EX-99.23a2026q1exhibit992.htmEX-99.2 Document
Exhibit 99.2
Johnson & Johnson and subsidiaries
Supplementary sales data
(Unaudited; Dollars in Millions)
FIRST QUARTER
Percent Change
Sales to customers by geographic area
2026
2025
Total
Operations
Currency
U.S.
$13,330
12,305
8.3
%
8.3
—
Europe
5,848
5,110
14.5
2.7
11.8
Western Hemisphere excluding U.S.
1,293
1,167
10.8
2.5
8.3
Asia-Pacific, Africa
3,591
3,311
8.5
6.1
2.4
International
10,732
9,588
11.9
3.9
8.0
Worldwide
$24,062
21,893
9.9
%
6.4
3.5
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
Johnson & Johnson and subsidiaries
Supplementary sales data
(Unaudited; Dollars in Millions)
FIRST QUARTER
Percent Change
Sales to customers by segment of business
2026
2025
Total
Operations
Currency
Innovative Medicine
U.S.
$
8,871
8,092
9.6
%
9.6
—
International
6,555
5,781
13.4
4.3
9.1
15,426
13,873
11.2
7.4
3.8
MedTech
U.S.
4,459
4,213
5.9
5.9
—
International
4,177
3,807
9.7
3.2
6.5
8,636
8,020
7.7
4.6
3.1
U.S.
13,330
12,305
8.3
8.3
—
International
10,732
9,588
11.9
3.9
8.0
Worldwide
$
24,062
21,893
9.9
%
6.4
3.5
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
Johnson & Johnson and subsidiaries
Condensed consolidated statement of earnings
(Unaudited; in Millions Except Per Share Figures)
FIRST QUARTER
2026
2025
Percent
Increase
(Decrease)
Amount
Percent
to Sales
Amount
Percent
to Sales
Sales to customers
$
24,062
100.0
$
21,893
100.0
9.9
Cost of products sold
8,106
33.7
7,357
33.6
10.2
Gross Profit
15,956
66.3
14,536
66.4
9.8
Selling, marketing and administrative expenses
6,034
25.1
5,112
23.3
18.0
Research and development expense
3,527
14.7
3,225
14.7
9.4
In-process research and development impairments
36
0.1
—
—
Interest (income) expense, net
43
0.2
(128)
(0.6)
Other (income) expense, net
294
1.2
(7,321)
(33.4)
Restructuring
32
0.1
17
0.1
Earnings before provision for taxes on income
5,990
24.9
13,631
62.3
(56.1)
Provision for taxes on income
755
3.1
2,632
12.1
(71.3)
Net earnings
$
5,235
21.8
$
10,999
50.2
(52.4)
Net earnings per share (Diluted)
$
2.14
$
4.54
(52.9)
Average shares outstanding (Diluted)
2,445.2
2,423.8
Effective tax rate
12.6
%
19.3
%
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income
$
7,821
32.5
$
8,011
36.6
(2.4)
Net earnings
$
6,614
27.5
$
6,706
30.6
(1.4)
Net earnings per share (Diluted)
$
2.70
$
2.77
(2.5)
Effective tax rate
15.4
%
16.3
%
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant gains from divestitures, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters).
Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies.
The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, significant gains from divestitures, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.
Johnson & Johnson and subsidiaries
Reconciliation of non-GAAP financial measures
First Quarter
(Dollars in Millions Except Per Share Data)
2026
2025
Net Earnings, after tax- as reported
$5,235
$10,999
Pre-tax Adjustments
Intangible Asset Amortization expense
1,247
1,120
Litigation related
330
(6,966)
Orthopaedics Separation related
119
—
Acquisition, integration and divestiture related
96
132
Restructuring related 1
62
55
IPR&D impairments
36
—
(Gains)/losses on securities
(59)
39
Tax Adjustments
Tax impact on special item adjustments 2
(424)
1,315
Tax legislation and other tax related
(28)
12
Adjusted Net Earnings, after tax
$6,614
$6,706
Average shares outstanding (Diluted)
2,445.2
2,423.8
Adjusted net earnings per share (Diluted)
$2.70
$2.77
Operational adjusted net earnings per share (Diluted)
$2.57
Notes:
1In fiscal 2023, the company initiated a restructuring program of its Orthopaedics franchise within the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The restructuring expense of $7 million in the fiscal first quarter of 2026 and $55 million in the fiscal first quarter of 2025 primarily includes costs related to market and product exits. This program was substantially completed in Q4 2025.
