J&J(JNJ) - 2026 Q2 - Quarterly Results

Financial Performance Summary Overall Sales Performance 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 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 Innovative Medicine growth was offset by Immunology decline, while MedTech surged, driven by Cardiovascular and Shockwave Innovative Medicine Segment 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 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 $550 million in the first six months of 2025[23][31][33] Non-GAAP Financial Measures and Reconciliations Non-GAAP measures provide clarity on underlying performance, with significant adjustments for amortization, restructuring, and litigation costs Q2 2025 Reconciliation of GAAP to Non-GAAP Net Earnings ($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] - A new restructuring program in the Surgery franchise, initiated in fiscal 2025, to simplify operations, incurring $29M in costs in Q2 2025[9] 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% |