Johnson Johnson 2025 Q3 Earnings Beats Expectations, Net Income Surges 91.2%

Johnson & Johnson reported Q3 2025 earnings that exceeded Wall Street expectations, with both revenue and earnings per share rising sharply. The company raised its full-year sales guidance and highlighted strong performance across key segments, including double-digit growth in 11 brands and a 5.6% increase in MedTech sales.

Revenue

Johnson & Johnson reported total revenue of $23.99 billion in Q3 2025, representing a 6.8% year-over-year increase from $22.47 billion in the same period of 2024. The pharmaceuticals segment saw particularly robust growth, with sales rising 6.8% to $15.56 billion, driven by continued demand for products such as Darzalex, which generated $3.67 billion in revenue. Medical device sales also grew by 6.8% to $8.43 billion, primarily fueled by strong performance in electrophysiology products. These gains reflect solid demand across core therapeutic areas and a well-positioned medical technology portfolio.

Earnings/Net Income

Earnings per share (EPS) surged 91.2% to $2.14 in Q3 2025, compared to $1.12 in Q3 2024. The company’s net income also saw a significant boost, reaching $5.15 billion, a 91.2% increase from $2.69 billion in the prior-year quarter. This marked a record-high net income for a Q3 result, setting a new benchmark for the company in over two decades.

Price Action

The stock price of Johnson & Johnson declined by 1.07% during the latest trading day, but gained 1.04% over the most recent full trading week. Month-to-date, the stock has appreciated 7.18%, reflecting investor optimism amid strong earnings and strategic guidance.

Post Earnings Price Action Review

Following the earnings report, Johnson & Johnson’s stock initially dipped 1.8%, according to CNBC, amid broader market concerns over trade tensions with China. Despite this, the company’s shares remain up 32% year-to-date, outpacing the 3% rise in the broader S&P Healthcare Index. Analysts from Guggenheim suggested that the stock’s recent rally may limit further upside in the near term. Meanwhile, Zacks Investment Management’s Brian Mulberry expressed concerns over the magnitude of the orthopedics spinoff and its potential impact on J&J’s strategic direction.

CEO Commentary

Joaquin Duato, CEO & Chairman, emphasized the company’s strong Q3 performance, noting operational sales growth of 5.4%, driven by growth in Innovative Medicine and MedTech. He highlighted double-digit sales increases across 11 brands and a 5.6% rise in MedTech, and reiterated the company’s strategic commitment to sharper focus on high-growth areas like oncology and cardiovascular. Duato also expressed confidence in the pipeline, citing transformative products like TREMFYA and icotrokinra as key drivers of future growth.

Guidance

Johnson & Johnson raised its full-year 2025 operational sales guidance to 4.8% to 5.3% ($93.2 billion midpoint), excluding acquisitions, and reported sales growth is now projected to be 5.4% to 5.9% ($93.7 billion midpoint). Adjusted EPS guidance remains at $10.85, reflecting 8.7% growth at the midpoint. For 2026, the company expects sales growth to exceed 5%, with adjusted EPS growth in line with sales, driven by product launches and a MedTech focus.

Additional News

Johnson & Johnson announced plans to spin off its orthopedics business into a standalone company named DePuy Synthes over the next 18 to 24 months, its second major divestiture in two years. The move is part of a broader strategy to refocus on higher-growth areas such as oncology and immunology, aligning with the company’s long-term growth objectives. The orthopedics unit, which accounts for about 10% of total revenue, is expected to be led by Namal Nawana, a veteran in the industry. CFO Joe Wolk noted that the spinoff will allow J&J to concentrate on innovation in other areas where orthopedics may fall outside its strategic scope. J&J is currently exploring a tax-free spinoff as the primary option and anticipates no major updates until mid-2026. Separately, the company maintains its licensing agreement with Protagonist Therapeutics and has no current plans to pursue further acquisitions of the biotech firm.