J&J Beats Q3 Adjusted EPS Estimate and Raises Outlook, but MedTech Lags and Shares Fall

Johnson & Johnson reported third-quarter results before the market opened on Tuesday, beating on adjusted earnings while the shares fell. Adjusted earnings were $2.59 per share, above the $2.53 consensus, and sales rose 5.9% to $25.4 billion, in line with the $25.38 billion estimate. Adjusted EPS was still 7.5% lower than the $2.80 earned a year ago. GAAP earnings were just $0.09 per share, and net earnings fell 95.9% to $210 million, because the quarter carries a one-time charge for the proposed resolution of ovarian talc litigation, along with costs from the Firefly Bio acquisition and the Sail Biomedicines collaboration.

The company raised its 2026 outlook. Reported sales are now expected at $101.0 billion to $101.4 billion, and adjusted EPS at $11.05 to $11.15, up from a prior midpoint of $11.04. J&J also declared a quarterly dividend of $1.34 per share, payable December 8, a yield of about 2.0%.

The weak spot was MedTech. Sales rose 2.5% to $8.6 billion, and management said the segment fell short of its expectations, naming Cardiovascular and Surgery outside the U.S. as areas to improve. Innovative Medicine grew 7.7% to $16.8 billion, led by TREMFYA, though STELARA remained a drag. One report also cited Middle East disruption and European cost containment as weighing on device demand. Shares were down about 3.7% in early trading and about 6% by midday.

Management said it remains on track to separate DePuy Synthes, its orthopaedics business, by mid-2027 and is leaning toward a spin-off. Investors may watch for a MedTech reacceleration, progress toward the talc settlement participation threshold, and details of the separation.