TLDR
- Johnson & Johnson delivered Q2 adjusted EPS of $2.90, surpassing analyst projections of $2.85
- Quarterly revenue reached $25.31 billion, representing 6.6% year-over-year growth and exceeding expectations
- Company increased full-year revenue outlook to approximately $101.1 billion; EPS forecast raised to $11.68 midpoint
- Tremfya revenue jumped 72.5% to $2 billion; Darzalex generated $4.2 billion in sales
- Shares of JNJ declined approximately 2% in premarket trading despite positive results and upgraded guidance
Johnson & Johnson delivered second-quarter results that exceeded analyst expectations, yet shares declined in early trading. The stock dropped around 2% in premarket activity Wednesday morning, despite the healthcare giant upgrading its full-year projections.
The company reported adjusted earnings per share of $2.90, beating the Street’s consensus of $2.85. Revenue totaled $25.31 billion, marking a 6.6% increase from the prior-year period and topping the $25.05 billion estimate.
The negative price action wasn’t entirely unexpected considering market dynamics. Shares of J&J had already climbed nearly 23% year-to-date before the earnings release, significantly outpacing the S&P 500’s 10% advance. With such a strong run-up, results that merely met elevated expectations weren’t enough to sustain momentum.
The pharmaceutical segment delivered the strongest performance. This division generated $16.38 billion in quarterly revenue, surpassing analyst forecasts of $16.1 billion.
Tremfya emerged as a major growth driver. The treatment for psoriasis and inflammatory bowel conditions recorded $2 billion in sales, representing a remarkable 72.5% year-over-year increase and significantly exceeding LSEG projections of $1.74 billion. Tremfya’s performance is particularly critical as Johnson & Johnson navigates revenue challenges from Stelara, which has experienced steep declines following the introduction of biosimilar alternatives in 2025.
Darzalex, the company’s blood cancer medication, delivered $4.2 billion in revenue, aligning with analyst expectations. Additional contributions came from Carvykti and Tecvayli, helping propel 6.8% expansion in the Innovative Medicine oncology division.
MedTech Drags, Impella in Focus
The MedTech segment represented a relative weakness in the quarter. Revenue totaled $8.93 billion, advancing 4.5% but narrowly missing Wall Street’s $9 billion target.
Impella heart pump sales within MedTech declined 2% compared to the previous year. This marks a significant shift from the 14% expansion recorded in the first quarter. CFO Joseph Wolk pointed to a U.K. research study published earlier this year that questioned Impella’s use in specific high-risk coronary interventions.
Wolk indicated that J&J anticipates the product line will resume growth as additional supportive evidence becomes available. “We have a big data set coming out probably in the first half of next year that should allay any fears,” he stated.
Guidance Raised
Johnson & Johnson elevated its full-year financial outlook across both key metrics. The company now projects revenue of approximately $101.1 billion at the midpoint, an increase from the previous $100.8 billion forecast. Adjusted EPS guidance was boosted to $11.68 at the midpoint, up from $11.55.
Wells Fargo analyst Lawrence Biegelsen had observed prior to the earnings announcement that J&J had only increased its sales guidance during a second-quarter report once in the past four years, suggesting this could serve as a positive indicator.
J.P. Morgan analyst Chris Schott characterized J&J as “one of the cleaner names” among its competitors as the company transitions beyond the Stelara patent expiration challenges.
According to Wolk, J&J currently maintains 28 platforms each producing at least $1 billion in annual revenue.
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