EX-99.23a2025q1exhibit992.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
2025
2024
Total
Operations
Currency
U.S.
$12,305
11,620
5.9
%
5.9
—
Europe
5,110
5,163
(1.0)
2.2
(3.2)
Western Hemisphere excluding U.S.
1,167
1,194
(2.3)
9.2
(11.5)
Asia-Pacific, Africa
3,311
3,406
(2.8)
(0.6)
(2.2)
International
9,588
9,763
(1.8)
2.1
(3.9)
Worldwide
$21,893
21,383
2.4
%
4.2
(1.8)
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
2025
2024
Total
Operations
Currency
Innovative Medicine
U.S.
$
8,092
7,612
6.3
%
6.3
—
International
5,781
5,950
(2.9)
1.5
(4.4)
13,873
13,562
2.3
4.2
(1.9)
MedTech
U.S.
4,213
4,008
5.1
5.1
—
International
3,807
3,813
(0.2)
3.0
(3.2)
8,020
7,821
2.5
4.1
(1.6)
U.S.
12,305
11,620
5.9
5.9
—
International
9,588
9,763
(1.8)
2.1
(3.9)
Worldwide
$
21,893
21,383
2.4
%
4.2
(1.8)
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
2025
2024
Percent
Increase
(Decrease)
Amount
Percent
to Sales
Amount
Percent
to Sales
Sales to customers
$
21,893
100.0
$
21,383
100.0
2.4
Cost of products sold
7,357
33.6
6,511
30.4
13.0
Gross Profit
14,536
66.4
14,872
69.6
(2.3)
Selling, marketing and administrative expenses
5,112
23.3
5,257
24.6
(2.8)
Research and development expense
3,225
14.7
3,542
16.6
(8.9)
Interest (income) expense, net
(128)
(0.6)
(209)
(1.0)
Other (income) expense, net
(7,321)
(33.4)
2,404
11.2
Restructuring
17
0.1
164
0.8
Earnings before provision for taxes on income
13,631
62.3
3,714
17.4
267.0
Provision for taxes on income
2,632
12.1
459
2.2
473.4
Net earnings
$
10,999
50.2
$
3,255
15.2
237.9
Net earnings per share (Diluted)
$
4.54
$
1.34
238.8
Average shares outstanding (Diluted)
2,423.8
2,430.1
Effective tax rate
19.3
%
12.4
%
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income
$
8,011
36.6
$
7,877
36.8
1.7
Net earnings
$
6,706
30.6
$
6,580
30.8
1.9
Net earnings per share (Diluted)
$
2.77
$
2.71
2.2
Effective tax rate
16.3
%
16.5
%
(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, significant costs associated with acquisitions, 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)
2025
2024
Net Earnings, after tax- as reported
$10,999
$3,255
Pre-tax Adjustments
Litigation related
(6,966)
2,726
Intangible Asset Amortization expense
1,120
1,078
Restructuring related 1
55
171
Acquisition, integration and divestiture related
132
148
(Gains)/losses on securities
39
(20)
Medical Device Regulation
—
51
COVID-19 Vaccine related costs
—
9
Tax Adjustments
Tax impact on special item adjustments 2
1,315
(856)
Tax legislation and other tax related
12
18
Adjusted Net Earnings, after tax
$6,706
$6,580
Average shares outstanding (Diluted)
2,423.8
2,430.1
Adjusted net earnings per share (Diluted)
$2.77
$2.71
Operational adjusted net earnings per share (Diluted)
$2.81
Notes:
1In fiscal 2023, the company completed a prioritization of its research and development (R&D) investment within the Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring expenses of $144 million in the fiscal first quarter of 2024 include the termination of partnered and non-partnered program costs and asset impairments. This program was completed in Q4 2024.
In 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 expenses of $55 million in the fiscal first quarter of 2025 and $27 million in the fiscal first quarter of 2024 primarily includes costs related to market and product exits.
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 2025 actual vs. 2024 actual
Segments
Innovative Medicine
MedTech
Total
WW As Reported
2.3
%
2.5
%
2.4
%
U.S.
6.3
%
5.1
%
5.9
%
International
(2.9
%)
(0.2
%)
(1.8
%)
WW Currency
(1.9)
(1.6)
(1.8)
U.S.
—
—
—
International
(4.4)
(3.2)
(3.9)
WW Operational
4.2
%
4.1
%
4.2
%
U.S.
6.3
%
5.1
%
5.9
%
International
1.5
%
3.0
%
2.1
%
Shockwave
(3.3)
(1.2)
U.S.
