Johnson & Johnson
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Item 1. Business
General
Johnson & Johnson and its subsidiaries (the Company) have approximately 138,200 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the healthcare field. Johnson & Johnson is a holding company, with operating companies conducting business in virtually all countries of the world. The Company’s primary focus is products related to human health and well-being. Johnson & Johnson was incorporated in the State of New Jersey in 1887.
The Chief Operating Decision Maker (CODM) is the Company's Chief Executive Officer (Principal Executive Officer). The Executive Committee is Johnson & Johnson’s senior leadership team responsible for setting the strategy and priorities of the Company and driving accountability at all levels. Within the strategic parameters provided by the Executive Committee, senior management groups at U.S. and international operating companies are each responsible for their own strategic plans and the day-to-day operations of those companies.
Segments of business
The Company is organized into two business segments: Innovative Medicine and MedTech. Additional information required by this item is incorporated herein by reference to the narrative and tabular descriptions of segments and operating results under: Item 7. Management’s discussion and analysis of results of operations and financial condition of this Report; and Note 17 Segments of business and geographic areas of the notes to consolidated financial statements included in Item 8 of this Report.
Innovative Medicine
The Innovative Medicine segment is focused on the following therapeutic areas: Oncology (e.g., prostate cancer, hematologic malignancies, lung cancer and bladder cancer), Immunology (e.g., rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease and psoriasis), Neuroscience (e.g., mood disorders, neurodegenerative disorders and schizophrenia), Pulmonary Hypertension (e.g., Pulmonary Arterial Hypertension), Infectious Diseases (e.g., HIV/AIDS) and Cardiovascular and Metabolism (e.g., thrombosis, diabetes and macular degeneration). Medicines in this segment are distributed directly to retailers, wholesalers, distributors, hospitals and healthcare professionals for prescription use. Key products in the Innovative Medicine segment include: CARVYKTI (ciltacabtagene autoleucel), a chimeric antigen receptor (CAR)-T-cell therapy for the treatment of patients with relapsed/refractory multiple myeloma; DARZALEX (daratumumab), a treatment for multiple myeloma; DARZALEX FASPRO (daratumumab and hyaluronidase-fihj), a treatment for multiple myeloma and light chain (AL) Amyloidosis; ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer; IMBRUVICA (ibrutinib), a treatment for certain B-cell malignancies, or blood cancers and chronic graft versus host disease; RYBREVANT (amivantamab), a fully-human bispecific antibody for adults with EGFR-mutated non-small cell lung cancer and LAZCLUZE (lazertinib), an oral, brain-penetrant EGFR tyrosine kinase inhibitor for non-small cell lung cancer; RYBREVANT FASPRO (amivantamab and hyaluronidase-lpuj), a subcutaneous therapy for patients with non-small cell lung cancer; TALVEY (talquetamab-tgvs) a bispecific antibody for adults with relapsed or refractory multiple myeloma who have received at least four prior lines of therapy; TECVAYLI (teclistamab-cqyv), a bispecific antibody for adults with relapsed or refractory multiple myeloma who have received at least four prior lines of therapy; ZYTIGA (abiraterone acetate), a treatment for patients with prostate cancer; REMICADE (infliximab), a treatment for a number of immune-mediated inflammatory diseases; SIMPONI (golimumab), a subcutaneous treatment for adults with moderate to severe rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis and moderately active to severely active ulcerative colitis; SIMPONI ARIA (golimumab), an intravenous treatment for adults with moderate to severe rheumatoid arthritis, active psoriatic arthritis and active ankylosing spondylitis and active polyarticular juvenile idiopathic arthritis (pJIA) in people 2 years of age and older; STELARA (ustekinumab), a treatment for adults and children with moderate to severe plaque psoriasis, for adults with active psoriatic arthritis, for adults with moderately to severely active Crohn's disease and treatment of moderately to severely active
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ulcerative colitis; TREMFYA (guselkumab), a treatment for patients with moderate-to-severe plaque psoriasis, active psoriatic arthritis, moderate-to-severe Crohn’s disease and moderate-to-severe ulcerative colitis; CAPLYTA (lumateperone) is used in adults along with an antidepressant to treat major depressive disorder (MDD), depressive episodes associated with bipolar I or bipolar II disorder (bipolar depression) alone or with lithium or valproate; or to treat schizophrenia; CONCERTA (methylphenidate HCl) extended-release tablets CII, a treatment for attention deficit hyperactivity disorder; INVEGA SUSTENNA/XEPLION (paliperidone palmitate), for the treatment of schizophrenia and schizoaffective disorder in adults; INVEGA TRINZA/TREVICTA (paliperidone palmitate), for the treatment of schizophrenia in patients after they have been adequately treated with INVEGA SUSTENNA for at least four months; SPRAVATO (Esketamine), a nasal spray, used along with an oral antidepressant, to treat adults with treatment-resistant depression (TRD) and depressive symptoms in adults with major depressive disorder (MDD) with suicidal thoughts or actions; EDURANT (rilpivirine), PREZISTA (darunavir) and PREZCOBIX/REZOLSTA (darunavir/cobicistat), antiretroviral medicines for the treatment of human immunodeficiency virus (HIV) in combination with other antiretroviral products and SYMTUZA (darunavir/cobicistat/emtricitabine/tenofovir alafenamide), a once-daily single tablet regimen for the treatment of HIV; OPSUMIT (macitentan)/OPSYNVI (macitentan/tadalafil) as monotherapy or in combination, indicated for the long-term treatment of pulmonary arterial hypertension (PAH); UPTRAVI (selexipag), the only approved oral and intravenous, selective IP receptor agonist targeting a prostacyclin pathway in PAH; XARELTO (rivaroxaban), an oral anticoagulant for the prevention of deep vein thrombosis (DVT), which may lead to pulmonary embolism (PE) in patients undergoing hip or knee replacement surgery, to reduce the risk of stroke and systemic embolism in patients with nonvalvular atrial fibrillation, and for the treatment and reduction of risk of recurrence of DVT and PE to reduce the risk of major cardiovascular events in patients with coronary artery disease (CAD) and peripheral artery disease (PAD), for the treatment and secondary prevention of thromboembolism in pediatric patients, and for thromboprophylaxis in pediatric patients following the Fontan procedure. Many of these medicines were developed in collaboration with strategic partners or are licensed from other companies and maintain active lifecycle development programs.
