J&J(US:JNJ) Zhi Tong Cai Jing·2026-01-21 12:52Core Viewpoint - Johnson & Johnson (JNJ.US) reported strong Q4 2025 earnings, exceeding Wall Street expectations, driven by robust sales in innovative medicines and medical devices [1][3][4] Group 1: Q4 Performance - The company achieved a quarterly profit of approximately $6 billion, reflecting a year-over-year increase of 22%, with earnings per share at $2.46, slightly above analysts' expectations of $2.44 [1] - Q4 revenue reached $24.56 billion, surpassing the anticipated $24.16 billion, marking a year-over-year growth of 9.1% [1] - The Innovative Medicine segment saw a 10% increase in sales to $15.76 billion, exceeding the expected $15.37 billion [1] Group 2: Medical Devices and Future Outlook - The medical devices segment reported a 7.5% increase in sales to $8.8 billion, outperforming the management's prior estimate of approximately $8.69 billion, driven by strong performance in cardiac devices [3] - For 2026, the company forecasts operational sales between $99.5 billion and $100.5 billion, higher than the consensus estimate of $98.9 billion [4] - Adjusted earnings per share for 2026 are projected to be between $11.43 and $11.63, slightly above analysts' expectations of $11.45 [4] Group 3: Challenges and Market Impact - The company faces challenges, including tariff uncertainties affecting its medical devices segment and increased competition for its psoriasis drug Stelara, which saw a larger-than-expected sales decline [4][5] - Despite the optimistic earnings forecast, the stock price initially dropped over 3% in pre-market trading but later recovered, with a year-to-date increase of over 5% [5] - Johnson & Johnson's market capitalization stands at $525.7 billion, maintaining a significant weight in the S&P 500 index, influencing overall market trends [5] Group 4: Legal Issues - A court-appointed special monitor recommended allowing expert testimony linking the company's talc products to ovarian cancer, with a significant trial expected to begin in late 2026 [6]