Johnson & Johnson : 2026 First-Quarter Press Release & Supplemental Schedules

Published: 2026-04-14 06:26:24 ET JNJ

Published on 04/14/2026 at 06:26 am EDT

Johnson@Johnson

[email protected]

Investor contact:

[email protected]

For immediate release

Johnson & Johnson reports QJ 2026 results, raises 2026 outlook

2026 First-Quarter reported sales growth of 9.9% to $24.1 Billion with operational growth of 6.4%" and adjusted operational growth of 5.3%"

2026 First-Quarter earnings per share (EPS) of $2.14 and adjusted EPS of $2.70

Company increases 2026 guidance with estimated reported soles of $100.8 Billion or 7.0% at the midpoint, and adjusted EPS^ of $11.55 or 7.1% at the midpoint

Solidifying path to double-digit growth by the end of the decade, with significant progress for patients with the approvals of ICOTYDE the first-and-only targeted oral peptide for plaque psoriasis, TECVAYLI plus DARZALEX FASPRO as early as second line for patients with relapsed/refractory multiple myeloma VARIPULSE Pro in Europe with a new pulse sequence that is now 5 times faster, and TECNIS PureSee Intraocular Lens for U.S. Cataract Patients

Company announces planned Enterprise Business Review for December 8, 2026

($ in Millions, except EPS)

2026

2025

% Change

Reported Sales

$24,062

$21,893

9.9%

Net Earnings

$5,235

$10,999

-52.4%

EPS (diluted)

$2.14

$4.54

-52.9%

Non-GAAP' ($ in Millions, except EPS)

2026

2025

% Change

Operational Sales'

6.4%

Adjusted Operational Sales''*

5.3%

Adjusted Net Earnings''4

$6,614

$6,706

-1.4%

Adjusted EPS (diluted)''°

$2.70

$2.77

-2.5%

Free Cash FIow''6

-$1,500

$3,379

Non-GAAP financial measure: refer to reconciliations of non-GAAP financial measures included in accompanying schedules Excludes the impact of translational currency

' Excludes the net impact of acquisitions and divestitures and translational currency

^ Excludes intangible amortization expense and special items

* Non-GAAP measure; defined as cash flow from operating activities, less additions to property, plant and equipment. Cash flow from operations, the most directly comparable GAAP financial measure, will be included in subsequent SEC filings.

First-quarter 2026 is estimated as of April 14, 2026

Note: values may have been rounded

Regional sales results

% Change

(g in Millions)

2026

2020

Reported

OperationaF'2

Currency

Adjusted

Operational"*

U.S.

$13,330

$12,305

8.3%

8.3

6.2

International

10,732

9,588

11.9

3.9

8.0

4.0

Worldwide

$24,062

$21,893

9.9%

6.4

3.5

5.3

Non-GAAP financial measure: refer to reconciliations of non-GAAP financial measures included in accompanying schedules Excludes the impact of translational currency

Excludes the net impact of acquisitions and divestitures and translational currency Note: values may have been rounded

Segment sales results

% Change

(g in Millions)

2026

2020

Reported

OperationaF'2

Currency

Adjusted

Operational"*

Innovative Medicine

$15,426

$13,873

11.2%

7.4

3.8

5.6

MedTech

8,636

8,020

7.7

4.6

3.1

4.7

Worldwide

$24,062

$21,893

9.9%

6.4

3.5

5.3

Non-GAAP financial measure: refer to reconciliations of non-GAAP financial measures included in accompanying schedules Excludes the impact of translational currency

' Excludes the net impact of acquisitions and divestitures and translational currency Note: values may have been rounded

First-Quarter 2026 segment commentary:

Operational sales* reflected below excludes the impact of translational currency.

Innovative Medicine

Innovative Medicine worldwide operational sales grew 7.4%", with net acquisitions and divestitures positively impacting growth by 1.8% primarily due to CAPLYTA. Growth was driven primarily by DAR ZALE X, CARVYKTI, ERLEADA, and RYBREVANT/LAZCLUZE in Oncology, TREMFYA in Immunology, and SPRAVATO in Neuroscience. Growth was partially offset by an approximate (920) basis points impact from STELARA in Immunology, as well as IMBRUVICA in Oncology.

