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NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2026. “Johnson & Johnson delivered strong second-quarter results, demonstrating the power of our innovation, the depth of our portfolio and the momentum in our pipeline as we advance transformative treatments that address the world’s toughest health challenges,” said Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson. “With raised guidance and quarterly sales surpassing $25 billion, we are on track to meet our 2026 target of more than $100 billion in annual revenue for the first time in our Company’s 140-year history.”
Overall financial results
| Q2 | |||||
($ in Millions, except EPS) |
| 2026 |
| 2025 |
| % Change |
Reported Sales |
| $25,310 |
| $23,743 |
| 6.6% |
Net Earnings |
| $5,534 |
| $5,537 |
| -0.1% |
EPS (diluted) |
| $2.27 |
| $2.29 |
| -0.9% |
|
|
|
|
|
|
|
| Q2 | |||||
Non-GAAP* ($ in Millions, except EPS) |
| 2026 |
| 2025 |
| % Change |
Operational Sales1,2 |
|
|
|
|
| 5.6% |
Adjusted Operational Sales1,3 |
|
|
|
|
| 5.7% |
Adjusted Net Earnings1,4 |
| $7,081 |
| $6,699 |
| 5.7% |
Adjusted EPS (diluted)1,4 |
| $2.90 |
| $2.77 |
| 4.7% |
Free Cash Flow5,6 |
| ~$8,700 |
| $6,214 |
| |
1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules | ||||||
2 Excludes the impact of translational currency | ||||||
3 Excludes the net impact of acquisitions and divestitures and translational currency | ||||||
4 Excludes intangible amortization expense and special items | ||||||
5 Non-GAAP financial measure; defined as cash flow from operating activities, less additions to property, plant and equipment. Cash flow from operations, the most directly comparable GAAP financial measure, will be included in subsequent SEC filings. | ||||||
6 Second-quarter YTD 2026 is estimated as of July 15, 2026 | ||||||
Note: values may have been rounded | ||||||
Regional sales results
Q2 |
|
|
| % Change |
| |||||||
($ in Millions) |
| 2026 |
| 2025 |
| Reported |
| Operational1,2 |
| Currency |
| Adjusted Operational1,3 |
U.S. |
| $14,533 |
| $13,544 |
| 7.3% |
| 7.3 |
| - |
| 7.4 |
International |
| 10,777 |
| 10,199 |
| 5.7 |
| 3.4 |
| 2.3 |
| 3.5 |
Worldwide |
| $25,310 |
| $23,743 |
| 6.6% |
| 5.6 |
| 1.0 |
| 5.7 |
1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules | ||||||||||||
2 Excludes the impact of translational currency | ||||||||||||
3 Excludes the net impact of acquisitions and divestitures and translational currency | ||||||||||||
Note: values may have been rounded | ||||||||||||
Segment sales results
Q2 |
|
|
| % Change |
| |||||||
($ in Millions) |
| 2026 |
| 2025 |
| Reported |
| Operational1,2 |
| Currency |
| Adjusted Operational1,3 |
Innovative Medicine |
| $16,384 |
| $15,202 |
| 7.8% |
| 6.8 |
| 1.0 |
| 6.9 |
MedTech |
| 8,926 |
| 8,541 |
| 4.5 |
| 3.6 |
| 0.9 |
| 3.7 |
Worldwide |
| $25,310 |
| $23,743 |
| 6.6% |
| 5.6 |
| 1.0 |
| 5.7 |
1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules | ||||||||||||
2 Excludes the impact of translational currency | ||||||||||||
3 Excludes the net impact of acquisitions and divestitures and translational currency | ||||||||||||
Note: values may have been rounded | ||||||||||||
Second-Quarter 2026 segment commentary:
Operational sales* reflected below excludes the impact of translational currency.
Innovative Medicine
Innovative Medicine worldwide operational sales grew 6.8%*, with divestitures negatively impacting growth by 10 basis points. Growth was primarily driven by DARZALEX, CARVYKTI, TECVAYLI and RYBREVANT/LAZCLUZE in Oncology, TREMFYA and Other Immunology in Immunology, and SPRAVATO and CAPLYTA in Neuroscience. Growth was partially offset by STELARA (an approximate 760 basis points impact) and REMICADE in Immunology, as well as IMBRUVICA and ZYTIGA in Oncology.
