CEO Joaquin Duato Reports Q4 2025 Gains as Johnson & Johnson Advances Innovation Strategy

February 03, 2026 | Tuesday | Financial Analysis

Johnson & Johnson released its fourth-quarter and full-year 2025 financial results, underscoring broad-based growth, advancing innovation and a strengthening commercial portfolio. Chairman and Chief Executive Officer Joaquin Duato described 2025 as “a catapult year” for the company, driven by its largest portfolio and pipeline in history and transformational progress across key therapeutic areas.

In a year marked by robust sales growth, substantial earnings expansion and strategic execution across pharmaceuticals and MedTech, Johnson & Johnson also issued guidance for continued growth in 2026. Investors and stakeholders focused on the company’s performance in oncology, immunology, neuroscience, cardiovascular, surgery and vision — the six core areas Duato identified as crucial to long-term success.

Q4 2025 Financial Performance

Johnson & Johnson delivered strong fourth-quarter results, highlighting both top-line growth and improved profitability:

Reported sales for Q4 2025 were $24.6 billion, up 9.1% compared to the fourth quarter of 2024.
Net earnings rose to $5.12 billion, a 49.1% increase year-over-year.
Diluted earnings per share (EPS) for Q4 reached $2.10, up 48.9% from $1.41 in the year-ago period, reflecting operating leverage and improved results.

On a non-GAAP basis, which excludes certain items including intangible amortization and special adjustments, operational performance remained strong:

Operational sales grew 7.1%, while adjusted operational sales expanded 6.1% in the quarter.
Adjusted net earnings climbed 21.5%, and adjusted EPS increased 20.6% to $2.46.

These figures reflect underlying momentum across the company’s diversified segments, particularly pharmaceuticals and medical technology offerings.

Segment Performance and Commercial Drivers

Across segments in Q4, Johnson & Johnson reported broad global growth:

Innovative Medicine continued its contribution to overall sales growth, with worldwide operational sales up approximately 10%, driven by oncology agents such as DARZALEX FASPRO, CARVYKTI, ERLEADA and RYBREVANT/LAZCLUZE, as well as immunology and neuroscience products.

MedTech also delivered solid performance, with worldwide operational sales up roughly 7.5%, supported by products in electrophysiology, cardiovascular technologies and wound closure solutions.

Regional performance showed a balanced global footprint:

U.S. sales of $14.2 billion were up 7.5% in the quarter.
International sales of $10.4 billion rose 11.3%.

These results reflect demand across diversified geographies and product lines.

Full-Year 2025 Results

For the full year ended December 31, 2025, Johnson & Johnson reported solid overall growth:

Total reported sales of $94.2 billion, up 6.0% compared to 2024.
Full-year net earnings of $26.8 billion, an increase of 90.6% year-over-year.
Diluted EPS of $11.03, up 90.5% from $5.79 in the prior year.

On a non-GAAP basis, adjusted results also showed healthy expansion:

Adjusted operational sales grew approximately 4.2% for the year.
Adjusted net earnings increased 8.1%, with adjusted EPS rising to $10.79.

Free cash flow remained robust, with full-year 2025 free cash flow estimated at approximately $19.7 billion, illustrating continued strong cash generation.

Innovation and Regulatory Progress

Johnson & Johnson announced several notable achievements in innovation and regulatory milestones in 2025:

New approvals, including CAPLYTA for major depressive disorder, and RYBREVANT FASPRO plus LAZCLUZE for non-small cell lung cancer, expanded treatment options across therapeutic areas.
Landmark clinical data highlighted the potential of TECVAYLI plus DARZALEX FASPRO as a second-line standard of care for patients with relapsed/refractory multiple myeloma, reinforcing the company’s oncology leadership.
The acquisition of Halda Therapeutics broadened J&J’s oncology pipeline and strengthened its growth prospects in targeted cancer therapies.
The company also submitted the OTTAVA Robotic Surgical System for regulatory review, signaling expansion into advanced surgical technology.

These developments highlight the company’s commitment to innovation across both pharmaceuticals and MedTech.

2026 Outlook

Johnson & Johnson provided guidance for the upcoming year:

For 2026, estimated reported sales are projected around $100.5 billion, representing a mid-point growth rate of approximately 6.7%.
Adjusted EPS for 2026 is forecast at approximately $11.53 at the midpoint, reflecting continued growth and profitability.

The guidance, while non-GAAP, indicates confident expectations for sustained growth in core businesses and expanding portfolio contribution.

CEO Joaquin Duato’s Commentary

In reviewing the results, Joaquin Duato, Chairman and CEO, emphasized the company’s strong foundation:

“2025 was a catapult year for Johnson & Johnson, fueled by the strongest portfolio and pipeline in our history,” Duato said. “Last year kicked off a new era of accelerated growth, driven by medical innovation that is transforming lives in our six key businesses: Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision.”

Duato’s remarks underscored the company’s strategic focus on innovation-driven growth and operational excellence, laying the groundwork for continued success in 2026 and beyond.

Johnson & Johnson’s Q4 2025 results reflect solid financial performance, broad product momentum and advancing innovation across its core businesses. With CEO Joaquin Duato at the helm, the company demonstrated resilient growth, strong earnings expansion and a pipeline that supports future value creation. The guidance for 2026 reinforces confidence in the company’s trajectory, as J&J continues to balance innovation, commercial execution and long-term strategic growth.

Read Full Report