JNJ Q3 '26

Moments, ranked

1. 108:50 ETprepared▲ +0.19%

   “Driven by strong performance in the AccuView Oasis one day family of products.”

   Management, 8.1x volume, adj. next 5 min: +0.19% raw vs 0.00% sector

   New, abnormal minute +1 min after the statement

   low confidence

2. 209:22 ETQ&A -0.02%

   “So they will become our largest product.”

1. +0.19%0:00OperatorGood morning and welcome to Johnson & Johnson's third quarter 2026 earnings conference call. All participants will be in the listen-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've experienced any technical difficulties during the conference, you may press star zero to reach the operator. I will now turn the conference call over to Johnson & Johnson.
2. +0.19%0:25ManagementYou may begin. Welcome to our company's review of business and our financial outlook for the first a few logistics of the Johnson & Johnson website at investor.jnj.com.
3. +0.19%0:54ManagementPlease note that this presentation and business strategy and the information available as
4. +0.13%1:13Managementof the description of these risks, including our 2025 Form 10-K developed in collaboration with strategic partners or licensed from other companies. This slide acknowledges those relations. Moving to today's agenda. Joaquin Duado, our chairman and CEO, will discuss our business performance and growth drivers. I will then review the third quarter sales and P&L results.
5. +0.13%1:58ManagementWe're sharing an overview of our capital allocation priorities and updated guidance for 2026. Chairman Innovative Medicine will be joining us for Q&A. To ensure we provide enough time to address your questions, we anticipate the webcast will last approximately 60 minutes.
6. +0.05%2:28ManagementAs a year for Johnson & Johnson. On Q3, we report increased sequential strategic focus, surgery and vision made need where
7. -0.40%3:11Managementinnovation can make the great significant traction.
8. -0.40%3:39ManagementOur new product significantly emerged for new patient share.
9. -0.68%6:36ManagementOn our 25-year legacy to drive industry-leading innovation for percent in the quarter, generate
10. -0.64%7:07Managementevidence the first and the future of operation and heart rhythm disorders from body pulse
11. +0.01%11:22Managementpatient for OTABA, and next generation robotic instruments, you call workflow for OTABA.
12. +0.06%12:49ManagementAnd we are progressing our development program.
13. +0.06%12:55ManagementDevice exemption trial is already underway in vision for Johnson & Johnson.
14. -0.03%14:40ManagementJoaquin, moving to our financial results. Less otherwise stated, the percentages quoted represent operational results and therefore exclude the impact of currency translation. Starting with Q3, 2026 sales results. Worldwide sales were $25.4 billion for the quarter, increasing 6%. Growth in the U.S. was 9.1% and 1.8% outside the U.S. Acquisitions and divestitures had a net negative impact on worldwide growth of 10 basis points. Now turning to earnings. For the quarter, net earnings were $210 million and diluted earnings per share
15. -0.00%15:23Managementwere $0.09 versus $2.12 a year ago. Results in the quarter were impacted by the proposed TALC litigation resolution as well as expenses associated with the Firefly biotransaction and Sale Biomedicines Collaborative.
16. -0.00%15:41ManagementAdjusted net earnings for the beginning of decrease of 6.6 key areas where meaningful innovation and strong commercial execution are driving our performance and fuel expertise
17. -0.00%16:20Managementof our key brands and new launches outside the U.S. 15.6% share gains of five points across all continued market growth.
18. +0.19%17:05ManagementAchieve growth of third share gains across all continued launch uptake and all continued
19. +0.19%17:55Managementshare gains and market growth. Continued momentum from the IBD launch. Continued market growth.
20. +0.19%18:13ManagementFiles similars and continued share gains reflect continued launch momentum in adjunctive
21. +0.19%18:45Managementmajor depressive disorder and continued demand increases across basis points related to acquisitions. Cognitology delivered growth of five procedure expansion.
22. +0.12%19:15ManagementCommercial partially offset by a volume at a solid decline of 1.5% due to lower patient volume. There are encouraging signals in the U.S. performance with improvement in the quarter.
23. +0.12%19:36ManagementSupported by acute myocardial and a VBP in China 4.3%.
24. +0.19%20:39ManagementDriven by strong performance in the AccuView Oasis one day family of products. Further solidifying our leadership offset by U.S. inventory driven by new product launches such as commercial execution now turning to our consolidated statement of earnings for the third quarter of 2026.
25. 0.00%21:22ManagementI'd like to highlight a few noteworthy items that have changed cost of goods sold be leveraged by one set by the impact of tariff commercial investments in the innovative medicine business.
26. 0.00%21:51Management4.7 billion dollars in 10 Q for changes in taxes provided our income before tax
27. -0.24%22:51Managementof intangible amortization. Now let's look at the adjusted income before tax by segment for the quarter. 4.3% primarily due to acquired airfly bio transaction costs for sale biomedicine
28. -0.28%23:19Managementto 22.9% driven by the impact of tariff strategic investments in 5.2% in earnings
