Johnson & Johnson Beats Q2 Estimates, Raises Guidance on Strong Drug Sales

Johnson & Johnson on Wednesday reported second-quarter financial results that surpassed Wall Street expectations and raised its full-year forecast, citing robust growth in its pharmaceuticals division. The strong performance was led by blockbuster sales of its immunology drug Tremfya and cancer treatment Darzalex.

Earnings Snapshot

The healthcare conglomerate posted strong top- and bottom-line growth for the quarter, prompting an upward revision to its annual guidance. According to LSEG data, the results compare favorably to analyst consensus.

• Q2 Revenue: $25.31 billion, an increase of 6.6% year-over-year, beating the average estimate of $25.05 billion.
• Q2 Adjusted EPS: $2.90, up 4.7% from a year ago and above the expected $2.85 per share.
• New 2026 Sales Forecast: Raised to a midpoint of approximately $101.1 billion, up from $100.8 billion.
• New 2026 Adjusted EPS Forecast: Increased to a midpoint of $11.68, from a prior $11.55.

Pharmaceuticals Lead the Way

The company's pharmaceutical unit was the primary driver of the positive results, generating $16.38 billion in quarterly sales, ahead of analyst estimates of $16.1 billion. Sales of Tremfya, a treatment for psoriasis and inflammatory bowel disease, surged 72.5% to $2 billion, significantly outperforming estimates of $1.74 billion.

Ad

This growth is critical for J&J as it works to offset revenue erosion from its older blockbuster, Stelara, which has faced declining sales after losing patent protection. Meanwhile, sales of its blood cancer treatment Darzalex were $4.2 billion, which was in line with analyst expectations.

MedTech Unit Faces Headwinds

In contrast, J&J's medical technology division reported sales of $8.93 billion, slightly trailing analyst forecasts. The weakness was concentrated in the Abiomed business, acquired in 2022, where sales of its Impella heart pumps fell 2% year-over-year.

In an interview, CFO Joseph Wolk attributed the decline to the recent publication of a U.K. study that questioned the pumps' use in certain procedures. Wolk stated that the company expects the franchise to return to growth and plans to release a "big data set" in the first half of next year that should "allay any fears" regarding the product's utility.