01—Abstract
Summary
Summary of the 10-K filed February 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Johnson & Johnson (JNJ) reported its 2025 fiscal year results, highlighting continued growth across its two primary segments: Innovative Medicine and MedTech.
The company's overall sales increased by 6.0% to $94.2 billiona, driven by strong volume growth, partially offset by pricing pressures and foreign currency impacts. The Innovative Medicine segment saw a 6.0% sales increase, propelled by strong performance in Oncology products like DARZALEX and ERLEADA, as well as new launches, though the segment experienced a significant decline in STELARA sales due to biosimilar competition. The MedTech segment also reported a 6.1% sales increase, driven by robust growth in Cardiovascular franchises, particularly from the Abiomed and Shockwave acquisitions, and steady performance in Surgery and Vision.
However, the Orthopaedics business experienced modest growth, impacted by restructuring efforts and volume-based procurement in China. The company announced its intention to separate its Orthopaedics business, a move expected to be completed within 18-24 months, which may reshape its operational focus. Financially, Johnson & Johnson's earnings before taxes increased significantly, largely due to a favorable litigation outcome reversing a substantial portion of the talc reserve.
The company also continues to manage its capital structure, with increased debt to fund strategic acquisitions like Intra-Cellular Therapies, Inc. (CAPLYTA), while also increasing its dividend for the 63rd consecutive year. Key risks remain, including ongoing litigation, increasing regulatory scrutiny, and the competitive landscape for key products.
02—Key points
Key Highlights
- Total sales grew 6.0% to $94.2 billion in fiscal year 2025, driven by 8.4% volume growth.
- Innovative Medicine segment sales increased 6.0% to $60.4 billion, with Oncology performing strongly, though STELARA sales declined 41.3% due to biosimilar competition.
- MedTech segment sales rose 6.1% to $33.8 billion, led by a 15.8% increase in Cardiovascular, boosted by Abiomed and Shockwave acquisitions.
- The company announced plans to separate its Orthopaedics business, targeting completion within 18-24 months.
- Earnings before provision for taxes on income more than doubled to $32.6 billion, significantly aided by a $7.0 billion reversal of a talc reserve.
- Research and Development spending decreased by 14.9% to $14.7 billion, mainly due to lower acquired in-process R&D expenses compared to the prior year.
- Net debt increased to $27.8 billion due to acquisitions, while the company increased its dividend for the 63rd consecutive year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Johnson & Johnson kept $0.28.
- Revenue$94.19B100.0%
- Cost of revenue−$30.26B32.1%
- Gross profit$63.94B67.9%
- Operating costs−$37.13B39.4%
- Operating income$26.80B28.5%
- Interest, other & tax$-00.0%
- Net income$26.80B28.5%
Where FY2025 revenue went
$94.19B- Cost of revenue: $30.26B, 32% of revenue
- Net income: $26.80B, 28% of revenue
- SG&A: $23.68B, 25% of revenue
- Other operating costs: $13.35B, 14% of revenue
- R&D: $109.0M, 0.1% of revenue
Kept 28% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 11, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $94.19B$88.82B | +6.0% |
| Cost of Revenue | $30.26B$27.47B | +10.1% |
| Gross Profit | $63.94B$61.35B | +4.2% |
| R&D Expenses | $109.00M$1.84B | −94.1% |
| SG&A Expenses | $23.68B$22.87B | +3.5% |
| Operating Income | $26.80B$14.07B | +90.6% |
| Net Income | $26.80B$14.07B | +90.6% |
| EPS (Basic) | $11.13$5.84 | +90.6% |
| EPS (Diluted) | $11.03$5.79 | +90.5% |
| Shares Outstanding (Basic) | 2.41B2.41B | 0.0% |
| Shares Outstanding (Diluted) | 2.43B2.43B | 0.0% |
05—Questions
Frequently Asked Questions
What was Johnson & Johnson's overall financial performance in fiscal year 2025?
In fiscal year 2025, Johnson & Johnson reported a 6.0% increase in sales, reaching $94.2 billion. Earnings before provision for taxes on income saw a significant rise to $32.6 billion, largely due to a substantial reversal of the talc reserve. The company's net debt increased due to strategic acquisitions, but it also continued to return capital to shareholders through dividend increases.
How did the Innovative Medicine and MedTech segments perform?
The Innovative Medicine segment grew sales by 6.0% to $60.4 billion, driven by strong Oncology products like DARZALEX and ERLEADA, although STELARA experienced a significant sales decline due to biosimilar competition. The MedTech segment saw a 6.1% increase in sales to $33.8 billion, primarily due to strong performance in Cardiovascular products, aided by recent acquisitions like Abiomed and Shockwave.
What are the key strategic developments mentioned in the report?
A significant strategic development is the company's announced intention to separate its Orthopaedics business, a process expected to take 18-24 months. Additionally, Johnson & Johnson completed several key acquisitions in the fiscal year, including Intra-Cellular Therapies (CAPLYTA) and Halda Therapeutics, aimed at strengthening its Innovative Medicine portfolio.
What are the major risks and challenges highlighted by Johnson & Johnson?
Key risks and challenges include intense competition in product markets, potential loss of market exclusivity due to patent expirations and biosimilar/generic entry (as seen with STELARA), product liability litigation (notably talc-related claims), increasing regulatory scrutiny and pricing pressures from healthcare reforms like the Inflation Reduction Act, and potential disruptions to global supply chains. The company also faces risks related to its ongoing litigation and the successful execution of its planned Orthopaedics business separation.
06—Continue