MedTech
MedTech worldwide operational sales grew 3.6%*, with net acquisitions and divestitures negatively impacting growth by 10 basis points. Growth was primarily driven by wound closure products and biosurgery products in Surgery, electrophysiology products and Shockwave in Cardiovascular, contact lenses in Vision, and trauma in Orthopaedics.
Full-year 2026 guidance:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses, and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.
($ in Billions, except EPS) | July 2026 | April 2026 |
Adjusted Operational Sales1,2 Change vs. Prior Year / Mid-point | 6.2% – 6.8% / 6.5% | 5.6% – 6.6% / 6.1% |
Operational Sales2 / Mid-point Change vs. Prior Year / Mid-point | $100.3B – $100.9B / $100.6B 6.5% – 7.1% / 6.8% | $99.7B – $100.7B / $100.2B 5.9% – 6.9% / 6.4% |
Estimated Reported Sales3/ Mid-point Change vs. Prior Year / Mid-point | $100.8B – $101.4B / $101.1B 7.0% – 7.6% / 7.3% | $100.3B – $101.3B / $100.8B 6.5% – 7.5% / 7.0% |
Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point | $11.50 – $11.65 / $11.58 6.6% – 8.0% / 7.3% | $11.30 – $11.50 / $11.40 4.7% – 6.7% / 5.7% |
Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point | $11.60 – $11.75 / $11.68 7.5% – 8.9% / 8.2% | $11.45 – $11.65 / $11.55 6.1% – 8.1% / 7.1% |
1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures | ||
2 Non-GAAP financial measure; excludes the impact of translational currency | ||
3 Calculated using Euro Average Rate: July 2026 = $1.15 and April 2026 = $1.17 (Illustrative purposes only) | ||
4 Non-GAAP financial measure; excludes intangible amortization expense and special items | ||
Note: percentages may have been rounded | ||
Other modeling considerations will be provided on the webcast.
Notable announcements in the quarter:
The information contained in this section should be read together with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investor Relations section of the company’s website at Investor News, as well as Innovative Medicine Newsroom, MedTech News & Events, and www.factsabouttalc.com.
Regulatory | Johnson & Johnson Announces FDA Approval for the Dual Energy THERMOCOOL SMARTTOUCH SF Platform1 | |
| CHMP recommendation advances Johnson & Johnson’s TECVAYLI (teclistamab) plus daratumumab as a potential standard of care for relapsed/refractory multiple myeloma | |
| FDA approves label expansion, cementing TREMFYA as the only IL‑23 inhibitor proven to help stop further joint damage | |
| FDA approves CAPLYTA (lumateperone) sNDA with robust new data supporting reduced risk of relapse in schizophrenia | |
| Johnson & Johnson Announces CE Mark Approval for the New ETHICON 4000 Stapler | |
| FDA grants Priority Review for IMAAVY (nipocalimab-aahu) as the potential first approved treatment for people living with warm autoimmune hemolytic anemia (wAIHA) | |
Data Releases | Johnson & Johnson presents new IMAAVY (nipocalimab-aahu) data at European Academy of Neurology (EAN) 2026 Congress reinforcing sustained disease control in generalized myasthenia gravis | |
| New TALVEY (talquetamab-tgvs) plus DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) data demonstrate the strength of a bispecific combination in earlier-line relapsed or refractory multiple myeloma | |
| IMAAVY (nipocalimab-aahu) demonstrates durable hemoglobin response and rapid onset of effect in pivotal Phase 2/3 study in warm autoimmune hemolytic anemia (wAIHA), an autoantibody-driven disease with no FDA-approved therapies | |
| Johnson & Johnson late-breaking results show nipocalimab significantly reduced systemic lupus erythematosus (SLE) disease activity in a Phase 2 study | |
