10-QPeriod: Q2 FY2025

JOHNSON & JOHNSON Quarterly Report for Q2 Ended Jun 29, 2025

Filed July 24, 2025For Securities:JNJ

Summary

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 billion, 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 billion, 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.

Financial Highlights

51 data points
Beta

Revenue

$23.74B

67.9% Gross Margin

Net Income

$5.54B

23.3% Net Margin

EPS (Diluted)

$2.29

Total Assets

$193.39B

Cash & Equivalents

$18.58B

Free Cash Flow

$2.83B

Financial Statements
Beta
Revenue$23.74B
Cost of Revenue$7.63B
Gross Profit$16.11B
SG&A Expenses$5.89B
Net Income$5.54B
EPS (Basic)$2.30
EPS (Diluted)$2.29
Shares Outstanding (Basic)2.41B
Shares Outstanding (Diluted)2.42B

Key Highlights

  • 1Worldwide sales increased 5.8% to $23.7 billion in Q2 2025.
  • 2Innovative Medicine segment sales grew 4.9% to $15.2 billion, driven by strong oncology growth and the Intra-Cellular acquisition.
  • 3MedTech segment sales increased 7.3% to $8.5 billion, boosted by the Shockwave acquisition.
  • 4Net earnings surged to $5.5 billion ($2.29 per diluted share) from $4.7 billion ($1.93 per diluted share) in Q2 2024.
  • 5The reversal of a significant portion of the talc reserve positively impacted "Other (income) expense, net."
  • 6R&D expenses decreased as a percentage of sales in both segments, indicating improved efficiency.
  • 7The company maintained a strong liquidity position with $18.6 billion in cash and cash equivalents.

Frequently Asked Questions

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.

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.

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.

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.