01—Abstract
Summary
Summary of the 10-Q filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Johnson & Johnson reported solid top-line growth in the second quarter of fiscal year 2026, with worldwide sales increasing by 6.6% to $25.3 billiona, driven by an operational increase of 5.6%.
The company's Innovative Medicine segment showed strong performance, with sales up 7.8% to $16.4 billionb, fueled by robust growth in Oncology, Neuroscience, and Pulmonary Hypertension. The MedTech segment also contributed positively, with sales increasing 4.5% to $8.9 billion, led by growth in Surgery, Vision, and Orthopaedics. Net earnings for the quarter remained stable at $5.5 billion, resulting in diluted earnings per share of $2.27, consistent with the prior year.
Despite the strong sales performance, investors should note the impact of biosimilar competition on key products like STELARA and SIMPONI, which are expected to continue to weigh on future sales. Additionally, ongoing litigation, particularly concerning talc matters, remains a significant factor, with a reserve of approximately $3.7 billionc established. The company continues to execute its strategic initiatives, including planned separations and investments in research and development, positioning itself for continued growth in its diversified healthcare portfolio.
02—Key points
Key Highlights
- Worldwide sales increased by 6.6% to $25.3 billion in Q2 FY2026, driven by 5.6% operational growth.
- Innovative Medicine segment sales grew 7.8% to $16.4 billion, with strong contributions from Oncology, Neuroscience, and Pulmonary Hypertension.
- MedTech segment sales rose 4.5% to $8.9 billion, supported by growth in Surgery, Vision, and Orthopaedics.
- Diluted earnings per share remained stable at $2.27 compared to the prior year's second quarter.
- Significant impact from STELARA and SIMPONI biosimilar competition is anticipated to affect future sales.
- The company has a reserve of approximately $3.7 billion for talc-related matters.
- Johnson & Johnson announced an agreement to acquire Firefly Bio, Inc. for $1 billion in cash to advance its degrader antibody conjugate platform.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 23, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $25.31B$23.74B | +6.6% |
| Cost of Revenue | $8.05B$7.63B | +5.5% |
| Gross Profit | $17.26B$16.11B | +7.1% |
| SG&A Expenses | $6.43B$5.89B | +9.2% |
| Net Income | $5.53B$5.54B | −0.1% |
| EPS (Basic) | $2.30$2.30 | 0.0% |
| EPS (Diluted) | $2.27$2.29 | −0.9% |
| Shares Outstanding (Basic) | 2.41B2.41B | 0.0% |
| Shares Outstanding (Diluted) | 2.44B2.42B | +0.9% |
05—Questions
Frequently Asked Questions
How did Johnson & Johnson's sales perform in the second quarter of fiscal year 2026?
Johnson & Johnson reported a 6.6% increase in worldwide sales to $25.3 billion for the second quarter of fiscal year 2026. This growth was primarily driven by operational performance, which increased by 5.6%, with a positive currency impact of 1.0%.
What are the key drivers of growth in the Innovative Medicine segment?
The Innovative Medicine segment saw a 7.8% increase in sales to $16.4 billion. Key growth drivers include strong performance in Oncology (with products like DARZALEX, CARVYKTI, TECVAYLI, TALVEY, RYBREVANT/LAZCLUZE, and ERLEADA), Neuroscience (SPRAVATO, CAPLYTA, and INVEGA SUSTENNA family of products), and Pulmonary Hypertension (UPTRAVI and OPSUMIT/OPSYNVI).
What is the company's outlook regarding biosimilar competition?
The company anticipates continued negative impacts on sales from biosimilar competition, particularly for STELARA and SIMPONI. Biosimilars for STELARA are expected to persist in affecting sales, and SIMPONI biosimilars have already entered the European market, with a potential U.S. entrant later in 2026, likely leading to reduced future sales for these products.
What is the financial impact of the talc litigation?
As of the second quarter of 2026, Johnson & Johnson has a reserve of approximately $3.7 billion for talc-related matters, which includes amounts for executed settlement agreements, litigation defense, and other costs. Approximately 40% of this reserve is classified as a current liability.
06—Continue