Johnson & Johnson Falls as Device Sales Lag and Profit Drops
The company raised its 2026 earnings outlook, but a litigation-related charge and slower MedTech growth weighed on investor sentiment.
Key takeaways
- Third-quarter net earnings fell to $210 million from $5.15 billion a year earlier.
- MedTech revenue rose 2.5% to about $8.6 billion.
- Johnson & Johnson raised its 2026 adjusted EPS guidance midpoint to $11.10.
Johnson & Johnson shares fell sharply on Tuesday, despite the company raising its full-year earnings outlook. At Tuesday’s close, the stock was $248.61, down 5.73% from the previous close; losses reached about 6.8% during the session.
Third-quarter net earnings dropped to $210 million, or 9 cents per share, from $5.15 billion a year earlier. A charge tied to the proposed talc litigation resolution, along with acquisition and collaboration-related items, weighed on reported profit.
Sales rose 5.9% to $25.4 billion. Innovative Medicine revenue grew 7.7%, while MedTech revenue increased 2.5% to about $8.6 billion, missing analyst expectations for a second consecutive quarter.
The company lifted its 2026 adjusted earnings-per-share guidance by 6 cents to a midpoint of $11.10. Adjusted third-quarter EPS was $2.59, above analysts’ $2.53 estimate but 7.5% below the year-earlier figure.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
