Johnson & Johnson Beats Earnings Expectations, Plans Orthopaedics Spin-Off

Core Insights - Johnson & Johnson reported better-than-expected third-quarter results, with earnings per share of $2.80, surpassing the consensus estimate of $2.76, and revenue of $23.99 billion, a 6.8% year-over-year increase, exceeding expectations of $23.76 billion [1] Financial Performance - The company reaffirmed its full-year 2025 earnings outlook, maintaining guidance for EPS between $10.80 and $10.90, aligning with consensus at $10.85, while adjusted operating EPS is projected at $10.63 to $10.73 [2] - Revenue guidance was slightly raised to a range of $93.5 billion to $93.9 billion, compared to the previous range of $93.2 billion to $93.6 billion [2] Strategic Initiatives - Johnson & Johnson announced plans to spin off its Orthopaedics division to streamline operations and focus on higher-growth, higher-margin businesses in Innovative Medicine and MedTech, aiming to enhance capital efficiency and improve long-term earnings quality [3]