“To give that some directional context, if we just look at normalized year-to-date 2025 results, MedTech's top-line revenue growth and operating margin would both improve by at least 75 basis points.”

In context

“expertise and capabilities that deliver appropriate return for the risk that we bear on behalf of shareholders. Regarding the planned separation of our Orthopedics business, as Joaquin noted, the separation is expected to enhance the strategic and operational focus of each company, drive value for our shareholders and other stakeholders. Given that we are early in the process, there are limited details available. But we are committed to providing you with information on a timely basis. While we will, of course, communicate material developments, we don't expect to have anything newsworthy to convey until mid-next year. But what can we say at this moment? First, the separation will further strengthen our overall MedTech business and increase Johnson & Johnson's top-line growth and margins. To give that some directional context, if we just look at normalized year-to-date 2025 results, MedTech's top-line revenue growth and operating margin would both improve by at least 75 basis points. Next, we are targeting completion of the separation within eighteen to twenty-four months, subject to the satisfaction of certain conditions. Given it is the most resource-intensive and likely longest duration, we are prioritizing and have begun the separation assuming a spin-off, with the intention for that to qualify as a tax-free separation for U.S. Federal income tax purposes. However, we will consider other avenues that optimize shareholder value. We do not expect any change to the Johnson & Johnson dividend and are mindful of any impact from stranded costs that are typically present in these types of transactions. Finally, following the separation, we would expect the Pugh Cynthies to have a strong capital structure that would allow the Orthopedics business to build on its long hist”