Johnson & Johnson (JNJ)

“The planned acquisition, expected to close in the third quarter of 2026, will add a proprietary platform designed to target KRAS-driven solid tumors, which are typically more difficult to treat and further diversifies our oncology pipeline.”

“We expect the transaction to close during the third quarter.”

“As I said at the beginning, we see the second half of the year as stronger. That momentum is carried into 2027, and we continue to see double-digit growth by the end of the decade.”

“While we see this situation that Tim described as temporary and fully addressable, I have to be clear, it does not affect in any shape or fashion our growth trajectory as we have described.”

“We are committed to two large robotic launches this year, both the launch of OTTAVA, which we believe is truly differentiated against the existing incumbent, and of course, the launch of MONARCH for Urology, which will be a first-of-kind opportunity in that particular area.”

“We will provide much more detail around our exciting launch plans once approvals have been secured. That said, we are committed to the launch of two, assuming approvals come our way, which we're very confident about.”

“We are on track to be the number one oncology company by 2030, with sales projected to exceed $50 billion.”

“With sales in the quarter of more than $25 billion, we are on track to meet our 2026 target of more than $100 billion in annual revenue for the first time in our company's 140-year history.”

“which we expect to read out in 2027.”

“We do expect to have pivotal data later this year for ICOTYDE in psoriatic arthritis, and as Jennifer pointed out, there's overlap in the psoriasis and psoriatic arthritis populations as the skin manifestations are often a comorbidity for patients with psoriatic arthritis.”

“To your question around recovery, as already mentioned by Joe, we do expect this to take some time, but we absolutely expect that our performance in the back half will be stronger than the first, and we see gradual improvements in performance back to double-digit growth over the coming quarters.”

“While we expect that the expiration of the Affordable Care Act subsidies may create some affordability pressures for a small cohort of patients, we do not expect this to translate into a material impact on demand for MedTech and procedures.”

“As already mentioned, we do expect acceleration of our performance in the second half, driven by continued performance of our businesses in Vision, in Orthopedics, and in Surgery, and certainly improvement on the back of our efforts to drive greater performance within Cardiovascular.”

“We have tempered expectations around the Abiomed business with respect to that. We see that recovery happening, but probably as we leave this year into next year. Not declines, but more modest growth until our PROTECT IV data comes out”

“I think really maybe to the heart of your question is, we do expect MedTech to grow better in the second half than the first half as well.”

“We are pleased with the progress made, are on track for a mid-2027 separation, and look forward to sharing updates later this year.”

“In surgery, we anticipate FDA approval for the OTTAVA robotic surgical system and the EMEA launch of ETHICON 4000.”

“In electrophysiology, we expect continued adoption of CARTOSOUND SONATA cardio mapping in the U.S. and VARIPULSE Pro in EMEA, with anticipated approval of VARIPULSE Pro in the U.S. later this year.”

“We anticipate FDA regulatory approval for IMAAVY as the first-ever treatment for patients with warm autoimmune hemolytic anemia, a rare and serious autoantibody disease.”

“Reported earnings per share is projected to be $11.60-$11.75, or $11.68 at the midpoint, which represents an 8.2% increase over the prior year.”

“We are pleased to increase our adjusted operational earnings per share range to $11.50-$11.65, which equates to an increase of $0.18 at the midpoint.”

“Our effective tax rate is now expected to be lower in a range of 17.0%-18.0% for the full year based on year-to-date results.”

“For net interest expense, we now project $250 million-$300 million, slightly lower than previous guidance.”

“We now expect approximately a 75 basis point improvement, supported by continuing operating efficiencies and anticipated reduction and recoupment of certain tariff-related costs based on the latest rulings.”

“As a reminder, fourth quarter growth should be higher due to the benefit from the 53rd week.”

“As we look at the remainder of the year, based on year-to-date performance and updated guidance, we anticipate operational sales growth to improve in the second half of the year.”

“As a result, we now expect reported sales growth of 7.0%-7.6%, with a midpoint of $101.1 billion or 7.3%.”

“Driven by second quarter performance and uptake of new product launches, we are increasing operational sales growth by $400 million, now expecting operational sales growth for the full year to be in the range of 6.5%-7.1%, with a midpoint of $100.6 billion.”

“As expected, we had significant improvement in the second quarter with the year to date totaling approximately $8.7 billion and are on track for our full year free cash flow outlook approaching $21 billion.”

“With FDA approval for the prevention of relapse in schizophrenia, we anticipate continued momentum.”

“On milvexian? On milvexian, these are event-driven studies. They're fully recruited. We really can't give you very much insight into when they might read out. Could be towards the end of this year, beginning of next year, but because they're event driven, we'll just have to wait for the events.”

“We are progressing towards potential FDA authorization of OTTAVA, the world's first table-integrated robotic surgical system.”

“ETHICON 4000, our next-generation surgical stapler launched in the U.S. in 2025 is expected to launch in Europe shortly.”

“On the back of this, we can confidently say that we expect accelerated growth in the back half of the year for our Surgical Vision business and Vision overall, including here in the U.S.”

“Keep in mind that Q1 is typically our lowest quarter, and we're confident that we will see acceleration through the remainder of the year.”

“Most importantly, nothing in the quarter changes our confidence in further acceleration as we look towards Q2 and the remainder of 2026.”

“So in summary, we see both revenue growth and operating margins improving and we reaffirm that we have line of sight to double-digit growth by the end of the decade.”

“However, these were expected, and we remain confident in our full year free cash flow outlook of approximately $21 billion.”

“We are on track to meet our 2026 target of $100 billion in annual revenue for the first time and we are confident our progress will continue to improve into 2027 with line of sight to double-digit growth by the end of the decade.”

