Johnson & Johnson (NYSE:JNJ) Beats Q3 2025 Estimates and Raises Full-Year Sales Outlook

Johnson & Johnson (NYSE:JNJ) reported third-quarter 2025 results that demonstrated solid operational performance, leading the healthcare giant to raise its full-year sales outlook. The company's earnings and revenue narrowly surpassed analyst expectations, contributing to positive pre-market trading activity as investors digested the report.

Quarterly Performance Versus Estimates

The company's third-quarter results largely met, and in some cases modestly exceeded, the financial targets set by Wall Street analysts. The performance underscores the continued strength of J&J's diversified healthcare portfolio.

• Reported Revenue: $23.993 billion, compared to analyst estimates of $23.985 billion.
• Adjusted EPS (Non-GAAP): $2.80, slightly above the consensus estimate of $2.78.

On a year-over-year basis, the company showed robust growth. Reported sales increased 6.8%, while operational sales, which exclude the impact of currency translation, grew 5.4%. The bottom line saw even more pronounced improvement, with adjusted net earnings rising 15.7% to $6.8 billion, up from $5.9 billion in the prior year period.

Market Reaction and Price Action

The market responded favorably to the earnings beat and raised guidance. In pre-market trading, Johnson & Johnson (NYSE:JNJ) shares were up approximately 0.7%. This positive movement builds upon recent momentum, with the stock having gained over 7.6% in the past month, suggesting investor optimism was already building ahead of the earnings release.

Updated Full-Year 2025 Guidance

A key driver of the positive market sentiment was the company's decision to raise its full-year sales forecast. This indicates management's confidence in sustained performance for the remainder of the year.

• Estimated Reported Sales: The midpoint of the new guidance range is $93.7 billion, representing a 5.7% year-over-year increase. This compares favorably to the current analyst consensus estimate for full-year 2025 sales of approximately $94.35 billion.
• Adjusted Operational Sales: The company now expects growth of 3.5% to 4.0%, up from the previous outlook of 3.2% to 3.7%.
• Adjusted EPS: The guidance for adjusted diluted earnings per share was reaffirmed in the range of $10.80 to $10.90.

Business Segment and Regional Breakdown

The company's growth was broad-based across its two main segments and geographic regions.

• Innovative Medicine: Sales reached $15.56 billion, a 6.8% reported increase. Growth was primarily driven by products in Oncology (DARZALEX, CARVYKTI), Immunology (TREMFYA), and Neuroscience (SPRAVATO).
• MedTech: Sales grew 6.8% to $8.43 billion, with strong performance in Cardiovascular and General Surgery product lines.
• Geographically: U.S. sales grew 6.2%, while International sales increased 7.6% on a reported basis.

Strategic Announcement: Orthopedics Business Separation

Alongside its earnings, Johnson & Johnson (NYSE:JNJ) announced a significant strategic move: its intention to separate its Orthopaedics business into a new, independent publicly traded company. This planned spin-off, expected within the next 18 to 24 months, aims to sharpen the focus of both the remaining MedTech operations and the new orthopedics entity, allowing them to pursue more targeted growth strategies.

Conclusion

Johnson & Johnson's third-quarter results paint a picture of a company executing effectively against its strategic priorities. The slight beat on earnings and revenue, combined with an upward revision to its annual sales outlook, has been received positively by the market. The planned separation of the orthopedics business adds a strategic dimension that could unlock long-term value, giving investors multiple factors to consider following this earnings release.

For a more detailed look at Johnson & Johnson's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.