Johnson & Johnson Q3 2026 Earnings Rise, MedTech Lags

Johnson & Johnson (JNJ) reported third-quarter sales of $25.4 billion on Oct. 13, 2026, prompting the company to raise full-year sales and adjusted earnings-per-share (EPS) guidance despite weaker performance in its MedTech segment, particularly in surgery and cardiovascular products.

Quarterly Results and Guidance

The company said in a press release on Oct. 13, 2026, that third-quarter reported sales rose 5.9% year over year to $25.4 billion, with operational growth of 6.0% and adjusted operational growth of 6.1%. Adjusted diluted EPS was $2.59, while GAAP diluted EPS was $0.09, reflecting a special charge related to the proposed talc-litigation resolution and costs from the Firefly Bio and Sail Biomedicines transactions. Innovative Medicines revenue increased 7.7% to $16.8 billion, led by Tremfya sales, which surged 68% to $2.4 billion. Stelara sales declined 54% to $716 million amid generic competition. MedTech sales totaled $8.6 billion.

The company raised its full-year 2026 reported-sales midpoint to $101.2 billion and increased the adjusted EPS midpoint to $11.10. It also reported regulatory milestones including market authorization for OTTAVA, approval of IMAAVY for warm autoimmune hemolytic anemia, and a priority review for RYBREVANT FASPRO in advanced head-and-neck cancer.

Dividend Declared

Johnson & Johnson declared a fourth-quarter cash dividend of $1.34 per share, payable Dec. 8, 2026, to shareholders of record on Nov. 24, 2026.

MedTech Weakness and DePuy Synthes Spinoff

In prepared remarks on Oct. 13, 2026, management said the MedTech segment delivered 2.5% operational sales growth but fell short of internal expectations. U.S. sales rose 4.8%, while international sales increased 0.1%. The company cited weaker results in surgery and cardiovascular products, challenges in international markets, and issues related to Abiomed as factors weighing on the segment. Orthopedics posted 3.4% operational growth, supported by products including VOLT in trauma, EMPHASYS in hips, and VELYS in knees. The company expects U.S. approval of VARIPULSE Pro in the fourth quarter following its recent approval in Japan.

On portfolio strategy, CFO Joseph Wolk said Johnson & Johnson is leaning toward spinning off DePuy Synthes, its hips-and-knees business, rather than selling it. The prepared remarks stated, "We are leaning towards a spin as being the best option to create long-term value for Johnson & Johnson shareholders." Some reports have cited mid-2027 as a possible target for the separation, though the company has not confirmed a definitive timetable or board approval.

The results reflect offsetting trends: strong pharmaceutical sales and regulatory approvals supported the guidance increase, while MedTech weakness and the potential DePuy Synthes spinoff highlight challenges in the device business and portfolio strategy heading into the fourth quarter and next year.