MedTech

MedTech worldwide operational sales grew 4.6%", with divestitures negatively impacting growth by 0.1%. Growth was driven primarily by electrophysiology products, Abiomed, and Shockwave in Cardiovascular, as well as trauma in Orthopaedics.

5.6% - 6.6% / 6.1%

5.4% - 6.4% / 5.9%

$99.7B - $100.7B / $100.2B

$99.5B - $100.5B / $100.0B

5.9% - 6.9% / 6.4%

5.7% - 6.7% / 6.2%

$100.3B - $101.3B / $100.8B

$100.0B - $101.0B / $100.5B

6.5% - 7.5% / 7.0%

6.2% - 7.2% / 6.7%

$11.30 - $11.50 / $11.40

$11.28 - $11.48 / $11.38

4.7% - 6.7% / 5.7%

4.5% - 6.5% / 5.5%

$11.45 - $11.65 / $11.55

$11.43 - $11.63 / $11.53

6.1% - 8.1% / 7.1%

5.9% - 7.9% / 6.9%

Subsequent to the quarter

DARZALEX FASPRO-based quadruplet regimen approved in the U.S. for newly diagnosed patients with multiple myeloma who are transplant ineligible

Johnson & Johnson Highlights Favorable 12-Month Interim Results for the VARIPULSE Platform at EHRA 2026'

Johnson & Johnson Showcases New Clinical Data for TECNIS PureSee IOL at ASCRS 2026 Demonstrating Excellent Contrast Sensitivity and Extended Range of Vision'

STEMI DTU Randomized Control Trial Demonstrates for the First Time that a Combination of Delayed Reperfusion and Left Ventricular Unloading Does Not Increase Myocardial Infarct Size

ICOTYDE (icotrokinra) one-year results confirm lasting skin clearance and favorable safety profile in once-daily pill for plaque psoriasis Johnson & Johnson highlights promising first-in-human Erda-iDRS (formerly TAR-210) results in intermediate-risk non-muscle-invasive bladder cancer

Early study results from Johnson & Johnson show promising antitumor activity with combination of pasritamig and docetaxel in advanced prostate cancer

TREMFYA (guselkumab) long-term data show sustained clinical and endoscopic remission in ulcerative colitis through 3 years RYBREVANT FASPRO (amivantamab and hyaluronidase-lpuj) plus immunotherapy shows strong clinical benefit with 56 percent overall

response rate in first-line recurrent or metastatic head and neck cancer Johnson & Johnson Presents Early Outcomes from the OMNY-AF Pilot Study at 2026 AF Symposium

Real-world head-to-head analysis shows 51% reduction in risk of death for patients with metastatic castration-sensitive prostate cancer treated with ERLEADA (apalutamide) versus darolutamide without docetaxel through 24 months

Johnson & Johnson Advances Pulsed Field Ablation Portfolio with the Launch of VARIPULSE Pro in Europe1

FDA approval of ICOTYDE (icotrokinra) ushers in new era for first-line systemic treatment of plaque psoriasis with a targeted oral peptide Johnson & Johnson Expands U.S. Footprint with more than $1 Billion Investment in Next Generation Cell Therapy Manufacturing Facility in Pennsylvania

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Webcast information:

Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investor Relations section of the company's website at events-and-presentations.

About Johnson & Johnson:

At Johnson & Johnson, we believe health is everything. Our 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 our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at https://www.ini.com.

Non-GAAP financial measures:

* "Operational sales growth" excluding the impact of translational currency, "adjusted operational sales growth" excluding the net impact of acquisitions and divestitures and translational currency, as well as "adjusted net earnings", "adjusted diluted earnings per share" and "adjusted operational diluted earnings per share" excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at ouarterlv results.

Copies of the financial schedules accompanying this earnings release are available on the company's website at ouarterlv results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, an Innovative Medicine pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can also be found in the Investor Relations section of the company's website at ouarterlv results.