MedTech
The MedTech segment develops and manufactures a broad portfolio of products used in cardiovascular, orthopaedics, surgery, and vision supporting physicians, hospitals, eye care professionals and healthcare systems across a wide range of acute and elective procedures. These products are designed to address disease states where procedural intervention plays a central role in treatment and patient outcomes. The Cardiovascular portfolio includes electrophysiology products used to diagnose and treat heart rhythm disorders, mechanical circulatory support technologies (Abiomed) used in patients with cardiogenic shock or those undergoing a high-risk percutaneous coronary intervention (PCI), circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD), and neurovascular care that treats stroke and other conditions. These offerings are primarily delivered through minimally invasive, catheter based approaches and are used by interventional cardiologists, electrophysiologists and neurointerventional specialists. The Orthopaedics portfolio includes products and enabling technologies that support joint reconstruction, trauma, spine, sports-related injuries, and others. The Surgery portfolio includes a range of surgical products and enabling technologies for use across open, laparoscopic and robotic surgical procedures. This portfolio includes instrumentation, energy devices, stapling systems, wound closure, biosurgery products, and digital and robotic technologies designed to support procedural consistency and efficiency across multiple surgical specialties. The Surgery portfolio also includes solutions that focus on breast aesthetics and reconstruction (Mentor). These products are used in hospitals and surgical centers worldwide and are supported by ongoing development of surgical techniques and clinical evidence. The Vision portfolio includes contact lenses marketed under the ACUVUE brand, TECNIS premium intraocular lenses for cataract surgery, and other products used in cataract and refractive procedures. Vision products are used by eye care professionals and ophthalmic surgeons and span both corrective and surgical vision care. These MedTech products are distributed to wholesalers, hospitals, and retailers and are used predominantly in the professional fields by physicians, nurses, hospitals, eye care professionals, and clinics.
In October 2025, the Company announced its intention to separate its Orthopaedics business. The Company intends to explore multiple paths to effect the planned separation with a targeted completion within 18 to 24 months after the initial announcement.
Geographic areas
The Company conducts business in virtually all countries of the world with the primary focus on products related to human health and well-being. The products made and sold in the international business include many of those described above under Segments of Business – Innovative Medicine and MedTech. However, the principal markets, products and methods of distribution in the international business vary with the country and the culture. The products sold in the international business include those developed in the U.S. and by subsidiaries abroad.
Investments and activities in some countries outside the U.S. are subject to higher risks than comparable U.S. activities because the investment and commercial climate may be influenced by financial instability in international economies, restrictive economic policies and political and legal system uncertainties.
Raw materials
Raw materials essential to the Company's business are generally readily available from multiple sources. Where there are exceptions, the temporary unavailability of those raw materials would not likely have a material adverse effect on the financial results of the Company.
Patents
The Company's subsidiaries have made a practice of obtaining patent protection on their products and processes where possible. They own, or are licensed under, a significant number of patents in the U.S. and other countries relating to their products, product uses, formulations and manufacturing processes. The Company’s subsidiaries face patent challenges from third parties, including challenges seeking to manufacture and market generic and biosimilar versions of the Company's key pharmaceutical products prior to expiration of the applicable patents covering those products. Significant legal proceedings and claims involving the Company's patent and other intellectual property are described in Note 19 Legal proceedings—Intellectual property of the Notes to Consolidated Financial Statements included in Item 8 of this Report.
Sales of the Company’s largest product, collectively DARZALEX (daratumumab) and DARZALEX FASPRO (daratumumab and hyaluronidase-fihj), accounted for approximately 15.0% of the Company's total revenues for fiscal 2025. Genmab A/S owns two patent families related to DARZALEX, and Janssen Biotech, Inc. (a wholly-owned subsidiary of the Company) has an exclusive license to those patent families. Royalty rate ranges from 12% to 20% of total DARZALEX net sales. For the fiscal 2025 and 2024, royalty amounts to Genmab were approximately $2.4 billion and $2.0 billion, respectively. The two patent families both expire in the United States in 2029, and in Europe, compound/use patent protection in select countries extends to 2031/2032. Janssen Biotech, Inc. owns separate patent portfolios related to DARZALEX FASPRO and DARZALEX IV.
Sales of the Company’s second largest product, STELARA (ustekinumab) accounted for approximately 6.5% of the Company's total revenues for fiscal 2025. Third parties have filed biologics license applications with the U.S. FDA, the European Medicines Agency, and other government authorities seeking approval to market biosimilar versions of STELARA around the globe. The Company expects continued launches of biosimilar versions of STELARA globally which will continue to negatively impact the Company’s sales of STELARA.
