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Johnson & Johnson Shares Fall 5% as Medtech Slowdown Offsets Q3 Earnings Beat

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JNJ$248.61 −5.73%

Johnson & Johnson (JNJ) posted third-quarter adjusted earnings of $2.59 per share, beating market expectations despite declining 7.5% from a year earlier. The company also raised its full-year sales outlook. However, shares fell 5.73% to $248.60 on Tuesday as sluggish performance in its medical technology division concerned investors.

Pharmaceutical revenue grew 7.7%, but medtech sales rose just 2.5% to $8.64 billion, missing analyst forecasts. Chief Financial Officer Joe Wolk attributed the medtech weakness to pricing pressures in China, European austerity measures, and changes in Gulf defense spending.

To refocus its business, Johnson & Johnson plans to spin off DePuy Synthes by mid-2027. Management will present details on the spinoff and outline 2027 financial guidance during an investor event on Dec. 8.

Key points

  • Johnson & Johnson stock dropped 5.73% to $248.60 despite beating Q3 earnings expectations.
  • Adjusted earnings came in at $2.59 per share, down 7.5% year-over-year, while full-year sales guidance was raised.
  • Pharmaceutical sales grew 7.7%, but medtech sales rose only 2.5% to $8.64 billion, missing estimates.
  • Management blamed medtech weakness on European austerity, China pricing pressure, and shifts in Gulf defense spending.
  • The company plans to spin off DePuy Synthes by mid-2027 and will hold an investor event on Dec. 8.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why did Johnson & Johnson stock drop after Q3 earnings?

Shares fell because slow growth in the medical technology division offset strong pharmaceutical results and an increased sales forecast.

What were J&J's third-quarter earnings results?

Johnson & Johnson reported adjusted earnings of $2.59 per share, exceeding estimates. Drug sales rose 7.7% while medtech sales increased 2.5% to $8.64 billion.

When will Johnson & Johnson spin off DePuy Synthes?

The company plans to complete the spinoff by mid-2027 and will share details and 2027 guidance on Dec. 8.