Financial Data and Key Metrics Changes - In Q4 2025, worldwide sales reached $24.6 billion, a 7.1% increase despite a 650 basis point headwind from Stelara [17] - For the full year 2025, worldwide sales were $94.2 billion, reflecting a 5.3% increase, with U.S. growth at 6.9% and international growth at 3.4% [18] - Net earnings for Q4 were $5.1 billion, with diluted earnings per share at $2.10, compared to $1.41 a year ago [18] - Full year 2025 net earnings were $26.8 billion, with diluted earnings per share at $11.03, significantly up from $5.79 the previous year [19] Business Line Data and Key Metrics Changes - Innovative Medicine reported Q4 sales of $15.8 billion, a 7.9% increase, with notable growth in oncology and immunology [20] - In oncology, Darzalex grew 24.1%, while Carvykti achieved sales of $555 million with a growth of 63.2% [20] - Immunology saw Tremfya grow 65.4%, while Stelara declined 48.6% due to biosimilar competition [21] - MedTech sales for the year were $34 billion, with operational growth of 5.4%, driven by cardiovascular and surgical segments [13] Market Data and Key Metrics Changes - U.S. sales growth was 7.5% in Q4, while international sales grew by 6.6% [17] - The cardiovascular segment delivered 15% operational sales growth, with Abiomed and Shockwave showing strong performance [13] - Surgical vision grew 10.8%, driven by new product innovations and demand for premium intraocular lenses [24] Company Strategy and Development Direction - The company plans to separate its orthopedics business by mid-2027, focusing on high-growth areas [30] - Investments of over $32 billion in R&D and M&A were made in 2025, including acquisitions of Intra-Cellular Therapies and HALDA Therapeutics [6] - The company aims for double-digit growth by the end of the decade, supported by a strong portfolio and pipeline [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving faster growth in 2026 compared to 2025, with a line of sight to double-digit growth [6] - The company anticipates operational sales growth in 2026 to be between 5.7% and 6.7%, with a midpoint of $100 billion [31] - Management highlighted the strength of their portfolio and pipeline as key drivers for future growth [41] Other Important Information - The company ended 2025 with approximately $20 billion in cash and marketable securities, and $48 billion in debt [30] - A net interest expense of $300 million to $400 million is expected for 2026 [33] - The effective tax rate is projected to be between 17.5% and 18.5% for 2026 [34] Q&A Session Summary Question: Overview of growth prospects and key levers for double-digit growth - Management highlighted the strength of the portfolio and pipeline, focusing on oncology, immunology, and MedTech as key growth areas [40][41] Question: MedTech market dynamics and growth expectations - Management does not expect the loss of ACA subsidies to materially impact MedTech performance, with a focus on clinical capacity driving growth [48] Question: Margin progression and relationship to top-line growth - Management indicated that margin improvements will align with sales growth, with expectations for at least 50 basis points of improvement in 2026 [55] Question: Vision care market health and performance - Management noted strong underlying demand in the contact lens category, with robust growth driven by new product launches [58][59]

Financial Performance & Investment - Johnson & Johnson's stock has increased by over 24% year-to-date [1] - The company is investing $55 billion in the US over the next four years, a 25% increase compared to the previous four years [3] - Q2 performance was stellar, exceeding analyst expectations and substantially increasing guidance, with expectations for continued growth in the coming years [21] - The stock is considered inexpensive with a 3% yield [20][21] Innovation & Pipeline - Advances in biology and chemistry, amplified by artificial intelligence, are expected to lead to cures for previously incurable diseases [6][7] - Cell therapy carvicti shows promising results in treating multiple myeloma, with patients disease-free 5 years after a single administration [8] - FDA approved Inlexo, a groundbreaking therapy for bladder cancer, allowing patients to keep their bladder [10][11] - Acquisition Abomemed is performing well, with data showing patients living 600 days longer after a heart attack with cardiogenic shock [12][13] US Operations & Manufacturing - Johnson & Johnson is breaking ground in North Carolina for a major biologics plant [5] - The company aims to manufacture essentially all advanced medicines in the US [5] - The company has been in New Brunswick, New Jersey for 140 years [4] Legal & Ethical Considerations - The company is fighting claims related to talc and has not paid a single penny since returning to the tort system [17][18] - Johnson & Johnson has won 16 out of 17 cases in ovarian cancer over the last 11 years [18]

Core Viewpoint - Despite a challenging year for healthcare stocks, Johnson & Johnson has shown strong performance, with a year-to-date increase of over 24%, attributed to its robust research and development pipeline [1] Investment and Manufacturing - Johnson & Johnson plans to invest $55 billion in the US over the next four years, which is a 25% increase compared to the previous four years, driven by tax reforms [3] - The company is committed to enhancing US manufacturing capabilities, including a major biologics plant in North Carolina, aimed at producing advanced medicines domestically [5] Innovations in Healthcare - The company anticipates significant advancements in human health over the next decade, leveraging progress in biology and artificial intelligence to develop cures for previously incurable diseases [6][7] - Johnson & Johnson has made strides in cancer treatment, particularly with its CAR-T cell therapy for multiple myeloma, showing promising results where patients have remained disease-free for five years after treatment [8] New Drug Approvals - The FDA has approved a groundbreaking therapy for localized bladder cancer called Inlexo, which allows for direct delivery of treatment into the bladder, potentially preserving patients' bladders and improving their quality of life [10][11] Medical Devices and Acquisitions - Johnson & Johnson's acquisition of Abomemed, which specializes in heart pumps, has yielded positive outcomes, with patients experiencing significantly longer survival rates post-heart attack [13][14] Market Position and Outlook - The company maintains a strong belief in the US as a leader in life sciences innovation, supported by its historical presence and ongoing commitment to research and development [15][17] - Johnson & Johnson has successfully navigated legal challenges related to talc claims, with a strong track record in court, which has positively impacted its stock performance [18][19] Financial Performance - The company reported a stellar Q2, exceeding analyst expectations and increasing its guidance for future performance, indicating confidence in its innovation pipeline [23]