Johnson & Johnson Raises 2025 Guidance

Image Source: J&J

By Brian Nelson, CFA

On July 16, Johnson & Johnson (JNJ) reported better than expected second quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecast. The healthcare giant reported adjusted operational sales growth of 3% in the quarter (2.4% growth in Innovative Medicine and 4.1% growth in MedTech) and adjusted earnings per share of $2.77, down modestly on a year-over-year basis. Free cash flow was ~$6.2 billion in the quarter, also down from $7.5 billion that it registered in the second quarter of last year.

Management had the following to say about the results:

Today’s strong results reflect the depth and strength of Johnson & Johnson’s uniquely diversified business operating across both MedTech and Innovative Medicine. Our portfolio and pipeline position us for elevated growth in the second half of the year, with game-changing approvals and submissions anticipated in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery and cardiovascular, which will extend and improve lives in transformative ways.

Looking to all of 2025, J&J raised its adjusted operational sales growth target to the range of 3.2%-3.7%, up from 2%-3% previously. Adjusted operational earnings per share for the year is expected in the range of $10.63-$10.73, up from $10.50-$10.70 previously, implying growth of 6.5%-7.5% versus the prior year. In the press release, management noted “significant new product pipeline progress including approval of IMAAVY for generalized myasthenia gravis, priority review for TAR-200, data for CARVYKTI overall survival and progression-free benefits in multiple myeloma, and continuation of the clinical trial for a general surgery robotic system, OTTAVA.”  We like J&J, but don’t include shares in any newsletter portfolio.

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