01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Johnson & Johnson's 2024 10-K filing reveals a company navigating a dynamic healthcare landscape, demonstrating resilience with an increase in total sales to $88.8 billiona, a 4.3% rise from the previous year, driven by strong performance in the MedTech segment and growth in specific Innovative Medicine therapeutic areas like Oncology.
The company continues to invest heavily in research and development, allocating $17.2 billionb to drive innovation across its two core segments: Innovative Medicine and MedTech. Despite facing ongoing challenges such as patent expirations for key products like STELARA and REMICADE, increasing competition, and a complex regulatory environment, Johnson & Johnson is strategically positioning itself for future growth through acquisitions and pipeline advancements. The company also highlights its commitment to human capital management, focusing on attracting, developing, and retaining top talent, underscored by a competitive voluntary turnover rate of 6.3% in 2024.
02—Key points
Key Highlights
- Total sales increased by 4.3% to $88.8 billion in fiscal year 2024.
- The company invested $17.2 billion in research and development, with a focus on pipeline advancement and innovation across both Innovative Medicine and MedTech segments.
- STELARA sales experienced a 4.6% decline due to biosimilar competition in Europe and the US, with further impact expected in 2025.
- The MedTech segment saw a 4.8% increase in sales, boosted by the acquisition of Shockwave Medical and strong performance in the Cardiovascular franchise.
- Oncology products drove significant growth in the Innovative Medicine segment, with a 17.7% increase in sales, led by DARZALEX and ERLEADA.
- Johnson & Johnson successfully completed the divestiture of its remaining Kenvue stake, a process initiated in 2023, marking a strategic shift.
- The company increased its dividend for the 62nd consecutive year, demonstrating a commitment to returning value to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Johnson & Johnson kept $0.16.
- Revenue$88.82B100.0%
- Cost of revenue−$27.47B30.9%
- Gross profit$61.35B69.1%
- Operating costs−$47.28B53.2%
- Operating income$14.07B15.8%
- Interest, other & tax$-00.0%
- Net income$14.07B15.8%
Where FY2024 revenue went
$88.82B- Cost of revenue: $27.47B, 31% of revenue
- SG&A: $22.87B, 26% of revenue
- Other operating costs: $22.57B, 25% of revenue
- Net income: $14.07B, 16% of revenue
- R&D: $1.84B, 2.1% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $88.82B$85.16B | +4.3% |
| Cost of Revenue | $27.47B$26.55B | +3.5% |
| Gross Profit | $61.35B$58.61B | +4.7% |
| R&D Expenses | $1.84B$483.00M | +281.2% |
| SG&A Expenses | $22.87B$21.51B | +6.3% |
| Operating Income | $14.07B$13.33B | +5.6% |
| Net Income | $14.07B$35.15B | −60.0% |
| EPS (Basic) | $5.84$13.88 | −57.9% |
| EPS (Diluted) | $5.79$13.72 | −57.8% |
| Shares Outstanding (Basic) | 2.41B2.53B | −5.0% |
| Shares Outstanding (Diluted) | 2.43B2.56B | −5.1% |
05—Questions
Frequently Asked Questions
What are the key growth drivers for Johnson & Johnson's business segments?
Johnson & Johnson's growth is driven by its two main segments: Innovative Medicine and MedTech. In Innovative Medicine, oncology products like DARZALEX and ERLEADA, along with pulmonary hypertension treatments like OPSUMIT and UPTRAVI, are key growth drivers. In MedTech, the Cardiovascular franchise, significantly bolstered by the Shockwave acquisition, along with strong performance in Orthopaedics and Vision, are contributing to growth.
What are the primary risks and challenges highlighted in the filing?
The filing emphasizes several key risks and challenges, including intense competition in product markets, potential loss of market exclusivity due to patent expirations and biosimilar/generic entry, significant legal proceedings (notably talc-related matters and opioid litigation), increasing regulatory scrutiny and compliance costs, and global economic and geopolitical instability impacting supply chains and market demand. Product liability, safety, and efficacy concerns are also recurring themes.
How is Johnson & Johnson managing the impact of product competition and patent expirations?
Johnson & Johnson is actively managing competition and patent expirations through continued investment in research and development to launch new products and indications, strategic acquisitions to bolster its portfolio (e.g., Shockwave Medical), and by defending its intellectual property rights through litigation. The company also focuses on lifecycle management for its existing products.
What is the company's strategy regarding acquisitions and divestitures?
Johnson & Johnson has a strategy of actively pursuing acquisitions to strengthen its pipeline and market position, as evidenced by the acquisitions of Shockwave Medical, Ambrx Biopharma, and Proteologix in 2024. The company also completed the divestiture of its remaining stake in Kenvue, streamlining its business focus on its core healthcare segments.
06—Continue