10-KPeriod: FY2025

JOHNSON & JOHNSON Annual Report, Year Ended Dec 28, 2025

Filed February 11, 2026For Securities:JNJ

Summary

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 billion, 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.

Financial Highlights

54 data points
Beta

Revenue

$94.19B

67.9% Gross Margin

Net Income

$26.80B

28.5% Net Margin

EPS (Diluted)

$11.03

Total Assets

$199.21B

Cash & Equivalents

$19.71B

Free Cash Flow

$19.70B

Financial Statements
Beta
Revenue$94.19B
Cost of Revenue$30.26B
Gross Profit$63.94B
R&D Expenses$109.00M
SG&A Expenses$23.68B
Operating Income$26.80B
Net Income$26.80B
EPS (Basic)$11.13
EPS (Diluted)$11.03
Shares Outstanding (Basic)2.41B
Shares Outstanding (Diluted)2.43B

Key Highlights

  • 1Total sales grew 6.0% to $94.2 billion in fiscal year 2025, driven by 8.4% volume growth.
  • 2Innovative Medicine segment sales increased 6.0% to $60.4 billion, with Oncology performing strongly, though STELARA sales declined 41.3% due to biosimilar competition.
  • 3MedTech segment sales rose 6.1% to $33.8 billion, led by a 15.8% increase in Cardiovascular, boosted by Abiomed and Shockwave acquisitions.
  • 4The company announced plans to separate its Orthopaedics business, targeting completion within 18-24 months.
  • 5Earnings 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.
  • 6Research 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.
  • 7Net debt increased to $27.8 billion due to acquisitions, while the company increased its dividend for the 63rd consecutive year.

Frequently Asked Questions

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.

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.

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.

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.