29. -0.28%23:46Managementportion of performance more than offset headwinds in certain areas of medtech. While continuing outside the U.S.
30. -0.23%24:19ManagementAnd the underlying funding turning to financial metrics and the agreement is
31. -0.04%26:10Managementcondition what we know today based on our year to date performance represents operational sales of 100.7 billion at the midpoint.
32. -0.04%26:53ManagementHowever the average rate for the fiscal year improvement from the 75
33. -0.04%27:39Managementbasis points decline based on our year to date results.
34. 0.00%28:21Management4% to reported EPS growth would approach 9% from multiple lines of therapy on
35. +0.04%30:05Managementthat momentum within 2027.
36. +0.04%30:49ManagementStudy will evaluate the safety and efficacy by the end of the decade 2027.
37. +0.23%31:30ManagementImportantly we will look for another successful year.
38. +0.16%32:40ManagementWe will now be conducting a question and answer session.
39. +0.16%33:06OperatorLadies and gentlemen if you'd like to ask a question at this time please press star then one on your telephone keypad. If you'd like to withdraw your question please press star then two. We ask you please limit yourselves to one question only. Our first question today is coming from Asad Haydar from Goldman Sachs. Your line is now live.
40. +0.16%33:24AnalystGreat, thanks for taking the question and congrats on all the progress. Just one point of clarification. On the double digit growth by the end of the decade the vocabulary in the press release references the progress in the underlying business quote together with strategic investments. Just want to be clear that that refers to internal investments and not M&A. That's a question we're getting this morning. And then Joe on your comments that you aren't satisfied with the with med tech performance and are taking action to strengthen that growth. Is the implication there that you are now you now feel more urgency to add to higher growth areas by M&A and med tech or do you think that you have the product portfolio today to drive the improved performance you're looking for? Thank you.
41. +0.12%34:04ManagementYeah Asad thank you for your questions. Double digit growth by the coming years with increasing performance. It's an urgency to fix what we currently have.
42. +0.12%34:48ManagementWe like the portfolio and the construct that currently exists with the three focus areas of vision surgery as well as cardiovascular. I think you're very familiar and maybe I'll even hand it over to Tim to talk specifically. Very excited at what's on the horizon and then as I mentioned earlier vision seems to be functioning well both on the surgery side as well as the contact lens side where we are the market leader. But Tim maybe you want to.
43. +0.12%35:30ManagementSo Asad ultimately ABIA med remain opportunity has not changed at all. You know the slowdown we're seeing continues to be highlighted in the quarter before which is this study outside of the U.S. focused on high-risk PCI and importantly structural in nature long-term impact on the not seeing any changes in the patient need nor to reimbursement access or any meaningful competitive pressures. We also have highlighted some questions
44. -0.07%36:11Managementwe have around as we're used in the study and so our focus today is really on education and advancing the clinical to show the incredible impact that impeller has in both saving and improving lives. And so we believe it's a short-term headwind. It's important to recognize in any emerging area of science there's always going to be debate and discussion and our responsibility is to continue to advance the evidence base to support what's in the best interest of patients and in the case of ABIA med we're doing exactly that and so a short-term headwind but we are very confident this is going to be a strong platform for growth for Johnson and Johnson for the future.
45. -0.07%36:52OperatorThank you. Next question today is coming from Larry Beegleson from Wells Fargo.
46. -0.07%36:55AnalystYour line is not live. Good morning. Thanks for taking the question. Joe, I wanted to ask about the 2027 comments you made at Deutsche Bank. On the top line you said you expect reported sales growth to be similar to 2026 after adjusting 100 basis points for the extra week in both years which I think would mean about 5.4 percent reported growth next year. And on EPS how should we think about your ability to grow earnings excluding IPR&D and just remind us of how much the firefly and sale dilution is IPR&D this year and next year. Thank you.
47. 0.00%37:31ManagementWe'll talk about that next year after adjusting for the dollar 30s. Part of the orthopedic separation looking more holistically at our business. Some of the advances we're getting with Tecna across all parts of our business
48. -0.12%38:12Managementbut that's probably a good way to kind of for 2027 but we'll be a little bit more explicit on December 8th at our investor day. We'll outline specifically kind of the component orthopedic separation some point next year as well as a
49. -0.12%38:33Operatorlonger term out. This question is coming from Chris Schott from JPMorgan Chase.
50. -0.12%38:40AnalystYour line is not live. Great thanks so much. I just wanted to touch base in terms of what you're seeing in terms of patients injectables. Are you talking about this is a 10 billion dollar plus asset from launch we've seen so far in Soraya. How do you think about could this be a much larger asset than 10 billion as you