Sales of the Company’s third largest product, TREMFYA (guselkumab), accounted for approximately 5.5% of the Company's total revenues for fiscal 2025. Janssen Biotech, Inc. owns multiple patent families related to TREMFYA, including a composition patent family projected to expire in the United States in 2031. In addition, Janssen Biotech, Inc. is a party to license agreements related to TREMFYA with an aggregate royalty rate of approximately 5.0% of total TREMFYA net sales payable to third parties.
Trademarks
The Company’s subsidiaries have made a practice of selling their products under trademarks and of obtaining protection for these trademarks by all available means. These trademarks are protected by registration in the U.S. and other countries where such products are marketed.
Seasonality
Worldwide sales do not reflect any significant degree of seasonality; however, spending has typically been heavier in the fourth quarter of each year than in other quarters. This reflects increased spending decisions, principally for advertising and research and development activity.
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Competition
In all of their product lines, the Company's subsidiaries compete with companies both locally and globally. Competition exists in all product lines without regard to the number and size of the competing companies involved. Competition in research, both internally and externally sourced, involving the development and the improvement of new and existing products and processes, is particularly significant. The development of new and innovative products, as well as protecting the underlying intellectual property of the Company’s product portfolio, is important to the Company's success in all areas of its business. The competitive environment requires substantial investments in continuing research.
Environment
The Company is subject to a variety of environmental laws and regulations in the United States and other jurisdictions. The Company believes that its operations comply in all material respects with applicable environmental laws and regulations. The Company’s compliance with these requirements is not expected to have a material effect upon its capital expenditures, cash flows, earnings or competitive position.
Regulation
The Company’s businesses are subject to varying degrees of governmental regulation in the countries in which operations are conducted, and the general trend is toward increasingly stringent regulation and enforcement. The Company is subject to costly and complex U.S. and foreign laws and governmental regulations, and any adverse regulatory action may materially adversely affect the Company's financial condition and business operations. In the U.S., the pharmaceutical product and medical technology industries have long been subject to regulation by various federal and state agencies, primarily as to product safety, efficacy, manufacturing, advertising, labeling and safety reporting. The exercise of broad regulatory powers by the U.S. Food and Drug Administration (the U.S. FDA) continues to result in increases in the amounts of testing and documentation required for U.S. FDA approval of new drugs and devices and a corresponding increase in the expense of product introduction. Similar trends are also evident in major markets outside of the U.S.
The medical device regulatory framework and the evolving privacy, data localization, and emerging cyber security laws and regulations around the world are examples of such increased regulation. Within the U.S., an increasing number of U.S. States have enacted comprehensive privacy laws, and federal regulators (e.g., the U.S. FDA, FTC and HHS) continue to stress the intersection of health and privacy as a compliance and enforcement priority. In the EU, multiple directives and laws (including NIS2, EHDS, the Data Act, the Cyber Resilience Act, and the AI Act) are rapidly changing privacy and cybersecurity compliance requirements while introducing new enforcement risks. In addition, China has introduced broad personal information protection and data security regulations, with more anticipated, thereby increasing China’s scrutiny of company compliance and data transfer practices. With other jurisdictions enacting similar privacy laws, local data protection authorities will force greater accountability on the collection, access and use of personal data in the healthcare industry. These laws can also restrict transfers of data across borders, potentially impacting how data-driven health care solutions are developed and deployed globally in a compliant manner. Moreover, as a result of the broad scale release and availability of Artificial Intelligence (AI) technologies such as generative AI, a global trend towards more comprehensive and nuanced regulation to ensure the ethical use, privacy, and security of AI is underway that includes standards for transparency, accountability, and fairness, which will require compliance developments or enhancements.
The regulatory agencies under whose purview the Company operates have administrative powers that may subject it to actions such as product withdrawals, recalls, seizure of products and other civil and criminal sanctions. In some cases, the Company’s subsidiaries may deem it advisable to initiate field actions, such as product recalls, regardless of whether it has been required or directed to.
The U.S. FDA and regulatory agencies around the globe are also increasing their enforcement activities. If the U.S. FDA were to conclude that we are not in compliance with applicable laws or regulations, or that any of our pharmaceutical products or medical technologies are ineffective or pose an unreasonable safety risk, the U.S. FDA could ban such products, detain or seize adulterated or misbranded products, order a recall, repair, replacement, or refund of such products, withdraw approval/clearance/classification for such products, refuse to grant pending applications for marketing authorization or require certificates of foreign governments for exports, and/or require us to notify health professionals and others that the products present unreasonable risks of substantial harm to the public health. The U.S. FDA may also assess civil or criminal penalties against us, our officers or employees and impose operating restrictions on a company-wide basis, or enjoin and/or restrain certain conduct resulting in violations of applicable law. The U.S. FDA may also recommend prosecution to the U.S.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 7. Management’s discussion and analysis of results of operations and financial condition
Organization and business segments
Description of the company and business segments
Johnson & Johnson and its subsidiaries (the Company) have approximately 138,200 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the healthcare field. The Company conducts business in virtually all countries of the world with the primary focus on products related to human health and well-being.