“We're excited about our growth profile and the catalysts we have to continue to accelerate MedTech from a mid-single-digit player into a higher single-digit player as we move towards the end of the decade.”

“Now what we don't expect those programs to be significantly accretive to growth in the short term, they certainly will be accretive as we move to the back half of the decade.”

“As you know, we've submitted OTTAVA for approval. And assuming everything plays out, we expect that by the end of this year, we will be launching not one but two new surgical robotic programs, both with OTTAVA and MONARCH for urology.”

“Maybe I would just add one other thing, John Reed here, our study of ICOTYDE in psoriatic arthritis, should read out later this year.”

“Further, I would say that the strong sales growth will also drive operating leverage that will be further amplified when the U.S. DARZALEX royalties roll off in 2029.”

“We are continuing to make targeted investments in the business and working towards a mid-2027 separation.”

“We do anticipate some second half impact from volume-based procurement in China for electrophysiology products, which has been factored into our full year guidance.”

“In Innovative Medicine, the depth and strength of our portfolio will continue to drive accelerating growth this year. We expect contributions from our newly launched products across oncology, immunology and neuroscience to increase throughout the year.”

“As noted last quarter, we anticipate fairly consistent operational sales growth throughout the year with a higher fourth quarter due to the benefit from the 53rd week referenced earlier.”

“We are maintaining our guidance for adjusted pretax operating margin to improve by at least 50 basis points in 2026.”

“We are increasing our operational sales guidance to be in the range of 5.9% to 6.9%, with a midpoint of $100.2 billion or 6.4%.”

“Our manufacturing investments include facilities in North Carolina and Pennsylvania, and we will have more announcements to come in upcoming quarters.”

“Since announcing our plans to invest $55 billion in U.S.-based manufacturing technology and research and development through early 2029, we are well on our way to reaching that target.”

“We continue to receive strong feedback in Europe for our Dual Energy THERMOCOOL SMARTTOUCH SF Catheter which we expect to launch in the U.S. later this year, having recently submitted a complete platform to FDA.”

“TREMFYA is projected to deliver more than $10 billion in peak year sales.”

“We're on the cusp of once again double-digit growth here in the United States, which is by far and away the most important market.”

“And so we do continue to believe strongly that this is one of our $5 billion plus assets and really look forward to getting that permanent J code in the second quarter.”

“I mean, our aspiration is not to put a limit on the high-growth markets in which we participate. And I think we can conservatively say that once we separate ortho, we'll be at least at 70%.”

“but we're confident that our Surgical Vision business can continue to be a strong double-digit growth for the foreseeable future.”

“We've made a commitment to an additional catheter each year for the foreseeable future, starting with dual energy STSF, followed by Omnipulse, which is a large diffocal catheter, and we're also doubling down on our leadership position in mapping.”

“further strengthening our confidence in its $5 billion peak year sales potential.”

“we're increasingly confident that Tremfya will exceed $10 billion in peak year sales.”

“And we have line of sight to double-digit growth by the end of the decade, which is notable as Johnson & Johnson is the only healthcare company that will soon deliver more than $100 billion in annual revenue.”

“These moves fuel our confidence that growth in 2026 will be faster than in 2025.”

“So on Milvexian, we're expecting data readouts later this year for both secondary stroke as well as atrial fibrillation.”

“So you can expect that the margin profile will improve in conjunction with the sales growth profile as we move out to the next couple of years and to the back half of this decade.”

“We believe it's gonna be a strong middle to high single-digit grower.”

“As you look to 2026, we're going to be further enhancing that performance by building out the portfolio specifically with the launch of Piercy here in the United States.”

“And this will catapult to north of 70% following the ortho separation.”

“Turning to your question about the year, we do expect to see acceleration. We expect the year to be better in 2026 than it was in 2025.”

“Firstly, based on what we know today, we do not expect the loss of ACA subsidies or any potential policy changes under the big one big beautiful bill to have a material impact on our medtech performance.”

“in Innovative Medicine, we expect regulatory approvals for icotide in psoriasis, Tekveli in combination with Darzalex in relapsed refractory multiple myeloma as early as second line, and TREMFYA for the innovation of structural joint damage for patients with psoriatic arthritis.”

“Given these factors, we expect higher earnings per share growth in the second half of the year versus the first half.”

“In medtech, we will continue to accelerate our newly launched products and expect normalized seasonality.”

“While not nearly as impactful as STELARA, we do anticipate generic impact for both Symphony and OPSUMIT to begin in 2026, both of which are contemplated in our full-year guidance.”

“We anticipate STELARA to continue to follow the HUMIRA erosion curve, which accelerated as we moved to 2025 compared to the start.”

“We anticipate fairly consistent operational sales growth throughout the year, with a higher fourth quarter due to the benefit from the fifty-third week referenced earlier.”

“Regarding our share count, due to the rapid share price appreciation in 2025, into early 2026, our diluted share count is increasing to approximately 2.44 billion shares based on US GAAP accounting rules for the diluted share count calculation, in line with how 2025 landed.”

“We anticipate net other income to be $1 to $1.2 billion for 2026, relatively flat to last year.”

“Our pretax operating margin guidance takes into account the costs from the fifty-third week of operations and full-year medtech tariffs of approximately $500 million, which is significantly above the 2025 amount.”

“Acquisitions and divestitures are expected to favorably impact operational growth by approximately 30 basis points, resulting in an adjusted operational sales growth midpoint of 5.9%.”

“As it relates to the separation of our orthopedics business, we are making good progress towards a mid-2027 separation and look forward to providing updates later this year.”

“As we move forward in 2026, we expect to elevate free cash flow generation to approximately $21 billion.”