In fiscal 2025, the company initiated a restructuring program of its Surgery franchise within the MedTech segment to simplify and focus operations by exiting certain non-strategic product lines and optimize select sites across the network. The restructuring expense of $55 million in the fiscal first quarter of 2026 primarily includes costs related to product exits. This program is expected to be substantially completed by the end of fiscal year 2026.
2The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.
Johnson & Johnson and subsidiaries
Reconciliation of non-GAAP financial measures
Adjusted operational sales growth(A)
First quarter 2026 actual vs. 2025 actual
Segments
Innovative Medicine
MedTech
Total
WW As Reported
11.2
%
7.7
%
9.9
%
U.S.
9.6
%
5.9
%
8.3
%
International
13.4
%
9.7
%
11.9
%
WW Currency
3.8
3.1
3.5
U.S.
—
—
—
International
9.1
6.5
8.0
WW Operational
7.4
%
4.6
%
6.4
%
U.S.
9.6
%
5.9
%
8.3
%
International
4.3
%
3.2
%
3.9
%
Caplyta
(1.9)
(1.2)
U.S.
(3.3)
(2.2)
International
0.0
0.0
All Other Acquisitions and Divestitures (A&D)
0.1
0.1
0.1
U.S.
0.0
0.2
0.1
International
0.2
0.0
0.1
WW Adjusted Operational Ex A&D
5.6
%
4.7
%
5.3
%
U.S.
6.3
%
6.1
%
6.2
%
International
4.5
%
3.2
%
4.0
%
Note: Percentages are based on actual, non-rounded figures and may not sum
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods.
The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2026
2025
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)
ONCOLOGY
US
$3,615
3,013
20.0
%
20.0
%
—
%
Intl
3,358
2,664
26.0
15.3
10.7
WW
6,973
5,678
22.8
17.8
5.0
DARZALEX
US
2,208
1,829
20.7
20.7
—
Intl
1,756
1,409
24.7
14.0
10.7
WW
3,964
3,237
22.5
17.8
4.7
CARVYKTI
US
433
318
36.2
36.2
—
Intl
164
51
*
*
*
WW
597
369
62.1
57.4
4.7
TECVAYLI
US
127
105
20.6
20.6
—
Intl
74
46
63.1
52.1
11.0
WW
202
151
33.5
30.1
3.4
TALVEY
US
101
68
48.5
48.5
—
Intl
51
18
*
*
*
WW
152
86
76.7
72.8
3.9
RYBREVANT / LAZCLUZE
US
175
113
55.1
55.1
—
Intl
82
28
*
*
*
WW
257
141
82.7
80.5
2.2
ERLEADA
US
342
292
17.3
17.3
—
Intl
607
479
26.7
15.5
11.2
WW
949
771
23.1
16.2
6.9
IMBRUVICA
US
143
235
(39.1)
(39.1)
—
Intl
517
474
9.1
(1.4)
10.5
WW
660
709
(6.9)
(13.9)
7.0
OTHER ONCOLOGY(3)
US
85
54
58.8
58.8
—
Intl
106
160
(33.9)
(36.3)
2.4
WW
192
214
(10.6)
(12.5)
1.9
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2026
2025
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)(Continued)
IMMUNOLOGY
US
$1,855
2,196
(15.5)
%
(15.5)
%
—
%
Intl
1,524
1,510
0.9
(6.4)
7.3
WW
3,380
3,707
(8.8)
(11.8)
3.0
TREMFYA
US
1,042
599
73.9
73.9
—
Intl
566
356
58.9
46.8
12.1
WW
1,608
956
68.3
63.8
4.5
SIMPONI / SIMPONI ARIA
US
269
292
(7.8)
(7.8)
—
Intl
378
366
3.0
(4.1)
7.1
WW
647
659
(1.7)
(5.7)
4.0
REMICADE
US
269
314
(14.4)
(14.4)
—
US Exports(4)
18
10
78.6
78.6
—
Intl
136
143
(4.8)
(10.5)
5.7
WW
422
467
(9.5)
(11.2)
1.7
STELARA
US
220
981