The Company is organized into two business segments: Innovative Medicine and MedTech. The Innovative Medicine segment is focused on the following therapeutic areas: Oncology, Immunology, Neuroscience, Pulmonary Hypertension, Infectious Diseases, and Cardiovascular and Metabolism. Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals and healthcare professionals for prescription use. The MedTech segment includes a broad portfolio of products used in the Surgery, Orthopaedic, Cardiovascular and Vision fields. These products are distributed to wholesalers, hospitals and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics.
In October 2025, the Company announced its intention to separate its Orthopaedics business. The Company intends to explore multiple paths to effect the planned separation with a targeted completion within 18 to 24 months after the initial announcement.
The Chief Operating Decision Maker (CODM) is the Company's Chief Executive Officer (Principal Executive Officer). The Executive Committee is Johnson & Johnson’s senior leadership team responsible for setting the strategy and priorities of the Company and driving accountability at all levels. Within the strategic parameters provided by the Executive Committee, senior management groups at U.S. and international operating companies are each responsible for their own strategic plans and the day-to-day operations of those companies.
In all of its product lines, the Company competes with other companies both locally and globally, throughout the world. Competition exists in all product lines without regard to the number and size of the competing companies involved. Competition in research, involving the development and the improvement of new and existing products and processes, is particularly significant. The development of new and innovative products, as well as protecting the underlying intellectual property of the Company's product portfolio, is important to the Company’s success in all areas of its business. The competitive environment requires substantial investments in continuing research.
Management’s objectives
With Our Credo as the foundation, the Company believes health is everything. The Company's strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through the Company's expertise in Innovative Medicine and MedTech, the Company is uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity.
New products introduced within the past five years accounted for approximately 25% of 2025 sales. In 2025, $14.7 billion was invested in research and development reflecting management’s commitment to create life-enhancing innovations and to create value through partnerships that will profoundly impact of health for humanity.
Our approximately 138,200 employees are critical drivers of the Company’s success. Employees are empowered and inspired to lead with Our Credo and purpose as guides. This allows every employee to use the Company’s reach and size to advance the Company’s purpose, and to also lead with agility and urgency. Leveraging the extensive resources across the enterprise enables the Company to innovate and execute with excellence. This ensures the Company can remain focused on addressing the unmet needs of society every day and invest for an enduring impact, ultimately delivering value to its patients, consumers and healthcare professionals, employees, communities and shareholders.
Research &
development
development
Acquisitions*
(net of cash acquired)
(net of cash acquired)
Dividends paid
per share
per share
* Includes business combinations and asset acquisitions
Results of operations
Analysis of consolidated sales
For discussion on results of operations and financial condition pertaining to the fiscal years 2024 and 2023 see the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2024, Item 7. Management's discussion and analysis of results of operations and financial condition.
In 2025, worldwide sales increased 6.0% to $94.2 billion as compared to an increase of 4.3% in 2024. These sales changes consisted of the following:
| Sales increase/(decrease) due to: | 2025 | 2024 | ||||||||||
| Volume | 8.4 | % | 5.9 | % | ||||||||
| Price | (3.1) | 0.0 | ||||||||||
| Currency | 0.7 | (1.6) | ||||||||||
| Total | 6.0 | % | 4.3 | % | ||||||||
The net impact of acquisitions and divestitures on the worldwide sales growth was a positive impact of 1.1% in 2025, primarily related to CAPLYTA and Shockwave and a positive impact of 0.5% in 2024 primarily related to Shockwave.
Sales by U.S. companies were $53.8 billion in 2025 and $50.3 billion in 2024. This represents increases of 6.9% in 2025 and 8.3% in 2024. In the fiscal year 2025, acquisitions and divestitures had a net positive impact of 2.0% on the U.S. sales growth primarily related to CAPLYTA and Shockwave. Sales by international companies were $40.4 billion in 2025 and $38.5 billion in 2024. This represents an increase of 5.0% in 2025, and a decrease of 0.5% in 2024. In fiscal 2025, acquisitions and divestitures had a net positive impact of 0.1% on the international operational* sales growth, primarily related to Shockwave. In the fiscal year 2025, the negative impact of the STELARA sales decline, due to biosimilar competition, was approximately 6.2%, 7.6% and 4.4% on worldwide, U.S. and international operational sales, respectively.
The five-year compound annual growth rates for worldwide, U.S. and international sales were 6.7%, 7.9% and 5.2%, respectively. The ten-year compound annual growth rates for worldwide, U.S. and international sales were 5.2%, 5.8% and 4.5%, respectively.
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In 2025, sales by companies in Europe achieved growth of 6.5% as compared to the prior year, which included operational growth of 2.4% and a positive currency impact of 4.1%. Sales by companies in the Western Hemisphere, excluding the U.S., achieved growth of 3.4% as compared to the prior year, which included operational growth of 8.4%, and a negative currency impact of 5.0%. Sales by companies in the Asia-Pacific, Africa region achieved growth of 3.2% as compared to the prior year, including operational growth of 3.1% and a positive currency impact of 0.1%.
In 2025, the Company utilized three wholesalers distributing products for both segments that represented approximately 21.8%, 15.5% and 11.1% of the total gross revenues. In 2024, the Company had three wholesalers distributing products for both segments that represented approximately 20.5%, 15.6% and 12.3% of the total gross revenues.
