Johnson & Johnson: Q3 FY2026 earnings call
What management said about Q3 FY2026, from the documents filed with the SEC on 13 October 2026: press release. Guidance figures: 5 raised, 1 kept. The quarter’s numbers.
Key takeaways
- Reported sales rose 5.9%: Reported sales were $25.4 billion against $24.0 billion a year earlier, with operational growth of 6.0% and adjusted operational growth of 6.1%. Source
- GAAP net earnings and EPS fell sharply: Net earnings were $210 million against $5,152 million, down 95.9%; diluted EPS was $0.09 against $2.12, down 95.8%. Source
- Innovative Medicine grew 7.9%: Innovative Medicine sales were $16,757 million, up 7.7% reported and 7.9% operational, with divestitures reducing growth by 10 basis points. Source
- Reported sales guidance raised: Estimated 2026 reported sales are $101.0 billion to $101.4 billion, midpoint $101.2 billion, up 7.4%; the July midpoint was $101.1 billion. Source
- Adjusted EPS midpoint raised by $0.06: Adjusted EPS guidance is $11.05 to $11.15, midpoint $11.10, up 2.9%. The Q2 release gave a July range of $11.60 to $11.75, which this release's July column does not match. Source
- Talc resolution charge in EPS: Third-quarter EPS includes a one-time special charge linked to the proposed resolution of ovarian talc litigation, announced in the quarter. Source
- IMAAVY approved for wAIHA: The FDA approved IMAAVY for warm autoimmune hemolytic anemia, which the release describes as the first treatment for this condition. Source
- OTTAVA authorized in the U.S.: FDA granted market authorization to the OTTAVA robotic surgical system, described as the first table-integrated soft tissue robotic system. Source
“In the third quarter, we advanced breakthroughs that will redefine care for patients, from delivering one of our most transformative MedTech innovations with OTTAVA to reporting positive Phase 3 results in multiple myeloma.”
Joaquin Duato, Chairman and Chief Executive Officer
Guidance
| Area | Period | Figure | Against last quarter |
|---|---|---|---|
| Estimated reported sales Source | Full year 2026 | $101.0B - $101.4B; midpoint $101.2B; 7.2% - 7.6%, midpoint 7.4% | Raised from $100.8B - $101.4B; midpoint $101.1B; 7.0% - 7.6%, midpoint 7.3% (July 2026) |
| Operational sales Source | Full year 2026 | $100.5B - $100.9B; midpoint $100.7B; 6.7% - 7.1%, midpoint 6.9% | Raised from $100.3B - $100.9B; midpoint $100.6B; 6.5% - 7.1%, midpoint 6.8% (July 2026) |
| Adjusted operational sales growth Source | Full year 2026 | 6.4% - 6.8%, midpoint 6.6% | Raised from 6.2% - 6.8%, midpoint 6.5% (July 2026) |
| Adjusted EPS (diluted) Source | Full year 2026 | $11.05 - $11.15; midpoint $11.10; 2.4% - 3.3%, midpoint 2.9% | Raised from $11.68 midpoint in the Q2 2026 release [P]; $11.04 midpoint in the July column of this release [A] |
| Adjusted operational EPS (diluted) Source | Full year 2026 | $10.95 - $11.05; midpoint $11.00; 1.5% - 2.4%, midpoint 2.0% | Raised from $10.94 midpoint in the July column of this release [A]; $11.58 midpoint in the Q2 release [P] |
| Euro average rate assumption Source | Full year 2026 guidance | $1.15 | Kept |
What changed from last quarter
- Guidance raised: Reported sales guidance lower end and midpoint raised; midpoint now $101.2 billion against $101.1 billion in July. Source
- Guidance raised: Adjusted EPS guidance midpoint increased by $0.06 to $11.10, per the release. Source
- Guidance raised: Adjusted operational sales growth midpoint raised from 6.5% to 6.6%. Source
- Guidance kept: Illustrative euro average rate for guidance held at $1.15 in both July and October 2026. Source
- New: Firefly Bio, Inc. acquisition reported as completed; the Q2 release had described it as an agreement to acquire. Source
- New: Collaboration with Sail Biomedicines announced, covering in vivo CAR-T programs for autoimmune disease. Source
- New: Proposed resolution of ovarian talc litigation announced in the quarter; the Q2 release did not include it. Source
- New: Jennifer Taubert retiring as Executive Vice President; Tom Cavanaugh appointed EVP, Worldwide Chairman, Innovative Medicine, effective September. Source
Quarter results and growth
- Reported sales rose 5.9%: Reported sales were $25.4 billion against $24.0 billion a year earlier, with operational growth of 6.0% and adjusted operational growth of 6.1%. Source
- GAAP net earnings and EPS fell sharply: Net earnings were $210 million against $5,152 million, down 95.9%; diluted EPS was $0.09 against $2.12, down 95.8%. Source
- Full-year guidance raised: The release headline states the company raised 2026 guidance, covering reported sales, operational sales and adjusted EPS. Source
Segments and regions
- Innovative Medicine grew 7.9%: Innovative Medicine sales were $16,757 million, up 7.7% reported and 7.9% operational, with divestitures reducing growth by 10 basis points. Source
- MedTech sales grew 2.5%: MedTech sales were $8,642 million, up 2.5% both reported and operational, against $8,430 million a year earlier. Source
- U.S. grew faster than International: U.S. sales were $14,959 million, up 9.1%. International sales were $10,440 million, up 1.5% reported and 1.9% adjusted operational. Source
“This progress, together with strategic investments in high-growth areas, gives us clearer line of sight to double-digit growth by the end of the decade.”
