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Johnson & Johnson’s JNJ third-quarter 2025 earnings came in at $2.80 per share, which beat the Zacks Consensus Estimate of $2.77. Earnings rose 15.7% from the year-ago period.
Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.12 per share, up 91% year over year.
Sales of this drug and medical devices giant came in at $24.0 billion, which also beat the Zacks Consensus Estimate of $23.74 billion.
Sales rose 6.8% from the year-ago quarter, reflecting an operational increase of 5.4% and a positive currency impact of 1.4%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 4.4% on an operational basis.
Third-quarter sales in the domestic market rose 6.2% to $13.7 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 4.4% in the quarter.
International sales rose 7.6% on a reported basis to $10.3 billion, reflecting an operational increase of 4.4% and a positive currency impact of 3.2%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 4.4% in the quarter.
J&J’s Innovative Medicines segment sales rose 6.8% year over year to $15.56 billion, reflecting a 5.3% operational increase and a positive currency impact of 1.5%. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 3.7%. Innovative Medicines sales beat the Zacks Consensus Estimate of $15.26 billion as well as our model estimate of $15.28 billion.
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. Xarelto and Simponi/Simponi Aria sales also rose in the quarter. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by lower sales of Imbruvica and generic/biosimilar competition to drugs like Stelara and Zytiga.
Sales of blockbuster multiple myeloma medicine Darzalex rose 21.7% year over year to $3.67 billion in the quarter. Sales came marginally ahead of the Zacks Consensus Estimate of $3.66 billion and were in line with our model estimate.
Imbruvica sales declined 7.8% to $695.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $683 million and our estimate of $674.6 million.
Erleada generated sales of $936.0 million in the quarter, up 18.4% year over year. Erleada sales missed the Zacks Consensus Estimate of $960.0 million as well as our model estimate of $952.0 million.
New drug Carvykti recorded sales of $524.0 million, up 83.5% year over year.Another new drug, Tecvayli, recorded sales of $177.0 million in the quarter, up 31.3% year over year,
Sales of Talvey were $122 million, up 60.8% year over year. Rybrevant/Lazcluze sales were $198 million compared with $89 million in the year-ago quarter.
Zytiga sales declined 25.1% to $113.0 million in the quarter due to generic competition.
Stelara sales declined 41.3% to $1.57 billion in the quarterdue to the impact of biosimilar competition and Part D redesign. While U.S. sales of Stelara declined 42.3%, international sales declined 39.4% in the quarter. Stelara sales slightly outperformed the Zacks Consensus Estimate of $1.52 billion as well as our model estimate of $1.56 billion.
Several biosimilar versions of J&J’s multi-billion-dollar immunology drug, Stelara, have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies have already launched Stelara biosimilars this year. Stelara’s loss of exclusivity (“LOE”) negatively impacted Innovative Medicines segment growth by 1070 basis points.
Tremfya recorded sales of $1.42 billion in the quarter, up 41.3% year over year. Tremfya sales beat the Zacks Consensus Estimate of $1.29 billion as well as our model estimate of $1.28 billion.
Simponi/Simponi Aria sales rose 32.9% to $687.0 million. Sales of Remicade rose 13.6% in the quarter to $476.0 million.
In neuroscience, Spravato recorded sales of $459.0 million, up 61.5% year over year. Caplyta, added from the April acquisition of Intra-Cellular Therapies, recorded sales of $240 million in the quarter. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales declined 11.3% to $929.0 million in the quarter.
Pulmonary hypertension( PH) drug Uptravi recorded sales of $484.0 million, up 5.6% year over year. Another PH drug, Opsumit, recorded sales of $578.0 million, down 0.8% year over year.
Xarelto sales rose 7.4% in the quarter to $635.0 million. Prezista sales declined 11.6% to $397.0 million.
MedTech segment sales came in at $8.43 billion, up 6.8% from the year-ago period, including an operational increase of 5.6% and a positive currency impact of 1.2%. MedTech segment sales beat the Zacks Consensus Estimate of $8.35 billion as well as our model estimate of $8.41 billion.
Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 5.7%, driven by strong momentum in Cardiovascular, Surgery and Vision.
The MedTech business has improved in the past two quarters, driven by the acquired cardiovascular businesses, Abiomed and Shockwave, as well as in Surgical Vision and wound closure in Surgery. Improvements in J&J’s electrophysiology business also drove the growth.
However, the company continues to face headwinds in China. Sales in China were hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China.
The company raised its sales expectations for 2025 to reflect a strong operational performance so far this year.
The sales guidance was raised from a range of $93.2 billion-$93.6 billion to $93.5 billion-$93.9 billion.
The sales projection indicates growth in the range of 5.4%-5.9% versus the prior expectation of 5.1%-5.6%. Operational sales growth is expected in the range of 4.8%-5.3% (previously 4.5%-5.0%).
Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 3.5%-4.0% (previously 3.2%-3.7%).
The adjusted earnings per share guidance was maintained in the range of $10.80-$10.90. On an operational, constant-currency basis, adjusted earnings per share are expected to increase in the range of 8.2%-9.2%
J&J kicked off the third-quarter earnings season for the drug and biotech sector with earnings and sales beats. Despite Stelara LOE, its Innovative Medicines unit once again outperformed expectations, with key drugs Darzalex, Erleada and Tremfya driving growth. The new drugs also contributed significantly to sales. MedTech unit’s sales also beat estimates. J&J raised its sales guidance for the year.
J&J announced its intention to separate its Orthopaedics franchise within the MedTech segment, which has not been doing too well. The decision aligns with J&J’s efforts to shift its MedTech portfolio to high-innovation, high-growth markets like Cardiovascular. The spin-off of J&J’s Orthopaedics franchise, called DePuy Synthes, would establish the latter as a standalone orthopaedics-focused company. The Orthopaedics franchise generated sales of $6.82 billion in the first nine months of 2025, down 0.3% year over year.
J&J’s shares were down slightly in pre-market trading on Tuesday.
So far this year, J&J’s stock has risen 32.0% compared with an increase of 6.4% for the industry.
J&J’s Innovative Medicine unit is showing a growth trend despite Stelara LOE and the negative impact of the Part D redesign. J&J expects continued growth in the segment to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, new drugs like Carvykti, Tecvayli and Talvey and new indications for Tremfya and Rybrevant. J&J’s MedTech segment sales are also improving.
J&J has also rapidly advanced its pipeline this year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. In April 2025, the FDA approved Imaavy (nipocalimab) for treating generalized myasthenia gravis. J&J believes that nipocalimab has a pipeline-in-a-product potential. TAR-200, J&J’s first-of-its-kind drug-releasing system, to be marketed by the name of Inlexzoh, was approved by the FDA in September for high-risk non-muscle invasive bladder cancer (NMIBC). It also filed regulatory applications in the United States and EU seeking approval of its once-a-day pill, icotrokinra, to treat moderate-to-severe plaque psoriasis in September. J&J believes icotrokinra has the potential to set a new standard of care treatment for plaque psoriasis.
Three of J&J’s new cancer drugs, Carvykti, Tecvayli and Talvey, have also begun to contribute to top-line growth. Combined, they generated $2.14 billion in sales in the first nine months of 2025.
J&J believes 10 of its new products/pipeline candidates in the Innovative Medicine segment have the potential to deliver peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, Caplyta, Inlexzo and icotrokinra.
The Stelara patent cliff, the impact of Part D redesign and MedTech China issues are significant headwinds for J&J in 2025. The uncertainty around the unresolved legal issues lingers. However, the company looks quite confident that it will be able to navigate these challenges.
J&J currently has a Zacks Rank #3 (Hold).
Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote
A better-ranked large drugmaker is Bayer BAYRY, which has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bayer’s shares have risen 63.8% so far this year. Estimates for its 2025 earnings per share have increased from $1.32 to $1.37 over the past 90 days, while those for 2026 have increased from $1.36 per share to $1.44 per share.
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This article originally published on Zacks Investment Research (zacks.com).
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