Note to investors concerning forward-looking statements:

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations or changes to applicable laws and regulations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; and the Company's ability to successfully separate the Company's Orthopaedics business and realize the anticipated benefits from the planned separation. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's most recent Annual Report on Form 10-K, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and in Johnson & Johnson's subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.sov, www.inj.com, investor.inj.com, or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

‌Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)

FIRST QUARTER

Percent Change

2026

2025

Total

Operations

Currency

Sales to customers by

segment of business

Innovative Medicine

U.S.

$ 8,871

8,092

9.6

International

6,555

5,781

13.4

4.3

9.1

15,426

13,873

11.2

7.4

3.8

MedTech

U.S.

4,459

4,213

5.9

International

4,177

3,807

9.7

3.2

6.5

8,636

8,020

7.7

4.6

3.1

U.S.

13,330

12,305

8.3

International

10,732

9,588

11.9

3.9

8.0

Worldwide

$ 24,062

21,893

9.9

6.4

3.5

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(Unaudited; Dollars in Millions)

FIRST QUARTER

Percent Change

2026

2025

Total

Operations

Currency

Sales to customers by

geographic area

U.S.

$ 13,330 12,305 8.3 % 8.3 -

Europe

5,848

5,110

14.5

2.7

11.8

Western Hemisphere excluding U.S.

1,293

1,167

10.8

2.5

8.3

Asia-Pacific, Africa

3,591

3,311

8.5

6.1

2.4

International

10,732

9,588

11.9

3.9

8.0

Worldwide

$ 24,062 21,893 9.9 % 6.4 3.5

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely

FIRST QUARTER

% Change

2026

2025

Reported

Operational (1)

Currency

$ 3,615

3,013

20.0%

3,358

2,664

26.0%

15.3%

10.7%

6,973

5,678

22.8%

17.8%

5.0%

2,208

1,829

20.7%

1,756

1,409

24.7%

14.0%

10.7%

3,964

3,237

22.5%

17.8%

4.7%

433

318

36.2%

164

597

369

62.1%

57.4%

4.7%

127

105

20.6%

63.1%

52.1%

11.0%

202

151

33.5%

30.1%

3.4%

101

48.5%

152

76.7%

72.8%

3.9%

175

113

55.1%

257

141

82.7%

80.5%

2.2%

342

292

17.3%

607

479

26.7%

15.5%

11.2%

949

771

23.1%

16.2%

6.9%

143

235

(39.1)%

517

474

9.1%

(1.4)%

10.5%

660

709

(6.9)%

(13.9)%

7.0%

58.8%

106

160

(33.9)%

(36.3)%

2.4%

192

214

(10.6)%

(12.5)%

1.9%

INNOVATIVE MEDICINE SEGMENT (2)

Intl WW

DARZALEX US

Intl WW

CARVYKTI US

Intl WW

TECVAYLI US

Intl WW

TALVEY US

Intl WW

RYBREVANT / LAZCLUZE US

Intl WW

ERLEADA US

Intl WW

IMBRUVICA US

Intl WW

OTHER ONCOLOGY (3)