“And with continued innovation in surgical instrumentation, including our recent launch of the Ethicon 4,000 stapler, we anticipate continued growth as we reduce complications and elevate the surgical experience across specialties.”

“This year, we will launch a first-of-its-kind robotics platform for urology with Monarch.”

“In fact, we anticipate launching a new catheter every year through the end of the decade as we build an industry-leading portfolio in PFA complemented by at least two Carto updates each year.”

“In 2025, we delivered 21% operational sales growth, and we expect to exceed $50 billion in annual sales by 2030.”

“In Innovative Medicine, we anticipate U.S. FDA approval for subcutaneous Ribrovant for non-small cell lung cancer, as well as for CAPLYTA in adjunctive major depressive disorder.”

“Our adjusted operational earnings per share guidance is $10.68 or 7% at the midpoint.”

“Our expected adjusted earnings per share guidance remains $10.85 or 8.7% at the midpoint, with a range of $10.8 to $10.9.”

“We are expecting a higher effective tax rate to be in the range of 17.5% to 18% for the full year, with the increase largely due to the recently enacted One Big Beautiful Bill.”

“For net interest expense, we are now projecting between 0 and $50 million, an improvement from the previous guidance primarily driven by higher cash balances.”

“We are reiterating our operating margin guide of a 300 basis point improvement for the full year, assuming what we know today as it relates to tariffs.”

“As a result, we now expect reported sales growth between 5.4% to 5.9% with a midpoint of $93.7 billion or 5.7%.”

“Excluding the impact from acquisitions and divestitures, our adjusted operational sales growth is now expected to be in the range of 3.5% to 4% compared to 2024.”

“We are increasing operational sales guidance for the full year by approximately $300 million, resulting in operational sales growth for the full year in the range of 4.8% to 5.3%, with a midpoint of $93.2 billion or 5.1%.”

“We anticipate Shockwave becoming our thirteenth billion-dollar MedTech platform by year-end.”

“It also reinforces our conviction to deliver on the upper end of our long-term growth targets.”

“For Innovative Medicine, we remain very confident in our ability to deliver accelerated growth despite STELARA loss of exclusivity.”

“We remain committed to $55 billion in U.S.-based innovation and manufacturing over the next four years.”

“We are confident Tremfya will become a more than $10 billion asset.”

“We are increasingly confident in Carvicti's $5 billion peak year sales potential.”

“As you already have heard, we expect the separation would increase our top-line growth and margins following the completion.”

“Joaquin mentioned Inlexo, formerly known as TerrAs, and we just got approval and are in the process of launching for bladder cancer. This is one of our next $5 billion plus assets.”

“In MedTech, we continue to expect accelerated growth off this year's levels, driven by focus on higher growth markets, as well as the continued adoption of newer products across all MedTech platforms.”

“Next, we are targeting completion of the separation within eighteen to twenty-four months, subject to the satisfaction of certain conditions.”

“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.”

“We look forward to and expect to secure favorable rulings on the Dalbert motions, which should be rendered by 2026.”

“We project CAPLYTA to reach $5 billion annually.”

“The combination of DriverBand plus Las Cruze is another of our $5 billion big year sales assets.”

“It will also contribute significantly to future growth, with a targeted release platform projected to be another blockbuster treatment with at least $5 billion in annual peak year sales.”

“If we were just to take 2025, you're absolutely right. It would be probably closer to 100 bps both on top and bottom or margin improvement.”

“We think that, that's entirely like or may even be stronger for Tremfya. So we think that there's a lot of growth opportunity there.”

“And so I think in summary, due to easier comps as well as significant new products, we're confident in continued acceleration in the back half?”

“At the beginning of the year, we guided to an approximate 300 basis points improvement in operating margin. Despite what you may have calculated on a year-to-date basis, we remain confident and reiterate our operating margin guide for the full year.”

“Based on our strong performance in the quarter, we are pleased to raise our full year sales guidance by $2 billion and EPS guidance by $0.25 a from $10.60 to $10.85.”

“the 48.04 studies, these are Phase IIbs, one in Crohn's disease and other colitis will be reading out sometime middle of this year.”

“we -- as you heard in my earlier comments, we expect both businesses to actually continue that momentum and grow better in the second half to the first half.”

“We continue to expect normalized procedure volumes and typical seasonality patterns throughout the remainder of the year.”

“We anticipate an acceleration in growth to be driven by the increased adoption of newly launched products in cardiovascular, surgery and vision.”

“we maintain the assumption that STELARA's large biosimilar competition will accelerate throughout the year with erosion similar to HUMIRAs in year 2, which is still our proxy with the additive unfavorable impact of Part D redesign.”

“We continue to expect both innovative medicine and med tech operational sales growth to be higher in the second half of the year versus the first half.”

“Embedded in that is $0.08 of adjusted operational earnings per share, increasing our guidance to $10.68 or 7% at the midpoint.”

“We are pleased to increase our reported adjusted earnings per share estimate by $0.25 to $10.85 or 8.7% at the midpoint for a range of $10.80 to $10.90, which is a combination of operational improvement and the favorable foreign currency dynamics I referenced earlier.”

“Our effective tax rate is now expected to be in the range of 17% to 17.5% for the full year with the increase largely due to an adjustment to the company's global tax reserves.”

“For net interest expense, we now project between $0 and $100 million, an improvement from the previous guidance primarily driven by higher interest earned on cash balances.”

“Based on the current tariff landscape, we now anticipate the impact to be approximately $200 million exclusively related to our med tech business.”

“We estimate an incremental positive foreign currency impact of $1.1 billion versus previous guidance. As such, we now expect reported sales growth between 5.1% to 5.6%, with a midpoint of $93.4 billion or 5.4%.”

