Johnson & Johnson (J&J) leaned on strong demand for anti-inflammatory drug Tremfya (guselkumab) to offset steep erosion in other areas of its immunology portfolio, resulting in strong overall Q3 performance.
The big pharma company’s sales grew nearly 6% to reach $25.4bn for the quarter, exceeding an analysts’ consensus estimate of $25.28bn, as per LSEG data. As usual, J&J’s pharma division contributed the lion’s share of revenue, totalling $16.8bn. The remainder came from its medtech segment.
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J&J’s medicines segment grew 7.9%, driven primarily by Tremfya. Global sales for the interleukin-23 (IL-23) blocker surged by 68.3% to generate $2.4bn, with performance buoyed by label expansions over recent years. Initially US Food and Drug Administration (FDA)-approved for plaque psoriasis in 2017, the drug has won several subsequent authorisations in psoriatic arthritis, ulcerative colitis, and Crohn’s disease, which have significantly expanded the patient base.
In a research note, Citi analysts said the drug’s growth “underscores the continued expansion of the IL-23 class across inflammatory bowel disease and psoriatic diseases.”
Overall immunology sales grew only 1.3%, dragged down by performance from products that have lost patent protection. Stelara’s (ustekinumab) sales decreased by 54.4%, while Remicade (infliximab) and Simponi (golimumab) dropped by 17.3%.
Oncology and neuroscience both continued their positive momentum from earlier quarters this year, growing 16.4% and 17.3% respectively. However, pulmonary hypertension, infectious diseases, and cardiovascular/metabolism all regressed.
Still, the quarter’s performance was enough for J&J to raise its 2026 guidance. The company now expects sales to grow by a midpoint value of 6.6%, up from the 6.5% previously stated in July. Adjusted earnings per share (EPS) will now reach a midpoint of $11.10, up from the initial target of $11.04. Citi analysts said the forecast rounded out a “solid therapeutics update”.
A lower EPS for Q3 was due to the substantial outlay J&J made in the dealmaking arena. This included a $1bn acquisition of Firefly Bio at the end of July, and a multi-billion-dollar license agreement with Sail Biomedicines in the same month. A one-time charge following a settlement to resolve the talcum powder lawsuit also impacted EPS value in Q3.
For medtech, worldwide sales grew by 2.5%, primarily driven by cardiovascular performance. This was headlined by Shockwave, the intravascular lithotripsy (IVL) company that J&J bought for $13.1bn in 2024. Sales for the subsidiary grew 16.8% in Q3 as uptake for the artery disease treatment grows. Electrophysiology, which includes the pulsed field ablation (PFA) system Varipulse, saw its sales increase by nearly 5%.