Intl WW

See footnotes at end of schedule

FIRST QUARTER

2026

$ 1,855

1,524

3,380

1,042

566

1,608

269

378

647

269

136

422

220

435

656

1,494

681

2,175

406

468

270

-270

758

280

1,038

115

136

224

262

2025

2,196

1,510

% Change

Reported Operational (1) Currency

(15.5)% (15.5)% -

0.9% (6.4)% 7.3%

(8.8)% (11.8)% 3.0%

73.9% 73.9% -

58.9% 46.8% 12.1%

68.3% 63.8% 4.5%

(7.8)% (7.8)% -

3.0% (4.1)% 7.1%

(1.7)% (5.7)% 4.0%

(14.4)% (14.4)% -

78.6% 78.6% -

(4.8)% (10.5)% 5.7%

(9.5)% (11.2)% 1.7%

(77.6)% (77.6)% -

(32.4)% (37.7)% 5.3%

(59.7)% (61.7)% 2.0%

* * -

* * *

54.3% 54.3% -

0.3% (6.3)% 6.6%

32.0% 29.3% 2.7%

47.0% 47.0% -

42.4% 28.7% 13.7%

46.4% 44.5% 1.9%

* * -

- - -

* * -

21.2% 21.2% -

1.1% (4.9)% 6.0%

15.0% 13.2% 1.8%

(43.4)% (43.4)% -

4.3% (0.6)% 4.9%

(8.0)% (11.7)% 3.7%

32.6% 32.6% -

(9.7)% (16.3)% 6.6%

(5.4)% (11.3)% 5.9%

3,707

599

356

956

292

366

659

314

143

467

981

644

1,625

968

679

1,647

276

320

625

277

903

110

148

248

277

Intl WW

TREMFYA US

Intl WW

SIMPONI / SIMPONI ARIA US

Intl WW

REMICADE

US Exports (4)

Intl WW

STELARA US

Intl WW

OTHER IMMUNOLOGY US

Intl WW

SPRAVATO US

Intl WW

CAPLYTA (5)