“Excluding the impact from acquisitions and divestitures, our adjusted operational sales growth is now expected to be in the range of 3.2% and to 3.7% compared to 2024.”

“We are now expecting operational sales growth for the full year to be in the range of 4.5% to 5%, with a midpoint of $92.9 billion or 4.8% representing a full point better when compared to prior guidance.”

“Shockwave is expected to be our $13 billion medtech platform by the end of the year a position that is further strengthened by a compelling body of evidence on the benefits of this technology.”

“we are excited about the anticipated major depressive disorder approval later this year.”

“We anticipate launching TAR-200 for high-risk non-muscle invasive bladder cancer later this year a transformational product that harnesses our unique expertise in both innovative medicine and medtech.”

“You know that in late we mentioned as part of the EBR, we would grow in that roughly 5% to 7% range at the upper range through '22 to '27 on an operational basis, and we're very confident in our ability to deliver that.”

“if you take a look at 2028 consensus, we actually see our numbers at least 3x higher.”

“We feel really confident in that $50 billion target for our oncology business.”

“the progress across our pipeline in the first half of the year heightens our conviction to achieve and I'd be willing to bet likely beat the upper end of the growth targets we conveyed at our 2023 enterprise business review.”

“CAPLYTA adds to Johnson & Johnson's robust lineup of therapies with $5 billion plus potential in peak year sales and further solidifies sales growth above analyst expectations through the rest of the decade.”

“We have begun gearing up now to do a broad Phase III campaign in both UC and Crohn's disease based on those companion data.”

“We believe that our vision business will continue to be a mid-single-digit to high digit single-digit performer.”

“we certainly appreciate and live by the principle that you have come to know us for and that's growing our bottom line consistent, if not better, than our top line.”

“we certainly see '26 being better than '25 in terms of the growth rate based on what we know today.”

“This will result in an approximate 1% increase to our global effective tax rate in 2026.”

“TREMFYA grew 30% in the quarter. with strong uptake in Crohn's disease and assertive colitis, we expect it to generate at least $10 billion annually in peak GR sales.”

“We expect TAR-200 to generate at least billion in annual peak GR sales.”

“We expect to become the #1 oncology company by 2030 with sales of more than $50 billion.”

“So we've responded, and we're looking forward to the second half and hopefully getting approval on that.”

“we believe that our performance so far in the quarter was slightly below market. These are attractive markets. We've seen a, you know, strong robust procedures across ortho, and we expect that to continue, as I mentioned, with the addition of our portfolio of both implants as well as enabling technology across hips and knees, we're confident that we will see an improvement through the remaining quarters.”

“What gives us confidence in continued acceleration to the back half of the year is the incredible impact of truly differentiated innovation across our ortho portfolio.”

“This litigation has not and we foresee will not impact our ability to execute upon our capital allocation priorities to appropriately manage our business.”

“Our Q1 performance reinforces my confidence in our 2025 guidance and reflects the strength of Johnson & Johnson's uniquely diversified business”

“As we move forward, we should be lapping that soon. And really, you'll see the strength of those new patient starts and the continued expansion into the community starting to show through.”

“Overall care demand remains solid, and we feel good about the rest of the year regarding procedures and use of pharmaceuticals.”

“We anticipate our newly launched products to build throughout the year with the relaunch of VERIPULSE in the U.S., the introductions of dual energy STSF in the EU, Velas Uniti, Velas Spine, and Technis Odyssey.”

“Naturally, we expect a greater benefit from our newly launched products as the year progresses.”

“we maintain the assumption that the impact of STELARA biosimilar competition will accelerate throughout the year, similar to HUMIRA's erosion curve, which is still our proxy with the additive impact of Part D redesign.”

“We continue to expect both innovative medicine and MedTech operational sales growth to be higher in the second half of the year versus the first half.”

“Despite $0.25 dilution from the IntraCellular acquisition, including the impact of tariffs, based on what is in place today, we are pleased to be able to maintain our adjusted reported earnings per share guidance of 6.2% at the midpoint for a range of $10.50 to $10.70, partially aided by the reduced FX impact.”

“Other income is anticipated to be in the range of $1 billion to $1.2 billion, a slight increase versus previous guidance.”

“we are maintaining our guide of operating margin improvement by 300 basis points versus 2024. This improvement takes into consideration the dilution from the IntraCellular transaction as well as what we know today about the impact of tariffs on our business.”

“We estimate an incremental positive foreign currency impact of $1.1 billion versus previous guidance, resulting in a full-year headwind of $600 million.”

“Excluding the impact from acquisitions and divestitures, we are maintaining our adjusted operational sales growth to the range of 2% to 3% compared to 2024.”

“In MedTech, as indicated in January, we anticipated pockets of challenge early on and are planning for higher second-half growth in those areas of our business.”

“Remicade and Symphony distribution rights in Europe were returned in Q4. This positively impacted results in the quarter and is anticipated to continue for the remainder of the year.”

“We anticipate approval of Caplyta later this year as an adjunctive treatment for major depressive disorder, representing the largest of the indications for novel antidepressant drugs today.”

“we have very firm conviction in CARVYKTI as a $5 billion-plus asset and really are rolling that out globally very effectively at this point in time. So we don't see capacity as a constraint.”

“When looking ahead to 2028, we anticipate sales previously referred to as TARUS to be at least three times higher than current street estimates, and new to the chart, Ichotrochindra, our targeted oral peptide, to be at least two times higher.”

“we now see sales for Tremfya at least 25% higher than current street estimates.”

“Based on current 2027 street estimates, our projections are at least two times higher for riboflavin plus LASCRUZ and at least 50% higher for SPRAVATO.”

