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Johnson & Johnson's Q3 adjusted earnings beat estimates, but sales of $25.4 billion fell slightly short.
Innovative Medicine sales rose 7.7%, led by Tremfya and newer therapies. Stelara faced biosimilar pressure.
Johnson & Johnson raised 2026 sales and adjusted EPS guidance, but weaker MedTech results weighed on shares.
Johnson & Johnson’s (JNJ - Free Report) third-quarter 2026 adjusted earnings came in at $2.59 per share, beating the Zacks Consensus Estimate of $2.53. Earnings declined 7.5% from the year-ago period due to costs related to recent business development transactions.
Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were 9 cents per share, down 95.8% year over year. Reported earnings reflected a significant one-time special charge related to the proposed talc litigation resolution and the impact of recent business development transactions.
Sales of this drug and medical devices giant came in at $25.4 billion, marginally missing the Zacks Consensus Estimate of $25.44 billion. Sales rose 5.9% year over year.
Operational sales increased 6%, while adjusted operational sales (excluding the impact of acquisitions/divestitures and currency) rose 6.1%.
Domestic sales rose 9.1% to $14.96 billion. International sales increased 1.5% to $10.44 billion, reflecting operational growth of 1.8% and an unfavorable currency impact of 0.3%.
JNJ's Innovative Medicine Sales Maintain Momentum
Innovative Medicine sales rose 7.7% year over year to $16.76 billion. Operational sales increased 7.9%, while adjusted operational growth was 8%. U.S. sales advanced 11.1%, while international sales increased 2.4% on a reported basis. Innovative Medicine sales beat the Zacks Consensus Estimate of $16.68 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. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant/Lazcluze, Spravato and Caplyta also contributed. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Opsumit/Opsynvi.
J&J’s Oncology Drugs Sales Rise But Miss Estimates
Worldwide oncology sales increased 16.4% to $7.60 billion.
Sales of blockbuster multiple myeloma medicine Darzalex rose 15.4% to $4.24 billion, missing the Zacks Consensus Estimate of $4.33 billion. Imbruvica sales declined 18.8% to $563 million, missing the consensus estimate of $602 million.
Erleada sales increased 9.4% to $1.02 billion but missed the Zacks Consensus Estimate of $1.07 billion.
Among newer cancer drugs, Carvykti sales surged 35.5% to $710 million. Tecvayli sales jumped 76.6% to $312 million, while Talvey revenues increased 40.9% to $171 million. Rybrevant/Lazcluze sales climbed 62.3% to $320 million.
JNJ's Tremfya Growth Helps Offset Stelara Decline
Worldwide immunology sales increased 1.3% to $4.22 billion despite continued biosimilar competition for Stelara. Sales of Stelara declined 54.4% to $716 million but exceeded the Zacks Consensus Estimate of $651 million.
According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries (TEVA - Free Report) , Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025 after the drug lost patent exclusivity in the United States.
Tremfya remained a key growth driver, with sales surging 68.3% to $2.40 billion. Tremfya sales beat the Zacks Consensus Estimate of $2.28 billion.
Remicade revenues decreased 17.3% to $394 million. Simponi/Simponi Aria sales declined 17.3% to $568 million. Biosimilars for Simponi entered the European market in the second quarter of 2026. This may have hurt sales in the third quarter.
J&J's Neuroscience and Other Drugs' Performance
Neuroscience sales increased 17.3% to $2.38 billion, supported by strong demand for Spravato and Caplyta.
Spravato revenues grew 36.1% to $624 million, while Caplyta sales advanced 66.1% to $398 million. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales increased 7.3% to $998 million.
Pulmonary hypertension drug Uptravi recorded sales of $483 million, down 0.1%. Opsumit/Opsynvi sales declined 35.7% to $372 million as generic drugs entered the U.S. market late in the second quarter.
Xarelto revenues increased 2.7% to $653 million.
JNJ's MedTech Business Falls Short of Estimates
MedTech sales increased 2.5% year over year to $8.64 billion but missed the Zacks Consensus Estimate of $8.77 billion. Operational sales increased 2.5%.
Excluding the impact of all acquisitions and divestitures and currency, on an adjusted operational basis, worldwide sales rose 2.5%.
Cardiovascular sales rose 4.3% to $2.31 billion. Electrophysiology revenues increased 4.9% to $1.49 billion, while Shockwave sales grew 16.8% to $325 million. Abiomed sales declined 2.3% to $412 million in the quarter. Over the past two quarters, MedTech’s Abiomed sales have declined due to slow procedural volumes driven by usage patterns. Abiomed procedure volumes are being hurt by uncertainty among physicians after a U.K. study questioned the benefit of using Impella devices in certain high-risk procedures.
