Johnson & Johnson raises 2026 guidance as third-quarter sales rise 5.9% to $25.4 billion
Reported net earnings fell to $210 million from $5,152 million, a decline the company tied to a one-time special charge for the proposed resolution of ovarian talc litigation.
Key takeaways
- Johnson & Johnson (JNJ) reported third-quarter 2026 sales of $25.4 billion, up 5.9% from a year earlier, in a filing on Oct. 13. Reported net earnings were $210 million, and adjusted EPS was $2.59 vs. $2.80 a year earlier. The company raised its 2026 adjusted EPS guidance to a range of $11.05 to $11.15.
Johnson & Johnson (JNJ) raised its 2026 guidance on Tuesday after reporting third-quarter sales of $25.4 billion, up 5.9% from a year earlier, the company said in a regulatory filing. The quarter ended Sept. 27.
Reported net earnings fell to $210 million from $5,152 million a year earlier. The company said the result reflects a one-time special charge for the proposed resolution of ovarian talc litigation.
Here's how the company did:
- Earnings per share (diluted): $0.09 vs. $2.12 a year earlier
- Adjusted earnings per share (diluted): $2.59 vs. $2.80 a year earlier
- Revenue: $25,399 million vs. $23,993 million a year earlier
- Adjusted net earnings: $6,339 million vs. $6,801 million a year earlier
Adjusted operational sales grew 6.1%, a measure that excludes the net effect of acquisitions, divestitures and currency. Operational sales, which exclude currency alone, rose 6.0%.
Chairman and Chief Executive Officer Joaquin Duato linked the results to the company's portfolio. "Johnson & Johnson's strong third-quarter performance and increased sequential growth reflect the accelerating momentum of our focused portfolio," Duato said.
He also pointed to the longer-term outlook. "This progress, together with strategic investments in high-growth areas, gives us clearer line of sight to double-digit growth by the end of the decade," he said.
Segment sales
Innovative Medicine sales rose 7.7% to $16.8 billion. The company said growth was primarily driven by TREMFYA, DARZALEX, CARVYKTI and TECVAYLI, along with newer products.
Stelara offset part of that growth, with an approximate 690 basis point impact on the segment, the release said. Sales of IMBRUVICA and OPSUMIT / OPSYNVI also declined.
MedTech sales rose 2.5% to $8.6 billion. Growth came mainly from electrophysiology products and Shockwave in Cardiovascular, contact lenses in Vision and trauma products in Orthopaedics.
By region, U.S. sales rose 9.1% to $15.0 billion. International sales rose 1.5% to $10.4 billion, and currency reduced international growth by 0.3 points.
Cost of products sold rose to $8,097 million from $7,303 million. Research and development expense was $4,652 million, up from $3,672 million.
The company also recorded $339 million of in-process research and development impairments and $181 million of restructuring expense in the quarter.
A supply chain restructuring program started in the second quarter is expected to cost between $650 million and $750 million. The company said it should be substantially completed by the end of fiscal 2029.
For the first nine months, sales were $74,771 million, up 7.4% from $69,629 million. Net earnings were $10,979 million, against $21,688 million a year earlier. Diluted EPS was $4.49 vs. $8.94.
The company estimated free cash flow, or operating cash flow less capital expenditures, at about $15,100 million for the first nine months. That compares with $14,226 million a year earlier. Cash flow from operations will be included in later SEC filings.
Full-year 2026 guidance
The company raised its 2026 guidance. Estimated reported sales now fall between $101.0 billion and $101.4 billion, with a midpoint of $101.2 billion.
| Guidance measure | October 2026 | July 29, 2026 |
|---|---|---|
| Estimated reported sales, midpoint | $101.0B to $101.4B, midpoint $101.2B | $100.8B to $101.4B, midpoint $101.1B |
| Adjusted EPS (diluted), midpoint | $11.05 to $11.15, midpoint $11.10 | $10.96 to $11.11, midpoint $11.04 |
| Adjusted operational EPS (diluted), midpoint | $10.95 to $11.05, midpoint $11.00 | $10.86 to $11.01, midpoint $10.94 |
| Operational sales, midpoint | $100.5B to $100.9B, midpoint $100.7B | $100.3B to $100.9B, midpoint $100.6B |
Adjusted EPS guidance rose by $0.06 at the midpoint to $11.10, a 2.9% increase from the prior year at the midpoint. The company said it cannot provide a GAAP forward-looking figure because it cannot predict legal proceedings, unusual gains and losses, and acquisition-related expenses with reasonable certainty.
Other announcements
The company said it completed its acquisition of Firefly Bio, Inc. and announced a collaboration with Sail Biomedicines to advance in vivo CAR-T programs. The release did not state terms for either deal.
The company said its reported EPS of $0.09 reflects the talc charge, the Firefly Bio acquisition and the Sail collaboration.
Regulatory items included FDA approval of IMAAVY (nipocalimab-aahu) for warm autoimmune hemolytic anemia. RYBREVANT FASPRO received FDA Priority Review for advanced head and neck cancer, and the OTTAVA robotic surgical system received U.S. market authorization.
Executive Vice President Jennifer Taubert is retiring. Tom Cavanaugh was appointed Executive Vice President, Worldwide Chairman Innovative Medicine, effective September.