Johnson & Johnson beats estimates, raises outlook on drug sales growth

Johnson & Johnson topped Wall Street expectations in the second quarter as a surge in its medicines business helped offset pressure in older products and a softer showing in medical technology. The company reported sales of $25.310 billion, up 6.6% from a year earlier, and adjusted diluted earnings of $2.90 a share, ahead of the $2.85 analysts expected.

The results pushed Johnson & Johnson to raise its full-year view. It lifted its 2026 revenue forecast to a midpoint of $101.1 billion and increased its adjusted earnings-per-share outlook to a midpoint of $11.68 from $11.55. Adjusted operational earnings per share now should reach a midpoint of $11.58. On the bottom line, net earnings were $5.534 billion, essentially flat from a year earlier, while adjusted net earnings rose 5.7% to $7.081 billion. Free cash flow for the quarter was about $8.7 billion.

The clearest support came from Innovative Medicine, which generated $16.38 billion in quarterly sales. Tremfya, Johnson & Johnson’s immunology drug, posted a 72.5% increase to $2.0 billion, while Darzalex brought in $4.2 billion. Those gains helped the company absorb pressure tied to legacy products, including the ongoing loss of exclusivity for Stelara, as well as weakness in parts of MedTech.

Medical technology sales reached $8.93 billion, slightly below expectations. Abiomed revenue fell 2% from a year earlier after a United Kingdom study raised questions about Impella pumps in certain high-risk coronary procedures. Chief financial officer Joseph Wolk said the company expects the Abiomed franchise to return to growth and pointed to a major Impella data set due in the first half of 2027.

Chief executive Joaquin Duato said Johnson & Johnson has 28 platforms that each generate at least $1 billion in annual revenue. He said the company is on track to exceed $100 billion in annual revenue for the first time in its 140-year history. Recent approvals and data updates included TREMFYA, CAPLYTA, Dual Energy THERMOCOOL SMARTTOUCH SF, RYBREVANT FASPRO, TALVEY plus DARZALEX FASPRO, and OTTAVA.