Johnson & Johnson's Q3 2025: Contradictions Emerge on MedTech Margins, Orthopaedics Strategy, and Capital Allocation

The above is the analysis of the conflicting points in this earnings call

Business Commentary:

* Strong Sales Performance Across Businesses: - Johnson & Johnson reported operational sales growth of 5.4% across its business for Q3, with 5.3% in Innovative Medicine and 5.6% in MedTech. - Growth was driven by double-digit growth across key brands such as DARZALEX, ERLEADA, and TREMFYA, and improvements in cardiovascular and robotic surgery products.

• Oncology and Immunology Growth:
• Oncology sales grew nearly 20%, with DARZALEX operational sales increasing by 20% and CARVYKTI by 81.4%.

• This was fueled by the approval of DARZALEX in Europe and the successful launch and expansion of CARVYKTI globally.

• MedTech Expansion and Product Innovations:

• MedTech sales increased by 5.6%, with notable contributions from cardiovascular, surgery, and vision segments.

• The growth was supported by new product launches like Shockwave's intravascular lithotripsy technology and the TECNIS intraocular lenses.

• Orthopaedics Business Separation:

• Johnson & Johnson announced plans to separate its Orthopaedics business, creating a new standalone company.
• This move aims to sharpen focus on high-growth markets and accelerate innovation in areas like cardiovascular and robotic surgery.