2025 Sales by geographic region (in billions)
2025 Sales by segment (in billions)
Note: values may have been rounded
*operational excludes the effect of translational currency
Analysis of sales by business segments
Innovative Medicine segment
Innovative Medicine segment sales in 2025 were $60.4 billion, an increase of 6.0% from 2024, which included operational growth of 5.3% and a positive currency impact of 0.7%. U.S. sales were $36.3 billion, an increase of 7.0%. International sales were $24.1 billion, an increase of 4.6%, which included operational growth of 2.9% and a positive currency impact of 1.7%. In 2025, the net impact of acquisitions and divestitures on the worldwide Innovative Medicine segment operational sales growth was a positive 1.2%, related to CAPLYTA. In 2025, the negative impact of the STELARA sales decline, primarily due to biosimilar competition, was an approximate 10.4%, 12.3% and 7.9% on worldwide, U.S. and international Innovative Medicine segment operational sales, respectively.
Major Innovative Medicine therapeutic area sales:
| (Dollars in Millions) | 2025 | 2024 | Total Change | Operations Change | Currency Change | ||||||||||||||||||||||||||||||
| Total Oncology | $25,380 | $20,781 | 22.1 | % | 20.9 | % | 1.2 | % | |||||||||||||||||||||||||||
| CARVYKTI | 1,887 | 963 | 95.9 | 94.3 | 1.6 | ||||||||||||||||||||||||||||||
| DARZALEX | 14,351 | 11,670 | 23.0 | 22.0 | 1.0 | ||||||||||||||||||||||||||||||
| ERLEADA | 3,574 | 2,999 | 19.2 | 17.2 | 2.0 | ||||||||||||||||||||||||||||||
| IMBRUVICA | 2,823 | 3,038 | (7.1) | (8.6) | 1.5 | ||||||||||||||||||||||||||||||
RYBREVANT/ LAZCLUZE(1) | 734 | 327 | * | * | * | ||||||||||||||||||||||||||||||
TALVEY(2) | 463 | 287 | 61.3 | 60.3 | 1.0 | ||||||||||||||||||||||||||||||
| TECVAYLI | 670 | 549 | 22.1 | 21.5 | 0.6 | ||||||||||||||||||||||||||||||
| ZYTIGA /abiraterone acetate | 502 | 631 | (20.4) | (21.2) | 0.8 | ||||||||||||||||||||||||||||||
| Other Oncology | 376 | 317 | 18.5 | 17.5 | 1.0 | ||||||||||||||||||||||||||||||
| Total Immunology | 15,728 | 17,828 | (11.8) | (12.0) | 0.2 | ||||||||||||||||||||||||||||||
| REMICADE | 1,768 | 1,605 | 10.2 | 10.5 | (0.3) | ||||||||||||||||||||||||||||||
| SIMPONI/SIMPONI ARIA | 2,668 | 2,190 | 21.8 | 21.7 | 0.1 | ||||||||||||||||||||||||||||||
| STELARA | 6,078 | 10,361 | (41.3) | (41.5) | 0.2 | ||||||||||||||||||||||||||||||
| TREMFYA | 5,155 | 3,670 | 40.5 | 39.8 | 0.7 | ||||||||||||||||||||||||||||||
| Other Immunology | 61 | 3 | * | * | * | ||||||||||||||||||||||||||||||
| Total Neuroscience | 7,837 | 7,115 | 10.1 | 9.9 | 0.2 | ||||||||||||||||||||||||||||||
CAPLYTA(3) | 700 | — | * | * | — | ||||||||||||||||||||||||||||||
| CONCERTA/methylphenidate | 584 | 641 | (9.0) | (8.6) | (0.4) | ||||||||||||||||||||||||||||||
| INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA | 3,810 | 4,222 | (9.8) | (9.9) | 0.1 | ||||||||||||||||||||||||||||||
| SPRAVATO | 1,696 | 1,077 | 57.4 | 57.0 | 0.4 | ||||||||||||||||||||||||||||||
| Other Neuroscience | 1,048 | 1,175 | (10.9) | (11.5) | 0.6 | ||||||||||||||||||||||||||||||
| Total Pulmonary Hypertension | 4,437 | 4,282 | 3.6 | 3.2 | 0.4 | ||||||||||||||||||||||||||||||
OPSUMIT/OPSYNVI(4) | 2,325 | 2,225 | 4.5 | 4.0 | 0.5 | ||||||||||||||||||||||||||||||
| UPTRAVI | 1,902 | 1,817 | 4.7 | 4.3 | 0.4 | ||||||||||||||||||||||||||||||
| Other Pulmonary Hypertension | 209 | 240 | (12.7) | (13.0) | 0.3 | ||||||||||||||||||||||||||||||
| Total Infectious Diseases | 3,241 | 3,396 | (4.6) | (6.5) | 1.9 | ||||||||||||||||||||||||||||||
| EDURANT/rilpivirine | 1,486 | 1,272 | 16.9 | 12.2 | 4.7 | ||||||||||||||||||||||||||||||
| PREZISTA/PREZCOBIX/REZOLSTA/SYMTUZA | 1,579 | 1,712 | (7.7) | (8.1) | 0.4 | ||||||||||||||||||||||||||||||
Other Infectious Diseases(5) | 175 | 412 | (57.5) | (57.7) | 0.2 | ||||||||||||||||||||||||||||||
| Total Cardiovascular / Metabolism / Other | 3,778 | 3,562 | 6.1 | 6.0 | 0.1 | ||||||||||||||||||||||||||||||
| XARELTO | 2,633 | 2,373 | 11.0 | 11.0 | — | ||||||||||||||||||||||||||||||
| Other | 1,145 | 1,189 | (3.7) | (4.0) | 0.3 | ||||||||||||||||||||||||||||||
| Total Innovative Medicine Sales | $60,401 | 56,964 | 6.0 | % | 5.3 | % | 0.7 | % | |||||||||||||||||||||||||||
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(1)Previously in Other Oncology, Includes the sales of RYBREVANT and RYBREVANT + LAZCLUZE
(2)Previously in Other Oncology
(3)Acquired with Intra-Cellular Therapies on April 2, 2025
(4)OPSYNVI was previously in Other Pulmonary Hypertension
(5)Includes the Covid-19 Vaccine in 2024
* Percentage greater than 100% or not meaningful
Oncology products achieved sales of $25.4 billion in 2025, representing an increase of 22.1% as compared to the prior year. Strong sales of DARZALEX (daratumumab) were driven by continued share gains and market growth. Growth of ERLEADA (apalutamide) was primarily due to continued share gains and market growth partially offset by the impact of Medicare Part D redesign. Increased sales of CARVYKTI (ciltacabtagene autoleucel) were driven by continued share gains and capacity expansion. Additionally, sales from the ongoing launches and share gains of TECVAYLI (teclistamab-cqyv), TALVEY (talquetamab-tgvs) and RYBREVANT (amivantamab)/LAZCLUZE (lazertinib) contributed to the growth. Growth was partially offset by ZYTIGA (abiraterone acetate) due to loss of exclusivity and IMBRUVICA (ibrutinib) due to competitive pressures and the impact of Medicare Part D redesign.
