TLDR
- Johnson & Johnson (JNJ) stock traded at $246.74, down 6%, even after a Q3 earnings beat.
- Adjusted EPS was $2.59 versus the $2.53 estimate, and revenue rose 5.9% to $25.4 billion.
- The company raised its 2026 adjusted EPS range to $11.05 to $11.15.
- MedTech sales of $8.6 billion missed the $8.71 billion estimate, while Tremfya sales jumped 68%.
- The DePuy Synthes spinoff remains on track for mid-2027.
Johnson & Johnson (JNJ) stock traded at $246.74 on Tuesday, down $16.99, or 6%. The drop came even after the company beat third-quarter estimates and raised its 2026 outlook.
Adjusted earnings per share came in at $2.59, topping the $2.53 consensus by 6 cents. Revenue was $25.4 billion, up 5.9% from $24.0 billion a year ago.
The stock was down about 2% before the bell. It fell about 4% at the open and kept sliding from there.
Guidance Moves Up Slightly
J&J now expects 2026 adjusted EPS of $11.05 to $11.15. The midpoint of $11.10 is up from $11.04 before, and the consensus sits at $11.08.
Sales guidance rose to a range of $101.0 billion to $101.4 billion. The midpoint is about $101.2 billion, up from $101.1 billion.
CEO Joaquin Duato pointed to “accelerating momentum” in the company’s focused portfolio. Investors seemed to want a little more than that.
Raymond James analyst Jayson Bedford called the results “in-line(ish),” with a miss on organic revenue growth. He said investors “had been accustomed to bigger beats.”
Bedford expects some weakness in the stock. He still believes the growth story is intact.
Drug Sales Lead, MedTech Lags
Innovative Medicine sales hit $16.8 billion, up 7.7%. Tremfya, Darzalex, Carvykti and Tecvayli led the growth.
Tremfya sales jumped 68% to $2.4 billion, beating estimates of about $2.2 billion. Stelara fell 54% to $716 million, but that topped the $591 million estimate.
Darzalex rose about 16% to $4.24 billion. That fell short of the $4.4 billion analysts wanted.
MedTech sales rose 2.5% to $8.6 billion, below the $8.71 billion LSEG estimate. Outside the US, sales were essentially flat.
J.P. Morgan analyst Chris Schott said the miss was mostly in cardio and surgery. Abiomed heart pump sales stayed slow after a UK study raised questions about Impella use in some high-risk procedures.
Guggenheim analyst Vamil Divan called the MedTech results “somewhat disappointing.” He said Tremfya and Tecvayli were the only newer key products that clearly beat expectations.
CFO Joe Wolk said the Middle East conflict, European austerity and China pricing weighed on international results. He said Gulf budgets are shifting toward defense, which has hurt sales in the region.
U.S. sales rose 9.1% to $15.0 billion. International sales grew 1.5% to $10.4 billion.
Wolk also said J&J remains on track for a mid-2027 spinoff of DePuy Synthes. Bloomberg reported in September that Apollo Global Management is in talks to buy the unit in a deal near $20 billion.
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