Johnson & Johnson (JNJ) reported a robust second quarter of 2025, lifting full-year guidance for both sales and earnings per share. The strong results reflect continued growth in Innovative Medicine and MedTech, with management emphasizing confidence in long-term prospects, especially in oncology, where the company now targets $50 billion in annual sales by 2030.
Operational Sales Growth and CEO Insights
Chief Executive Officer Joaquin Duato described Q2 as a “very strong second quarter,” reporting operational sales growth of 4.6 percent. The company raised its full-year sales guidance by $2 billion and increased EPS guidance by $0.25 to a range of $10.60 to $10.85. Duato highlighted that Innovative Medicine achieved 3.8 percent operational sales growth, surpassing $15 billion in quarterly sales for the first time. He noted that the company grew despite the loss of exclusivity on STELARA, a multibillion-dollar product, marking the second consecutive quarter achieving this milestone.
Duato pointed to double-digit growth across 13 brands, including DARZALEX, CARVYKTI, TECVAYLI, TALVEY, RYBREVANT, LAZCLUZE, TREMFYA, CAPLYTA, and SPRAVATO. He also emphasized strong momentum in MedTech, particularly in Cardiovascular, Surgery, and Vision, with 6.1 percent operational sales growth.
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Double-Digit Growth Across Key Brands
The company’s focus on its six strategic areas—Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision—remains a central pillar of growth. Duato stated that Johnson & Johnson expects to become the number one oncology company by 2030, projecting annual oncology sales exceeding $50 billion.
TREMFYA reported growth of 30.1 percent, while STELARA declined 43.2 percent due to biosimilar competition. Oncology operational sales increased 22.3 percent, with strong performance from DARZALEX, CARVYKTI, TECVAYLI, and TALVEY. This growth underscores the company’s ability to expand key brands while navigating patent expirations and competitive pressures.
MedTech Momentum and Cardiovascular Expansion
MedTech delivered over 22 percent operational sales growth in Cardiovascular products, driven by new offerings from Abiomed and Shockwave. Electrophysiology grew 9.8 percent, and both Abiomed and Shockwave achieved double-digit gains. Duato emphasized that strong adoption of these products demonstrates the company’s capability to scale innovations rapidly across markets.
Financial Performance Highlights
Chief Financial Officer Joseph Wolk reported worldwide sales of $23.7 billion for Q2, up 4.6 percent despite a 710 basis point headwind from STELARA. U.S. sales increased 7.8 percent, while international sales grew 0.6 percent. Net earnings totaled $5.5 billion, with diluted EPS of $2.29 compared to $1.93 a year ago. Adjusted net earnings reached $6.7 billion, with adjusted diluted EPS of $2.77, a slight year-over-year decline of 2.1 percent and 1.8 percent, respectively.
Executive Vice President John C. Reed highlighted that the company exceeded expectations on both the top and bottom line, expressing confidence in achieving or surpassing the upper end of growth targets set in the 2023 enterprise business review.
Full-Year Outlook and Adjusted EPS Guidance
Johnson & Johnson raised its full-year operational sales guidance to 4.5–5 percent growth, with a midpoint of $92.9 billion. Reported sales growth is expected in the 5.1–5.6 percent range, with a midpoint of $93.4 billion. Adjusted operational sales growth is projected between 3.2–3.7 percent. Adjusted EPS guidance was increased by $0.25 to a range of $10.80–$10.90.
The company revised its MedTech tariff impact estimate to approximately $200 million for 2025, down from $400 million previously, signaling improved cost management.
Oncology Targets and Strategic Focus Areas
Management reiterated its strategic focus on Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision. CFO Wolk emphasized the contributions of both Innovative Medicine and MedTech to revenue growth, while Taubert highlighted oncology therapies, including multiple myeloma, prostate, and lung cancer drugs, as key drivers of the $50 billion 2030 target.
The upcoming TAR-200 therapy is expected to launch in the second half of 2025 under FDA priority review, with management expressing confidence in a successful introduction leveraging Johnson & Johnson’s combined strengths across medicine and MedTech.
Quarterly Q&A Insights from Analysts
Analysts asked questions regarding guidance drivers, margin improvements, and MedTech adoption. Wolk confirmed contributions from Innovative Medicine and MedTech, while Duato stressed manufacturing plans to meet U.S. demand domestically. Schmid detailed continued adoption of VARIPULSE and ongoing progress on OTTAVA timelines.
Analysts also probed oncology growth, pipeline milestones, and new product launches. Management remained confident, emphasizing strong momentum, product pipeline depth, and future acceleration, particularly in oncology and MedTech Cardiovascular divisions.
Management Confidence and Pipeline Updates
Compared to the previous quarter, management’s tone was notably more confident, frequently citing “robust growth” and “strong momentum.” The number of double-digit growth brands increased from 11 in Q1 to 13 in Q2. Johnson & Johnson signaled strong pipeline developments, including co-antibody therapy 4804 and icotrokinra oral peptide, with Phase IIb readouts expected mid-2025.
Margin commentary highlighted ongoing attention to cost controls and efficiency programs, including reduced anticipated tariff impacts, further supporting long-term growth sustainability.
Risks and Challenges: STELARA, Tariffs, and Litigation
Management identified several ongoing risks. The erosion of STELARA due to biosimilars, potential Part D redesigns, and tariff exposure continue to impact margins. Litigation around talc remains a concern, with the company preparing for a Daubert hearing in the fall. Competitive pressures in MedTech and Orthopedics persist, though new product launches and innovations are expected to offset these challenges.
Final Takeaway: Sustained Growth and Long-Term Strategy
Johnson & Johnson delivered strong Q2 results, raising full-year guidance for both sales and earnings. The company reinforced confidence in its diversified portfolio and pipeline, with industry-leading growth in oncology, immunology, and MedTech. With a clear strategic roadmap, including $50 billion oncology sales by 2030, Johnson & Johnson is focused on mitigating headwinds from patent expirations, tariffs, and litigation while accelerating product launches and operational efficiency. Analysts and management alike expressed optimism for sustained growth and long-term shareholder value.
