J&J Stock Down Despite Q4 Earnings Beat, Oncology Drugs Drive Sales

Core Insights - Johnson & Johnson (JNJ) reported fourth-quarter 2025 earnings of $2.46 per share, exceeding the Zacks Consensus Estimate of $2.43, with a year-over-year increase of 20.6% [1] - Total sales reached $24.56 billion, surpassing the Zacks Consensus Estimate of $24.12 billion [1] Sales Performance - Overall sales increased by 9.1% compared to the previous year, driven by a 7.1% operational increase and a 2.0% positive currency impact [2] - Domestic sales rose 7.5% to $14.2 billion, with an adjusted operational increase of 5.7% [2] - International sales grew by 11.3% to $10.4 billion, reflecting a 6.6% operational increase and a 4.7% positive currency impact [3] Segment Performance - The Innovative Medicines segment saw a 10.0% year-over-year sales increase to $15.76 billion, beating the Zacks Consensus Estimate of $15.43 billion [4] - Key products such as Darzalex, Tremfya, and Erleada contributed significantly to the segment's growth, while new drugs like Carvykti and Tecvayli also played a role [5][6] Oncology Drug Performance - Darzalex sales rose 26.6% to $3.9 billion, exceeding the Zacks Consensus Estimate of $3.74 billion [6] - Erleada generated $959 million in sales, up 22.4% year over year, beating the Zacks Consensus Estimate of $936 million [7] - Imbruvica sales declined 6.5% to $684 million due to competitive pressures, although it was better than the Zacks Consensus Estimate of $670 million [6] Immunology Drug Performance - Stelara sales fell 47.7% to $1.23 billion due to biosimilar competition, missing the Zacks Consensus Estimate of $1.36 billion [10] - Tremfya recorded sales of $1.59 billion, up 67.6% year over year, surpassing the Zacks Consensus Estimate of $1.36 billion [11] MedTech Segment Performance - MedTech segment sales reached $8.8 billion, up 7.5% from the previous year, beating the Zacks Consensus Estimate of $8.71 billion [15] - The growth was driven by strong performance in Cardiovascular, Surgery, and Vision segments [15] Full-Year Results and Guidance - For the full year 2025, sales rose 6.0% to $94.2 billion, exceeding the Zacks Consensus Estimate of $93.73 billion [17] - JNJ expects 2026 sales in the range of $100 billion to $101 billion, indicating growth of 6.2%-7.2% [19] - Adjusted earnings per share for 2026 are projected to be between $11.43 and $11.63, with the Zacks Consensus Estimate at $11.46 [20] Market Reaction - Despite strong quarterly results and positive guidance for 2026, JNJ shares fell approximately 3% in pre-market trading, likely due to concerns over Stelara's sales decline and broader economic issues [23]