Q1 2026 Johnson & Johnson Earnings Call Transcript
Key Points
- Johnson & Johnson (JNJ) reported strong Q1 2026 performance with operational sales growth of 6.4%, exceeding consensus expectations.
- The company has a robust portfolio pipeline with 28 platforms or products generating at least $1 billion in annual revenue, aiming for $100 billion in annual revenue by 2026.
- Innovative Medicine segment delivered operational sales growth of 7.4%, with 10 brands growing double digits, highlighting strong performance in oncology and immunology.
- MedTech segment reported Q1 operational sales growth of 4.6%, driven by growth in cardiovascular, surgery, and vision sectors.
- JNJ increased its operational sales guidance for 2026 to a range of 5.9% to 6.9%, with a midpoint of $100.2 billion, reflecting confidence in sustained growth.
- Net earnings for the quarter were $5.2 billion, with a decrease in adjusted net earnings and diluted earnings per share compared to Q1 2025.
- STELARA faced a significant decline of 61.7% due to biosimilar competition, impacting overall sales growth.
- Cost of goods sold deleveraged by 10 basis points, driven by tariffs and unfavorable mix in the Innovative Medicine business.
- Selling, marketing, and administrative expenses increased by 180 basis points due to heavier investment in new launches and acquisitions.
- MedTech margin declined from 25.9% to 22.3%, primarily due to tariffs and unfavorable onetime items recorded in 2025.
Good morning and welcome to Johnson & Johnson's first-quarter 2026 earnings conference call. (Operator Instructions) This call is being recorded. (Operator Instructions)
I will now turn the call over to Johnson & Johnson. You may begin.
Hello, everyone. This is Darren Snellgrove, Vice President of Investor Relations for Johnson & Johnson. Welcome to our company's review of business results for the first quarter of 2026, and our financial outlook for the full year.
First, a few logistics: as a reminder, today's presentation and associated schedules are available on the Investor Relations section of the Johnson & Johnson website at investor.jnj.com. Please note that this presentation contains forward-looking statements regarding, among other things, the company's future operating and financial performance, market position, and business strategy.
You are cautioned not to rely on these forward-looking statements, which are based on the current
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