As regards J&J’s other MedTech segments, Surgery sales declined 0.6% to $2.53 billion. Vision revenues increased 4.4% to $1.46 billion. Orthopaedics sales rose 3.2% to $2.35 billion.
J&J Raises 2026 Guidance
J&J raised the lower end of its 2026 sales guidance to $101.0-$101.4 billion from $100.8-$101.4 billion. The revised projection indicates sales growth of 7.2%-7.6% compared with the previous expectation of 7.0%-7.6%.
Operational sales growth is expected in the range of 6.7%-7.1% versus the prior expectation of 6.5% -7.1%.
Adjusted operational sales growth is now expected between 6.4% and 6.8% compared with the earlier projection of 6.2%-6.8%.
The adjusted earnings per share guidance was raised to $11.05-$11.15 from $10.96-$11.11. The revised guidance indicates adjusted earnings growth of 2.4%-3.3% compared with the previous expectation of 1.6%-3.0%.
Our Take on JNJ’s Q3 Results
J&J delivered mixed third-quarter results, with adjusted earnings beating estimates but sales missing the same. Innovative Medicine sales exceeded estimates, supported by continued strength in Tremfya and contributions from newer therapies. However, key cancer drugs, Darzalex, Erleada and Imbruvica fell short of expectations. MedTech revenues also missed estimates. In the previous quarter, J&J had projected an improvement in MedTech growth in the second half of the year. However, the segment's third-quarter performance suggests that the anticipated recovery is yet to gain momentum.
Stelara's loss of exclusivity negatively impacted Innovative Medicine's operational growth by approximately 690 basis points.
J&J increased its 2026 guidance. However, shares declined around 2% in pre-market trading on Tuesday, likely reflecting investor disappointment with the quarterly results, particularly the weaker-than-expected MedTech performance.
J&J’s shares have risen 27.8% year to date compared with 13.0% appreciation of the industry.
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J&J Q3 Earnings Beat Estimates, Sales Miss, View Raised, Stock Down
Key Takeaways
Johnson & Johnson’s (JNJ - Free Report) third-quarter 2026 adjusted earnings came in at $2.59 per share, beating the Zacks Consensus Estimate of $2.53. Earnings declined 7.5% from the year-ago period due to costs related to recent business development transactions.
Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were 9 cents per share, down 95.8% year over year. Reported earnings reflected a significant one-time special charge related to the proposed talc litigation resolution and the impact of recent business development transactions.
Sales of this drug and medical devices giant came in at $25.4 billion, marginally missing the Zacks Consensus Estimate of $25.44 billion. Sales rose 5.9% year over year.
Operational sales increased 6%, while adjusted operational sales (excluding the impact of acquisitions/divestitures and currency) rose 6.1%.
Domestic sales rose 9.1% to $14.96 billion. International sales increased 1.5% to $10.44 billion, reflecting operational growth of 1.8% and an unfavorable currency impact of 0.3%.
JNJ's Innovative Medicine Sales Maintain Momentum
Innovative Medicine sales rose 7.7% year over year to $16.76 billion. Operational sales increased 7.9%, while adjusted operational growth was 8%. U.S. sales advanced 11.1%, while international sales increased 2.4% on a reported basis. Innovative Medicine sales beat the Zacks Consensus Estimate of $16.68 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. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant/Lazcluze, Spravato and Caplyta also contributed. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Opsumit/Opsynvi.
J&J’s Oncology Drugs Sales Rise But Miss Estimates
Worldwide oncology sales increased 16.4% to $7.60 billion.
Sales of blockbuster multiple myeloma medicine Darzalex rose 15.4% to $4.24 billion, missing the Zacks Consensus Estimate of $4.33 billion. Imbruvica sales declined 18.8% to $563 million, missing the consensus estimate of $602 million.
Erleada sales increased 9.4% to $1.02 billion but missed the Zacks Consensus Estimate of $1.07 billion.
Among newer cancer drugs, Carvykti sales surged 35.5% to $710 million. Tecvayli sales jumped 76.6% to $312 million, while Talvey revenues increased 40.9% to $171 million. Rybrevant/Lazcluze sales climbed 62.3% to $320 million.
JNJ's Tremfya Growth Helps Offset Stelara Decline
Worldwide immunology sales increased 1.3% to $4.22 billion despite continued biosimilar competition for Stelara. Sales of Stelara declined 54.4% to $716 million but exceeded the Zacks Consensus Estimate of $651 million.