Immunology products sales were $15.7 billion in 2025, a decline of 11.8% as compared to the prior year primarily due to the decline of STELARA (ustekinumab) sales driven by the impact of biosimilar competition and Medicare Part D redesign. The growth of TREMFYA (guselkumab) was due to share gains and market growth. The increase in SIMPONI/SIMPONI ARIA sales was primarily driven by the Merck, Sharp & Dohme return of rights in Europe in the fiscal fourth quarter of 2024. The increase in REMICADE (infliximab) sales was due to favorable patient mix, market growth and the Merck, Sharp & Dohme return of rights in Europe in the fiscal fourth quarter of 2024, partially offset by continued biosimilar competition.
Sales of STELARA in the United States were approximately $3.8 billion in fiscal 2025. Third parties have filed biologics license applications with the U.S. FDA, the European Medicines Agency, and other government authorities seeking approval to market biosimilar versions of STELARA around the globe. The Company expects continued launches of biosimilar versions of STELARA globally which will continue to negatively impact the Company’s sales of STELARA.
At least two biosimilars are pursuing regulatory approval for a SIMPONI biosimilar in the United States, which would likely result in a significant reduction in future sales.
Neuroscience products, which include sales of CAPLYTA (lumateperone) acquired with the Intra-Cellular Therapies (Intra-Cellular) acquisition on April 2, 2025, achieved sales of $7.8 billion in 2025, representing an increase of 10.1% as compared to the prior year. Growth of SPRAVATO (esketamine) was driven by continued increased physician and patient demand. Growth was partially offset by the sales decline of INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA primarily due to the impact of Medicare Part D redesign.
Pulmonary Hypertension products achieved sales of $4.4 billion, representing an increase of 3.6% as compared to the prior year. Sales growth of OPSUMIT (macitentan)/OPSYNVI (macitentan/tadalafil) was driven by share gains and market growth partially offset by the impact of Medicare Part D redesign and UPTRAVI (selexipag) was driven by market growth partially offset by the impact of Medicare Part D redesign. The Company expects generic competition for OPSUMIT in 2026, which would likely result in a significant reduction in future sales.
Infectious disease products sales were $3.2 billion in 2025, a decline of 4.6% as compared to the prior year primarily driven by declines across the portfolio including COVID-19 vaccine revenue in Other Infectious Diseases. The decline was partially offset by growth of EDURANT/rilpivirine.
Cardiovascular/Metabolism/Other products achieved sales were $3.8 billion, representing an increase of 6.1% as compared to the prior year. The growth of XARELTO (rivaroxaban) sales was primarily driven by the impact of Medicare Part D redesign and market growth partially offset by continued share loss.
The Company maintains a policy that no end customer will be permitted direct delivery of product to a location other than the billing location. This policy impacts contract pharmacy transactions involving non-grantee 340B covered entities for most of the Company’s drugs, subject to multiple exceptions. Both grantee and non-grantee covered entities can maintain certain contract pharmacy arrangements under policy exceptions. The Company has been and will continue to offer 340B discounts to covered entities on all of its covered outpatient drugs, and it believes its policy will improve its ability to identify inappropriate duplicate discounts and diversion prohibited by the 340B statute. The 340B Drug Pricing Program is a U.S. federal government program requiring drug manufacturers to provide significant discounts on covered outpatient drugs to covered entities.
