Financial Performance - Johnson & Johnson's worldwide sales for Q3 2025 reached $24.0 billion, a 6.8% increase compared to Q3 2024[1] - Diluted earnings per share (EPS) increased by 91.0% to $2.12[2] - Adjusted earnings per share increased 15.7% to $2.80[5] Segment Performance - Worldwide Innovative Medicine sales reached $15.6 billion, with a reported increase of 6.8% and an operational increase of 5.3%, impacted by Stelara by approximately -1070 basis points[3] - Worldwide MedTech sales reached $8.4 billion, with a reported increase of 6.8% and an operational increase of 5.6%[8] Regional Sales - U.S sales increased 6.2% to $13.7 billion[40] - International sales increased 7.6% to $10.3 billion[40] Guidance - The company increased operational sales guidance to 5.1% and maintained adjusted operational EPS guidance at 7.0%[55]

Overall financial results Regional sales results Segment sales results Third-Quarter 2025 segment commentary: Operational sales* reflected below excludes the impact of translational currency. Innovative Medicine Innovative Medicine worldwide operational sales grew 5.3%*, with net acquisitions and divestitures positively impacting growth by 1.6% due to CAPLYTA. Growth was primarily driven by DARZALEX, CARVYKTI, ERLEADA and RYBREVANT/LAZCLUZE in Oncology, TREMFYA and SIMPONI/SIMPONI ARIA in Immunology, and SP ...

Core Insights - Johnson & Johnson reported Q2 2025 earnings that exceeded analysts' expectations for both adjusted earnings and revenue, with revenue at $23.7 billion and adjusted EPS at $2.77 [1][2][6] - The company experienced strong sales momentum and progress in innovation, but underlying profit growth faced challenges due to patent expiries and higher costs [2][5] Financial Performance - Adjusted EPS for Q2 2025 was $2.77, slightly down 1.8% from $2.82 in Q2 2024, while revenue increased by 5.8% year-over-year [3][6] - GAAP EPS rose 18.7% to $2.29, and net earnings reached $5.54 billion, up 18.2% from the previous year [3][6] - Free cash flow decreased to $6.2 billion, down 17.4% from $7.51 billion a year ago [3][12] Business Segments - U.S. sales increased by 7.8% year-over-year, while international revenue grew by 3.2%, indicating stronger domestic performance [7] - In the Innovative Medicine division, sales rose 4.9%, driven by oncology and immunology products, despite a decline in STELARA impacting overall revenue [8] - MedTech sales increased by 7.3% to $8.54 billion, with significant contributions from cardiovascular products and new product launches [9][10] Regulatory and Pipeline Developments - The company achieved several regulatory milestones, including FDA approval for IMAAVY and positive EU opinions for oncology assets [11] - New clinical data supported the expansion of both immunology and oncology franchises, indicating a robust pipeline [11] Future Outlook - Management raised its full-year 2025 sales guidance to a midpoint of $93.4 billion, reflecting a 5.4% increase from the prior year [14] - Adjusted operational EPS target was also increased to a midpoint of $10.68, representing 7% year-on-year growth [14] - The company faces ongoing challenges from tariffs and competitive dynamics, particularly in orthopedics, which require close monitoring [15]

Q2 2025 Financial Performance - Worldwide sales reached $23.7 billion, a 5.8% increase compared to Q2 2024, with operational sales growth of 4.6%[47] - U S sales increased by 7.8% to $13.5 billion in Q2 2025 from $12.6 billion in Q2 2024[47] - Adjusted earnings were $6.7 billion, and adjusted EPS was $2.77[49] - GAAP net earnings increased to $5.5 billion, a rise of 18.2%[49] Innovative Medicine - Innovative Medicine sales reached $15.202 billion, with operational growth of 3.8%[51] - Oncology sales grew by 22.3% operationally, reaching $6.312 billion[51] - Immunology sales declined by 16% operationally, totaling $3.993 billion, impacted by STELARA biosimilar competition[51] MedTech - MedTech sales were $8.541 billion, with operational growth of 6.1%[53] - Cardiovascular sales increased by 22.3% operationally, reaching $2.313 billion[53] - Orthopaedics sales decreased by 1.6% operationally, totaling $2.305 billion[53] Guidance - The company increased its operational sales guidance for 2025 to 4.8% and adjusted operational EPS guidance to 7.0% (midpoints)[62] - Operational sales are projected to be between $92.7 billion and $93.1 billion[62]

