Let's get a Wednesday edition of Kramer's Mad Dash. The best non-bank is J&J. I mean, this J&J quarter, it may set, you know, they're not talking that much about tariffs.Uh, that is going to happen. They're probably a later thing. But I was stunned.The oncology sales are incredible, up 24%. They have new bladder cancer. Uh, I nothing's a cure, but great maintenance that I think uh medtech finally came back.It was really sensational. Uh, a lot of people were thinking that medtech was weaker. uh neuroscience ...

强生涨超6%，为2023年7月以来最大盘中涨幅。 ...

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Financial Data and Key Metrics Changes - In Q2 2025, worldwide sales reached $23.7 billion, reflecting a 4.6% increase despite a headwind from Stellara [23][24] - Net earnings for the quarter were $5.5 billion, with diluted earnings per share of $2.29, compared to $1.93 a year ago [24] - Adjusted net earnings were $6.7 billion, with adjusted diluted earnings per share of $2.77, representing a decrease of 2.1% year-over-year [25][32] Business Line Data and Key Metrics Changes - Innovative Medicine reported worldwide sales of $15.2 billion, increasing by 3.8% despite an 11.7% headwind from Stellara [25][26] - MedTech achieved worldwide sales of $8.5 billion, growing by 6.1%, with strong performance in cardiovascular, surgery, and vision [29][30] - In oncology, DARZALEX grew by 21.5%, while CARVICTI saw over 100% growth [26][27] - Tremfya in immunology grew by 30.1%, while Stellara declined by 43.2% due to biosimilar competition [28] Market Data and Key Metrics Changes - U.S. sales growth was 7.6%, while international sales saw a decline of 1.6% due to Stellara biosimilars and COVID-19 vaccine impacts [25][26] - Cardiovascular segment delivered over 22% operational sales growth, driven by new product performance [17][29] - Surgical vision grew by 8.9%, supported by strong performance in contact lenses and intraocular lenses [21][30] Company Strategy and Development Direction - The company aims to become the number one oncology company by 2030, targeting over $50 billion in sales [10][11] - Focus areas for growth include oncology, immunology, neuroscience, cardiovascular, surgery, and vision, with a commitment to innovation [8][12] - The company plans to launch several new products and expand its pipeline, including TAR200 for bladder cancer and icotrokinra for psoriasis [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and potentially exceeding growth targets for 2025, driven by strong performance in both Innovative Medicine and MedTech [36][39] - The company anticipates an acceleration in operational sales growth in the second half of the year, supported by new product launches and market share gains [40][46] - Management highlighted the importance of navigating external challenges, including tariffs and competition, while maintaining a focus on innovation and market leadership [88] Other Important Information - The company ended Q2 with $19 billion in cash and marketable securities and $51 billion in debt, resulting in a net debt position of $32 billion [38] - The effective tax rate for the quarter was 14.7%, down from 18.5% in the previous year [33] - The company is committed to investing $55 billion in the U.S. over the next four years, driven by favorable tax policies [39] Q&A Session Summary Question: Drivers of upside to guidance for the year - Management indicated that both Innovative Medicine and MedTech contributed to strong performance, with notable growth in oncology and cardiovascular segments [52][53] Question: Oncology target of $50 billion by the end of the decade - Management expressed confidence in achieving this target, citing strong growth in multiple myeloma and the potential of TAR200 for bladder cancer [68][71] Question: Guidance for operational growth and operating margin improvement - Management expects 2026 to show better growth rates than 2025, with ongoing efforts to improve operating margins [81][83] Question: Impact of pharma tariffs and manufacturing capacity - Management acknowledged uncertainty regarding tariffs but emphasized ongoing investments in U.S. manufacturing and job creation [88]

Financial Data and Key Metrics Changes - In Q2 2025, worldwide sales reached $23.7 billion, reflecting a 4.6% increase despite a headwind from Stellara [24][25] - Net earnings for the quarter were $5.5 billion, with diluted earnings per share of $2.29, up from $1.93 a year ago [25][26] - Adjusted net earnings were $6.7 billion, with adjusted diluted earnings per share of $2.77, representing a decrease of 2.1% [26][34] Business Line Data and Key Metrics Changes - Innovative Medicine reported worldwide sales of $15.2 billion, increasing by 3.8% despite a headwind from Stellara [26][27] - MedTech achieved worldwide sales of $8.5 billion, reflecting a 6.1% increase, driven by strong performance in cardiovascular, surgery, and vision [30][31] - In oncology, DARZALEX grew by 21.5%, while CARVICTI saw over 100% growth [27][28] Market Data and Key Metrics Changes - U.S. sales growth was 7.6%, while international sales experienced a decline of 1.6% due to Stellara biosimilars and COVID-19 vaccine impacts [26][27] - The cardiovascular segment in MedTech delivered over 22% operational sales growth, driven by new product performance [18][30] Company Strategy and Development Direction - The company aims to become the number one oncology company by 2030, targeting over $50 billion in sales [11][72] - Focus areas include oncology, immunology, neuroscience, cardiovascular, surgery, and vision, with a commitment to innovation and addressing unmet medical needs [10][21] - The company plans to launch several new products and therapies in the second half of 2025, including TAR200 for bladder cancer and subcutaneous Ribrovant for lung cancer [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and potentially exceeding growth targets for 2025, driven by strong performance in both Innovative Medicine and MedTech [39][42] - The company anticipates an acceleration in operational sales growth in the second half of the year, supported by new product launches and market share gains [42][60] - Management highlighted the importance of navigating external challenges while maintaining financial commitments and delivering shareholder value [51][52] Other Important Information - The company raised its full-year sales guidance by $2 billion and EPS guidance by $0.25, reflecting strong Q2 performance [9][42] - The effective tax rate for the quarter was 14.7%, down from 18.5% in the previous year [35][36] - The company ended Q2 with $19 billion in cash and marketable securities and $51 billion in debt, resulting in a net debt position of $32 billion [40] Q&A Session Summary Question: Drivers of upside to guidance for the year - Management indicated that both Innovative Medicine and MedTech contributed to strong performance, with notable growth in brands like DARZALEX and CARVICTI [54][55] Question: Oncology target of $50 billion by the end of the decade - Management expressed confidence in achieving the target, citing strong growth in multiple myeloma and the potential of TAR200 for bladder cancer [70][72] Question: Guidance for top-line growth acceleration - Management expects 2026 to show better growth rates than 2025, driven by new product introductions and market dynamics [84][86]

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].

Johnson and Johnson shares are higher this morning after the company reported earnings and revenue that beat estimates and it raised guidance for the full year. That stock up by close to 1% right now. Joining us to talk about it is Joe Wal.He is Johnson and Johnson's executive vice president and chief financial officer. And Joe, it's great to see you this morning. Great to be here, Becky.Thanks for having me and your interest in Johnson and Johnson. It's a pleasure to be here on such a good earnings day for ...

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