During 2025, the Company advanced its pipeline with several regulatory submissions and approvals for new drugs and additional indications for existing drugs as follows:
| Product Name (Chemical Name) | Indication | US Approval | EU Approval | US Filing | EU Filing | ||||||||||||
| AKEEGA (niraparib/abiraterone) | Treatment of patients with M1 Metastatic Castration-Sensitive Prostate Cancer (AMPLITUDE) | • | • | ||||||||||||||
| CAPLYTA (lumateperone) | Adjunctive treatment for Major Depressive Disorder | • | |||||||||||||||
| DARZALEX (daratumumab) | Treatment for frontline multiple myeloma transplant ineligible (CEPHEUS) | • | • | ||||||||||||||
| DARZALEX (daratumumab) | Treatment as subcutaneous monotherapy for high-risk smoldering multiple myeloma (AQUILA) | • | • | ||||||||||||||
| ICOTYDE (icotrokinra) | Treatment for Psoriasis (ICONIC) | • | • | ||||||||||||||
| INLEXZO (gemcitabine intravesical system) | Treatment for non muscle invasive bladder cancer (SunRISe-1) | • | |||||||||||||||
| IMAAVY (nipocalimab) | Treatment for Generalized Myasthenia Gravis (Vivacity MG3) | • | • | ||||||||||||||
| IMAAVY (nipocalimab) | Treatment for Generalized Myasthenia Gravis Pediatrics (VIBRANCE MG) | • | |||||||||||||||
| IMBRUVICA (ibrutinib) | Treatment for frontline MCL (Triangle) | • | |||||||||||||||
| RYBREVANT (amivantamab) | Treatment for subcutaneous (PALOMA-3) | • | • | ||||||||||||||
| SIMPONI (golimumab) | Treatment of Patients with Pediatric Ulcerative Colitis (PURSUIT 2) | • | • | ||||||||||||||
| SPRAVATO (esketamine) | Treatment of Patients with Treatment Resistant Depression monotherapy (TRD4005) | • | |||||||||||||||
| STELARA (ustekinumab) | Treatment of Patients with Pediatric Crohn's Disease | • | • | ||||||||||||||
| STELARA (ustekinumab) | Treatment of Patients with Pediatric Ulcerative Colitis (UNIFI JR) | • | • | ||||||||||||||
| TECVAYLI (teclistamab) | Multiple Myeloma 1-3PLs (MajesTEC-3) | • | |||||||||||||||
| TREMFYA (guselkumab) | Treatment of Patients with Ulcerative Colitis (QUASAR) | • | |||||||||||||||
| TREMFYA (guselkumab) | Subcutaneous Induction for treatment of patients with Ulcerative Colitis (ASTRO) | • | • | ||||||||||||||
| TREMFYA (guselkumab) | Subcutaneous Induction for treatment of patients with Crohn's Disease (GRAVITI) | • | • | ||||||||||||||
| TREMFYA (guselkumab) | Treatment of Patients with Crohn's Disease (GALAXI) | • | • | ||||||||||||||
| TREMFYA (guselkumab) | Treatment of Patients with Pediatric Psoriasis (PROTOSTAR) | • | • | ||||||||||||||
| TREMFYA (guselkumab) | Treatment of patients with Psoriatic Arthritis Structural Damage (APEX) | • | |||||||||||||||
| TREMFYA (guselkumab) | Treatment of Patients with Pediatric Juvenile Psoriatic Arthritis | • |
2025 Annual Report | 27 |
MedTech segment
The MedTech segment sales in 2025 were $33.8 billion, an increase of 6.1% from 2024, which included operational growth of 5.4% and a positive currency impact of 0.7%. U.S. sales were $17.4 billion, an increase of 6.6% as compared to the prior year. International sales were $16.4 billion, an increase of 5.5% as compared to the prior year, which included operational growth of 4.1% and a positive currency impact of 1.4%. In 2025, the net impact of acquisitions and divestitures on the MedTech segment worldwide operational sales growth was a positive 1.1% primarily related to the Shockwave acquisition.
Major MedTech franchise sales:
| (Dollars in Millions) | 2025 | 2024 | Total Change | Operations Change | Currency Change | ||||||||||||||||||||||||||||||
| Surgery | $10,137 | 9,845 | 3.0 | % | 2.5 | % | 0.5 | % | |||||||||||||||||||||||||||
| Advanced | 4,577 | 4,488 | 2.0 | 1.5 | 0.5 | ||||||||||||||||||||||||||||||
| General | 5,560 | 5,358 | 3.8 | 3.3 | 0.5 | ||||||||||||||||||||||||||||||
| Orthopaedics | 9,258 | 9,158 | 1.1 | 0.3 | 0.8 | ||||||||||||||||||||||||||||||
| Hips | 1,674 | 1,638 | 2.1 | 1.4 | 0.7 | ||||||||||||||||||||||||||||||
| Knees | 1,587 | 1,545 | 2.7 | 2.0 | 0.7 | ||||||||||||||||||||||||||||||
| Trauma | 3,146 | 3,049 | 3.2 | 2.4 | 0.8 | ||||||||||||||||||||||||||||||
| Spine, Sports & Other | 2,852 | 2,926 | (2.5) | (3.5) | 1.0 | ||||||||||||||||||||||||||||||
| Cardiovascular | 8,928 | 7,707 | 15.8 | 15.2 | 0.6 | ||||||||||||||||||||||||||||||
| Electrophysiology | 5,634 | 5,267 | 7.0 | 6.4 | 0.6 | ||||||||||||||||||||||||||||||
| Abiomed | 1,751 | 1,496 | 17.1 | 16.2 | 0.9 | ||||||||||||||||||||||||||||||
Shockwave(1) | 1,146 | 564 | * | * | * | ||||||||||||||||||||||||||||||
| Other Cardiovascular | 397 | 380 | 4.3 | 3.8 | 0.5 | ||||||||||||||||||||||||||||||
| Vision | 5,468 | 5,146 | 6.3 | 5.3 | 1.0 | ||||||||||||||||||||||||||||||
| Contact Lenses/Other | 3,910 | 3,733 | 4.8 | 3.6 | 1.2 | ||||||||||||||||||||||||||||||
| Surgical | 1,558 | 1,413 | 10.2 | 9.9 | 0.3 | ||||||||||||||||||||||||||||||
| Total MedTech Sales | $33,792 | 31,857 | 6.1 | % | 5.4 | % | 0.7 | % | |||||||||||||||||||||||||||
(1)Acquired on May 31, 2024
* Percentage greater than 100% or not meaningful
The Surgery franchise achieved sales of $10.1 billion in 2025, representing an increase of 3.0% from 2024. Growth in Advanced Surgery was primarily due to the strength of the portfolio and commercial execution in Biosurgery as well as new products in Endocutters. This was partially offset by China volume-based procurement across all platforms and competitive pressures in Energy and Endocutters. Growth in General Surgery was primarily driven by technology penetration and upgrades within the differentiated Wound Closure portfolio. This growth was partially offset by the impact from divestitures.