(5.1)
(1.8)
International
(1.4)
(0.5)
All Other Acquisitions and Divestitures (A&D)
0.2
0.5
0.3
U.S.
0.0
0.9
0.3
International
0.4
0.2
0.3
WW Adjusted Operational Ex A&D
4.4
%
1.3
%
3.3
%
U.S.
6.3
%
0.9
%
4.4
%
International
1.9
%
1.8
%
1.9
%
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
2025
2024
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)
ONCOLOGY
US
$3,013
2,383
26.4
%
26.4
%
—
%
Intl
2,664
2,430
9.6
14.4
(4.8)
WW
5,678
4,814
17.9
20.4
(2.5)
CARVYKTI
US
318
140
*
*
—
Intl
51
16
*
*
*
WW
369
157
*
*
*
DARZALEX
US
1,829
1,464
24.9
24.9
—
Intl
1,409
1,228
14.7
19.8
(5.1)
WW
3,237
2,692
20.3
22.5
(2.2)
ERLEADA
US
292
285
2.5
2.5
—
Intl
479
404
18.5
23.1
(4.6)
WW
771
689
11.9
14.6
(2.7)
IMBRUVICA
US
235
265
(11.5)
(11.5)
—
Intl
474
518
(8.5)
(4.2)
(4.3)
WW
709
784
(9.5)
(6.7)
(2.8)
RYBREVANT / LAZCLUZE(3)
US
113
36
*
*
—
Intl
28
11
*
*
*
WW
141
47
*
*
*
TALVEY(3)
US
68
50
35.2
35.2
—
Intl
18
8
*
*
*
WW
86
58
48.4
50.2
(1.8)
TECVAYLI
US
105
101
4.9
4.9
—
Intl
46
33
38.8
45.9
(7.1)
WW
151
133
13.3
15.0
(1.7)
ZYTIGA / abiraterone acetate
US
7
9
(24.3)
(24.3)
—
Intl
118
172
(31.3)
(28.5)
(2.8)
WW
125
181
(30.9)
(28.3)
(2.6)
OTHER ONCOLOGY(3)
US
47
33
42.9
42.9
—
Intl
42
41
4.6
10.1
(5.5)
WW
89
73
21.7
24.7
(3.0)
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2025
2024
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)(Continued)
IMMUNOLOGY
US
$2,196
2,453
(10.5)
%
(10.5)
%
—
%
Intl
1,510
1,794
(15.8)
(11.5)
(4.3)
WW
3,707
4,247
(12.7)
(10.9)
(1.8)
REMICADE
US
314
266
18.1
18.1
—
US Exports(4)
10
27
(64.2)
(64.2)
—
Intl
143
141
1.3
6.8
(5.5)
WW
467
434
7.5
9.3
(1.8)
SIMPONI / SIMPONI ARIA
US
292
254
14.8
14.8
—
Intl
366
299
22.4
29.7
(7.3)
WW
659
554
18.9
22.9
(4.0)
STELARA
US
981
1,396
(29.8)
(29.8)
—
Intl
644
1,055
(38.9)
(35.8)
(3.1)
WW
1,625
2,451
(33.7)
(32.3)
(1.4)
TREMFYA
US
599
509
17.6
17.6
—
Intl
356
299
19.2
24.4
(5.2)
WW
956
808
18.2
20.1
(1.9)
OTHER IMMUNOLOGY
US
1
0
*
*
—
Intl
0
0
—
—
—
WW
1
0
*
*
—
NEUROSCIENCE
US
968
1,054
(8.1)
(8.1)
—
Intl
679
749
(9.3)
(5.5)
(3.8)
WW
1,647
1,803
(8.6)
(7.0)
(1.6)
CONCERTA / methylphenidate
US
38
41
(7.4)
(7.4)
—
Intl
110
136
(18.9)
(15.2)
(3.7)
WW
148
177
(16.3)
(13.4)
(2.9)
INVEGA SUSTENNA / XEPLION / INVEGA
TRINZA / TREVICTA
US
625
765
(18.2)
(18.2)
—
Intl
277
292
(4.9)
(1.1)
(3.8)
WW
903
1,056
(14.5)
(13.5)
(1.0)
SPRAVATO
US
276
191
45.0
45.0
—
Intl
43
34
25.0
31.7
(6.7)
WW
320
225
41.9
42.9
(1.0)
OTHER NEUROSCIENCE
US
28
58
(50.6)
(50.6)
—
Intl
248
287
(13.4)
(9.8)
(3.6)
WW
277
345
(19.6)
(16.7)
(2.9)
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2025
2024
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)(Continued)
PULMONARY HYPERTENSION
US
$
744
766
(2.9)
%
(2.9)
%
—
%
Intl
281
283
(0.6)
3.2
(3.8)
WW
1,025