51. -0.24%39:13Managementthink about the peak sales opportunity for Echotide? Thanks for tremendous leadership and partnership. Jennifer leaves innovative medicine incredibly well positioned as you see from our quarterly earnings. With strong momentum outstanding portfolio and pipeline and most established and I'm excited about what's ahead. Right now is Echotide.
52. -0.24%39:47ManagementPercent of the patients are systemic naive so they haven't received any support. The
53. -0.24%40:33Management40 remaining 20 percent are source from Orals and 20 percent are source from other treatments most likely biologics as we dig into the data. Earlier a bit expansion of the marketplace and absolutely an opportunity to continue to drive that. Highlighted as well as Joaquin highlighted earlier I think it's important to point out we do have broad and preferred access lands are actively engaged to expand that to the Medicaid Medicare population. So I would say we're fairly excited about the launch to date as equally as excited about the future and we do foresee this to be you know one of our largest assets as I
54. -0.24%41:15Managementpointed out. We're excited about the upcoming data readouts both with a PSA and phase three data as well as the head to head Stellar data for ascend that we should be releasing in the coming months and as we look to expand beyond that and we'll get get into more of this at the EBR and IBD and expansions into UC regards to launch performance. Thank you. Next question
55. -0.24%41:46Operatoris coming from Joanne Wood from Citi. Your line is now live. Good morning and thank you
56. -0.24%41:51Analystfor taking the question. I want to focus a little bit on MuddTech here. When you use the phrase underlying fundamentals in MuddTech or solid I want to confirm that you're thinking about all the good stuff the patient volumes the cap x spending from the hospitals and then what you're seeing in terms of just general flows and then as a sister question to that how do you
57. -0.19%42:13Managementor what do you think needs to be done to improve the J&J franchise? Thank you. In China
58. -0.11%43:33Managementthat you know is still relatively encouraging indicators which give us confidence physiology in markets like during easier to use cathode pro in Japan shortly after receiving regulatory
59. +0.06%44:09Managementcan also anticipate a US launch by the end of this year. I think in Abiumet we've already so
60. +0.06%44:30Managementsolid especially in areas like AMI Tech was not a strong quarter. This is worth reinforcing to your question that the underlying procedure environment remains stable across our key markets. I know there's been a lot of debate about that. Our job now is to make sure that we convert that demand to more consistent performance and so we remain remain confident
61. +0.06%45:10Managementin the combination of the momentum we're seeing in the US and the moderation of these near-term headwinds which will support improved performance in Q4 while positioning us for stronger performances in 2027 and beyond and as you've already heard from Joaquin and Jo will share more detail around what that looks like for 2027 and beyond specifically with a focus on new innovations like OTTAVA when we come together on December 8th. Thank you. Next
62. +0.06%45:37Operatorquestion today is coming from Jason Gerbery from Bank of America. Your line is now live.
63. +0.06%45:45AnalystHello this is Richard Wagner for Jason. I had a question regarding the IKOTIDE psoriasis launch. Are there lessons that can be learned that would be useful when IKOTIDE launches in IBD? Specifically in IBD competitors are developing high efficacy combination programs and wondering how that could affect the efficacy perception by physicians
64. -0.13%46:18Managementof IKOTIDE. Thank you. I'll say a couple things. In IBD it's marketplace but pursuing
65. -0.14%48:44Managementthat for those patients where a monotherapy is not enough. Great patients if needed beyond the monotherapies to the dual. Next question is coming from Vamal Devan from Guggenheim security. Your line is now live. Great thanks for taking the question. Maybe one just follow up and then one actual question. Following up on the IKOTIDE, appreciate the comments you've made so far. Just curious if you would be willing to provide any commentary around the actual net sales in the quarter or kind of how it compares to where consensus was. We're just getting
66. -0.69%49:26Managementsome questions from investors on that specifically. And then my other question is just around in Lexo. So appreciate the comments there you made around the sales so far. I'm wondering if you can just quantify. I know you have the data coming up later this year as well. How do you see the market opportunity for that expanding based on the current indication and then what sort of the sunrise five data. What the size of that opportunity is relative
67. -0.69%49:49Managementto what you have currently. Thank you. This quarter we saw the previous quarter
68. -0.49%50:31Management15,000 patients. E-population roughly 50 complete remission rates that we are.
69. -0.25%51:19ManagementTurn it to John to touch on a little bit of the clinical development program.
