Early Access

10-QPeriod: Q3 FY2021

JOHNSON & JOHNSON Quarterly Report for Q3 Ended Jul 4, 2021

Filed July 29, 2021For Securities:JNJ

Summary

Johnson & Johnson reported strong financial performance for the second quarter and first six months of fiscal year 2021, demonstrating significant growth across its key segments. Total sales saw a substantial increase, driven by robust operational performance and favorable currency impacts. The Pharmaceutical segment, in particular, showed remarkable growth, fueled by key products like STELARA® and DARZALEX®, alongside the emerging contribution of its COVID-19 vaccine. The Medical Devices segment also experienced a strong rebound, reflecting a recovery in global procedural volumes post-COVID-19. The company maintained a healthy cash flow from operations, which, combined with its existing credit facilities and access to capital markets, ensures strong liquidity. JNJ's strategic focus on innovation and portfolio management continues to drive top-line growth, while the company navigates ongoing litigation and regulatory landscapes. Investors can find reassurance in the consistent dividend payouts and the company's ability to generate substantial earnings despite various global economic challenges.

Financial Statements
Beta
Revenue$23.31B
Cost of Revenue$7.59B
Gross Profit$15.72B
SG&A Expenses$6.07B
Interest Expense$40.00M
Net Income$6.28B
EPS (Basic)$2.38
EPS (Diluted)$2.35
Shares Outstanding (Basic)2.63B
Shares Outstanding (Diluted)2.67B

Key Highlights

  • 1Total sales increased by 27.1% to $23.3 billion in Q2 2021 compared to $18.3 billion in Q2 2020, driven by a 23.0% operational increase and a 4.1% positive currency impact.
  • 2The Pharmaceutical segment reported a 17.2% increase in sales to $12.6 billion for Q2 2021, with strong operational growth across key therapeutic areas like Immunology and Oncology.
  • 3Medical Devices segment sales surged by 62.7% to $7.0 billion in Q2 2021, indicating a strong recovery in procedural volumes post-pandemic.
  • 4Net earnings for Q2 2021 were $6.3 billion, or $2.35 per diluted share, a significant increase from $3.6 billion, or $1.36 per diluted share, in Q2 2020.
  • 5Cash flow from operating activities remained robust at $9.4 billion for the first six months of 2021.
  • 6The company declared a regular quarterly cash dividend of $1.06 per share, reaffirming its commitment to returning value to shareholders.
  • 7The company recorded a significant net benefit of approximately $0.6 billion in the second fiscal quarter of 2021 related to an international subsidiary reorganization and associated tax benefits.

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