Key facts
- Johnson & Johnson exceeded Wall Street's second-quarter sales and profit estimates.
- The company raised its full-year sales and profit guidance.
- Strong growth from immunology drug Tremfya and cancer drug Darzalex boosted results.
- Sales from the medical technology unit slightly missed analyst expectations.
- Abiomed heart pump sales declined due to a U.K. study.
Johnson & Johnson surpassed Wall Street's second-quarter earnings expectations, driven by robust sales from its immunology drug Tremfya and cancer treatment Darzalex. The healthcare giant reported total sales of $25.31 billion, a 6.6% increase from the prior year, and adjusted earnings of $2.90 per share, up 4.7%.
The company also revised its full-year outlook upward, now anticipating sales of approximately $101.1 billion and adjusted earnings per share of $11.68 at the midpoint. The pharmaceutical segment was a key contributor, generating $16.38 billion in sales, with Tremfya sales surging 72.5% to $2 billion, helping to offset declining revenue from older products like Stelara.
Despite the overall positive results, sales in the medical technology unit, which includes Abiomed heart pumps, were slightly below analyst forecasts. CFO Joseph Wolk attributed the dip in Abiomed sales to a recent U.K. study that raised questions about the pumps' use in certain high-risk procedures. However, Wolk expressed confidence that the franchise would return to growth, citing upcoming data releases expected to allay concerns.