“we announced our commitment to invest more than $55 billion in the U.S. over the next four years in manufacturing, R&D, and technology.”

“at the completion of this investment plan, essentially, all our advanced medicines that are used in the US will be manufactured in the US.”

“we do anticipate closing that gap after launch.”

“The program is expected to be completed in 2027 with costs estimated at approximately $900 million.”

“We anticipate some modest short-term revenue disruption in Surgery of approximately $250 million in total over the next two years, but these actions will improve our ability to accelerate growth and enhance profitability.”

“We are starting the year from a position of strength and we have confidence in our sales growth and EPS guidance for 2025.”

“I will say that it's important as you think about 2025 to recognize, as Joe mentioned earlier, that we expect to see an acceleration in the back half.”

“That said, as you know too well, we do have some short-term headwinds near-term competitive pressures in US. EP as one and secondly continued headwinds in China, which we've mentioned in 2025 will continue to be a headwind and we have included that in our estimates.”

“The filing has been done with the regulatory authorities that we anticipate approval for later in the year.”

“And we're seeing nice continued expansion in the first quarter of this year that will also continue throughout the year.”

“Given these factors and aligned with sales, we expect higher earnings per share growth in the second half of the year versus the first half.”

“As we've said before, we continue to expect normalized procedure volume and seasonality.”

“We anticipate acceleration of our newly launched products to build throughout the year.”

“We expect a more pronounced benefit from our newly launched products as we progress throughout 2025 to counter these headwinds.”

“Regarding Innovative Medicine, we anticipate STELARA biosimilar competition to accelerate throughout the year as the number of biosimilar entrants increase.”

“We expect both Innovative Medicine and MedTech operational sales growth to be higher in the second half of the year versus the first half.”

“Given this and assuming a close subject to regulatory review early in the second quarter, we anticipate an acceleration of our sales growth of approximately 80 basis points.”

“We are not planning for material near-term cost synergies.”

“Despite STELARA biosimilar competition and the impact of Part D redesign, we expect our 2025 adjusted pre-tax operating margins to increase by approximately 300 basis points of which approximately half is driven by operating spend management and the remainder from reduced acquired IPR&D expense.”

“We continue to expect China to remain a headwind through 2025.”

“Acquisitions and divestitures are expected to favorably impact operational growth by approximately 50 basis points resulting in an adjusted operational sales growth midpoint of 2.5%.”

“We are excited about the recent UC launch and expect to see strong uptake of the IBD indications in 2025.”

“We're confident in our expectations communicated at the EBR. And as a reminder, we expect our end markets to grow between 5% and 7% on a weighted average basis between 22% and 27%.”

“I know the company had guided to it being a $5 billion plus asset. We definitely think that it will be as well and think that together we're going to be able to do even more for patients with mental health issues.”

“And we expect to deliver an operational CAGR in the upper end of the range over that period.”

“And then finally, across the portfolio, we're benefiting from tremendous new product launches... And typically, that fourth quarter also is a stronger one for us. So, once again, very confident in our performance at around 5% on an adjusted basis and north of 6% operationally.”

“We had a tremendous third quarter, which really gives us confidence in even stronger fourth.”

“Thanks to STELARA and TREMFYA, we're quite confident that those studies will come through for us, but we'll wait for those data later this year to see how that oral medication is faring there.”

“And so, we do believe that Vision has a very strong quarter ahead.”

“As Joe mentioned, we expect now on the back of the headwinds we mentioned earlier in Asia Pacific to deliver adjusted operational growth of around 5% and north of 6% on an operational basis for the year.”

“We do believe that this will be a headwind through the remainder of '24 and into '25.”

“But having spent a lot of time in EP labs over the last couple of weeks, I can tell you that we are incredibly excited for the availability of VARIPULSE, which we expect to have approval sometime later this quarter or in Q1 of next year.”

“The psoriasis indication is fully enrolled now, four Phase 3 studies... and the data will be rolling out in the next few months.”

“And as we look to the full year, we expect a return to a significantly better performance, especially in Orthopaedics, which typically has a stronger fourth quarter.”

“Regarding other income and expense, we expect lower net other income due to the non-recurring nature of the monetization of royalty rights experienced in Q3, a lower benefit related to employee benefit programs based on discount rate assumptions, as well as income lost on the Kenvue dividend.”

“Specific to volume-based pricing in China, we expect continued impacts from the rollout of the 2024 tenders in Orthopaedics sports and intraocular lenses and anticipate VBP to continue expanding across provinces and products.”

“We also expect continued adoption of newer products across all MedTech businesses, such as VARIPULSE in electrophysiology, VELYS enabling technology across Orthopaedics, Odyssey and PureSee in Surgical Vision and contributions from our Abiomed and Shockwave integration.”

“We continue to expect a negative impact associated with the Part D redesign.”

“As such, we expect reported adjusted earnings per share of $9.93 at the midpoint.”

“Combined, this yields an updated 2024 adjusted operational EPS guidance of $9.91 at the midpoint of the range, basically flat year-on-year despite absorbing approximately $0.92 of acquisition activity.”

“To account for the completion of the V-Wave transaction, as previously disclosed, our adjusted operational EPS guidance now includes dilution of $0.24 per share in the fourth quarter and $0.06 per share in 2025.”

“On this basis, when excluding acquisition activity throughout the year, EPS growth is 9.2%.”

“As the schedule reflects, we are expecting an incremental $0.10 per share increase on our operational performance for a total increase of $0.18 per share for the year.”

“Our effective tax rate, consistent with previous guidance, is expected to be between 17.5% and 18.5% for the full year.”