| Johnson & Johnson presents new data further reinforcing the role of nipocalimab in lowering the autoantibodies driving Sjögren's disease | |
| RYBREVANT FASPRO (amivantamab and hyaluronidase-lpuj) pivotal data show strong and durable responses in advanced head and neck cancer where options remain limited | |
| Johnson & Johnson's Phase 3 prostate cancer study shows ERLEADA (apalutamide) before and after surgery significantly reduces risk of metastasis or death, breaking a decades-long treatment paradigm | |
| RYBREVANT (amivantamab-vmjw) plus LAZCLUZE (lazertinib) demonstrates prolonged clinical benefit as a first-line treatment for atypical EGFR-mutated non-small cell lung cancer | |
| New TECVAYLI (teclistamab-cqyv) data demonstrate superior progression-free and overall survival as early as first relapse in multiple myeloma | |
| Johnson & Johnson study shows TREMFYA (guselkumab) is the first and only IL-23 inhibitor to demonstrate efficacy in perianal fistulizing Crohn's disease | |
| Johnson & Johnson investigational co-antibody therapy JNJ-4804 shows potential to raise the bar for clinical efficacy in treating refractory inflammatory bowel disease | |
| Johnson & Johnson Announces Pivotal Clinical Study Results for a New Soft-Tissue Surgical Robotic System | |
| CAPLYTA (lumateperone) showed greatest improvement across key efficacy outcomes among adjunctive MDD treatments in new network meta-analysis | |
| IMAAVY (nipocalimab-aahu) shows over two years of sustained disease control in a broad population with generalized myasthenia gravis (gMG) | |
Product Launch | Johnson & Johnson Advances the Standard of Calcium Modification with Global Launch of Shockwave C2 Aero Coronary IVL Catheter | |
Other | DePuy Synthes Appoints Christina Zamarro as Chief Financial Officer1 | |
| Johnson & Johnson Invests more than $1 Billion to Strengthen U.S. Vision Manufacturing in Jacksonville, Florida | |
| Johnson & Johnson Expands U.S. Availability of TECNIS PureSee IOL, an Advanced Lens Option for Cataract Surgeons and Patients | |
| Johnson & Johnson to Acquire Firefly Bio, Inc. to Expand Oncology Pipeline with Novel Degrader Antibody Conjugate Platform | |
| DePuy Synthes Announces Agreement to Acquire Miniature Radiofrequency Tracking Technology Across its Joint Reconstruction Portfolio | |
| DePuy Synthes Enters Exclusive U.S., Canada and Australia Distribution Agreement for CGBIO’s NOVOSIS | |
| Groundbreaking global survey captures the significant patient burden experienced with current standard-of-care bladder cancer treatments, underscoring urgency for continued innovation | |
| Johnson & Johnson Appoints Ryan Koors as Vice President, Investor Relations | |
| Johnson & Johnson Launches Landmark Head-to-Head Pulsed Field Ablation Trial in Persistent Atrial Fibrillation | |
| Johnson & Johnson Showcases CARTO-Powered Innovation, Including Debut of CARTOSOUND SONATA, to Advance Arrhythmia Care at HRS 2026 | |
1 Subsequent to the quarter | ||
Webcast information:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investor Relations section of the company's website at events-and-presentations.
About Johnson & Johnson:
At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at www.jnj.com.
Non-GAAP financial measures:
* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at quarterly results.
Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, an Innovative Medicine pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investor Relations section of the company's website at quarterly results.