Intl WW

INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA

Intl WW

CONCERTA / Methylphenidate US

Intl WW

OTHER NEUROSCIENCE US

Intl WW

See footnotes at end of schedule

FIRST QUARTER

2026

$ 831

304

1,135

385

483

433

172

606

342

547

889

402

409

334

109

443

734

142

876

642

-642

142

233

1,907

993

2,899

8,871

6,555

$ 15,426

2025

744

281

% Change

Reported Operational (1) Currency

11.7% 11.7% -

8.2% 1.0% 7.2%

10.7% 8.7% 2.0%

5.4% 5.4% -

14.3% 5.1% 9.2%

7.1% 5.4% 1.7%

19.3% 19.3% -

8.7% 1.7% 7.0%

16.1% 14.0% 2.1%

(21.1)% (21.1)% -

(8.3)% (11.8)% 3.5%

(12.1)% (14.5)% 2.4%

8.6% 8.6% -

12.2% 1.3% 10.9%

10.8% 4.1% 6.7%

(13.1)% (13.1)% -

14.8% 3.2% 11.6%

14.1% 2.8% 11.3%

9.5% 9.5% -

11.2% 0.7% 10.5%

10.0% 7.4% 2.6%

(56.9)% (56.9)% -

(8.3)% (14.7)% 6.4%

(10.4)% (16.5)% 6.1%

(14.2)% (14.2)% -

(10.4)% (17.5)% 7.1%

(13.6)% (14.7)% 1.1%

(7.0)% (7.0)% -

- - -

(7.0)% (7.0)% -

(44.5)% (44.5)% -

(10.4)% (17.5)% 7.1%

(27.8)% (31.2)% 3.4%

(0.4)% (0.4)% -

7.1% (2.0)% 9.1%

2.1% (0.9)% 3.0%

9.6% 9.6% -

13.4% 4.3% 9.1%

11.2% 7.4% 3.8%

1,025

365

451

363

159

522

315

487

802

350

358

305

403

855

158

1,013

690

165

158

323

1,914

926

2,840

8,092

5,781

13,873

Intl WW

UPTRAVI US

Intl WW

OPSUMIT / OPSYNVI US

Intl

OTHER PULMONARY HYPERTENSION US

Intl WW

EDURANT / rilpivirine US

Intl WW

PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA US

Intl WW

OTHER INFECTIOUS DISEASES US

Intl WW

XARELTO US

Intl WW

OTHER US

Intl WW

TOTAL INNOVATIVE MEDICINE US

Intl

See footnotes at end of schedule

FIRST QUARTER

2026

1,399

978

2,377

736

753

1,489

389

100

488

242

305

1,046

1,465

2,511

477

646

1,123

569

819

1,388

2025

1,261

842

% Change

Reported Operational (1) Currency

10.9% 10.9% -

16.1% 9.9% 6.2%

13.0% 10.5% 2.5%

7.6% 7.6% -

18.0% 11.7% 6.3%

12.6% 9.5% 3.1%

14.5% 14.5% -

23.5% 13.9% 9.6%

16.3% 14.4% 1.9%

17.8% 17.8% -

21.3% 19.3% 2.0%

18.5% 18.1% 0.4%

0.7% 0.7% -

(13.4)% (17.5)% 4.1%

(9.1)% (11.9)% 2.8%

4.4% 4.4% -

5.1% (1.1)% 6.2%

4.8% 1.2% 3.6%

4.2% 4.2% -

4.9% (1.0)% 5.9%

4.6% 1.2% 3.4%

4.5% 4.5% -

5.2% (1.3)% 6.5%

4.9% 1.1% 3.8%

2,103

684

638

1,323

339

420

206

258

103

1,002

1,394

2,396

457

616

1,073

544

778

1,323

MEDTECH SEGMENT (2)

Intl WW

ELECTROPHYSIOLOGY US

Intl WW

ABIOMED US

Intl WW

SHOCKWAVE US

Intl WW

OTHER CARDIOVASCULAR US

Intl WW

ADVANCED US

Intl WW

GENERAL US

Intl WW

See footnotes at end of schedule

VISION

Intl

CONTACT LENSES / OTHER

Intl

SURGICAL

Intl

ORTHOPAEDICS

Intl

HIPS

Intl

KNEES

Intl

TRAUMA

Intl

SPINE, SPORTS & OTHER

Intl

TOTAL MEDTECH

Intl

FIRST QUARTER

2026

579

2025

566

% Change

Reported

Operational (1)

Currency

2.4%

785

713

10.1%

4.6%

5.5%

1,365

1,279

6.7%

3.6%

3.1%

468

452

3.7%

501

467

7.2%

1.7%

5.5%

969

919

5.5%

2.7%

2.8%

111

114

(2.9)%

285

246

15.6%

10.1%

5.5%

396

361

9.7%

6.0%

3.7%

1,435

1,384

3.7%

948

857

10.6%

2.4%

8.2%

2,383

2,241

6.3%

3.2%

3.1%

277

263

5.2%

159

146

8.9%

0.3%

8.6%

436

409

6.5%

3.5%

3.0%

239

231

3.3%

181

158

14.6%

6.5%

8.1%

420

389

7.9%

4.6%

3.3%

532

502

6.1%

301

270

11.4%

3.1%

8.3%

833

772

8.0%

5.0%

3.0%

387

388

(0.1)%

307

283

8.4%

0.7%

7.7%

694

671

3.5%

0.2%

3.3%

4,459

4,213

5.9%

4,177

3,807

9.7%

3.2%

6.5%

$ 8,636

8,020

7.7%

4.6%

3.1%

Note: Columns 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) Includes the sales of ZYTIGA which were previously disclosed separately

(4) Reported as U.S. sales

(5) Acquired with Intra-Cellular Therapies on April 2, 2025

Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)

FIRST QUARTER

2026 2025 Percent

Percent Percent Increase

Amount

to Sales Amount to Sales (Decrease)

Sales to customers $ 24,062

100.0 $ 21,893 100.0 9.9

Cost of products sold 8,106

33.7 7,357 33.6 10.2

Gross Profit 15,956

66.3 14,536 66.4 9.8

Selling, marketing and administrative expenses 6,034

25.1 5,112 23.3 18.0

Research and development expense 3,527

14.7 3,225 14.7 9.4

In-process research and development impairments 36

0.1 - -

Interest (income) expense, net 43

0.2 (128) (0.6)

Other (income) expense, net 294

1.2 (7,321) (33.4)

Restructuring 32

0.1 17 0.1

Earnings before provision for taxes on income 5,990

24.9 13,631 62.3 (56.1)

Provision for taxes on income 755

3.1 2,632 12.1 (71.3)

Net earnings $ 5,235

21.8 $ 10,999 50.2 (52.4)

Net earnings per share (Diluted)

$ 2.14

$ 4.54 (52.9)

Average shares outstanding (Diluted)

2,445.2

Effective tax rate

12.6

2,423.8

19.3

Adjusted earnings before provision for taxes and net earnings (1)

Earnings before provision for taxes on income

$ 7,821

32.5

$ 8,011

36.6

(2.4)

Net earnings

$ 6,614

27.5

$ 6,706

30.6

(1.4)

Net earnings per share (Diluted)

$ 2.70

$ 2.77

(2.5)

Effective tax rate

15.4

16.3 %

(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

FIRST QUARTER 2026 ACTUAL vs. 2025 ACTUAL

Segments

Innovative Medicine MedTech Total

WW As Reported

11.2%

7.7%

9.9%

U.S.

