Johnson & Johnson (JNJ) investor relations material

Executive summary

• Q3 sales were $25.399B, up 5.9% reported and 6.0% operationally; sequential growth strengthened.

• GAAP net earnings fell to $210M from $5.152B and diluted EPS to $0.09 from $2.12, reflecting a $5.5B talc charge and transaction-related costs.

• Adjusted diluted EPS was $2.59, down 7.5%; higher FY2026 sales and adjusted EPS guidance reflected operating momentum and product launches.

Financial highlights

• Adjusted net earnings were $6.339B, down 6.8%; adjusted EPS was $2.59 versus $2.80.

• Gross profit was $17.302B, up 3.7%; gross margin was 68.1% versus 69.6% a year earlier.

• Q3 R&D expense rose 26.7% to $4.652B, or 18.3% of sales, including $1.0B of Firefly acquired IPR&D.

• Nine-month sales rose 7.4% to $74.771B; GAAP net earnings were $10.979B, down 49.4%, and adjusted net earnings were $20.034B, down 0.9%.

Outlook and guidance

• FY2026 reported sales guidance midpoint increased to $101.2B, with a $101.0B–$101.4B range; operational sales guidance was $100.5B–$100.9B.

• Adjusted reported EPS guidance rose to $11.05–$11.15, midpoint $11.10 and growth of 2.9%; adjusted operational EPS guidance is $10.95–$11.05.

• Adjusted pre-tax operating margin is expected to decline ~60 bps; absent Firefly and Sail transaction impacts, base margin continues to improve.

• Leadership expects MedTech improvement in Q4 and 2027, further growth acceleration in 2027 and a path to double-digit growth by decade-end.