Note to investors concerning forward-looking statements:
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations or changes to applicable laws and regulations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; and the Company's ability to successfully separate the Company's Orthopaedics business and realize the anticipated benefits from the planned separation. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s most recent Annual Report on Form 10-K, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com, investor.jnj.com, or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
| Johnson & Johnson and Subsidiaries | |||||||||||||||||||||
| Supplementary Sales Data | |||||||||||||||||||||
| (Unaudited; Dollars in Millions) | SECOND QUARTER | SIX MONTHS | |||||||||||||||||||
| Percent Change | Percent Change | ||||||||||||||||||||
| 2026 |
| 2025 |
| Total |
| Operations |
| Currency |
| 2026 |
| 2025 |
| Total |
| Operations |
| Currency | ||
| Sales to customers by | |||||||||||||||||||||
| segment of business | |||||||||||||||||||||
| Innovative Medicine | |||||||||||||||||||||
| U.S. | $ | 9,979 | 9,161 | 8.9 | % | 8.9 | - | $ | 18,850 | 17,253 | 9.3 | % | 9.3 | - | |||||||
| International |
| 6,405 | 6,041 | 6.0 | 3.6 | 2.4 |
| 12,960 | 11,822 | 9.6 | 3.9 | 5.7 | |||||||||
| 16,384 | 15,202 | 7.8 | 6.8 | 1.0 |
| 31,810 | 29,075 | 9.4 | 7.1 | 2.3 | ||||||||||
| MedTech | |||||||||||||||||||||
| U.S. |
| 4,554 | 4,383 | 3.9 | 3.9 | - |
| 9,013 | 8,596 | 4.8 | 4.8 | - | |||||||||
| International |
| 4,372 | 4,158 | 5.2 | 3.2 | 2.0 |
| 8,549 | 7,965 | 7.3 | 3.2 | 4.1 | |||||||||
| 8,926 | 8,541 | 4.5 | 3.6 | 0.9 |
| 17,562 | 16,561 | 6.0 | 4.1 | 1.9 | ||||||||||
| U.S. |
| 14,533 | 13,544 | 7.3 | 7.3 | - |
| 27,863 | 25,849 | 7.8 | 7.8 | - | |||||||||
| International |
| 10,777 | 10,199 | 5.7 | 3.4 | 2.3 |
| 21,509 | 19,787 | 8.7 | 3.6 | 5.1 | |||||||||
| Worldwide | $ | 25,310 | 23,743 | 6.6 | % | 5.6 | 1.0 | $ | 49,372 | 45,636 | 8.2 | % | 6.0 | 2.2 | |||||||
| Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. | |||||||||||||||||||||
| Johnson & Johnson and Subsidiaries | |||||||||||||||||||||
| Supplementary Sales Data | |||||||||||||||||||||
| (Unaudited; Dollars in Millions) | SECOND QUARTER | SIX MONTHS | |||||||||||||||||||
| Percent Change | Percent Change | ||||||||||||||||||||
| 2026 |
| 2025 |
| Total |
| Operational |
| Currency |
| 2026 |
| 2025 |
| Total |
| Operational |
| Currency | ||
| Sales to customers by | |||||||||||||||||||||
| geographic area | |||||||||||||||||||||
| U.S. | $ | 14,533 | 13,544 | 7.3 | % | 7.3 | - | $ | 27,863 | 25,849 | 7.8 | % | 7.8 | - | |||||||
| Europe |
| 5,726 | 5,387 | 6.3 | 3.3 | 3.0 |
| 11,574 | 10,497 | 10.3 | 3.0 | 7.3 | |||||||||
| Western Hemisphere excluding U.S. |
| 1,309 | 1,206 | 8.5 | 2.7 | 5.8 |
| 2,602 | 2,373 | 9.6 | 2.6 | 7.0 | |||||||||
| Asia-Pacific, Africa |
| 3,742 | 3,606 | 3.8 | 3.9 | (0.1) |
| 7,333 | 6,917 | 6.0 | 4.9 | 1.1 | |||||||||
| International |
| 10,777 | 10,199 | 5.7 | 3.4 | 2.3 |
| 21,509 | 19,787 | 8.7 | 3.6 | 5.1 | |||||||||
| Worldwide | $ | 25,310 | 23,743 | 6.6 | % | 5.6 | 1.0 | $ | 49,372 | 45,636 | 8.2 | % | 6.0 | 2.2 | |||||||
| Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. | |||||||||||||||||||||
| Johnson & Johnson and Subsidiaries | ||||||||||||
| Condensed Consolidated Statement of Earnings | ||||||||||||
| (Unaudited; in Millions Except Per Share Figures) | SECOND QUARTER | |||||||||||
2026 | 2025 |
