Johnson & Johnson 8-K

EarningsGuidance raisedImpairment / chargeLegal / investigation

Proposed talc resolution charge hit GAAP earnings; TREMFYA-led drug growth helped lift the full-year outlook.

Filed 2026-10-13 08:12 ET

Summary

Q3 2026 results with raised FY2026 guidance. Sales rose 5.9%, while GAAP diluted EPS fell to $0.09, reflecting a special charge related to the proposed talc litigation resolution and the Firefly Bio acquisition and Sail Biomedicines collaboration. Adjusted diluted EPS was $2.59 and also reflected the M&A deals; strong operating performance prompted higher full-year sales and adjusted EPS outlooks.

Key Figures

Metric Q3 2026 9M 2026
Revenue $25.4B, +5.9% Y/Y $74.8B, +7.4% Y/Y
Gross margin 68.1%, vs 69.6% 67.6%, vs 68.0%
Net earnings $210M, vs $5.15B $11.0B, -49.4% Y/Y
Adjusted net earnings (non-GAAP) $6.34B, -6.8% Y/Y $20.0B, -0.9% Y/Y
Diluted EPS $0.09, vs $2.12 $4.49, -49.8% Y/Y
Adjusted diluted EPS (non-GAAP) $2.59, -7.5% Y/Y $8.19, -1.7% Y/Y
Free cash flow (non-GAAP) — ≈$15.1B, vs $14.2B
  • Innovative Medicine sales grew 7.9% operationally, led by TREMFYA, oncology products and neuroscience; MedTech grew 2.5%, with electrophysiology and Shockwave among the drivers. STELARA pressured Innovative Medicine growth.
  • GAAP results included a $5.52B pre-tax litigation-related adjustment; the release linked the EPS impact to the proposed talc litigation resolution.

Guidance

Metric Period Guidance Prior Direction
Adjusted operational sales (non-GAAP) FY2026 $6.4%–$6.8% growth, 6.6% midpoint 6.2%–6.8%, 6.5% midpoint Raised
Operational sales (non-GAAP) FY2026 $100.5B–$100.9B, $100.7B midpoint; 6.7%–7.1% growth, 6.9% midpoint $100.3B–$100.9B, $100.6B midpoint; 6.5%–7.1% growth, 6.8% midpoint Raised
Estimated reported sales FY2026 $101.0B–$101.4B, $101.2B midpoint; 7.2%–7.6% growth, 7.4% midpoint $100.8B–$101.4B, $101.1B midpoint; 7.0%–7.6% growth, 7.3% midpoint Raised
Adjusted operational diluted EPS (non-GAAP) FY2026 $10.95–$11.05, $11.00 midpoint; 1.5%–2.4% growth, 2.0% midpoint $10.86–$11.01, $10.94 midpoint; 0.7%–2.1% growth, 1.4% midpoint Raised
Adjusted diluted EPS (non-GAAP) FY2026 $11.05–$11.15, $11.10 midpoint; 2.4%–3.3% growth, 2.9% midpoint $10.96–$11.11, $11.04 midpoint; 1.6%–3.0% growth, 2.3% midpoint Raised

J&J says it cannot provide forward-looking GAAP financial measures because legal proceedings, unusual items, acquisition-related expenses and purchase accounting adjustments cannot be predicted with reasonable certainty.

Investor Takeaways

  • The company said additional modeling considerations would be provided on its investor webcast; those details and performance against the raised FY2026 ranges are the next outlook points to watch.

The summary is written by an AI model reading the filing.

Model 005 · prompt 8bef31e277

Feedback