1,049
(2.3)
(1.2)
(1.1)
OPSUMIT / OPSYNVI(3)
US
363
356
2.1
2.1
—
Intl
159
169
(6.0)
(2.5)
(3.5)
WW
522
524
(0.5)
0.6
(1.1)
UPTRAVI
US
365
392
(6.9)
(6.9)
—
Intl
86
76
13.4
17.5
(4.1)
WW
451
468
(3.6)
(2.9)
(0.7)
OTHER PULMONARY HYPERTENSION (3)
US
15
18
(12.7)
(12.7)
—
Intl
37
39
(4.6)
(0.3)
(4.3)
WW
52
56
(7.2)
(4.3)
(2.9)
INFECTIOUS DISEASES
US
315
324
(2.8)
(2.8)
—
Intl
487
497
(1.9)
1.9
(3.8)
WW
802
821
(2.2)
0.1
(2.3)
EDURANT / rilpivirine
US
8
8
(1.3)
(1.3)
—
Intl
350
315
11.0
14.7
(3.7)
WW
358
323
10.7
14.3
(3.6)
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US
305
314
(2.9)
(2.9)
—
Intl
98
104
(6.2)
(0.6)
(5.6)
WW
403
418
(3.7)
(2.3)
(1.4)
OTHER INFECTIOUS DISEASES(3)
US
2
2
7.7
7.7
—
Intl
39
77
(48.8)
(47.0)
(1.8)
WW
41
78
(47.6)
(45.9)
(1.7)
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2025
2024
Reported
Operational(1)
Currency
INNOVATIVE MEDICINE SEGMENT(2)(Continued)
CARDIOVASCULAR / METABOLISM / OTHER
US
$
855
631
35.4
%
35.4
%
—
%
Intl
158
197
(19.7)
(15.3)
(4.4)
WW
1,013
829
22.3
23.4
(1.1)
XARELTO
US
690
518
33.3
33.3
—
Intl
—
—
—
—
—
WW
690
518
33.3
33.3
—
OTHER
US
165
114
45.0
45.0
—
Intl
158
197
(19.7)
(15.3)
(4.4)
WW
323
311
3.9
6.7
(2.8)
TOTAL INNOVATIVE MEDICINE
US
8,092
7,612
6.3
6.3
—
Intl
5,781
5,950
(2.9)
1.5
(4.4)
WW
$
13,873
13,562
2.3
%
4.2
%
(1.9)
%
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2025
2024
Reported
Operational(1)
Currency
MEDTECH SEGMENT(2)
CARDIOVASCULAR
US
$
1,261
1,025
23.0
%
23.0
%
—
%
Intl
842
781
7.8
10.7
(2.9)
WW
2,103
1,806
16.4
17.7
(1.3)
ELECTROPHYSIOLOGY
US
684
692
(1.1)
(1.1)
—
Intl
638
652
(2.0)
0.7
(2.7)
WW
1,323
1,344
(1.6)
(0.2)
(1.4)
ABIOMED
US
339
303
11.9
11.9
—
Intl
81
67
19.7
23.6
(3.9)
WW
420
371
13.3
14.0
(0.7)
SHOCKWAVE(5)
US
206
—
*
*
—
Intl
52
—
*
*
—
WW
258
—
*
*
—
OTHER CARDIOVASCULAR
US
32
30
7.1
7.1
—
Intl
72
62
15.1
17.4
(2.3)
WW
103
92
12.5
14.1
(1.6)
ORTHOPAEDICS
US
1,384
1,448
(4.4)
(4.4)
—
Intl
857
892
(3.9)
(0.9)
(3.0)
WW
2,241
2,340
(4.2)
(3.1)
(1.1)
HIPS
US
263
270
(2.5)
(2.5)
—
Intl
146
152
(4.0)
(0.8)
(3.2)
WW
409
422
(3.1)
(1.9)
(1.2)
KNEES
US
231
242
(4.3)
(4.3)
—
Intl
158
160
(1.0)
2.1
(3.1)
WW
389
401
(3.0)
(1.7)
(1.3)
TRAUMA
US
502
504
(0.5)
(0.5)
—
Intl
270
261
3.7
7.2
(3.5)
WW
772
765
0.9
2.1
(1.2)
SPINE, SPORTS & OTHER
US
388
432
(10.2)
(10.2)
—
Intl
283
320
(11.6)
(8.9)
(2.7)
WW
671
752
(10.8)
(9.7)
(1.1)
See footnotes at end of schedule
Johnson & Johnson
Segment sales
(Dollars in Millions)
FIRST QUARTER
% Change
2025
2024
Reported
Operational(1)
Currency
MEDTECH SEGMENT(2)(Continued)
SURGERY
US
$1,002
987
1.5
%
1.5
%
—
%
Intl
1,394
1,429
(2.5)
0.8
(3.3)
WW
2,396
2,416
(0.8)
1.1
(1.9)
ADVANCED
US
457
446
2.7
2.7
—
Intl
616
641
(4.0)
(1.0)
(3.0)
WW
1,073
1,087
(1.2)
0.5
(1.7)
GENERAL
US
