Financial Data and Key Metrics Changes - In Q2 2025, worldwide sales reached $23.7 billion, reflecting a 4.6% increase despite a headwind from Stellara [23][24] - Net earnings for the quarter were $5.5 billion, with diluted earnings per share of $2.29, compared to $1.93 a year ago [24] - Adjusted net earnings were $6.7 billion, with adjusted diluted earnings per share of $2.77, representing a decrease of 2.1% year-over-year [25][32] Business Line Data and Key Metrics Changes - Innovative Medicine reported worldwide sales of $15.2 billion, increasing by 3.8% despite an 11.7% headwind from Stellara [25][26] - MedTech achieved worldwide sales of $8.5 billion, growing by 6.1%, with strong performance in cardiovascular, surgery, and vision [29][30] - In oncology, DARZALEX grew by 21.5%, while CARVICTI saw over 100% growth [26][27] - Tremfya in immunology grew by 30.1%, while Stellara declined by 43.2% due to biosimilar competition [28] Market Data and Key Metrics Changes - U.S. sales growth was 7.6%, while international sales saw a decline of 1.6% due to Stellara biosimilars and COVID-19 vaccine impacts [25][26] - Cardiovascular segment delivered over 22% operational sales growth, driven by new product performance [17][29] - Surgical vision grew by 8.9%, supported by strong performance in contact lenses and intraocular lenses [21][30] Company Strategy and Development Direction - The company aims to become the number one oncology company by 2030, targeting over $50 billion in sales [10][11] - Focus areas for growth include oncology, immunology, neuroscience, cardiovascular, surgery, and vision, with a commitment to innovation [8][12] - The company plans to launch several new products and expand its pipeline, including TAR200 for bladder cancer and icotrokinra for psoriasis [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and potentially exceeding growth targets for 2025, driven by strong performance in both Innovative Medicine and MedTech [36][39] - The company anticipates an acceleration in operational sales growth in the second half of the year, supported by new product launches and market share gains [40][46] - Management highlighted the importance of navigating external challenges, including tariffs and competition, while maintaining a focus on innovation and market leadership [88] Other Important Information - The company ended Q2 with $19 billion in cash and marketable securities and $51 billion in debt, resulting in a net debt position of $32 billion [38] - The effective tax rate for the quarter was 14.7%, down from 18.5% in the previous year [33] - The company is committed to investing $55 billion in the U.S. over the next four years, driven by favorable tax policies [39] Q&A Session Summary Question: Drivers of upside to guidance for the year - Management indicated that both Innovative Medicine and MedTech contributed to strong performance, with notable growth in oncology and cardiovascular segments [52][53] Question: Oncology target of $50 billion by the end of the decade - Management expressed confidence in achieving this target, citing strong growth in multiple myeloma and the potential of TAR200 for bladder cancer [68][71] Question: Guidance for operational growth and operating margin improvement - Management expects 2026 to show better growth rates than 2025, with ongoing efforts to improve operating margins [81][83] Question: Impact of pharma tariffs and manufacturing capacity - Management acknowledged uncertainty regarding tariffs but emphasized ongoing investments in U.S. manufacturing and job creation [88]

Financial Data and Key Metrics Changes - The overall growth in the first quarter was 4.1%, with the pharmaceutical group growing by 4.2% and the med tech group by 4% [10] - The company has delivered consistent results, meeting or exceeding analyst expectations in earnings for 28 consecutive quarters over the past seven years [9] - The company has committed to a growth target of 5% to 7% from 2025 to 2030, with confidence in achieving this based on current results [11] Business Line Data and Key Metrics Changes - The pharmaceutical group showed a growth of 4.2% despite facing headwinds from biosimilars for its major product, Stellara [10] - The med tech group also reported a growth of 4%, indicating stability across both segments [10] - The company has invested $50 billion in M&A and R&D over the last two years, with an additional $55 billion planned for R&D manufacturing and technology in the U.S. over the next four years [11] Market Data and Key Metrics Changes - The company is optimistic about the biopharmaceutical and medical technology industries, citing significant medical innovation opportunities [5][22] - The U.S. market is seen as a key area for growth, with the administration's support for American businesses and manufacturing jobs [6] Company Strategy and Development Direction - Johnson & Johnson emphasizes its unique position as a healthcare company that spans the entire patient journey, with unmatched breadth in capabilities [7] - The company is focused on maintaining leadership in cardiac ablation and investing in new technologies to enhance its med tech offerings [56] - The strategy includes moving into higher growth markets, particularly in cardiovascular and robotics [85] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the industry despite macro uncertainties, highlighting a combination of headwinds and tailwinds [5][22] - The company is actively engaging with the administration to ensure continued innovation while making medicines affordable [23] - Management believes there are significant disconnects between market expectations and the company's potential, particularly in new product launches [12][14] Other Important Information - The company has a strong track record of dividend increases for 63 consecutive years, reflecting its financial stability [9] - The company is committed to improving gross margins and has various efficiency programs in place [51][54] Q&A Session Summary Question: How does the company view the current macro environment and its impact? - Management expressed optimism about the biopharmaceutical and medical technology industries, noting the potential for innovation despite uncertainties [22] Question: What is the company's strategy regarding drug pricing reforms? - Management highlighted the need for dialogue with the administration to balance innovation and affordability in medicines [24][30] Question: Can you provide an update on the talc litigation? - The company is back in the tort system and is confident in its position, having won 16 out of 17 cases related to ovarian cancer [37][38] Question: What are the expectations for financial performance in 2025? - The company is guiding for organic sales growth of 2% to 3% and EPS growth of 5% to 7%, with optimism about pharmaceutical product performance [43] Question: How does the company plan to address competitive pressures in the med tech space? - Management emphasized a commitment to innovation in cardiac ablation and plans to enhance its product offerings in electrophysiology [56][65]