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- **Accelerated Growth**: Q3 2025 revenue up 5.4% YoY to $24 billion, driven by 5.3% growth in Innovative Medicine (TREMFYA +40%, CARVYKTI +81%) and 5.6% in MedTech (Shockwave +20.9%, Abiomed +15.3%).
- **Strategic Separation**: Orthopaedics business (DePuy Synthes) to be spun off, freeing JNJ to focus on high-growth MedTech areas (cardiovascular, robotics, surgery) with 75+ basis points margin improvement.
- **Pipeline Momentum**: 
  - Pharma: INLEXZO (bladder cancer) and icotrokinra (psoriasis) on track for $5 billion+ peaks. 
  - MedTech: OTTAVA robotic surgery system targeting FDA submission in early 2026.
- **2026 Outlook**: >5% operational sales growth, driven by: 
  - Pharma: TREMFYA IBD expansion, RYBREVANT/LAZCLUZE subcutaneous launch. 
  - MedTech: Shockwave C2 Aero, TECNIS PureSee IOL, and robotic surgery adoption.
- **Financial Strength**: $14 billion year-to-date free cash flow, $19 billion cash, and 300+ basis points margin expansion target.

**【CEO Summary Section】**
- **Overall Performance**: Q3 2025 revenue of $24 billion, up 5.4% year-over-year, driven by 5.3% growth in Innovative Medicine and 5.6% in MedTech. Operational sales growth of 5.4% despite a 640 basis point headwind from STELARA loss of exclusivity.
- **Innovative Medicine Highlights**: 
  - Oncology: DARZALEX sales grew 19.9%, CARVYKTI achieved 81.4% growth, and RYBREVANT/LAZCLUZE delivered over 100% growth.
  - Immunology: TREMFYA sales surged 40.1% on 40% growth in IBD (Crohn's disease and ulcerative colitis), while SPRAVATO grew 60.8%.
  - New Launches: INLEXZO (bladder cancer) and icotrokinra (psoriasis) are on track for $5 billion+ peak sales.
- **MedTech Strengths**: 
  - Cardiovascular: 12% growth led by Shockwave (20.9% growth) and Abiomed (15.3%).
  - Surgery: 3.3% growth in biosurgery and wound closure, with OTTAVA robotic surgery system targeting FDA submission in early 2026.
  - Vision: 6.1% growth driven by TECNIS intraocular lenses (13.8% growth) and ACUVUE OASYS MAX 1-day contact lenses.
- **Strategic Moves**: Announced planned separation of Orthopaedics business (DePuy Synthes) to sharpen focus on high-growth MedTech areas (cardiovascular, robotics, surgery). Post-separation, MedTech is expected to see 75+ basis points improvement in both revenue growth and operating margins.

**【CFO Financial Commentary】
- **Q3 Financials**: 
  - Net earnings: $5.2 billion (vs. $2.4 billion in Q3 2024), adjusted EPS of $2.80 (up 15.7% YoY). 
  - Free cash flow: $14 billion year-to-date, with $19 billion in cash and $46 billion in debt.
  - Guidance Update: 2025 operational sales growth revised to 4.8%-5.3% (midpoint 5.1%), with adjusted EPS of $10.85-$10.90 (up 8.7% YoY). 
- **2026 Outlook**: Anticipated >5% operational sales growth, driven by: 
  - Innovative Medicine: TREMFYA IBD expansion, RYBREVANT/LAZCLUZE subcutaneous launch, and icotrokinra psoriasis approval. 
  - MedTech: Shockwave C2 Aero launch, TECNIS PureSee IOL, and OTTAVA robotic surgery system. 
- **Margin Improvement**: Target 300+ basis points of operating margin expansion by year-end 2025, with MedTech margin enhancement post-Orthopaedics separation.

**【Q&A Highlights】
- **Orthopaedics Separation**: Expected to complete within 18-24 months, creating a standalone $13 billion MedTech platform. Johnson & Johnson will retain focus on cardiovascular, surgery, and vision, with MedTech growth accelerating to 5%-7%+ by 2026.
- **INLEXZO Potential**: $5 billion+ peak sales for bladder cancer treatment, with 50%+ complete response rates in BCG-unresponsive NMIBC. Phase III trials underway for BCG-relapsed and frontline BCG settings.
- **icotrokinra Strategy**: Oral IL-23 receptor antagonist targeting $5 billion+ peak in psoriasis, with head-to-head data vs. biologics and TYK2 inhibitors.
- **2026 Growth Drivers**: 
  - Pharma: TREMFYA IBD, RYBREVANT/LAZCLUZE, and icotrokinra launches. 
  - MedTech: Shockwave, Abiomed, and robotic surgery expansion.
- **Policy & Manufacturing**: $55 billion U.S. investment in R&D and manufacturing over 4 years, with all advanced medicines manufactured domestically by 2025.


Johnson & Johnson (JNJ) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

JNJ

JNJ fundamentals

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