According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries (TEVA - Free Report) , Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025 after the drug lost patent exclusivity in the United States.
Tremfya remained a key growth driver, with sales surging 68.3% to $2.40 billion. Tremfya sales beat the Zacks Consensus Estimate of $2.28 billion.
Remicade revenues decreased 17.3% to $394 million. Simponi/Simponi Aria sales declined 17.3% to $568 million. Biosimilars for Simponi entered the European market in the second quarter of 2026. This may have hurt sales in the third quarter.
J&J's Neuroscience and Other Drugs' Performance
Neuroscience sales increased 17.3% to $2.38 billion, supported by strong demand for Spravato and Caplyta.
Spravato revenues grew 36.1% to $624 million, while Caplyta sales advanced 66.1% to $398 million. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales increased 7.3% to $998 million.
Pulmonary hypertension drug Uptravi recorded sales of $483 million, down 0.1%. Opsumit/Opsynvi sales declined 35.7% to $372 million as generic drugs entered the U.S. market late in the second quarter.
Xarelto revenues increased 2.7% to $653 million.
JNJ's MedTech Business Falls Short of Estimates
MedTech sales increased 2.5% year over year to $8.64 billion but missed the Zacks Consensus Estimate of $8.77 billion. Operational sales increased 2.5%.
Excluding the impact of all acquisitions and divestitures and currency, on an adjusted operational basis, worldwide sales rose 2.5%.
Cardiovascular sales rose 4.3% to $2.31 billion. Electrophysiology revenues increased 4.9% to $1.49 billion, while Shockwave sales grew 16.8% to $325 million. Abiomed sales declined 2.3% to $412 million in the quarter. Over the past two quarters, MedTech’s Abiomed sales have declined due to slow procedural volumes driven by usage patterns. Abiomed procedure volumes are being hurt by uncertainty among physicians after a U.K. study questioned the benefit of using Impella devices in certain high-risk procedures.
As regards J&J’s other MedTech segments, Surgery sales declined 0.6% to $2.53 billion. Vision revenues increased 4.4% to $1.46 billion. Orthopaedics sales rose 3.2% to $2.35 billion.
J&J Raises 2026 Guidance
J&J raised the lower end of its 2026 sales guidance to $101.0-$101.4 billion from $100.8-$101.4 billion. The revised projection indicates sales growth of 7.2%-7.6% compared with the previous expectation of 7.0%-7.6%.
Operational sales growth is expected in the range of 6.7%-7.1% versus the prior expectation of 6.5% -7.1%.
Adjusted operational sales growth is now expected between 6.4% and 6.8% compared with the earlier projection of 6.2%-6.8%.
The adjusted earnings per share guidance was raised to $11.05-$11.15 from $10.96-$11.11. The revised guidance indicates adjusted earnings growth of 2.4%-3.3% compared with the previous expectation of 1.6%-3.0%.
Our Take on JNJ’s Q3 Results
J&J delivered mixed third-quarter results, with adjusted earnings beating estimates but sales missing the same. Innovative Medicine sales exceeded estimates, supported by continued strength in Tremfya and contributions from newer therapies. However, key cancer drugs, Darzalex, Erleada and Imbruvica fell short of expectations. MedTech revenues also missed estimates. In the previous quarter, J&J had projected an improvement in MedTech growth in the second half of the year. However, the segment's third-quarter performance suggests that the anticipated recovery is yet to gain momentum.
Stelara's loss of exclusivity negatively impacted Innovative Medicine's operational growth by approximately 690 basis points.
J&J increased its 2026 guidance. However, shares declined around 2% in pre-market trading on Tuesday, likely reflecting investor disappointment with the quarterly results, particularly the weaker-than-expected MedTech performance.
J&J’s shares have risen 27.8% year to date compared with 13.0% appreciation of the industry.
Image Source: Zacks Investment Research
J&J’s Zacks Rank & Stock to Consider
J&J currently has a Zacks Rank #4 (Sell).
Johnson & Johnson Price and Consensus
Johnson & Johnson price-consensus-chart | Johnson & Johnson Quote
A better-ranked drugmaker is Bayer (BAYRY - Free Report) , which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bayer’s shares have risen 12.8% so far this year. Estimates for its 2026 earnings per share have increased from $1.28 to $1.29 over the past 60 days.
Bayer’s earnings beat estimates in three of the trailing four quarters, while matching estimates in one, with the average surprise being 20.08%.