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What's Powering J&J's MedTech Growth Ahead of Q4 Release?
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Key Takeaways
J&J's MedTech sales improved for two straight quarters, led by Cardiovascular, Surgery and Vision businesses.
J&J's Cardiovascular segment rose 17.4% in the first nine months of 2025, boosted by Abiomed and Shockwave.
J&J expects continued MedTech momentum despite China VBP pressure, with growth driven by new product adoption.
Johnson & Johnson's (JNJ - Free Report) medical devices segment, known as MedTech, offers products in the orthopedics, surgery, cardiovascular and vision markets. The MedTech segment accounts for around 36% of J&J’s total revenues.
In the MedTech segment, though issues in Asia Pacific markets, specifically China, are hurting sales, J&J is successfully shifting its portfolio to high innovation, high growth markets, particularly in Cardiovascular. With the acquisitions of Shockwave in 2024 and Abiomed in 2022, J&J has become a category leader in four of the largest and highest-growth cardiovascular intervention MedTech markets.
Sales in J&J’s MedTech business have improved in the past two quarters, driven by the acquired cardiovascular businesses, Abiomed and Shockwave, as well as Surgical Vision and wound closure in Surgery. Improvements in J&J’s electrophysiology business also drove the growth.
The MedTech segment is expected to continue seeing strong momentum in Cardiovascular, Surgery and Vision in the fourth quarter, backed by increased adoption of newly launched products.
However, the company continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China. Sales in China are likely to have been hurt by the impact of the VBP program in the fourth quarter.
In October, J&J announced its intention to separate its Orthopaedics franchise into a standalone orthopedics-focused company called DePuy Synthes.
The decision aligns with J&J’s efforts to shift its MedTech portfolio to high-innovation, high-growth markets like cardiovascular and robotic surgery. The separation should also improve its MedTech unit’s growth and margins as the Orthopaedics franchise has been a slow-growth business for J&J. An update on the progress of the Orthopaedics franchise spin-off is expected on the fourth-quarter conference call.
On the conference call, investors will also look for updates on the MedTech unit’s outlook for 2026. Earlier, J&J had said that in 2026, it expects better growth in the MedTech business than 2025 levels, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets. J&J expects to launch new products like Shockwave C2 Aero catheter and Tecnis intraocular lens in the United States in 2026. It also filed a regulatory submission for the OTTAVA robotic surgical system earlier this month. These new products may also contribute to growth in 2026.
Our estimates for the MedTech unit suggest a CAGR of around 5.4% over the next three years.
J&J’s Key Competitors in the Medical Devices Market
J&J’s MedTech unit faces strong competition from several major players in the medical device industry, like Medtronic (MDT - Free Report) , Abbott, Stryker (SYK - Free Report) and Boston Scientific (BSX - Free Report) .
While Medtronic has a strong presence in cardiovascular, neuroscience and surgical technologies, Stryker is a global leader in medical technology, specializing in innovative solutions across surgical, neurotechnology, orthopedics and spine care. Boston Scientific markets products for cardiovascular, endoscopy, urology and neuromodulation. Abbott is known for its medical device products across cardiovascular, diagnostics and diabetes care.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry in the past year. The stock has risen 44.9% in the past year compared with a 21.9% increase of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 18.22 forward earnings, higher than 17.56 for the industry. The stock is also trading above its five-year mean of 15.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has risen from $11.47 to $11.48 over the past 30 days.
Image: Bigstock
What's Powering J&J's MedTech Growth Ahead of Q4 Release?
Key Takeaways
Johnson & Johnson's (JNJ - Free Report) medical devices segment, known as MedTech, offers products in the orthopedics, surgery, cardiovascular and vision markets. The MedTech segment accounts for around 36% of J&J’s total revenues.
In the MedTech segment, though issues in Asia Pacific markets, specifically China, are hurting sales, J&J is successfully shifting its portfolio to high innovation, high growth markets, particularly in Cardiovascular. With the acquisitions of Shockwave in 2024 and Abiomed in 2022, J&J has become a category leader in four of the largest and highest-growth cardiovascular intervention MedTech markets.
Sales in J&J’s MedTech business have improved in the past two quarters, driven by the acquired cardiovascular businesses, Abiomed and Shockwave, as well as Surgical Vision and wound closure in Surgery. Improvements in J&J’s electrophysiology business also drove the growth.
The MedTech segment is expected to continue seeing strong momentum in Cardiovascular, Surgery and Vision in the fourth quarter, backed by increased adoption of newly launched products.
However, the company continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China. Sales in China are likely to have been hurt by the impact of the VBP program in the fourth quarter.
In October, J&J announced its intention to separate its Orthopaedics franchise into a standalone orthopedics-focused company called DePuy Synthes.
The decision aligns with J&J’s efforts to shift its MedTech portfolio to high-innovation, high-growth markets like cardiovascular and robotic surgery. The separation should also improve its MedTech unit’s growth and margins as the Orthopaedics franchise has been a slow-growth business for J&J. An update on the progress of the Orthopaedics franchise spin-off is expected on the fourth-quarter conference call.
On the conference call, investors will also look for updates on the MedTech unit’s outlook for 2026. Earlier, J&J had said that in 2026, it expects better growth in the MedTech business than 2025 levels, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets. J&J expects to launch new products like Shockwave C2 Aero catheter and Tecnis intraocular lens in the United States in 2026. It also filed a regulatory submission for the OTTAVA robotic surgical system earlier this month. These new products may also contribute to growth in 2026.
Our estimates for the MedTech unit suggest a CAGR of around 5.4% over the next three years.
J&J’s Key Competitors in the Medical Devices Market
J&J’s MedTech unit faces strong competition from several major players in the medical device industry, like Medtronic (MDT - Free Report) , Abbott, Stryker (SYK - Free Report) and Boston Scientific (BSX - Free Report) .
While Medtronic has a strong presence in cardiovascular, neuroscience and surgical technologies, Stryker is a global leader in medical technology, specializing in innovative solutions across surgical, neurotechnology, orthopedics and spine care. Boston Scientific markets products for cardiovascular, endoscopy, urology and neuromodulation. Abbott is known for its medical device products across cardiovascular, diagnostics and diabetes care.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry in the past year. The stock has risen 44.9% in the past year compared with a 21.9% increase of the industry.
From a valuation standpoint, J&J is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 18.22 forward earnings, higher than 17.56 for the industry. The stock is also trading above its five-year mean of 15.65.
The Zacks Consensus Estimate for 2026 earnings has risen from $11.47 to $11.48 over the past 30 days.
J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.