Percent
| ||||||||||
Amount |
Percent | Amount |
Percent | |||||||||
| Sales to customers | $ | 25,310 | 100.0 | $ | 23,743 | 100.0 | 6.6 |
| ||||
| Cost of products sold |
| 8,051 | 31.8 |
| 7,628 | 32.1 | 5.5 |
| ||||
| Gross Profit |
| 17,259 | 68.2 |
| 16,115 | 67.9 | 7.1 |
| ||||
| Selling, marketing and administrative expenses |
| 6,432 | 25.4 |
| 5,889 | 24.8 | 9.2 |
| ||||
| Research and development expense |
| 3,653 | 14.4 |
| 3,516 | 14.8 | 3.9 |
| ||||
| Interest (income) expense, net |
| 62 | 0.2 |
| 48 | 0.2 | ||||||
| Other (income) expense, net |
| 331 | 1.3 |
| 107 | 0.5 | ||||||
| Restructuring |
| 34 | 0.2 |
| 64 | 0.3 | ||||||
| Earnings before provision for taxes on income |
| 6,747 | 26.7 |
| 6,491 | 27.3 | 3.9 |
| ||||
| Provision for taxes on income |
| 1,213 | 4.8 |
| 954 | 4.0 | 27.1 |
| ||||
| Net earnings | $ | 5,534 | 21.9 | $ | 5,537 | 23.3 | (0.1 | ) | ||||
| Net earnings per share (Diluted) | $ | 2.27 | $ | 2.29 | (0.9 | ) | ||||||
| Average shares outstanding (Diluted) |
| 2,440.1 |
| 2,419.1 | ||||||||
| Effective tax rate |
| 18.0 | % |
| 14.7 | % | ||||||
| Adjusted earnings before provision for taxes and net earnings (1) | ||||||||||||
| Earnings before provision for taxes on income | $ | 8,660 | 34.2 | $ | 8,188 | 34.5 | 5.8 |
| ||||
| Net earnings | $ | 7,081 | 28.0 | $ | 6,699 | 28.2 | 5.7 |
| ||||
| Net earnings per share (Diluted) | $ | 2.90 | $ | 2.77 | 4.7 |
| ||||||
| Effective tax rate |
| 18.2 | % |
| 18.2 | % | ||||||
| (1) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||
| Johnson & Johnson and Subsidiaries | ||||||||||||||
| Condensed Consolidated Statement of Earnings | ||||||||||||||
| (Unaudited; in Millions Except Per Share Figures) | SIX MONTHS | |||||||||||||
2026 | 2025 |
|
|
Percent
| ||||||||||
Amount |
Percent | Amount |
Percent | |||||||||||
| Sales to customers | $ | 49,372 | 100.0 | $ | 45,636 |
| 100.0 |
| 8.2 |
| ||||
| Cost of products sold |
| 16,157 | 32.7 |
| 14,985 |
| 32.8 |
| 7.8 |
| ||||
| Gross Profit |
| 33,215 | 67.3 |
| 30,651 |
| 67.2 |
| 8.4 |
| ||||
| Selling, marketing and administrative expenses |
| 12,466 | 25.3 |
| 11,001 |
| 24.1 |
| 13.3 |
| ||||
| Research and development expense |
| 7,180 | 14.5 |
| 6,741 |
| 14.8 |
| 6.5 |
| ||||
| In-process research and development impairments |
| 36 | 0.1 |
| - |
| - |
| ||||||
| Interest (income) expense, net |
| 105 | 0.2 |
| (80 | ) | (0.2 | ) | ||||||
| Other (income) expense, net |
| 625 | 1.3 |
| (7,214 | ) | (15.8 | ) | ||||||
| Restructuring |
| 66 | 0.1 |
| 81 |
| 0.2 |
| ||||||
| Earnings before provision for taxes on income |
| 12,737 | 25.8 |
| 20,122 |
| 44.1 |
| (36.7 | ) | ||||
| Provision for taxes on income |
| 1,968 | 4.0 |
| 3,586 |
| 7.9 |
| (45.1 | ) | ||||
| Net earnings | $ | 10,769 | 21.8 | $ | 16,536 |
| 36.2 |
| (34.9 | ) | ||||
| Net earnings per share (Diluted) | $ | 4.41 | $ | 6.82 |
| (35.3 | ) | |||||||
| Average shares outstanding (Diluted) |
| 2,443.9 |
| 2,423.3 |
| |||||||||
| Effective tax rate |
| 15.5 | % |
| 17.8 |
| % | |||||||
| Adjusted earnings before provision for taxes and net earnings (1) | ||||||||||||||
| Earnings before provision for taxes on income | $ | 16,481 | 33.4 | $ | 16,199 |
| 35.5 |
| 1.7 |
| ||||
| Net earnings | $ | 13,695 | 27.7 | $ | 13,405 |
| 29.4 |
| 2.2 |
| ||||
| Net earnings per share (Diluted) | $ | 5.60 | $ | 5.53 |
| 1.3 |
| |||||||
| Effective tax rate |
| 16.9 | % |
| 17.2 |
| % | |||||||
| (1) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||||