The Orthopaedics franchise achieved sales of $9.3 billion in 2025, representing an increase of 1.1% from 2024. All platforms were negatively impacted by revenue disruption from the previously announced Orthopaedics restructuring, which is now substantially complete, the negative impact of volume-based procurement in China and selling days. The growth in Hips was primarily due to new product launches. The growth in Knees was primarily driven by the ATTUNE portfolio, pull through related to the VELYS Robotic assisted solution. Growth in Trauma was driven by the adoption of recently launched products and commercial execution. The decline in Spine, Sports & Other was primarily driven by competitive pressures and price pressures in the U.S. Early Interventional segment partially offset by new product launches.
In October 2025, the Company announced its intention to separate its Orthopaedics business. The Company intends to explore multiple paths to effect the planned separation with a targeted completion within 18 to 24 months after the initial announcement.
The Cardiovascular franchise achieved sales of $8.9 billion in 2025, representing an increase of 15.8% from 2024. Electrophysiology growth was driven by procedure growth, new product performance and commercial execution. This was partially offset by competitive pressures in Pulsed Field Ablation catheters. Abiomed sales reflect the continued strong adoption of Impella 5.5 and Impella CP. Shockwave sales growth was driven by Coronary and Peripheral portfolios and new product launches.
The Vision franchise achieved sales of $5.5 billion in 2025, representing an increase of 6.3% from 2024. Contact Lenses/Other growth was primarily driven by market growth, continued strong performance in the ACUVUE OASYS 1-Day family of products (including recent launches) and strategic price actions. Surgical growth was primarily driven by the continued strength of recent product innovations, robust demand and commercial execution.
Analysis of consolidated earnings before provision for taxes on income
Consolidated earnings before provision for taxes on income was $32.6 billion and $16.7 billion for the years 2025 and 2024, respectively. As a percent to sales, consolidated earnings before provision for taxes on income was 34.6% and 18.8%, in 2025 and 2024, respectively.
Earnings before provision for taxes
(Dollars in billions. Percentages in chart are as a percent to total sales)
Cost of products sold and selling, marketing and administrative expenses:
Cost of products sold
Selling, marketing & administrative
(Dollars in billions. Percentages in chart are as a percent to total sales)
2025 Annual Report | 29 |
Cost of products sold:
Cost of products sold increased as a percent to sales driven by:
•Unfavorable product mix driven by the decline of STELARA sales and unfavorable transactional currency in the Innovative Medicine business
•Tariffs, unfavorable transactional currency and macroeconomic factors in the MedTech business
partially offset by
•Non-recurring, acquisition related fair value Inventory step-up of $0.1 billion in 2025 versus $0.4 billion in 2024 related to the business combination accounting associated with the Shockwave acquisition in the MedTech business
The intangible asset amortization expense included in cost of products sold was $4.6 billion in fiscal 2025 and $4.5 billion in fiscal 2024.
Selling, Marketing and Administrative expense:
Selling, Marketing and Administrative Expenses decreased as a percent to sales driven by:
•Corporate administrative expense rationalization
•Planned leverage in the Innovative Medicine business
partially offset by
•Increased investment related to the acquisition of Intra-Cellular (CAPLYTA)
Research and Development expense:
Research and development expense by segment of business was as follows:
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-11 | Wengel Kathryn E | EVP, Chief TO and Risk Officer | Sell | -10,000 | $241.15 | -$2,411,500 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-07-23 10-Q expected by 2026-08-07 (in 38 days)
- ~2026-10-21 10-Q expected by 2026-11-05 (in 128 days)
- ~2027-02-10 10-K expected by 2027-02-24 (in 240 days)
- ~2027-04-21 10-Q expected by 2027-05-06 (in 310 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-04-22 10-Q Quarterly Report
- 2026-04-14 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-02-11 10-K Annual Report
- 2026-01-21 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-22 10-Q Quarterly Report
- 2025-10-14 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-09-09 8-K Officer/Director Change
- 2025-07-24 10-Q Quarterly Report
- 2025-07-16 8-K Earnings Release; Financial Statements and Exhibits
- 2025-06-10 8-K Officer/Director Change
- 2025-04-30 8-K Officer/Director Change; Shareholder Vote Results; Financial Statements and Exhibits
- 2025-04-23 10-Q Quarterly Report
- 2025-04-15 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-02-26 8-K Other Events; Financial Statements and Exhibits
- 2025-02-20 8-K Other Events; Financial Statements and Exhibits