01—Abstract
Summary
Summary of the 10-Q filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Johnson & Johnson (JNJ) reported a strong second quarter for fiscal year 2025, demonstrating robust sales growth and improved profitability.
Worldwide sales increased by 5.8% to $23.7 billiona, driven by solid performance across both the Innovative Medicine and MedTech segments. The Innovative Medicine segment saw a notable 4.9% increase in sales, propelled by strong oncology product performance, particularly from CARVYKTI and DARZALEX, alongside the recent acquisition of Intra-Cellular Therapies contributing to the neuroscience portfolio. The MedTech segment also delivered a healthy 7.3% sales increase, benefiting from the integration of Shockwave Medical and continued strength in cardiovascular and surgical solutions.
Net earnings significantly rose to $5.5 billionb, or $2.29 per diluted share, compared to $4.7 billion, or $1.93 per diluted share, in the prior year's quarter. This increase was significantly aided by the reversal of a substantial portion of the previously accrued talc reserve, which contributed positively to the 'Other (income) expense, net' line item. The company maintained its commitment to shareholders through dividend payments and share repurchases, underscoring a positive financial outlook.
02—Key points
Key Highlights
- Worldwide sales increased 5.8% to $23.7 billion in Q2 2025.
- Innovative Medicine segment sales grew 4.9% to $15.2 billion, driven by strong oncology growth and the Intra-Cellular acquisition.
- MedTech segment sales increased 7.3% to $8.5 billion, boosted by the Shockwave acquisition.
- Net earnings surged to $5.5 billion ($2.29 per diluted share) from $4.7 billion ($1.93 per diluted share) in Q2 2024.
- The reversal of a significant portion of the talc reserve positively impacted "Other (income) expense, net."
- R&D expenses decreased as a percentage of sales in both segments, indicating improved efficiency.
- The company maintained a strong liquidity position with $18.6 billion in cash and cash equivalents.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 24, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $23.74B$22.45B | +5.8% |
| Cost of Revenue | $7.63B$6.87B | +11.0% |
| Gross Profit | $16.11B$15.58B | +3.4% |
| SG&A Expenses | $5.89B$5.68B | +3.7% |
| Net Income | $5.54B$4.69B | +18.2% |
| EPS (Basic) | $2.30$1.95 | +17.9% |
| EPS (Diluted) | $2.29$1.93 | +18.7% |
| Shares Outstanding (Basic) | 2.41B2.41B | 0.0% |
| Shares Outstanding (Diluted) | 2.42B2.42B | −0.1% |
05—Questions
Frequently Asked Questions
What drove the significant increase in net earnings this quarter?
The significant increase in net earnings was primarily driven by a substantial increase in sales across both the Innovative Medicine and MedTech segments, coupled with a substantial reversal of a portion of the previously accrued talc reserve. This reversal significantly reduced 'Other (income) expense, net' compared to the prior year.
How did the recent acquisitions of Intra-Cellular Therapies and Shockwave Medical impact the results?
The acquisition of Intra-Cellular Therapies contributed to the growth in the Neuroscience sub-segment within Innovative Medicine, adding CAPLYTA and a promising pipeline. The Shockwave Medical acquisition significantly boosted the Cardiovascular franchise within the MedTech segment, driving operational sales growth.
What is the impact of biosimilar competition on STELARA sales?
Biosimilar competition, particularly with the expected launches in Europe and the United States in 2025, continues to significantly impact STELARA sales. This decline had an approximate 11.7% negative impact on worldwide Innovative Medicine operational sales in Q2 2025.
How is Johnson & Johnson managing its legal liabilities, particularly related to talc and opioids?
Johnson & Johnson continues to manage its significant legal liabilities. The talc reserve was significantly reduced this quarter due to the dismissal of a bankruptcy case, although a substantial reserve remains. The company has settled the majority of state and subdivision opioid claims and continues to defend against remaining government and private litigants.
06—Continue