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J&J posted Q4 EPS of $2.46, beating estimates, as earnings rose 20.6% year over year.
JNJ's Innovative Medicines sales climbed 10%, driven by Darzalex, Tremfya and Erleada growth.
Oncology drugs like Darzalex and Carvykti delivered strong gains, offsetting Stelara declines.
Johnson & Johnson’s (JNJ - Free Report) fourth-quarter 2025 earnings came in at $2.46 per share, which beat the Zacks Consensus Estimate of $2.43. Earnings rose 20.6% from the year-ago period.
Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.10 per share, up 48.9% year over year.
Sales of this drug and medical devices giant came in at $24.56 billion, which also beat the Zacks Consensus Estimate of $24.12 billion.
Sales rose 9.1% from the year-ago quarter, reflecting an operational increase of 7.1% and a positive currency impact of 2.0%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 6.1% on an operational basis.
Fourth-quarter sales in the domestic market rose 7.5% to $14.2 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 5.7% in the quarter.
International sales rose 11.3% on a reported basis to $10.4 billion, reflecting an operational increase of 6.6% and a positive currency impact of 4.7%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 6.8% in the quarter.
J&J’s Innovative Medicines Unit Continues its Outperformance
J&J’s Innovative Medicines segment sales rose 10.0% year over year to $15.76 billion, reflecting a 7.9% operational increase and a positive currency impact of 2.1%. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 6.2%. Innovative Medicines sales beat the Zacks Consensus Estimate of $15.43 billion.
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. Sales of some other drugs like Xarelto, Simponi/Simponi Aria, Uptravi and Opsumit also rose in the quarter. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by lower sales of Imbruvica and generic/biosimilar competition to drugs like Stelara.
JNJ’s Strong Oncology Drugs’ Performance
Sales of blockbuster multiple myeloma medicine Darzalex rose 26.6% year over year to $3.9 billion in the quarter. Sales beat the Zacks Consensus Estimate of $3.74 billion.
Imbruvica sales declined 6.5% to $684.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $670 million.
Erleada generated sales of $959.0 million in the quarter, up 22.4% year over year. Erleada sales beat the Zacks Consensus Estimate of $936.0 million.
New drug Carvykti recorded sales of $555.0 million, up 65.8% year over year. Another new drug, Tecvayli, recorded sales of $176.0 million in the quarter, up 20.8% year over year,
Sales of Talvey were $149.0 million, up 75.8% year over year. Rybrevant/Lazcluze sales were $216.0 million compared with $198.0 million in the previous quarter.
Zytiga sales declined 11.9% to $119.0 million in the quarter due to generic competition.
JNJ’s Immunology Drugs’ Performance
Stelara sales declined 47.7% to $1.23 billion in the quarter due to the impact of biosimilar competition. While U.S. sales of Stelara declined 54.9%, international sales declined 28.8% in the quarter. Stelara sales missed the Zacks Consensus Estimate of $1.36 billion.
Several biosimilar versions of J&J’s multi-billion-dollar immunology drug, Stelara, were launched in the United States in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries (TEVA - Free Report) , Samsung Bioepis/Sandoz, and some other companies have already launched Stelara biosimilars.
Tremfya recorded sales of $1.59 billion in the quarter, up 67.6% year over year. Tremfya sales beat the Zacks Consensus Estimate of $1.36 billion.
Simponi/Simponi Aria sales rose 8.4% to $632.0 million. Sales of Remicade rose 3.2% in the quarter to $370.0 million.
JNJ’s Neuroscience, PH and Other Drugs’ Performance
In neuroscience, Spravato recorded sales of $503.0 million, up 69.0% year over year. Caplyta, added from last year’s acquisition of Intra-Cellular Therapies, recorded sales of $249 million in the quarter compared with $240.0 million in the previous quarter. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales declined 7.3% to $986.0 million in the quarter.
Pulmonary hypertension (PH) drug Uptravi recorded sales of $491.0 million, up 5.7% year over year. Another PH drug, Opsumit, recorded sales of $643.0 million, up 12.7% year over year.
Xarelto sales rose 1.7% in the quarter to $687.0 million. Prezista sales declined 5.8% to $383.0 million.
MedTech Segment Sales Continue to Improve
MedTech segment sales came in at $8.8 billion, up 7.5% from the year-ago period, including an operational increase of 5.8% and a positive currency impact of 1.7%. MedTech segment sales beat the Zacks Consensus Estimate of $8.71 billion.
Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 5.9%, driven by strong performance in Cardiovascular, Surgery and Vision.
The MedTech business has improved in the past three 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.
However, the company faces headwinds in China, where sales are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China.
J&J’s 2025 Results
Full-year 2025 sales rose 6.0% to $94.2 billion, beating the Zacks Consensus Estimate of $93.73 billion. Sales were slightly ahead of the guidance range of $93.5 billion-$93.9 billion.
Adjusted earnings for 2025 were $10.79 per share, up 8.1% year over year. Earnings missed the Zacks Consensus Estimate of $10.83 per share. Earnings also slightly fell short of the guidance range of $10.80-$10.90 per share.
JNJ Issues 2026 Guidance
J&J expects sales in the range of $100.0 billion-$101.0 billion in 2026. The Zacks Consensus Estimate is pegged at $98.5 billion.
The sales projection indicates growth in the range of 6.2%-7.2%. Operational sales growth is expected in the range of 5.7%-6.7%.
Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 5.4%-6.4%.
Adjusted earnings per share are expected to be in the range of $11.43-$11.63. The Zacks Consensus Estimate is pegged at $11.46 per share. On an operational, constant-currency basis, adjusted earnings per share are expected to increase in the range of 5.9%-7.9%.
Our Take on JNJ’s Q4 Results
J&J kicked off the fourth-quarter earnings season for the drug and biotech sector with earnings and sales beats. Sales of almost all key drugs, Darzalex, Tremfya and Erleada, beat expectations. MedTech unit’s sales also beat estimates.
Despite Stelara's loss of exclusivity (LOE), the Innovative Medicines unit once again outperformed expectations, with oncology drugs being the key driver of growth. The new drugs also contributed significantly to sales growth. J&J’s 2026 guidance was also above expectations.
However, despite the strong quarterly performance and the upbeat guidance for 2026, J&J’s shares were down around 3% in pre-market trading on Wednesday. This was probably because of the sharp decline in Stelara’s sales and broader economic concerns. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 1040 basis points in 2025.
In the past year, J&J’s stock has risen 50.2% compared with an increase of 23% for the industry.
Image: Bigstock
J&J Stock Down Despite Q4 Earnings Beat, Oncology Drugs Drive Sales
Key Takeaways
Johnson & Johnson’s (JNJ - Free Report) fourth-quarter 2025 earnings came in at $2.46 per share, which beat the Zacks Consensus Estimate of $2.43. Earnings rose 20.6% from the year-ago period.
Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.10 per share, up 48.9% year over year.
Sales of this drug and medical devices giant came in at $24.56 billion, which also beat the Zacks Consensus Estimate of $24.12 billion.
Sales rose 9.1% from the year-ago quarter, reflecting an operational increase of 7.1% and a positive currency impact of 2.0%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 6.1% on an operational basis.
Fourth-quarter sales in the domestic market rose 7.5% to $14.2 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 5.7% in the quarter.
International sales rose 11.3% on a reported basis to $10.4 billion, reflecting an operational increase of 6.6% and a positive currency impact of 4.7%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 6.8% in the quarter.
J&J’s Innovative Medicines Unit Continues its Outperformance
J&J’s Innovative Medicines segment sales rose 10.0% year over year to $15.76 billion, reflecting a 7.9% operational increase and a positive currency impact of 2.1%. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 6.2%. Innovative Medicines sales beat the Zacks Consensus Estimate of $15.43 billion.
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. Sales of some other drugs like Xarelto, Simponi/Simponi Aria, Uptravi and Opsumit also rose in the quarter. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by lower sales of Imbruvica and generic/biosimilar competition to drugs like Stelara.
JNJ’s Strong Oncology Drugs’ Performance
Sales of blockbuster multiple myeloma medicine Darzalex rose 26.6% year over year to $3.9 billion in the quarter. Sales beat the Zacks Consensus Estimate of $3.74 billion.
Imbruvica sales declined 6.5% to $684.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $670 million.
Erleada generated sales of $959.0 million in the quarter, up 22.4% year over year. Erleada sales beat the Zacks Consensus Estimate of $936.0 million.
New drug Carvykti recorded sales of $555.0 million, up 65.8% year over year. Another new drug, Tecvayli, recorded sales of $176.0 million in the quarter, up 20.8% year over year,
Sales of Talvey were $149.0 million, up 75.8% year over year. Rybrevant/Lazcluze sales were $216.0 million compared with $198.0 million in the previous quarter.
