Johnson & Johnson

Strong Q3 momentum; confidence in hitting 2026 targets + first-time $100B run-rate goal - Q3 sales: $25.4B, +6% operational growth (U.S. +9.1%, outside U.S. +1.8%); sequential improvement vs Q2. - Full-year revenue outlook: J&J says it is on track to exceed $100B in annual revenue for the first time in company history. - Strategic engine: Management reiterated focus on 6 oncology/immunology/neuroscience + cardiovascular surgery ambition areas and highlighted that 29 products/platforms generate ≥$1B.

Innovative Medicine driving the outperformance; MedTech lagging expectations - Q3 Innovative Medicine sales: $16.8B, +7.9%. - Key growth examples: Oncology (multiple myeloma brands strong; DARZALEX +15.6%, PRAVYCTI +35.2%, TECVAYLI +77.3%; lung cancer RYBREVANT +64%), Immunology (Tremfya +68%), Neuroscience (Spravato +36%, Caplyta +66%). - Q3 MedTech sales: $8.6B, +2.5% (operational); management explicitly said it fell short of expectations, especially cardiovascular and surgery outside the U.S., while arguing fundamentals remain strong.

2026 guidance raised (and tightened): operational growth ~high-single-digit; EPS modest growth - 2026 operational sales growth (raised): 6.7% to 7.1% (midpoint growth ~6.9%), targeting ~$100.7B operational sales at midpoint; FX not speculative. - Reported growth implication: Management estimates reported growth ~7.2% to 7.6% (midpoint ~7.4%), based on euro assumptions. - 2026 EPS outlook: Adjusted operational EPS $10.95–$11.05 (2% at midpoint); reported adjusted EPS $11.05–$11.15 (midpoint $11.10, ~+2.9%). - Margin outlook: expects operating margin decline ~60 bps (improved from prior 75 bps decline in July, which included deal-related headwinds).