Summary
Johnson & Johnson reported strong top-line growth in its first fiscal quarter of 2026, with total sales reaching $24.1 billion, a 9.9% increase year-over-year. This growth was driven by a robust 11.2% increase in the Innovative Medicine segment and a 7.7% increase in the MedTech segment. The company benefited from a 6.4% operational growth and a positive 3.5% currency impact, with acquisitions contributing an additional 1.1% to the operational sales growth. Despite this top-line strength, net earnings saw a significant decrease to $5.2 billion from $11.0 billion in the prior year's first quarter, largely due to the reversal of a $7.0 billion talc reserve in the prior year. Key drivers for the Innovative Medicine segment included strong performance in oncology, with products like DARZALEX and CARVYKTI showing substantial growth, although the Immunology segment faced headwinds from biosimilar competition for STELARA, leading to an 11.8% operational decline in that sub-segment. The MedTech segment demonstrated broad-based growth across its Cardiovascular, Surgery, Vision, and Orthopaedics franchises, signaling continued momentum in medical device and technology offerings. While operational performance was solid, the company's effective tax rate decreased significantly to 12.6% from 19.3% year-over-year, partly due to tax benefits related to equity compensation programs.
Financial Highlights
50 data points| Revenue | $24.06B |
| Cost of Revenue | $8.11B |
| Gross Profit | $15.96B |
| SG&A Expenses | $6.03B |
| Net Income | $5.24B |
| EPS (Basic) | $2.17 |
| EPS (Diluted) | $2.14 |
| Shares Outstanding (Basic) | 2.41B |
| Shares Outstanding (Diluted) | 2.45B |
Key Highlights
- 1Worldwide sales increased by 9.9% to $24.1 billion in Q1 2026, driven by strong performance in both Innovative Medicine and MedTech segments.
- 2Innovative Medicine segment sales grew by 11.2% to $15.4 billion, with oncology products like DARZALEX and CARVYKTI showing particularly strong growth.
- 3MedTech segment sales increased by 7.7% to $8.6 billion, with growth across all major franchises including Cardiovascular, Surgery, Vision, and Orthopaedics.
- 4Net earnings decreased to $5.2 billion from $11.0 billion in the prior year's quarter, largely due to the absence of a significant talc reserve reversal recorded in Q1 2025.
- 5The effective income tax rate decreased to 12.6% in Q1 2026 from 19.3% in Q1 2025, benefiting from tax advantages related to equity compensation.
- 6The company is proceeding with its plan to separate its Orthopaedics business, exploring various strategic options for completion within 18-24 months.
- 7Cash and cash equivalents increased by $2.0 billion to $21.7 billion, supported by positive operating cash flows.