Johnson & Johnson (NYSE:JNJ) on Tuesday reported a first-quarter 2025 adjusted earnings of $2.70 per share, down 2.5% year over year, beating the consensus of $2.67.
The U.S. healthcare giant reported sales of $24.06 billion, up 9.9% year over year and beating the consensus of $23.63 billion.
Operational growth was 6.4%, and adjusted operational growth was 5.3%.
Innovative Medicine Growth Driven By Oncology And Neuroscience
Innovative Medicine sales increased 11.2% or 7.4% operationally to $15.43 billion.
Darzalex (daratumumab), Carvykti (ciltacabtagene autoleucel), Erleada (apalutamide), Rybrevant/Lazcluze in oncology, Tremfya (guselkumab), and Spravato (esketamine) in neuroscience primarily drove growth.
However, Stelara in Immunology and Imbruvica in Oncology partially offset growth, with Stelara contributing an approximate 920-basis-point impact.
Cancer drug sales increased to $6.97 billion, up 22.8% (+17.8% operational). Immunology sales declined to $3.38 billion, an 8.8% decrease (or 11.8% on an operational basis).
MedTech Growth Supported By Cardiovascular And Orthopaedics
MedTech sales increased 7.7% to $8.64 billion, operational sales grew 4.6%, with divestitures negatively impacting growth by 0.1%.
Electrophysiology products, Abiomed, and Shockwave drove growth in Cardiovascular, while trauma drove growth in Orthopaedics.
Dividend Extended To 64th Consecutive Year Of Growth
Johnson & Johnson declared a 3.1% increase in the quarterly dividend, from $1.30 per share to $1.34 per share, marking the 64th year of consecutive increases.
At the new rate, the company indicates an annual dividend of $5.36 per share, compared to the previous rate of $5.20 per share.
The next quarterly dividend is payable on June 9, with a record date of May 26.
The company’s free cash flow in the first quarter fell by 55.60% year-over-year to approximately $1.50 billion.
FY2026 Guidance Raised Slightly
Johnson & Johnson raises fiscal 2026 adjusted earnings guidance from $11.43-$11.63 per share to $11.45-$11.65, compared to the consensus of $11.54.
The company also revised fiscal 2026 sales guidance from $100 billion-$101 billion to $100.3 billion-$101.3 billion versus the consensus of $100.58 billion.
JNJ Stock Price Activity: Johnson & Johnson shares were down 1.26% at $234.95 during premarket trading on Tuesday, according to Benzinga Pro data.
Image via Shutterstock
Recent Comments