JNJ Tops Q1 Earnings, Ups '25 Sales View to Include Intra-Cellular Deal

Core Insights - Johnson & Johnson (J&J) reported first-quarter 2025 earnings of $2.77 per share, exceeding the Zacks Consensus Estimate of$2.57, with a year-over-year increase of 2.2% [1] - Total sales reached $21.89 billion, slightly above the Zacks Consensus Estimate of$21.62 billion, reflecting a 2.4% increase from the previous year [2] - The Innovative Medicines segment showed strong performance, while the MedTech segment missed sales estimates [4][15] Financial Performance - Adjusted earnings, excluding special items, were reported at $4.54 per share, a significant increase of 238.8$12.3 billion, while international sales declined 1.8% to $9.59 billion [3] - The company raised its 2025 sales guidance to a range of$91.0 billion to $91.8 billion, reflecting an increase from the previous range of$89.2 billion to $90.0 billion [17] Segment Performance - Innovative Medicines segment sales increased by 2.3$13.87 billion, outperforming the Zacks Consensus Estimate of $13.46 billion [5] - Key products driving growth included Darzalex, Tremfya, and Erleada, while Stelara sales declined by 33.7$8.02 billion, up 2.5% year over year, but missed estimates [15] Market Dynamics - The decline in Stelara sales was attributed to the launch of biosimilars, with competition expected to increase in 2025 [9] - The MedTech business faced challenges in the Asia Pacific region, particularly in China, due to government cost containment efforts [16] - J&J's stock has seen a 7.6% increase year-to-date, contrasting with a 6.0% decrease in the industry [22] Future Outlook - The company anticipates growth in the Innovative Medicines segment driven by key products and new drug launches [23] - Despite the positive outlook, challenges such as the Stelara patent cliff and ongoing legal issues related to talc lawsuits may pose significant headwinds [24]