Oct 13, 2026 earnings call — Strong pharma growth drives quarter
Johnson & Johnson reported Q3 sales of $25.4 billion, up 6%, and raised full-year operational sales guidance to 6.7%–7.1%.
Revenue $25.4B (est $25.4B) · EPS $2.59 (est $2.52) · Next-quarter revenue outlook $100.7B
Key quotes
"In Innovative Medicine, we delivered operational sales growth of 7.9% with 8 brands growing double digits."
"In the third quarter, our oncology business grew by approximately 17%."
"In July, the US FDA granted de novo authorization for OCAVA, the world's first stable and integrated soft-tissue robotic system."
Analyst Q&A 10
Growth drivers: internal vs M&A
Q (Asad Haider · Goldman Sachs): Analyst asked if the "internal strategic investments" phrase meant only internal investment not M&A, and whether management now feels urgency to add growth via M&A for MedTech or can the current portfolio drive improved performance.
A: Management said the phrase refers to internal strategic investments and does not assume inorganic additions today. They said they still watch for strategic complementary deals but the urgency is to fix and improve the existing portfolio, highlighting focus on vision, surgery, and cardiovascular and mentioning Ottava as a future contributor.
"Your view of that being internal strategic investments is what will propel us to double digit growth by the end of this decade." — Joseph J. Wolk (CFO)
Abiomed slowdown and outlook
Q (Timothy Schmid): Analyst asked about the Abiomed weakness and whether it is structural or temporary, and what management is doing about it.
A: Management said Abiomed is a temporary headwind and they remain convinced in the long-term opportunity. They described the slowdown as related to a non-U.S. study and said they are focusing on education and advancing clinical evidence to address it.
2027 sales and IPR&D impact
Q (Larry Biegelsen · Wells Fargo): Analyst asked how to think about reported sales growth in 2027 and how EPS excluding IPR&D will grow, plus the IPR&D dilution from Firefly and other deals this year and next.
A: Management gave the IPR&D dilution amounts: $0.64 for this year and $1.36 for next year. They said EPS growth is typically a little better than sales growth and pointed to margin improvement and efficiency actions, with more detail to come at the December 8 Investor Day.
"So for this year, the IPR&D dilution is $0.64." — Joseph J. Wolk (CFO)
ICOTYDE launch and patient mix
Q (Christopher Schott · JPMorgan): Analyst asked about patient uptake for ICOTYDE (new-to-biologic, oral switches, injectable switches) and whether ICOTYDE could be larger than $10 billion at peak.
A: Management said ICOTYDE has had a strong start: over 20 thousand patients initiated and nearly 8 to 9 thousand prescribers. They said roughly 60% of patients are systemic naive, about 20% came from orals and 20% from biologics, and they expect ICOTYDE to be one of their biggest assets with more data readouts coming.
"To date, we have seen over 20 thousand patients initiated on therapy." — Analyst
MedTech fundamentals and fixes
Q (Joanne Wuensch · Citi): Analyst asked whether underlying MedTech fundamentals (patient volumes, hospital CapEx, flows) are solid and what needs to be done to improve the J&J MedTech franchise.
A: Management said MedTech Q3 performance was below their internal standards and they can do better. They said pressures were concentrated outside the U.S. and with Abiomed, U.S. growth was robust near 5%, and they are focused on actions to deliver stronger Q4 and beyond, including innovation and Ottava.
"Simply put, we can do better, and we absolutely will." — Timothy Schmid (CHAIR)
Combination therapy for refractory patients
Q (John C. Reed): Analyst asked about the dual-antibody therapy JNJ-4.8 thousand and its role for patients who need more than monotherapy.
A: Management said JNJ-4.8 thousand combines their IL-23 inhibitor with their TNF inhibitor and is now in Phase 3 after strong Phase 2 data. They said the Phase 2 showed superior efficacy in the refractory population that failed two or more prior advanced therapies, supporting development for those patients.
ICOTYDE sales disclosure and INLEXZO opportunity
Q (Vamil Divan · Guggenheim): Analyst asked if management could comment on ICOTYDE net sales this quarter and to quantify the market opportunity for INLEXZO and the impact of Sunrise-5 data.
A: Management said they have not disclosed ICOTYDE sales yet but expect to do so next year given launch momentum. They disclosed Inlexo has nearly $200 million in net trade sales year to date, Q3 was north of $90 million, and the current approved population is about 4 thousand patients with larger expansions (Sunrise cohorts) giving a multi-billion dollar opportunity.
"obviously, we have not disclosed any sales for ICOTYDE, but I am confident we are gonna be doing that next year, just based on the momentum and progress that we are seeing with the launch of ICOTYDE." — Analyst
ICOTYDE in IBD and milvexian updates
Q (John C. Reed · UBS): Analyst asked whether ICOTYDE might show greater efficacy in IBD due to oral absorption and for updates on milvexian studies and timing.
A: Management said Phase 2 in ulcerative colitis was encouraging and Phase 3 studies are enrolling briskly, with faster enrollment than typical. For milvexian, they remain confident in ongoing studies, expect the secondary stroke data possibly this year, and the atrial fibrillation results next year, noting they can dose higher because of the drug's safety margin.
Middle East impact and surgery actions
Q (Jayson Bedford · Raymond James): Analyst asked to quantify the impact of Middle East dynamics and volume-based procurement, confirm international demand profiles, and ask what actions are being taken in international surgery.
A: Management said the Middle East conflict has broadened disruptions to ordering, tender timing and spending decisions across many countries, creating meaningful short-term purchasing impacts they expect to be largely deferred not lost. They said U.S. surgery performance is strong, issues were mainly outside the U.S., and actions include portfolio transformation, advancing innovation, preparing to enter surgical robotics with Ottava, and expecting acceleration in EMEA and return to growth in Q4.
"We have seen increased disruption to ordering patterns, tender timing in spending decisions across a wider group of countries, unfortunately." — Timothy Schmid (CHAIR)
Preparing for earlier CARVYKTI use
Q (Alexandria Hammond · Wolfe): Analyst asked how J&J is preparing physicians and treatment centers if CARTITUDE V and VI support moving CARVYKTI earlier in multiple myeloma, and how to think about share capture from frontline regimens.
A: Management said they are already educating health care providers on earlier use and are running CARTITUDE IV globally; CARVYKTI is available in over 20 markets and about 50% of U.S. use is in lines 2 and 3. Education focuses on appropriate patient selection, earlier treatment, bridging, and achieving deep MRD negativity to optimize outcomes.
"We are already educating health care providers on the product and how they can use it earlier." — Analyst