9.6%

5.9%

8.3%

International

13.4%

9.7%

11.9%

WW Currency

U.S.

International

3.8

9.1

3.1

6.5

3.5

8.0

WW Operational

7.4%

4.6%

6.4%

U.S.

9.6%

5.9%

8.3%

International

4.3%

3.2%

3.9%

Caplyta

U.S.

International

(1.9)

(3.3)

0.0

(1.2)

(2.2)

0.0

All Other Acquisitions and Divestitures (A&D)

U.S.

International

0.1

0.0

0.2

0.1

0.2

0.0

0.1

WW Adjusted Operational Ex A&D

5.6%

4.7%

5.3%

U.S.

6.3%

6.1%

6.2%

International

4.5%

3.2%

4.0%

Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

First Quarter

(Dollars in Millions Except Per Share Data) 2026 2025

Net Earnings, after tax- as reported $5,235 $10,999

Pre-tax Adjustments

Intangible Asset Amortization expense

Litigation related

Orthopaedics Separation related

Acquisition, integration and divestiture related

Restructuring related 1

IPR&D impairments

(Gains)/losses on securities

1,247

330

119

(59)

1,120

(6,966)

132

Tax Adjustments

Tax impact on special item adjustments 2

Tax legislation and other tax related

Adjusted Net Earnings, after tax

Average shares outstanding (Diluted)

Adjusted net earnings per share (Diluted)

Operational adjusted net earnings per share (Diluted)

(424)

(28)

$6,614

2,445.2

$2.70

$2.57

1,315

$6,706

2,423.8

$2.77

Notes:

1 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 expense of $7 million in the fiscal first quarter of 2026 and $55 million in the fiscal first quarter of 2025 primarily includes costs related to market and product exits. This program was substantially completed in Q4 2025.

In fiscal 2025, the company initiated a restructuring program of its Surgery franchise within the MedTech segment to simplify and focus operations by exiting certain non-strategic product lines and optimize select sites across the network. The restructuring expense of $55 million in the fiscal first quarter of 2026 primarily includes costs related to product exits. This program is expected to be substantially completed by the end of fiscal year 2026.

The 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

GAAP to Non-GAAP Reconciliation

$ in Millions

Year to Date

Innovative Medicine

First Quarter Mar. 29, 2026

GAAP

Intangible asset

amortization

Litigation related

In-process

research and development

impairments

Restructuring related

Acquisition, integration

and divestiture related

(Loss)/gain on

securities

Orthopaedics

Separation Related

Tax legislation and other tax

First Quarter Mar. 29, 2026

Non-GAAP

Cost of products sold

$ 4,390

(763)

(10)

$ 3,617

Selling, marketing and admin expenses

2,918

Research and development expense

2,813

Other segment items

(12)

(40)

(46)

(43)

Adjusted Income Before Tax by Segment

5,317

763

(55)

6,121

In-process

MedTech

First Quarter research and Tax legislation First Quarter

Mar. 29, 2026 Intangible asset development Restructuring Acquisition, integration (Loss)/gain on Orthopaedics and other tax Mar. 29, 2026

GAAP amortization Litigation related impairments related and divestiture related securities Separation Related related Non-GAAP

Cost of products sold

$ 3,701

(484)

(25)

$ 3,192

Selling, marketing and admin expenses

2,906

Research and development expense

714

Other segment items

(36)

(37)

(27)

(119)

(98)

Adjusted Income Before Tax by Segment

1,239

484

(41)

(4)

