J&J(US:JNJ) ZACKS·2025-10-14 17:01Core Insights - Johnson & Johnson (JNJ) reported third-quarter 2025 earnings of $2.80 per share, exceeding the Zacks Consensus Estimate of $2.77, with a year-over-year increase of 15.7% [1] - Total sales reached $24.0 billion, surpassing the Zacks Consensus Estimate of $23.74 billion, reflecting a 6.8% increase from the previous year [1][2] Financial Performance - Adjusted earnings, excluding intangible amortization and special items, were $2.80 per share, while reported earnings were $2.12 per share, marking a 91% increase year over year [1] - Domestic sales rose 6.2% to $13.7 billion, with an operational increase of 4.4% [2] - International sales increased by 7.6% to $10.3 billion, driven by a 4.4% operational increase and a 3.2% positive currency impact [3] Segment Performance - Innovative Medicines segment sales grew 6.8% year over year to $15.56 billion, outperforming the Zacks Consensus Estimate of $15.26 billion [4] - Key products such as Darzalex, Tremfya, and Erleada contributed significantly to the growth, with Darzalex sales rising 21.7% to $3.67 billion [5][6] - The MedTech segment reported sales of $8.43 billion, up 6.8% from the previous year, also exceeding estimates [16] Product Highlights - New drugs like Carvykti, Tecvayli, and Talvey showed strong sales growth, with Carvykti sales increasing 83.5% to $524 million [8][25] - Stelara sales declined 41.3% to $1.57 billion due to biosimilar competition, while Tremfya sales rose 41.3% to $1.42 billion [11][13] - Imbruvica sales fell 7.8% to $695 million, but still outperformed estimates [7] Future Outlook - JNJ raised its 2025 sales guidance to a range of $93.5 billion to $93.9 billion, indicating growth expectations of 5.4% to 5.9% [19] - The company plans to spin off its Orthopaedics business, DePuy Synthes, to focus on high-growth MedTech areas [21] - JNJ's pipeline includes several promising products expected to drive future growth, with 10 candidates projected to deliver peak sales of $5 billion [24][27]