“Other income is anticipated to be in the range of $1.9 billion to $2.1 billion, an increase versus previous guidance, driven by the one-time monetization of royalty rights, which Jessica referenced, that will be utilized for that higher Q4 investment I referenced a moment ago.”

“Net interest income is now projected to be between $450 million and $550 million, $150 million greater than our previous guidance.”

“As we strive to advance and accelerate our pipeline, you can anticipate elevated levels of investment in the fourth quarter.”

“Regarding the rest of the P&L, with the addition of the V-Wave transaction, we now anticipate our 2024 adjusted pre-tax operating margin to decline by approximately 200 basis points.”

“As such, we expect reported sales growth between 5.1% to 5.6% with a midpoint of $88.6 billion or 5.4%.”

“We are also increasing operational sales growth by $200 million to a range of 6.3% to 6.8% with a midpoint of $89.6 billion or 6.6%.”

“We now expect growth in the range of 5.7% to 6.2% with a midpoint of 6%.”

“Also in Cardiovascular, we are preparing for the anticipated approval of VARIPULSE in the U.S. and the submission of Impella ECP for regulatory approval.”

“For the remainder of the year, we expect approval of TREMFYA subcu for Crohn's disease and data readouts on JNJ-2113, our targeted oral peptide for psoriasis and ulcerative colitis, JNJ-4804, our co-antibody therapeutic for inflammatory bowel disease, aticaprant for adjunctive major depressive disorder and nipocalimab for rheumatoid arthritis.”

“And as such, we expect MedTech adjusted operational sales growth for the full year 2024 to be closer to 5% versus the 6% we referenced last quarter.”

“Due to dynamics in the Asia Pacific region, specifically in China, we are taking a responsibly conservative approach by assuming no material improvement in that part of the business for the remainder of this year.”

“As a reminder, biosimilar competition has entered Europe as of July, and we anticipate U.S. biosimilar entry in January 2025.”

“In Vision, growth is accelerating, and we expect that to continue with the recent full market release of TECNIS Odyssey in the U.S. and ACUVUE OASYS MAX 1-Day contact lenses.”

“For MedTech, we continue to expect to deliver on our long-term objective identified at last year's Enterprise Business Review of growing operational sales in the upper end of the 2022 through 2027 weighted average market growth rate of 5% to 7%.”

“I do think the watch out that we all need to watch carefully is certainly the impact of the recently announced IV saline shortages, which if they do persist, could potentially impact surgical procedures across our portfolio.”

“And so as we look to the back half of the year, while it's been a slower start there, we're very confident that we're going to be able to bring that business back to historical norms, driven primarily by innovation.”

“Let me be very clear, we remain absolutely committed to delivering solid growth in the full-year for 2024.”

“Our Innovative Medicine business is on track for a 13th consecutive year of above-market growth.”

“Within robotic surgery, we are on track to submit an investigational device exemption to the FDA for OTTAVA in the second-half of the year.”

“We do believe the volume opportunity will far offset over time the impact we're seeing on price, but that certainly is a short-term pain that we are enduring.”

“PFA is a good thing for the marketplace, it's a tailwind and we expect to continue to benefit on that.”

“Especially between now and the time that we bring our PFA technology to market, we're confident. While we don't control the timing, we expect to have that by the end of the year or early next year.”

“We see that continuing to grow at low-single-digit through the back half of the year.”

“As you heard from Joe, we expect MedTech growth to accelerate in the second-half of the year.”

“Lastly, as a reminder on share count, we only expect a partial benefit in the third quarter resulting from the share count reduction following the Kenvue exchange offer in August of 2023 with the fourth quarter being neutral.”

“As you think about our adjusted operating margin, we continue to expect it to be higher in the first-half of the year, compared to the second-half.”

“Turning to MedTech, as previously stated, we expect growth to accelerate back in line with our long-term expectations in the second-half of the year.”

“While we had COVID-19 vaccine sales in the second quarter, we do not anticipate any future sales.”

“We continue to expect Innovative Medicine sales growth to be lower in the second half of the year compared to the first half, given the anticipated entry of STELARA biosimilars in Europe beginning the last week of July.”

“Our effective tax rate is now expected to be between 17.5% and 18.5% for the full-year, much higher than 2023, largely due to the impact of OECD Pillar 2, as well as the non-deductible nature of the recently announced NM26 bispecific antibody acquisition.”

“Based solely on the dilution from the transactions, we now anticipate our 2024 adjusted pre-tax operating margin to decline by 120 basis points, more than offsetting the previously communicated 50 basis point improvement.”

“Excluding the impact from acquisitions and divestitures, we are maintaining our adjusted operational sales growth to the range of 5.5% to 6.0% compared to 2023.”

“In addition to assist with your future models, these transactions are expected to have a smaller impact of $0.33 to adjusted operational EPS in 2025.”

“While we will always explore strategic deals of any size that can create value, we foresee modest tuck-in deals as the preferred route over the near-term.”

“For the remainder of the year, we will continue to advance our electrophysiology and cardiovascular pipelines as we prepare for the anticipated U.S. approval of VARIPULSE, as well as the submission of Impella ECP for regulatory approval.”

“We are excited for what awaits in the second half of this year with the anticipated approval and launch of both RYBREVANT plus Lazertinib in frontline EGFR positive lung cancer and TREMFYA in IBD.”

“We continue to anticipate biosimilar entry in Europe later this month, while in the U.S., we expect continued volume growth largely offset by price declines as we move towards biosimilar entry in 2025.”

“We remain consistent in our belief in the 5% to 7% growth for our end markets and that we will perform well within that.”

“However, as outlined at our enterprise business review last November, we do anticipate, as a business, growing 3% plus next year and then 5% to 7% out through 2030.”