(77.6)
(77.6)
—
Intl
435
644
(32.4)
(37.7)
5.3
WW
656
1,625
(59.7)
(61.7)
2.0
OTHER IMMUNOLOGY
US
38
1
*
*
—
Intl
9
0
*
*
*
WW
46
1
*
*
*
NEUROSCIENCE
US
1,494
968
54.3
54.3
—
Intl
681
679
0.3
(6.3)
6.6
WW
2,175
1,647
32.0
29.3
2.7
SPRAVATO
US
406
276
47.0
47.0
—
Intl
61
43
42.4
28.7
13.7
WW
468
320
46.4
44.5
1.9
CAPLYTA(5)
US
270
—
*
*
—
Intl
—
—
—
—
—
WW
270
—
*
*
—
INVEGA SUSTENNA / XEPLION / INVEGA
TRINZA / TREVICTA
US
758
625
21.2
21.2
—
Intl
280
277
1.1
(4.9)
6.0
WW
1,038
903
15.0
13.2
1.8
CONCERTA / methylphenidate
US
22
38
(43.4)
(43.4)
—
Intl
115
110
4.3
(0.6)
4.9
WW
136
148
(8.0)
(11.7)
3.7
OTHER NEUROSCIENCE
US
38
28
32.6
32.6
—
Intl
224
248
(9.7)
(16.3)
6.6
WW
262
277
(5.4)
(11.3)
5.9
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2026
2025
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)(Continued)
PULMONARY HYPERTENSION (PH)
US
$831
744
11.7
%
11.7
%
—
%
Intl
304
281
8.2
1.0
7.2
WW
1,135
1,025
10.7
8.7
2.0
UPTRAVI
US
385
365
5.4
5.4
—
Intl
98
86
14.3
5.1
9.2
WW
483
451
7.1
5.4
1.7
OPSUMIT / OPSYNVI
US
433
363
19.3
19.3
—
Intl
172
159
8.7
1.7
7.0
WW
606
522
16.1
14.0
2.1
OTHER PULMONARY HYPERTENSION
US
12
15
(21.1)
(21.1)
—
Intl
34
37
(8.3)
(11.8)
3.5
WW
46
52
(12.1)
(14.5)
2.4
INFECTIOUS DISEASES (ID)
US
342
315
8.6
8.6
—
Intl
547
487
12.2
1.3
10.9
WW
889
802
10.8
4.1
6.7
EDURANT / rilpivirine
US
7
8
(13.1)
(13.1)
—
Intl
402
350
14.8
3.2
11.6
WW
409
358
14.1
2.8
11.3
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US
334
305
9.5
9.5
—
Intl
109
98
11.2
0.7
10.5
WW
443
403
10.0
7.4
2.6
OTHER INFECTIOUS DISEASES
US
1
2
(56.9)
(56.9)
—
Intl
36
39
(8.3)
(14.7)
6.4
WW
37
41
(10.4)
(16.5)
6.1
CARDIOVASCULAR / METABOLISM / OTHER (CVM)
US
734
855
(14.2)
(14.2)
—
Intl
142
158
(10.4)
(17.5)
7.1
WW
876
1,013
(13.6)
(14.7)
1.1
XARELTO
US
642
690
(7.0)
(7.0)
—
Intl
—
—
—
—
—
WW
642
690
(7.0)
(7.0)
—
OTHER
US
91
165
(44.5)
(44.5)
—
Intl
142
158
(10.4)
(17.5)
7.1
WW
233
323
(27.8)
(31.2)
3.4
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2026
2025
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)(Continued)
TOTAL PH, ID, CVM
US
1,907
1,914
(0.4)
(0.4)
—
Intl
993
926
7.1
(2.0)
9.1
WW
2,899
2,840
2.1
(0.9)
3.0
TOTAL INNOVATIVE MEDICINE
US
8,871
8,092
9.6
9.6
—
Intl
6,555
5,781
13.4
4.3
9.1
WW
$15,426
13,873
11.2
%
7.4
%
3.8
%
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2026
2025
Reported
Operational(1)
Currency
MEDTECH SEGMENT(2)
CARDIOVASCULAR
US
$1,399
1,261
10.9
%
10.9
%
—
%
Intl
978
842
16.1
9.9
6.2
WW
2,377
2,103
13.0
10.5
2.5
ELECTROPHYSIOLOGY
US
736
684
7.6
7.6
—
Intl
753
638
18.0
11.7
6.3
WW
1,489
1,323
12.6
9.5
3.1
ABIOMED
US
389
339
14.5
14.5
—
Intl
100
81
23.5
13.9
9.6
WW
488
420
16.3
14.4
1.9
SHOCKWAVE
US
242
206
17.8
17.8
—
Intl
63
52
21.3
19.3
2.0
WW
305
258
18.5
18.1
0.4
OTHER CARDIOVASCULAR
US
32
32
0.7
0.7
—
Intl
62
72
(13.4)
(17.5)
4.1
WW
94
103
