Key facts
- Johnson & Johnson reported Q3 revenue of $25.4 billion, beating estimates of $25.28 billion.
- Adjusted earnings per share were $2.59, exceeding the $2.54 expected.
Johnson & Johnson reported third-quarter revenue of $25.4 billion, surpassing analysts' average estimate of $25.28 billion. Adjusted earnings of $2.59 per share also exceeded expectations. The company raised its full-year sales and earnings forecasts, though geopolitical issues weighed on its medical devices business.
Johnson & Johnson's ability to beat earnings estimates and raise its full-year forecast despite geopolitical headwinds demonstrates resilience in its pharmaceutical segment, while the medical device business faces challenges that could impact future growth if international conditions do not improve.
Johnson & Johnson reported third-quarter results that slightly exceeded analyst expectations for both revenue and profit. The company's pharmaceutical segment saw strong growth, particularly from its immune disease treatment Tremfya, which rose 68% to $2.4 billion. However, the medical technology division experienced slower growth, with international sales being flat, impacted by geopolitical issues including the Middle East conflict, austerity measures in Europe, and pricing in China.
Chief Financial Officer Joe Wolk noted that while the Middle East conflict has not yet affected the company's costs, it has hurt sales in the region, particularly in countries that prioritize healthcare spending but are now allocating budgets towards defense. Sales of the Abiomed heart pump business also remained slow following a UK study that raised questions about its Impella pumps.
Despite these headwinds, J&J raised its full-year forecast for reported sales to approximately $101.2 billion and increased its adjusted earnings forecast midpoint to $11.10 per share. The company's shares have risen 27% this year, outperforming the broader market and most healthcare peers.
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