Joaquin Duato, Chairman and Chief Executive Officer
Franchise drivers and drags
- TREMFYA and oncology lead growth: Innovative Medicine growth was led by TREMFYA, new Other Immunology products, DARZALEX, CARVYKTI, TECVAYLI, RYBREVANT/LAZCLUZE and ERLEADA, plus SPRAVATO and CAPLYTA in Neuroscience. Source
- OPSUMIT and IMBRUVICA declined: Growth was partly offset by declines in OPSUMIT/OPSYNVI and IMBRUVICA, with SIMPONI and REMICADE also named among the offsets. Source
- MedTech drivers named: MedTech growth was primarily driven by electrophysiology products and Shockwave in Cardiovascular, contact lenses in Vision, and trauma in Orthopaedics. Source
Earnings adjustments and cash
- Adjusted net earnings and EPS declined: Adjusted net earnings were $6,339 million against $6,801 million, down 6.8%; adjusted diluted EPS was $2.59 against $2.80, down 7.5%. Source
- Non-GAAP measures exclude amortization: Adjusted measures exclude after-tax intangible amortization and special items; reconciliations appear in the accompanying financial schedules and on the company website. Source
- Free cash flow estimated near $15.1 billion: Year-to-date free cash flow is estimated at about $15,100 million, against $14,226 million a year earlier, as of October 13, 2026. Source
2026 guidance
- Reported sales guidance raised: Estimated 2026 reported sales are $101.0 billion to $101.4 billion, midpoint $101.2 billion, up 7.4%; the July midpoint was $101.1 billion. Source
- Adjusted EPS midpoint raised by $0.06: Adjusted EPS guidance is $11.05 to $11.15, midpoint $11.10, up 2.9%. The Q2 release gave a July range of $11.60 to $11.75, which this release's July column does not match. Source
- Adjusted operational EPS midpoint $11.00: Adjusted operational EPS guidance is $10.95 to $11.05, midpoint $11.00, up 2.0%. The July column here shows $10.94; the Q2 release showed $11.58. Source
- Operational sales guidance raised: Operational sales guidance is $100.5 billion to $100.9 billion, midpoint $100.7 billion, up 6.9%, against a July midpoint of $100.6 billion. Source
- Adjusted operational growth 6.4% to 6.8%: Adjusted operational sales growth guidance is 6.4% to 6.8%, midpoint 6.6%, against a July midpoint of 6.5%. Source
- Euro rate assumption held at $1.15: The guidance uses an illustrative euro average rate of $1.15 for both July and October 2026. Source
Legal charge, deals and leadership
- Talc resolution charge in EPS: Third-quarter EPS includes a one-time special charge linked to the proposed resolution of ovarian talc litigation, announced in the quarter. Source
- Firefly Bio acquisition completed: The Firefly Bio, Inc. acquisition closed in the quarter, with the stated aim of advancing next-generation oncology innovation. Source
- Sail Biomedicines collaboration announced: Johnson & Johnson announced a collaboration with Sail Biomedicines on in vivo CAR-T programs aimed at transforming autoimmune disease through immune reset. Source
- Taubert retires; Cavanaugh named: Jennifer Taubert, Executive Vice President, is retiring; Tom Cavanaugh was appointed EVP, Worldwide Chairman, Innovative Medicine, effective September. Source
Approvals and clinical data
- IMAAVY approved for wAIHA: The FDA approved IMAAVY for warm autoimmune hemolytic anemia, which the release describes as the first treatment for this condition. Source
- OTTAVA authorized in the U.S.: FDA granted market authorization to the OTTAVA robotic surgical system, described as the first table-integrated soft tissue robotic system. Source
- RYBREVANT FASPRO gets priority review: FDA granted priority review to RYBREVANT FASPRO for advanced head and neck cancer, described as a potential first-in-class EGFR- and MET-targeted subcutaneous treatment. Source
- TECVAYLI and TALVEY reduced risk: In earlier-line relapsed or refractory multiple myeloma, TECVAYLI plus TALVEY reduced progression or death risk by 89% and death risk by 62%. Source
- CARVYKTI five-year remission data: Five-year treatment-free remission was reported in 50% of patients after a single CARVYKTI infusion in early-line relapsed or refractory multiple myeloma. Source
- CAPLYTA bipolar mania Phase 3 result: CAPLYTA showed significant and rapid improvement in bipolar mania in a pivotal Phase 3 study, per the release. Source
Figures management reported
| Figure | Reported |
|---|---|
| STELARA impact on Innovative Medicine growth Source | approximate 690 basis points |
| FDA approval, IMAAVY for wAIHA Source | approved |
| FDA market authorization, OTTAVA Source | authorized |
| FDA priority review, RYBREVANT FASPRO Source | priority review, advanced head and neck cancer |
| TECVAYLI plus TALVEY trial results Source | 89% lower risk of progression or death; 62% lower risk of death |
| CARVYKTI five-year treatment-free remission Source | 50% of patients |
| CAPLYTA Phase 3, bipolar mania Source | significant and rapid improvement |
| ICOTYDE long-term data Source | 2-year results in plaque psoriasis |
Risks management discussed
- Demand: The release names STELARA first among the offsets to Innovative Medicine growth, at an approximate 690 basis points impact. Source
- External: Currency reduced International growth: International sales rose 1.5% reported against 1.8% operational growth, and worldwide currency lowered growth by 0.1 points. Source
Other quarters
Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.