Zytiga sales declined 11.9% to $119.0 million in the quarter due to generic competition.
JNJ’s Immunology Drugs’ Performance
Stelara sales declined 47.7% to $1.23 billion in the quarter due to the impact of biosimilar competition. While U.S. sales of Stelara declined 54.9%, international sales declined 28.8% in the quarter. Stelara sales missed the Zacks Consensus Estimate of $1.36 billion.
Several biosimilar versions of J&J’s multi-billion-dollar immunology drug, Stelara, were launched in the United States in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries (TEVA - Free Report) , Samsung Bioepis/Sandoz, and some other companies have already launched Stelara biosimilars.
Tremfya recorded sales of $1.59 billion in the quarter, up 67.6% year over year. Tremfya sales beat the Zacks Consensus Estimate of $1.36 billion.
Simponi/Simponi Aria sales rose 8.4% to $632.0 million. Sales of Remicade rose 3.2% in the quarter to $370.0 million.
JNJ’s Neuroscience, PH and Other Drugs’ Performance
In neuroscience, Spravato recorded sales of $503.0 million, up 69.0% year over year. Caplyta, added from last year’s acquisition of Intra-Cellular Therapies, recorded sales of $249 million in the quarter compared with $240.0 million in the previous quarter. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales declined 7.3% to $986.0 million in the quarter.
Pulmonary hypertension (PH) drug Uptravi recorded sales of $491.0 million, up 5.7% year over year. Another PH drug, Opsumit, recorded sales of $643.0 million, up 12.7% year over year.
Xarelto sales rose 1.7% in the quarter to $687.0 million. Prezista sales declined 5.8% to $383.0 million.
MedTech Segment Sales Continue to Improve
MedTech segment sales came in at $8.8 billion, up 7.5% from the year-ago period, including an operational increase of 5.8% and a positive currency impact of 1.7%. MedTech segment sales beat the Zacks Consensus Estimate of $8.71 billion.
Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 5.9%, driven by strong performance in Cardiovascular, Surgery and Vision.
The MedTech business has improved in the past three 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.
However, the company faces headwinds in China, where sales are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China.
J&J’s 2025 Results
Full-year 2025 sales rose 6.0% to $94.2 billion, beating the Zacks Consensus Estimate of $93.73 billion. Sales were slightly ahead of the guidance range of $93.5 billion-$93.9 billion.
Adjusted earnings for 2025 were $10.79 per share, up 8.1% year over year. Earnings missed the Zacks Consensus Estimate of $10.83 per share. Earnings also slightly fell short of the guidance range of $10.80-$10.90 per share.
JNJ Issues 2026 Guidance
J&J expects sales in the range of $100.0 billion-$101.0 billion in 2026. The Zacks Consensus Estimate is pegged at $98.5 billion.
The sales projection indicates growth in the range of 6.2%-7.2%. Operational sales growth is expected in the range of 5.7%-6.7%.
Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 5.4%-6.4%.
Adjusted earnings per share are expected to be in the range of $11.43-$11.63. The Zacks Consensus Estimate is pegged at $11.46 per share. On an operational, constant-currency basis, adjusted earnings per share are expected to increase in the range of 5.9%-7.9%.
Our Take on JNJ’s Q4 Results
J&J kicked off the fourth-quarter earnings season for the drug and biotech sector with earnings and sales beats. Sales of almost all key drugs, Darzalex, Tremfya and Erleada, beat expectations. MedTech unit’s sales also beat estimates.
Despite Stelara's loss of exclusivity (LOE), the Innovative Medicines unit once again outperformed expectations, with oncology drugs being the key driver of growth. The new drugs also contributed significantly to sales growth. J&J’s 2026 guidance was also above expectations.
However, despite the strong quarterly performance and the upbeat guidance for 2026, J&J’s shares were down around 3% in pre-market trading on Wednesday. This was probably because of the sharp decline in Stelara’s sales and broader economic concerns. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 1040 basis points in 2025.
In the past year, J&J’s stock has risen 50.2% compared with an increase of 23% for the industry.
Image Source: Zacks Investment Research
J&J’s Zacks Rank & A Stock to Consider
J&J currently has a Zacks Rank #3 (Hold).
A better-ranked large drugmaker is Bayer (BAYRY - Free Report) , which has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bayer’s shares have risen 127.9% in the past year. Estimates for its 2026 earnings per share have increased from $1.39 to $1.44 over the past 60 days.