119

1,922

In-process

Expenses not allocated to segments

First Quarter research and Tax legislation First Quarter

Mar. 29, 2026 Intangible asset development Restructuring Acquisition, integration (Loss)/gain on Orthopaedics and other tax Mar. 29, 2026

GAAP amortization Litigation related impairments related and divestiture related securities Separation Related related Non-GAAP

Cost of products sold

$ 15

Selling, marketing and admin expenses

210

Research and development expense

Other segment items

341

(331)

(13)

(3)

Adjusted Income Before Tax by Segment

(566)

331

(222)

In-process

Johnson & Johnson Consolidated

First Quarter research and Tax legislation First Quarter

Mar. 29, 2026 Intangible asset development Restructuring Acquisition, integration (Loss)/gain on Orthopaedics and other tax Mar. 29, 2026

GAAP amortization Litigation related impairments related and divestiture related securities Separation Related related Non-GAAP

Cost of products sold

$ 8,106

(1,247)

(25)

(10)

$ 6,824

Selling, marketing and admin expenses

6,034

Research and development expense

3,527

Other (Income) / Expense

294

(330)

(5)

(86)

(119)

(187)

In-process research and development impairments

(36)

Interest (Income)/Expense

Restructuring

(32)

Adjusted Income Before Tax

5,990

1,247

330

(59)

119

7,821

Provision for taxes on income

755

240

(13)

1,207

Net Earnings

$ 5,235

1,007

258

(8)

(46)

(28)

6,614

Johnson & Johnson and Subsidiaries

GAAP to Non-GAAP Reconciliation

$ in Million

Year to Date

Innovative Medicine

First Quarter March 30, 2025 GAAP

Intangible asset amortization

Litigation related

Restructuring related

Acquisition, integration and divestiture related

(Loss)/gain on securities

Tax legislation and other tax related

First Quarter March 30, 2025 Non-GAAP

Cost of products sold

$ 4,020

(649)

3,371

Selling, marketing and admin expenses

2,261

Research and development expense

2,548

Other segment items

(166)

(20)

(18)

(204)

Adjusted Income Before Tax by Segment

5,210

649

5,897

MedTech

First Quarter

March 30, 2025 GAAP

Intangible asset amortization

Litigation related

Restructuring related

Acquisition, integration and divestiture related

(Loss)/gain on securities

Tax legislation

and other tax related

First Quarter

March 30, 2025 Non-GAAP

Cost of products sold

$ 3,326

(471)

(8)

(52)

2,795

Selling, marketing and admin expenses

2,656

Research and development expense

677

(6)

671

Other segment items

(60)

(47)

(54)

(21)

(182)

Adjusted Income Before Tax by Segment

1,421

471

112

2,080

Expenses not allocated to segments

First Quarter

March 30, 2025 GAAP

Intangible asset amortization

Litigation related

Restructuring related

Acquisition, integration and divestiture related

(Loss)/gain on securities

Tax legislation

and other tax related

First Quarter

March 30, 2025 Non-GAAP

Cost of products sold

$ 11

Selling, marketing and admin expenses

195

Research and development expense

Other segment items

(7,206)

6,966

(240)

Adjusted Income Before Tax by Segment

7,000

(6,966)

Johnson & Johnson Consolidated

First Quarter

March 30, 2025 GAAP

Intangible asset amortization

Litigation related

Restructuring related

Acquisition, integration and divestiture related

(Loss)/gain on securities

Tax legislation

and other tax related

First Quarter

March 30, 2025 Non-GAAP

Cost of products sold

$ 7,357

(1,120)

(8)

(52)

6,177

Selling, marketing and admin expenses

5,112

Research and development expense

3,225

(6)

3,219

Other (Income) / Expense

(7,321)

6,966

(30)

(74)

(39)

(498)

In-process research and development impairments

Interest (Income)/Expense

(128)

Restructuring

(17)

Adjusted Income Before Tax

13,631

1,120

(6,966)

132

8,011

Provision for taxes on income

2,632

188

(1,553)

(12)

1,305

Net Earnings

10,999

932

(5,413)

102

6,706

Disclaimer

Johnson & Johnson published this content on April 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 14, 2026 at 10:25 UTC.