Johnson & Johnson (JNJ) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales grew 6.6% year-over-year to $25.3B, with operational growth of 5.6% and adjusted EPS up 4.7% to $2.90.

• Raised full-year 2026 guidance, targeting reported sales of $101.1B (7.3% growth at midpoint) and adjusted EPS of $11.68 (8.2% growth at midpoint).

• Growth driven by innovation, new product launches, and strong commercial execution in Innovative Medicine and MedTech.

• Significant product approvals and pipeline advancements in oncology, immunology, and neuroscience.

• Progressing with planned separation of the Orthopaedics business, targeting completion within 18–24 months of October 2025.

Financial highlights

• Q2 2026 worldwide sales: $25.3B, up 6.6% year-over-year; net earnings: $5.5B; adjusted net earnings: $7.1B.

• Adjusted EPS: $2.90 (up 4.7% year-over-year); reported EPS: $2.27.

• Gross margin for Q2: 68.2%; operating margin: 26.7%.

• U.S. sales grew 7.3%; international sales grew 5.7%.

• Free cash flow for Q2: $6.21B; net debt at quarter-end: $28.2B.

Outlook and guidance

• Full-year 2026 reported sales guidance raised to $101.1B at midpoint (7.3% growth); adjusted EPS guidance increased to $11.68 (8.2% growth at midpoint).

• Operational sales growth expected at 6.5%-7.1%.

• Effective tax rate projected at 17.0%-18.0%.

• Anticipates stronger second half, with MedTech growth acceleration and continued pharma momentum.

• Management expects continued negative impact from biosimilar competition, especially for STELARA.