(9.1)
(11.9)
2.8
SURGERY
US
1,046
1,002
4.4
4.4
—
Intl
1,465
1,394
5.1
(1.1)
6.2
WW
2,511
2,396
4.8
1.2
3.6
ADVANCED
US
477
457
4.2
4.2
—
Intl
646
616
4.9
(1.0)
5.9
WW
1,123
1,073
4.6
1.2
3.4
GENERAL
US
569
544
4.5
4.5
—
Intl
819
778
5.2
(1.3)
6.5
WW
1,388
1,323
4.9
1.1
3.8
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2026
2025
Reported
Operational(1)
Currency
MEDTECH SEGMENT(2)(Continued)
VISION
US
$579
566
2.4
%
2.4
%
—
%
Intl
785
713
10.1
4.6
5.5
WW
1,365
1,279
6.7
3.6
3.1
CONTACT LENSES / OTHER
US
468
452
3.7
3.7
—
Intl
501
467
7.2
1.7
5.5
WW
969
919
5.5
2.7
2.8
SURGICAL
US
111
114
(2.9)
(2.9)
—
Intl
285
246
15.6
10.1
5.5
WW
396
361
9.7
6.0
3.7
ORTHOPAEDICS
US
1,435
1,384
3.7
3.7
—
Intl
948
857
10.6
2.4
8.2
WW
2,383
2,241
6.3
3.2
3.1
HIPS
US
277
263
5.2
5.2
—
Intl
159
146
8.9
0.3
8.6
WW
436
409
6.5
3.5
3.0
KNEES
US
239
231
3.3
3.3
—
Intl
181
158
14.6
6.5
8.1
WW
420
389
7.9
4.6
3.3
TRAUMA
US
532
502
6.1
6.1
—
Intl
301
270
11.4
3.1
8.3
WW
833
772
8.0
5.0
3.0
SPINE, SPORTS & OTHER
US
387
388
(0.1)
(0.1)
—
Intl
307
283
8.4
0.7
7.7
WW
694
671
3.5
0.2
3.3
TOTAL MEDTECH
US
4,459
4,213
5.9
5.9
—
Intl
4,177
3,807
9.7
3.2
6.5
WW
$8,636
8,020
7.7
%
4.6
%
3.1
%
Note: Column and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
* Percentage greater than 100% or not meaningful
(1)Operational growth excludes the effect of translational currency
(2)Unaudited
(3)Includes the sales of ZYTIGA which were previously disclosed separately
(4)Reported as U.S. sales
(5)Acquired with Intra-Cellular Therapies on April 2, 2025
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 8 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | 0 | 0 |
| Buybacks share repurchase, buyback program | 0 | — | 0 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Oncology franchise momentum
“ONCOLOGY WW 6,973 vs 5,678, 22.8% reported growth, 17.8% operational; DARZALEX WW 3,964 vs 3,237, 22.5% growth”
Theme · STELARA biosimilar pressure
“STELARA US 220 vs 981, (77.6)% decline; WW 656 vs 1,625, (59.7)% decline”
Theme · CAR-T and novel oncology acceleration
“CARVYKTI WW 597 vs 369, 62.1% growth; TALVEY WW 152 vs 86, 76.7% growth”
Theme · TREMFYA immunology growth offsetting losses
“TREMFYA US 1,042 vs 599, 73.9% growth; WW 1,608 vs 956, 68.3% growth”
Theme · Caplyta neuroscience addition
“CAPLYTA US 270 vs 0; Acquired with Intra-Cellular Therapies on April 2, 2025”
Theme · Cardiovascular MedTech expansion
“CARDIOVASCULAR WW 2,377 vs 2,103, 13.0% growth; ELECTROPHYSIOLOGY WW 1,489 vs 1,323, 12.6% growth”
Theme · Restructuring programs in MedTech
“Restructuring program of Surgery franchise to exit certain non-strategic product lines; expense of $55 million in Q1 2026”
Theme · Currency headwinds moderating
“Worldwide currency impact 3.5%; International currency 8.0%”
Source: SEC EDGAR · public domain · Highlights by Palanor