544
542
0.5
0.5
—
Intl
778
788
(1.2)
2.3
(3.5)
WW
1,323
1,330
(0.5)
1.6
(2.1)
VISION
US
566
547
3.4
3.4
—
Intl
713
710
0.4
3.9
(3.5)
WW
1,279
1,258
1.7
3.7
(2.0)
CONTACT LENSES / OTHER
US
452
438
3.1
3.1
—
Intl
467
472
(1.1)
2.4
(3.5)
WW
919
910
1.0
2.7
(1.7)
SURGICAL
US
114
110
4.3
4.3
—
Intl
246
238
3.4
7.1
(3.7)
WW
361
348
3.7
6.2
(2.5)
TOTAL MEDTECH
US
4,213
4,008
5.1
5.1
—
Intl
3,807
3,813
(0.2)
3.0
(3.2)
WW
$8,020
7,821
2.5
%
4.1
%
(1.6)
%
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)See Supplemental Sales Information Schedule
(4)Reported as U.S. sales
(5)Acquired on May 31, 2024
Supplemental sales information (unaudited)
(Dollars in Millions)
2023
2024
2024
Full Year
Q1
Q2
Q3
Q4
Full Year
INNOVATIVE MEDICINE SEGMENT
ONCOLOGY
RYBREVANT / LAZCLUZE
US
$
66
36
52
68
101
257
INTL
27
11
17
21
21
70
WW
93
47
69
89
122
327
TALVEY
US
56
50
59
64
68
241
INTL
7
8
9
12
17
46
WW
63
58
69
75
85
287
OTHER ONCOLOGY
US
93
33
37
36
39
145
INTL
235
41
45
50
36
172
WW
328
73
83
86
75
317
PULMONARY HYPERTENSION
OPSUMIT / OPSYNVI
US
1,292
356
376
417
408
1,557
INTL
681
169
171
166
162
668
WW
1,973
524
548
583
570
2,225
OTHER PULMONARY HYPERTENSION
US
79
18
17
21
19
75
INTL
182
39
49
39
38
165
WW
260
56
67
60
57
240
INFECTIOUS DISEASES
OTHER INFECTIOUS DISEASES (1)
US
19
2
5
3
1
11
INTL
1,395
77
227
54
43
401
WW
$
1,414
78
233
56
45
412
Note: Columns and rows within tables may not add due to rounding
(1) Other Infectious Diseases is inclusive of COVID-19 Vaccine sales, which were previously disclosed separately
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 | 7 | — | 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 · biosimilar STELARA pressure
“STELARA WW 1,625 vs 2,451, down (33.7%) reported, (32.3%) operational”
Theme · oncology portfolio growth
“ONCOLOGY WW 5,678 vs 4,814, up 17.9% reported, 20.4% operational”
Theme · Shockwave Medical acquisition contribution
“SHOCKWAVE WW 258 vs 0, acquired on May 31, 2024”
Theme · DARZALEX franchise momentum
“DARZALEX WW 3,237 vs 2,692, up 20.3% reported, 22.5% operational”
Theme · international currency headwinds
“International 9,588 vs 9,763, down (1.8%) reported, up 2.1% operational, currency (3.9%)”
Theme · gross margin compression
“Gross Profit 14,536 (66.4%) vs 14,872 (69.6%), down (2.3%)”
Theme · cardiovascular segment acceleration
“CARDIOVASCULAR WW 2,103 vs 1,806, up 16.4% reported, 17.7% operational”
Theme · orthopaedics weakness
“ORTHOPAEDICS WW 2,241 vs 2,340, down (4.2%) reported, (3.1%) operational”
Theme · litigation settlement impact
“Litigation related (6,966) vs 2,726”
Theme · electrophysiology decline
“ELECTROPHYSIOLOGY WW 1,323 vs 1,344, down (1.6%) reported, (0.2%) operational”
Source: SEC EDGAR · public domain · Highlights by Palanor