Summary of Conference Call Company and Industry Overview - The conference call primarily discusses the pharmaceutical industry, focusing on a specific company involved in innovative medicines, particularly in immunology, oncology, and neuroscience. Key Points and Arguments Innovative Medicines Strategy - The company aims for a growth trajectory of 5% to 7% by 2025, targeting $57 billion in revenue by that year [3][4] - The strategy is built on three pillars: immunology, oncology, and neuroscience, with significant growth expected in oncology products like DARZALEX and ERLEADA [3][4] Oncology Developments - The company has identified substantial growth opportunities in oncology, particularly with the new product Riborvant, projected to be a $5 billion asset [4][6] - Riborvant shows a significant overall survival advantage over osimertinib, with at least a one-year survival benefit [4][6] - The company reported a 4.2% operational growth in Q1, with underlying operational growth of approximately 12% when excluding the impact of loss of exclusivity (LOE) for Stelara [6][7] Immunology Insights - Stelara peaked at $11 billion in sales, but the company anticipates that TREMFYA will displace Stelara due to its superior efficacy in treating conditions like ulcerative colitis [10][12] - TREMFYA has captured about 50% of the new market share in ulcerative colitis within six months of launch [13][15] Multiple Myeloma and DARZALEX - DARZALEX has shown a year-over-year growth of approximately 24% and is expected to continue growing, especially with new indications being pursued [34][36] - The company believes that negotiations under the Inflation Reduction Act (IRA) will not impact DARZALEX until 2034 due to its innovative formulation [32][34] Bladder Cancer Opportunity - The company is focusing on bladder cancer, with two products under review: TAR-two hundred and TAR-two ten, targeting high unmet medical needs [45][46] - TAR-two hundred has shown an 82% complete response rate in trials, indicating significant potential in the market [47][49] Neuroscience Developments - SPRAVATO is positioned as a blockbuster product for treatment-resistant depression, with expectations of reaching $1 billion to $5 billion in sales [78][82] - The acquisition of Intracellular is expected to enhance the company's portfolio in neuropsychiatry, particularly with products like CAPLYTA [81][84] Future Growth and Pipeline - The company is exploring further business development opportunities in autoimmune diseases and oncology, aiming to achieve $50 billion in oncology alone [89][90] - The pipeline includes promising products in various stages of development, indicating a robust future growth trajectory [86][88] Other Important Insights - The company has invested heavily in patient fulfillment services, enhancing the patient experience and potentially increasing market share [18][19] - The competitive landscape in oncology and immunology is evolving, with the company confident in its innovative products and market positioning [51][52] This summary encapsulates the key discussions and insights from the conference call, highlighting the company's strategic focus, growth opportunities, and competitive advantages in the pharmaceutical industry.

Core Insights - The article emphasizes the importance of resilience investing in the face of inflation and potential recession, focusing on companies with strong financial health and diversified income streams [1] Johnson & Johnson - Johnson & Johnson (JNJ) is highlighted as a defensive investment within the stable healthcare sector, with a diversified business model that includes Innovative Medicine and MedTech [2] - JNJ's financial health is reinforced by its AAA credit rating, shared only with Microsoft among US companies [2] - The company reported a revenue of $88.821 billion in 2024, a 4.3% increase from the previous year, with adjusted net earnings of $24.242 billion [3] - JNJ's Innovative Medicine segment saw a 5.7% operational growth in 2024, while the MedTech segment achieved 6.2% operational growth [4] - The stock forecast for JNJ indicates a current price of $162.94 with a 12-month target of $171.33, reflecting a potential upside of 5.15% [3][4] Microsoft - Microsoft (MSFT) demonstrates resilience through its transition to a recurring revenue model, primarily via cloud services, allowing it to navigate economic challenges effectively [5] - The company reported total revenue of $69.6 billion in Q2 2025, a 12% year-over-year increase, with cloud revenue reaching $40.9 billion, up 21% [6] - Microsoft's AI business has surpassed an annual revenue run rate of $13 billion, showing a remarkable 175% year-over-year growth [6] - The stock forecast for MSFT shows a current price of $388.56 with a 12-month target of $510.43, indicating a potential upside of 31.36% [6][7] Waste Management - Waste Management (WM) is presented as a resilient company due to the essential nature of its services, providing stable revenue regardless of economic conditions [8] - The company reported revenue of $22.063 billion in 2024, an 8.0% increase from the previous year, with adjusted operating EBITDA of $6.563 billion [9] - WM is projected to see revenue growth of 16.4% and adjusted operating EBITDA growth of 15.0% in 2025 [9] - The stock forecast for WM indicates a current price of $225.06 with a 12-month target of $236.65, reflecting a potential upside of 5.15% [9][10] Resilience Investing - The article concludes that resilience investing is not limited to a single industry, but rather focuses on identifying companies with strong financials, diversified revenue streams, and adaptability to market changes [11]