More earnings analysis: https://betafinch.com
Groups: PHARMA (https://betafinch.com/groups/PHARMA), INCOME (https://betafinch.com/groups/INCOME)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, joined as always by Jordan, and today we're diving into Johnson & Johnson's third quarter 2026 results, reported Tuesday. Before we get going, a quick note — this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.
JORDAN: And there's a lot to unpack here, Alex, because on the surface this looks like a messy quarter, but underneath it's actually a pretty strong one.
ALEX: Right, let's start with the headline numbers. J&J posted $25.4 billion in revenue for Q3, up 6% operationally, which actually beat analyst expectations. Management raised full-year guidance and now expects full-year operational sales growth of 6.7% to 7.1%, putting them on track to cross $100 billion in annual revenue for the very first time in the company's 140-year history.
JORDAN: That's a huge milestone. But here's where it gets messy — GAAP net earnings were just $210 million, and diluted EPS came in at nine cents, compared to $2.12 a year ago. That's a massive drop.
ALEX: And the reason is a one-time hit, not a business problem. J&J took a $5.5 billion charge tied to resolving the ovarian talc litigation, plus costs from two acquisitions — Firefly Bio in oncology and a collaboration with Cell BioMedicine in cell therapy. Strip those out, and adjusted EPS was $2.59, down about 7.5% year-over-year, but mostly because of those deal-related expenses, not underlying weakness.
JORDAN: Exactly. The core business is actually accelerating. Innovative Medicine — that's their pharma segment — grew 7.9% operationally to $16.8 billion, with eight brands growing double digits. Oncology alone grew 17%.
ALEX: Let's talk about the stars of the show. Tremfya, their immunology drug, grew 68% in the quarter. CARVYKTI, their multiple myeloma cell therapy, up 35%. And RYBREVANT, for lung cancer, up 64%. Tom Cavanaugh, the head of Innovative Medicine, specifically called out Icotrokinra — their new oral psoriasis treatment — saying it's tracking better than almost any launch they've seen in psoriatic disease, with over 20,000 patients started in just months.
JORDAN: What stood out to me is they're calling this a path to double-digit growth by 2030, and when an analyst from Goldman pressed CFO Joe Wolk on whether that assumes big acquisitions, he was pretty direct — no, it's organic. That's a meaningful claim given how reliant a lot of pharma growth stories are on M&A.
ALEX: Now, MedTech is the other side of the story, and it's where things got rockier. That division only grew 2.5%, missing expectations. Management was candid about it — Timothy Schmid, who runs MedTech, basically said "our performance is below the standard we set internally."
JORDAN: Two specific problem areas: international markets, especially due to disruption from the Middle East conflict affecting hospital purchasing and tender timing, and Abiomed, their heart pump business, which actually declined 1.5% because of a disputed study on high-risk PCI procedures. Execs pushed back hard on that study's methodology.
ALEX: But it wasn't all bad news in MedTech. Shockwave, their cardiovascular device business, grew 17%. And they got FDA clearance for Ottava, their new surgical robot — first commercial customer already signed. That's a big long-term bet on competing with Intuitive Surgical in robotics.
JORDAN: One housekeeping item investors should note — J&J confirmed they're still on track to spin off their orthopedics business, DePuy Synthes, by mid-2027, and they're leaning toward a straight spin-off rather than a sale.
ALEX: Let's hit a couple of Q&A highlights. On Icotrokinra,
This episode includes AI-generated content.
続きを読む
一部表示
2026/10/157 分