Q3 2025 Johnson & Johnson Earnings Call Transcript
Key Points
- Johnson & Johnson (JNJ) reported strong operational sales growth of 5.4% across its business in the third quarter of 2025.
- The innovative medicine segment saw a 5.3% operational sales growth, with significant contributions from brands like Darzelex and Carviti.
- Medtech operational sales growth accelerated to 5.6%, driven by improvements across all businesses.
- The company announced the planned separation of its orthopedics business to sharpen focus on high-growth areas like cardiovascular and robotic surgery.
- Johnson & Johnson (JNJ) is in a new era of accelerated growth, with strong momentum in oncology, immunology, and neuroscience.
- The loss of exclusivity for Stelara posed a significant headwind, impacting sales by approximately 640 basis points.
- The orthopedics business, despite its growth potential, is being separated, which may lead to transitional challenges.
- The effective tax rate increased to 31.2% from 19.3% due to a one-time remeasurement of deferred tax balances.
- Medtech margin declined from 24.1% to 21%, driven by macroeconomic factors in cost of products sold.
- There are ongoing litigation challenges, with Daubert motions pending in court, which could impact future financials.
Good morning and welcome to Johnson and Johnson's third quarter 2025 earnings conference call. All participants will be in the listed only mode until the question-and-answer session of the conference.
This call is being recorded. If anyone has any objections, you may disconnect at this time.
If you experience technical difficulties during the conference, you may press 0 to reach the operator.
I will now turn the copper call over to Johnson and Johnson. You may begin.
Hello everyone, this is Darren Snelgrove, Vice President of investor relations for Johnson and Johnson. Welcome to our 2025 3rd quarter review of business results and updated financial outlook.
First, a few logistics. As a reminder, today's presentation and associated schedules are available on the investor relations section of the Johnson and Johnson website at investor.JJ.com.
Please note that this presentation contains forward-looking statements regarding, among other
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