“So once again, very confident that you will see tremendous improvement in the performance of that business, and we expect high single-digit growth for Vision for 2024.”

“But all in all, a strong quarter Larry, and we remain very committed to strong high single-digit growth for the remainder of the year for 2024.”

“But once again, very confident that we'll see that return to strong single-digit performance for the remainder of the year.”

“Within our robotic surgery pipeline, we are on track to submit an investigational device exemption to the FDA for Otava [ph] in the second half of 2024.”

“We've also submitted for FDA approval. And while we don't control the timing, we expect that approval to come through by the end of this year or early next year.”

“I think we remain on track for a filing early next year based on these pivotal data, and we look forward to sharing those results at that congress.”

“We do believe with OPSUMIT and UPTRAVI, they have got very strong usage and both with the launch of OPSYNVI as well as what we have, that these will continue to be really productive assets and a good therapeutic area for us.”

“That last piece we don't see continuing to go forward to the same degree.”

“As you know, we are expecting to deliver the fourth consecutive year of global share gains driven primarily by tremendous performances of our IOL business in Asia Pac and in EMEA.”

“This is a business that grew 6.6% last year, and we expect it to grow in high single-digit performance this year.”

“For MedTech we expect operational sales growth to be relatively consistent throughout the year.”

“We anticipate Innovative Medicine sales growth to be slightly stronger in the first half of the year compared to the second half given the anticipated entry of STELARA Biosimilars in Europe midyear.”

“We anticipate continued volume growth largely offset by price declines as we move towards biosimilar entry.”

“While sequential growth was roughly flat due to phasing, we continued to anticipate quarter-over-quarter growth with acceleration in the back half of the year.”

“We do remain confident that we've got a clear path to achieving our $57 billion commitment that we made back in December at our Enterprise Business Review as well as from 2025 to 2030, delivering above market growth with the 5% to 7% compounded annual growth rate and with growth in every year that being 2025 as well as all of the years beyond that.”

“It also the sustained progress gives us -- give me great confidence in achieving our long-term growth goals of operational sales compounded annual growth rate of 5% to 7% from 2025 to 2030.”

“So I think at the AUA, because those data are not yet disclosed, I can't provide the details, but I think you can expect to see more of the same now with longer follow-up and with more patients.”

“there's nothing that happened in Q4 that has us concerned about our outlook or calls around margin profile or EPS for the balance of this upcoming year.”

“we remain confident about the short-term future of this business into 2024.”

“we feel good that we are progressing with CARVYKTI that we will continue to deliver quarter-over-quarter growth in 2024.”

“Moving forward in 2024, we do expect that there will be a decline but not to the extent that you saw in Q4.”

“We have filed all the three indications, and we expect approval of that in 2024.”

“we expect a similar trajectory as macitentan, OPSUMIT and Tadalafil (ph) become standard of care clearly established in this area.”

“we're looking very hard at improving the profitability of the orthopedics unit... you should see an improved margin profile for that business as well.”

“We're not seeing any incremental inflation in, I'll call it, current activity... but it's also not subsiding either. So we're kind of at a new, I'd say water level, if you will, that should be going forward, but not hurting the P&L as we look out beyond the second half of 2024.”

“We are working with the FDA towards a PDUFA date for our CARTITUDE-4 indication in April 5, and with EMEA towards an anticipated CHMP opinion in the first quarter of 2024.”

“We anticipate China VBP pricing for surgical IOLs and orthopedic sports to begin in 2024 with impacts from 2023 VBP in electrophysiology, Endocutters, Energy, Spine and Trauma to begin to anniversary throughout 2024.”

“The first half of the year will continue to have modest impact from Russia sanctions as our licenses are approved.”

“We project MedTech operational sales growth to be relatively consistent throughout the year, expecting procedures in 2024 to remain above pre-COVID levels.”

“We expect Innovative Medicine sales growth to be slightly stronger in the first half of the year compared to the second half, given the anticipated entry of STELARA biosimilars in Europe towards the middle of the year.”

“Based on the euro spot rate of 1.09 from last week, we do not estimate any currency impact on earnings per share.”

“This tax rate takes into account an increase of approximately 1.5% or 150 basis points relative to the recently enacted Pillar 2 legislation.”

“In Innovative Medicine, we expect 2024 to deliver a 13th consecutive year of above market growth, driven by market share gains from key brands such as DARZALEX, TREMFYA and ERLEADA as well as continued adoption of recently launched newer products such as CARVYKTI, TECVAYLI, TALVEY and SPRAVATO.”

“Looking ahead to 2024, Johnson & Johnson's robust free cash flow generation should continue to solidify our already strong financial foundation and fuel further investment leading to growth for our business or returns to shareholders.”

“In 2024, we expect data readouts for many of these assets, including Phase 3 trials for TREMFYA in IBD, ERLEADA in heavy (ph) stage prostate cancer, our targeted oral peptide JNJ-2113 in psoriasis, Nipocalimab in Myasthenia Gravis as well as aticaprant and seltorexant in major depressive disorder.”

“we remain confident in two things, both the risk benefit of CARVYKTI in the indication that is being studied and at the same on the potential of CARVYKTI to be $5 billion plus asset at peak year sales.”

“As we discussed in our Enterprise Business Review, we continue to see our MedTech business growing at the upper end of our markets and becoming a best-in-class competitor in MedTech.”

“And that by 2027, we expect one-third of our revenue to be generated by new products.”

“In MedTech, we shared that we expect to grow at the upper range of our markets, which are anticipated to grow by 5% to 7% between 2022 and 2027.”

