Johnson & Johnson (JNJ) reported a strong second quarter in 2025, showcasing consistent growth and strategic momentum across its business. Reported sales reached $23.74 billion, a 5.8% year-over-year increase, with operational sales up 4.6% and adjusted operational growth at 3.0%. The company delivered GAAP net earnings of $5.54 billion, a sharp 18.2% increase, and GAAP diluted EPS rose 18.7% to $2.29. However, on an adjusted (Non-GAAP) basis, net earnings declined 2.1% to $6.70 billion, with EPS down 1.8% to $2.77. Free cash flow year-to-date stood at approximately $6.2 billion.

The Innovative Medicine segment posted sales of $15.20 billion, up 4.9% reported and 3.8% operationally. U.S. sales grew 7.6%, while international sales rose 1.0% (but declined 1.6% operationally due to currency factors). Oncology therapies—including DARZALEX, CARVYKTI, and ERLEADA—along with immunology and neuroscience treatments, led segment growth. Notably, the impact of STELARA biosimilar erosion and a decline in COVID-related products created headwinds, particularly in Immunology.

Meanwhile, the MedTech segment saw an even stronger performance, with sales rising 7.3% to $8.54 billion and operational growth of 6.1%. Growth was broad-based, with particular strength in Cardiovascular (Electrophysiology and Abiomed) and General Surgery (wound closure). Acquisitions and divestitures contributed 2.0% to growth.

Geographically, U.S. sales climbed 7.8% to $13.54 billion, while international revenue increased 3.2% (up just 0.6% operationally) to $10.20 billion. On the profitability front, gross profit totaled $16.12 billion, representing 67.9% of sales, with SG&A and R&D expenses rising modestly. A lower effective tax rate of 14.7% (down from 18.5%) also helped boost bottom-line results.

Looking ahead, Johnson & Johnson raised its full-year guidance. It now expects adjusted operational sales growth between 3.2% and 3.7% and total reported sales between $93.2 billion and $93.6 billion, a 5.1%–5.6% increase from the prior year. Adjusted EPS is projected between $10.80 and $10.90, a boost of 8.2%–9.2% year-over-year, reflecting a $2 billion upward revision in revenue and $0.25 in EPS from the prior forecast.

Pipeline progress remains a key strength, with FDA approval of IMAAVY for generalized myasthenia gravis, a priority review for TAR-200 in bladder cancer, and positive data for CARVYKTI in multiple myeloma. The OTTAVA robotic surgery system is advancing in trials, and additional regulatory momentum includes positive EU opinions for DARZALEX and IMBRUVICA, and a supplemental NDA for CAPLYTA.

CEO Joaquin Duato emphasized the strength of J&J’s dual-engine model—Innovative Medicine and MedTech—as well as the company’s readiness for “elevated growth” in the second half of 2025, driven by “game-changing approvals and submissions” across high-impact therapeutic areas. Backed by strong R&D investment and a reinforced U.S. manufacturing footprint, Johnson & Johnson continues to position itself for long-term, sustainable growth.