Johnson & Johnson To Separate Orthopedics Business, Boosts Annual Sales Outlook

Johnson & Johnson (NYSE:JNJ) on Tuesday reported a third-quarter 2025 adjusted earnings of $2.80 per share, up 15.7% year over year, beating the consensus of $2.75.

The pharmaceutical and medtech giant reported sales of $23.99 billion, up 6.8% year over year and beating the consensus of $23.74 billion. Operational growth was 5.4%, and adjusted operational growth was 4.4%.

Innovative Medicine sales increased 6.8% or 5.3% operationally to $15.56 billion.

Also Read: FDA Adds New Warning For Johnson & Johnson's Cancer Cell Therapy

Growth was driven by Darzalex (daratumumab), Carvykti (ciltacabtagene autoleucel), Erleada (apalutamide), Rybrevant/Lazcluze in oncology, Tremfya (guselkumab) and Simponi/Simponi Aria in immunology, and Spravato (esketamine) in neuroscience.

Growth was partially offset by an approximate (1,070) basis points impact from Stelara in Immunology and Imbruvica in Oncology.

Cancer sales increased to $6.53 billion, up 21.3% (+19.2% operational). Immunology sales declined to $4.17 billion, a 9.8% decrease (or 10.6% on an operational basis).

Stelara sales fell 41.3% to $1.57 billion. Darzalex sales rose 21.7% to $3.67 billion. The company's cancer cell therapy, Carvykti, generated sales of $524 million.

MedTech sales increased 6.8% to $8.43 billion. Electrophysiology products, Abiomed, and Shockwave fueled growth in Cardiovascular, while wound closure products boosted General Surgery, and Surgical Vision also contributed.

Outlook

Johnson & Johnson affirmed its fiscal year 2025 adjusted earnings guidance of $10.80-$10.90, compared to the consensus of $10.87.

Johnson & Johnson raised sales guidance from $93.2 billion-$93.6 billion to $93.5 billion-$93.9 billion compared to the consensus of $93.44 billion.

Orthopedics Business Separation

Johnson & Johnson on Tuesday said it plans to separate its Orthopedics business to enhance the strategic and operational focus.

The transaction would establish a standalone orthopedics business, operating as DePuy Synthes. Johnson & Johnson is targeting completion within 18 to 24 months.

Johnson & Johnson expects the separation to increase its top-line growth and operating margins.

DePuy Synthes would continue to address a $50 billion+ global market opportunity and serve approximately seven million patients annually through its wide range of products and services.

For fiscal year 2024, the Orthopedics business generated approximately $9.2 billion in sales. DePuy Synthes would be expected to have an investment-grade profile and balance sheet that would allow it to build on its long history of innovation and maintain and extend its leadership position.

The company also announced that, effective immediately, Namal Nawana has been appointed to serve as Worldwide President, DePuy Synthes.

Johnson & Johnson is reportedly in talks to acquire Protagonist Therapeutics (NASDAQ:PTGX).

According to media reports on Friday, the two companies partnered to develop an oral treatment for plaque psoriasis and ulcerative colitis.

Price Action: Johnson & Johnson shares were down 0.63% at $189.69 during premarket trading on Tuesday. The stock is trading near its 52-week high of $192.10, according to Benzinga Pro data.

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