| Johnson & Johnson and Subsidiaries | |||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||
| Second Quarter | Six Months Ended | ||||||||||||
| (Dollars in Millions Except Per Share Data) |
| 2026 |
| 2025 |
| 2026 |
| 2025 | ||||
| Net Earnings, after tax- as reported | $5,534 |
| $5,537 |
| $10,769 |
| $16,536 |
| |||||
| Pre-tax Adjustments | |||||||||||||
| Litigation related | 267 |
| 57 |
| 597 |
| (6,909 | ) | |||||
| Intangible Asset Amortization expense | 1,245 |
| 1,267 |
| 2,492 |
| 2,387 |
| |||||
| Restructuring related 1 | 276 |
| 79 |
| 338 |
| 134 |
| |||||
| Orthopaedics separation related | 258 |
| - |
| 377 |
| - |
| |||||
| Acquisition, integration and divestiture related | 80 |
| 246 |
| 176 |
| 378 |
| |||||
| (Gains)/losses on securities | (213 | ) | 21 |
| (272 | ) | 60 |
| |||||
| IPR&D impairments | - |
| - |
| 36 |
| - |
| |||||
| Other | - |
| 27 |
| - |
| 27 |
| |||||
| Tax Adjustments | |||||||||||||
| Tax impact on special item adjustments 2 | (368 | ) | (321 | ) | (792 | ) | 994 |
| |||||
| Tax legislation and other tax related | 2 |
| (214 | ) | (26 | ) | (202 | ) | |||||
| Adjusted Net Earnings, after tax | $7,081 |
| $6,699 |
| $13,695 |
| $13,405 |
| |||||
| Average shares outstanding (Diluted) | 2,440.1 |
| 2,419.1 |
| 2,443.9 |
| 2,423.3 |
| |||||
| Adjusted net earnings per share (Diluted) | $2.90 |
| $2.77 |
| $5.60 |
| $5.53 |
| |||||
| Operational adjusted net earnings per share (Diluted) | $2.86 |
| $5.43 |
| |||||||||
| Notes: | |||||||||||||
1 | In the fiscal second quarter of 2026, the Company commenced a supply chain restructuring program primarily in the Innovative Medicine segment to exit certain manufacturing locations as part of its optimization efforts to streamline operations. The program is expected to be substantially completed by the end of fiscal year 2029 with estimated costs between $650 - $750 million, and include site and supplier exit costs, decommissioning and asset impairment costs. Restructuring expenses of $200 million, primarily related to asset impairments, were recorded in the fiscal second quarter of 2026. | ||||||||||||
| In fiscal 2025, the Company initiated a restructuring program of its Surgery franchise within the MedTech segment to simplify and focus operations by exiting certain non-strategic product lines and optimize select sites across the network. Restructuring expenses of $59 million were recorded in the fiscal second quarter of 2026 ($114 million Q2 2026 YTD) and $29 million in the fiscal second quarter of 2025 ($29 million Q2 2025 YTD) and primarily include costs related to product exits. This program is expected to be substantially completed by the end of fiscal year 2026. | |||||||||||||
| In fiscal 2023, the Company initiated a restructuring program of its Orthopaedics franchise within the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The restructuring expenses of $17 million in the fiscal second quarter of 2026 ($24 million Q2 2026 YTD) and $50 million in the fiscal second quarter of 2025 ($105 million Q2 2025 YTD) includes costs related to market and product exits. This program will be completed as of Q4 2026 at a total cost of approximately $1 billion. | |||||||||||||
2 | The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings. | ||||||||||||
Media contact:
media-relations@its.jnj.com
Investor contact:
investor-relations@its.jnj.com
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