“we expect our Innovative Medicine business to grow 5% to 7% from 2025 to 2030”

“We also expect a further 15 assets to have the potential for $1 billion to $5 billion in peak year sales.”

“delivering more than 10 assets that have the potential to generate over $5 billion in peak year sales by 2030.”

“We continue to believe that we're going to have a very strong finish into 2023 and that reads well for a strong 2024, too.”

“Now you can see clearly that we're going not only to meet that, but to clearly exceed that benchmark for TREMFYA.”

“For innovative medicine, we remain confident in our ability to deliver growth from key brands and anticipate continued progress from our newly launched products, all while advancing our robust pipeline with many exciting data readouts, filings, and approvals ahead of us.”

“In terms of timing of the litigation, there are two additional mesothelioma cases that we expect will be tried this year with more to come in 2024.”

“In terms of timing, the third circuit could rule at any moment whether it will take the direct appeal or not. If it does, we expect briefing to take place over the next couple of months with a decision in the early 2024 timeframe.”

“As we look into 2024, we expect to continue to deliver a strong growth in China, and China remaining a key part of our growth.”

“So there are a number of MedTech platforms now currently undergoing VBP headwinds, electrophysiology, spine, trauma, endocutters and energy, and these effects will last during 2023 and part of 2024.”

“So first, let me say that China for us is a key market, and a market in which we are delivering growth now, and we are going to continue to deliver a strong growth into 2024.”

“In the rest of our MedTech business, at this point, we continue to see robust procedure increase and we don't anticipate that change, that trend changing in the foreseeable future.”

“And we have expectations to continue our progression into 2024, in part fueled by the procedural growth that we see and also, but our continued improvement in our execution and the launch of new products.”

“In fact, as we look out to 2024, we see minimal to almost no impact from dis-synergies from the separation.”

“And we're in the process -- we're building, I think it will be available next year, another factory in the Netherlands to support the lentivirus component, which has sometimes been one of the rate limiting aspects.”

“Overall, what you can expect, Geoff, is that we -- you will continue to see quarter-over-quarter improvement in 2023 into also 2024.”

“For MedTech, we expect our commercial capabilities and continued adoption of recently launched products across all MedTech businesses will continue to drive our growth and improve competitiveness, while continuing to advance our pipeline programs, including innovation in pulse field ablation, Abiomed, and surgical robotics.”

“These revised estimates translate to an increase in our adjusted operational earnings per share guidance by $0.10 at the midpoint. Our new range is $10.02 to $10.08 or 12.5% growth at the midpoint, and adjusted reported earnings per share in the range of $10.07 to $10.13 or 13% growth at the midpoint.”

“And finally, based on current tax law, our estimate for the effective tax rate for 2023 will be between 15.0% and 15.5%.”

“Due to higher interest rates earned on our cash, we now expect net interest income in the range of $300 million to $400 million.”

“Net other income is also being maintained, ranging from $1.7 billion to $1.9 billion.”

“Looking across the P&L, adjusted pre-tax operating margin is still expected to improve by approximately 50 basis points versus prior year, driven by stronger margin profile and business mix.”

“We now anticipate an incremental negative currency impact of $400 million resulting in a full-year impact of negative 1% or $800 million.”

“We now expect operational sales growth for the full-year 2023 to be in the range of 8.5% to 9.0%, or up $600 million at the midpoint in the range of $84.4 billion to $84.8 billion on a constant currency basis and adjusted operational sales growth in the range of 7.2% to 7.7%.”

“The program is expected to be completed by the end of 2025, with total program costs estimated to be between $700 million and $800 million.”

“We anticipate some short-term modest revenue disruption in orthopedics of approximately $250 million in total over the next two years, given the market and product line exits, but believe these actions will improve our ability to meet demand, resulting in accelerated growth and enhanced profitability.”

“We expect the completion for our U.S. VARIPULSE study to occur in the fourth quarter.”

“and we're positioned to deliver an average of more than two enemies per year between now and the close of the decade 2030.”

“We hope to squeeze the cert petition to the Supreme Court into the first term in 2024, but if not, we will raise it in the second term.”

“But we're a larger company. We take the opportunity to look each and every year at efficiencies. So we're not in a position to give you margin guidance right now, but I would expect that something similar to where we started this year would not be a bad starting point for next year.”

“We are clearly intending to move CARVYKTI through CARTITUDE-4, CARTITUDE-5, and CARTITUDE-6 into earlier lines of therapy. And we are increasingly convinced of the potential of CARVYKTI to be one of our more than $5 billion assets that we announced back in 2021.”

“So you should expect as you're modeling no deleveraging or very, very little deleveraging from the Kenvue separation.”

“Based upon that testimony during that hearing from the lawyers that support those claimants, we are confident that, that support will not waver. And we do anticipate that additional support will be coming forward.”

“The only thing that is limiting the growth, I would say, in the back half of the year is China volume-based pricing, as well as some international sanctions in Russia, but those are already incorporated into our outlook for the balance of 2023. So we feel we have those well in hand. If there's a little bit of abatement on either of those fronts, it portends well for the future.”

“This is an event-driven study with a final analysis expected as we said by the end of 2023 with a potential to be presented at a major medical meeting in 2023.”

“And our current assumption based on some of the agreements you read about similar to what we've said previously is that we wouldn't expect anything before January 1, 2025.”

“With respect to STELARA this year, there won't be a significant impact.”

“We see our trajectory in MedTech in the first-half of the year continuing in the second-half of the year. So we expect a similar trajectory for MedTech in the second-half of the year.”

“Clinically, we expect a Phase 3 data for TREMFYA for Crohn's disease and ulcerative colitis.”

“We are looking forward to be able to present these results in due time in a medical meeting potentially this year.”