Johnson & Johnson’s MedTech segment saw its worldwide operational sales grow 5.4% year over year in 2025, reaching about $33.8 billion, the company said in a Wednesday (Jan. 21) earnings release.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — n ...

Johnson & Johnson (NYSE:JNJ) Q4 2025 Earnings call January 21, 2026 08:30 AM ET Speaker1Good morning and welcome to Johnson & Johnson's fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode until the question-and-answer session of the conference. This call is being recorded. If anyone has any objections, you may disconnect at this time. If you experience technical difficulties during the conference, you may press star zero to reach the operator. I will now turn the con ...

Financial Data and Key Metrics Changes - In Q3 2025, worldwide sales reached $24 billion, reflecting a 5.4% increase despite a 640 basis point headwind from Stelara [22][23] - Net earnings were $5.2 billion, with diluted earnings per share of $2.12, compared to $1.11 a year ago, marking a significant increase [22][23] - Adjusted net earnings for the quarter were $6.8 billion, with adjusted diluted earnings per share of $2.00, representing a 15.7% increase compared to Q3 2024 [22][23] Business Line Data and Key Metrics Changes - Innovative Medicine reported worldwide sales of $15.6 billion, increasing by 5.3% despite a 1,070 basis point headwind from Stelara [23][24] - In oncology, Darzalex sales grew by 19.9%, while Carvykti achieved sales of $524 million with an 81.4% growth [24] - Tremfya in Immunology delivered strong growth of 40.1%, while Spravato in neuroscience grew by 60.8% [25][15] - MedTech sales reached $8.4 billion, increasing by 5.6%, driven by strong performance in cardiovascular and vision segments [26][27] Market Data and Key Metrics Changes - U.S. sales growth was 6.2%, while international sales grew by 4.4% [22] - In cardiovascular, operational sales increased by approximately 12%, with Shockwave's technology supporting over 1 million patients [15][16] - Vision segment grew more than 6%, with TECNIS intraocular lenses being the fastest growing in the market [18] Company Strategy and Development Direction - The planned separation of the orthopedics business aims to sharpen focus on high-growth areas and enhance market leadership [19][20] - Johnson & Johnson is committed to investing in six core growth areas: oncology, immunology, neuroscience, cardiovascular surgery, and vision [21] - The company is focused on innovation and expanding its portfolio through strategic acquisitions, such as Intra-Cellular Therapies [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing strong performance despite the loss of exclusivity for Stelara [33][34] - The company anticipates continued growth in Innovative Medicine and MedTech, with a focus on high-margin markets [34][40] - Future guidance for 2025 has been increased, projecting operational sales growth of 4.8% to 5.3% [40][41] Other Important Information - The effective tax rate for the quarter was 31.2%, up from 19.3% in the previous year, primarily due to a one-time remeasurement of deferred tax balances [30] - The company plans to invest $55 billion in U.S.-based innovation and manufacturing over the next four years [42][66] Q&A Session Summary Question: Why is the orthopedic spin-out happening now, and will there be similar separations for other divisions? - Management indicated that the orthopedic separation is a strategic move to prioritize breakthrough innovation and focus on high-growth markets [49][50] Question: What are the expectations for margins post-orthopedic spin-out? - Management acknowledged that while initial margin improvements may be modest, they expect stronger growth profiles and margin enhancements over time [56][57] Question: How will capital allocation priorities balance between Innovative Medicine and MedTech? - Management emphasized that capital allocation will focus on significant opportunities within the pipeline, with a strong commitment to both Innovative Medicine and MedTech growth [74][76]

Core Viewpoint - Johnson & Johnson reported strong performance in Q3 2025, driven by a robust portfolio and progress in key therapeutic areas, indicating a new era of growth and innovation [1]. Overall Financial Results - The company does not provide GAAP financial measures on a forward-looking basis due to uncertainties related to legal proceedings and other factors [5]. Regional Sales Results - Specific regional sales results were not detailed in the provided content. Segment Sales Results Innovative Medicine - Worldwide operational sales grew by 5.3%, with net acquisitions and divestitures contributing positively by 1.6% due to CAPLYTA [3]. - Key growth drivers included DARZALEX, CARVYKTI, ERLEADA, and RYBREVANT/LAZCLUZE in Oncology, TREMFYA and SIMPONI/SIMPONI ARIA in Immunology, and SPRAVATO in Neuroscience [3]. - Growth was partially offset by a negative impact of approximately 1,070 basis points from STELARA in Immunology and IMBRUVICA in Oncology [3]. MedTech - Worldwide operational sales increased by 5.6%, with net acquisitions and divestitures negatively impacting growth by 0.1% [4]. - Growth was primarily driven by electrophysiology products, Abiomed, Shockwave in Cardiovascular, wound closure products in General Surgery, and Surgical Vision [4]. Notable Announcements in the Quarter - The company encourages reviewing its disclosures filed with the Securities and Exchange Commission for additional context [7]. Webcast Information - Johnson & Johnson will conduct a conference call with investors to discuss the earnings release, accessible via their website [8]. About Johnson & Johnson - The company emphasizes its commitment to healthcare innovation, aiming to prevent, treat, and cure complex diseases through its expertise in Innovative Medicine and MedTech [9].

Core Insights - Johnson & Johnson's (JNJ) MedTech segment accounts for approximately 36% of total revenues and includes products in orthopedics, surgery, cardiovascular, and vision markets [1] MedTech Segment Performance - Despite challenges in the Asia Pacific markets, particularly China, J&J is shifting its portfolio towards high innovation and high growth markets, especially in Cardiovascular, with sales in this segment increasing by 20% in the first half of 2025 [2] - Second-quarter sales in the MedTech segment improved due to the acquisitions of Abiomed and Shockwave, alongside growth in Surgical Vision and wound closure [3] - The MedTech segment is expected to maintain strong momentum in Cardiovascular, Surgery, and Vision in the third quarter, driven by the adoption of newly launched products [3] Challenges in Asia Pacific - The MedTech business faces headwinds in the Asia Pacific region, particularly in China, where sales are negatively impacted by the volume-based procurement (VBP) program, a government-driven cost containment effort [4][5] - J&J does not anticipate any improvement in its business in the Asia Pacific region for 2025, expecting continued impacts from VBP and competitive pressures affecting sales growth in certain MedTech areas [5] Future Outlook - MedTech sales are projected to be higher in the second half of 2025 compared to the first half, as the business overcomes tougher first-quarter comparisons and new products gain traction [6] - The MedTech unit is estimated to have a compound annual growth rate (CAGR) of around 4.6% over the next three years [6] Competitive Landscape - J&J's MedTech unit faces strong competition from major players such as Medtronic, Abbott, Stryker, and Boston Scientific, each specializing in various medical technologies [7][8] Stock Performance and Valuation - J&J's shares have outperformed the industry year-to-date, rising by 31.9% compared to a 6.4% increase in the industry [9] - The company's shares currently trade at a price/earnings ratio of 16.93, higher than the industry average of 15.70 and above its five-year mean of 15.64 [12] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings remains at $10.86 per share, while the estimate for 2026 has increased from $11.36 to $11.38 over the past 60 days [13]