70. -0.25%51:27ManagementIndeed. As you know the approved IKOTIDE and Elexo are going to be together with
71. -0.02%52:42ManagementRibra Bank key drivers of our digital growth. So they will become our largest product.
72. -0.02%52:55OperatorOur next question is coming from Michael Yee from UBS security. Your line is now live.
73. +0.17%53:03AnalystMaybe two pipeline science questions. On IKOTIDE obviously you have great data and psoriasis a little bit lower than biologics but great data. In IBD the UC data was quite strong. And just wondering if you think that would be replicated to biologic like efficacy as an oral and that differentiation there due to the release in the gut is a reason for the potentially stronger data in IBD which could be a bigger driver. Second part question is on Mildaxian. I know you share in that partnership but SSP data is coming up and I just wanted to check in on your confidence that that should be similar to Ascindaxian and that should be a fairly de-risked indication.
74. +0.17%53:45ManagementPlease with the phase two data and ulcerative colitis I would also tell you the phase three
75. +0.55%54:10Managementstudy John has said there's an absolute need for highly effective oral anticoagulation therapy.
76. -0.07%56:19ManagementThey have alone approximately 40 percent of the patients eligible for oral anticoagulants are not receiving oral anticoagulants typically due to the concerns on potential safety and the bleeding risk associated with the current ODAX. Thank you. Our next question is coming from Jason
77. -0.07%56:38OperatorBedford from Raymond James. Your line is now live.
78. -0.07%56:42AnalystGood morning. Thanks for taking the question. Just I want to go back to the international med tech business. Is there any way to quantify the impact of the dynamics in the Mideast and VBP? And then Tim I wanted to ask about international surgery. First just to confirm your view is that there's been no change to the underlying demand profile internationally. And then second I think Joe mentioned taking actions internationally for surgery. What are
79. -1.08%57:11Managementthose actions? Thanks. More cautious in any form of conflict and certainly what we're seeing in
80. -1.00%58:11Managementthe in the Middle East. You know on surgery as I mentioned we were actually really excited about the performance of the business in the U.S. Our issue really was outside merely driven by factors. We're focused on where we can absolutely dominate surgery and other by key brands
81. -1.00%58:55Managementlike Vista Seal and we continue to see good track on 4000 and and do also and so we are confident we will see continued growth in the U.S. And to your question we will see acceleration in EMEA and return to growth overall. I think it's also worth mentioning this was the core to how we started Johnson and Johnson Med Tech and we are absolutely committed to it for the long term. I'd say the biggest reason for confidence is the fact that we will be entering the surgical robotic space and you know combined with our leadership positions across wound closure
82. -0.78%59:40Managementby surgery and advanced instrumentation we believe that OTVA gives us an opportunity to participate more fully in one of the most attractive and under penetrated areas of surgery. And so you know as we continue to execute our portfolio transformation in the long term trajectory of the surgery franchise we do get a lot of questions on OTVA and rest assured that when you come together for the meeting on December 8th we will provide perspective for that
83. -0.45%60:16Managementinnovation and further build you what we believe will be a material. Certainly our final question
84. -0.45%60:31Operatortoday is coming from Alex Hammond from Wolf Researcher. The line is now live.
85. -0.45%60:36AnalystThanks for squeezing me in. So I guess as the Cartitude V and VI trials advance and newly diagnosed multimiloma how is J&J preparing to educate physicians and treatment centers for the potential shift to use in earlier into the treatment journey? And I guess how should investors think about potential to capture share from these existing frontline regimens? Thank you.
86. -0.45%60:55ManagementI think first and foremost yes we're anxiously awaiting unmatched over line two educating
87. -0.33%61:40Managementhighest level MRD negativity at the recent miloma meetings we. Thank you John and thank you
88. +0.10%62:29ManagementAlex for the question and thanks to everyone for your questions and continued interest in our company. I will now turn the call over to Joaquin for some brief closing remarks. Thank you for your questions and due to engagements in today's call. As you can see we can we continue to build momentum. Growth improved sequentially in the third quarter and we expect further acceleration in 2027 by the end of the day. Rhyme rebranding
89. -0.21%63:07ManagementLexo as they begin to contribute more meaningfully. Including next generation PFA and IVL catheters. Additional data supporting impeller surgery are not yet fully reflected in our growth. Taken together these drivers position Johnson and Johnson as one of the cleanest more details about our portfolio and latest stage pipeline at our enterprise business review later in December. Thank you very much and enjoy the rest of your day.
90. -0.21%63:50OperatorThank you this concludes today's Johnson and Johnson's third quarter 2026 earnings conference call. You may now disconnect.