnson raised its full-year sales forecast to between $93.2 billion and $93.6 billion, up from the previous estimate of $91 billion to $91.8 billion [1] - The company also increased its full-year adjusted earnings per share guidance to between $10.80 and $10.90, compared to the prior range of $10.50 to $10.70 [1] Group 3 - Following the positive earnings report, Johnson & Johnson's stock rose over 1% in pre-market trading [1]

强生公司股价在上调全年销售预测后上涨2%。 ...

Core Viewpoint - Strong Q2 results from banks and financial firms highlight the importance of monitoring upcoming earnings reports from medical companies, which can serve as a hedge against market volatility [1][2]. Group 1: Johnson & Johnson (JNJ) - Johnson & Johnson is a leader in the Zacks Large Cap Pharmaceuticals Industry, which ranks in the top 29% of over 240 Zacks industries [3]. - The company is expected to report Q2 results on July 16, with EPS projected to dip 5% to $2.66, but shares trade at a reasonable forward earnings multiple of 14.7X [4]. - JNJ has a 3.32% annual dividend yield, above the industry average of 2.57% and the S&P 500's 1.18% [4]. - The bottom line is projected to expand 6% this year, with FY26 EPS forecasted to rise 4% to $11.09 per share [5]. - The Most Accurate estimate for Q2 EPS is $2.72, which is 2% above the Zacks Consensus [5][6]. Group 2: Novartis (NVS) - Novartis is also part of the top-rated Zacks Large Cap Pharmaceuticals Industry and will report Q2 results on July 17 [6]. - Q2 sales are expected to rise 9% year-over-year to $14.04 billion, with EPS projected to increase 21% to $2.38 [8]. - FY25 EPS estimates have slightly increased, with FY26 EPS estimates rising from $9.14 to $9.35 per share [8]. - NVS trades at an attractive forward earnings multiple of 13.5X and offers a 2.14% annual dividend yield [8]. Group 3: Abbott Laboratories (ABT) - Abbott Laboratories will report Q2 results on July 17, with a diversified line of healthcare products [10]. - Q2 earnings are expected to rise 9% to $1.25 per share, with the Most Accurate estimate at $1.27, slightly above the Zacks Consensus [10][12]. - Sales for Q2 are projected to increase nearly 7% to $11.07 billion, with mid to high single-digit growth expected for the annual outlook [10]. - ABT has a forward earnings multiple of 25.6X, near the industry average, and a 1.79% annual dividend yield [11]. Conclusion - The outlook for Johnson & Johnson, Novartis, and Abbott Laboratories suggests these stocks are worthy of consideration, especially in the context of potential market volatility [13].

Core Viewpoint - Johnson & Johnson is a leading healthcare company with a market cap of approximately $380 billion, known for its stability and dividend growth, making it suitable for risk-averse investors [1] Group 1: Stock Performance - The stock has increased over 8% this year, outperforming the S&P 500, and a strong earnings report could further boost its value [2] - The last earnings report showed sales of $21.9 billion, a growth of over 2%, with nearly 6% growth in the U.S. market, offsetting struggles in the international market [4] Group 2: Tariff Risks and Initiatives - Potential stock movement may depend on any initiatives announced to mitigate tariff risks, as U.S. President Trump has threatened a 200% tariff on imported pharmaceuticals [5] - Johnson & Johnson has estimated a potential $400 million impact from tariffs this year, primarily affecting its medtech business [6] Group 3: Valuation and Growth Opportunities - The stock trades at a price-to-earnings multiple of 17, lower than the S&P 500 average of nearly 25, indicating it may be undervalued [7] - Despite a modest growth rate, the company has growth opportunities, such as the recently approved nasal spray for depression, which could generate $5 billion in annual revenue at peak [10] Group 4: Legal Challenges and Stock Stability - The company faces uncertainty due to the loss of patent protection for its top-selling drug Stelara and ongoing talc lawsuits, which could justify a discount on the stock [11] - Johnson & Johnson is characterized as a low-volatility stock, with an average beta of around 0.40, suggesting limited price movement post-earnings [12] Group 5: Investment Considerations - The stock offers a 3.4% dividend yield and is reasonably priced at 17 times earnings, providing a margin of safety for investors [13] - There is no urgent reason to buy the stock immediately; waiting for the earnings report may be a prudent strategy [13]

Core Viewpoint - The U.S. government threatens to impose tariffs of up to 200% on imported pharmaceuticals to encourage "reshoring" of the industry, raising concerns among domestic pharmaceutical companies heavily reliant on imports [1][2]. Group 1: Tariff Impact on Pharmaceutical Industry - The proposed tariffs could affect approximately $200 billion worth of imported pharmaceuticals, potentially increasing drug prices for American consumers [2]. - The pharmaceutical industry is awaiting further details regarding the "232 investigation" results, which will clarify the implications of the tariffs [2]. - A significant portion of U.S. pharmaceutical imports comes from countries like Ireland ($50.3 billion), Switzerland ($19 billion), and India ($12.5 billion) [2]. Group 2: Global Response and Investment Shifts - Global pharmaceutical giants are planning to increase investments in the U.S. to avoid potential tariffs, while countries like Australia are assessing the impact of the proposed tariffs on their exports [3]. - India exports over $8.95 billion worth of pharmaceuticals to the U.S., making it a critical market for Indian pharmaceutical companies [3]. Group 3: Cost and Supply Chain Concerns - The imposition of a 200% tariff could lead to increased production costs, reduced profit margins, and potential supply chain disruptions, resulting in drug shortages and price hikes for consumers [4][5]. - The Pharmaceutical Research and Manufacturers of America (PhRMA) estimates that even a 25% tariff could raise U.S. drug costs by nearly $51 billion annually, with a potential price increase of 12.9% for consumers [4]. Group 4: Long-term Industry Implications - High tariffs may negatively impact U.S. pharmaceutical companies, which rely on imported raw materials for 90% of their production, leading to increased production costs and reduced R&D investments [5][6]. - The complexity of establishing new manufacturing facilities in the U.S. poses challenges, as the costs may exceed the future tariff burdens, hindering investment in domestic manufacturing [6][7]. - The artificial disruption of the existing pharmaceutical supply chain could lead to inefficiencies and increased production costs, ultimately harming the long-term development of the industry [7].