Core Insights - Johnson & Johnson reported a strong operational sales growth of 5.3% for full-year 2025, reaching $94.2 billion, with U.S. growth at 6.9% and international growth at 3.4% despite challenges from Stelara [1] - The company emphasized a strategic pivot towards higher-growth markets, including plans to separate its Orthopaedics business by mid-2027, and highlighted significant investments in R&D and M&A totaling over $32 billion in 2025 [4] - CEO Joaquin Duato described 2025 as a "catapult year" for accelerated growth, supported by a robust portfolio and pipeline, with expectations for continued growth and improving margins in 2026 [5] Financial Performance - For Q4 2025, net earnings were $5.1 billion, with diluted EPS of $2.10, up from $1.41 a year earlier; adjusted net earnings were $6.0 billion, with adjusted diluted EPS of $2.46, reflecting increases of 21.5% and 20.6% respectively compared to Q4 2024 [2] - Full-year net earnings reached $26.8 billion, with diluted EPS at $11.03, including a $7 billion talc reserve reversal; adjusted net earnings were $26.2 billion, with adjusted diluted EPS of $10.79, both up 8.1% from 2024 [6] Business Segments - In Innovative Medicine, Q4 worldwide sales were $15.8 billion, up 7.9% operationally, with both U.S. and international growth at 7.9%; acquisitions contributed 170 basis points, primarily from Intra-Cellular [7] - Oncology products showed strong performance, with Darzalex sales growing 24.1% in Q4 and over $14 billion in full-year sales; Carvykti generated $555 million in Q4 sales, up 63.2% [7] - MedTech sales in Q4 were $8.8 billion, up 5.8% operationally, driven by cardiovascular growth, including Abiomed and Shockwave [8] Margins and Guidance - Adjusted income before tax as a percentage of sales rose to 28.7% in Q4 from 24.1% a year earlier, with Innovative Medicine margin improving to 36.3% and MedTech margin to 17.4% [10] - For 2026, the company expects operational sales growth of 5.7% to 6.7%, with a midpoint of $100 billion; adjusted EPS guidance is set at $11.28 to $11.48, implying 5.5% growth at the midpoint [13][14] Pipeline and Future Outlook - Management highlighted anticipated regulatory events for 2026, including expected approvals for Icotide in psoriasis and Tecvayli in multiple myeloma [15] - The company is also focusing on its multiple myeloma portfolio, with positive early feedback on Inlexo for bladder cancer and plans for a permanent J-code [16]