Johnson & Johnson reported financial results for the third quarter ended September 27, 2026, and updated its full-year guidance. The company announced that reported sales for the quarter reached $25.4 billion, representing a 5.9% increase compared to the same period in the prior year. On an operational basis, sales grew by 6.0%, while adjusted operational sales increased by 6.1%.
For the quarter, diluted earnings per share (EPS) were reported at $0.09, a significant decrease from $2.12 in the prior year. This decline was attributed to a one-time special charge related to a proposed resolution of talc litigation, as well as costs associated with the acquisition of Firefly Bio, Inc. and a strategic collaboration with Sail Biomedicines. Adjusted EPS, which excludes intangible amortization expense and special items, was $2.59, down from $2.80 in the prior year.
Segment performance for the quarter showed growth in both of the company's main business units. Innovative Medicine reported operational sales of $16.8 billion, up 7.9% year-over-year. MedTech reported operational sales of $8.6 billion, up 2.5% year-over-year. Growth in Innovative Medicine was driven by products including TREMFYA, DARZALEX, CARVYKTI, and RYBREVANT/LAZCLUZE, while MedTech growth was supported by electrophysiology products and contact lenses.
Based on the strong third-quarter results, Johnson & Johnson increased its 2026 guidance. The company now estimates reported sales for the full year to be between $101.0 billion and $101.4 billion, with a midpoint of $101.2 billion. This represents a year-over-year growth rate of 7.2% to 7.6% at the midpoint. Adjusted EPS guidance for 2026 has been raised by $0.06 to a range of $11.05 to $11.15, with a midpoint of $11.10, corresponding to a 2.4% to 3.3% growth rate at the midpoint.
During the quarter, the company announced several regulatory milestones, including the market authorization of the OTTAVA robotic surgical system in the U.S. and the approval of IMAAVY for warm autoimmune hemolytic anemia. Additionally, Johnson & Johnson completed the acquisition of Firefly Bio, Inc. to advance oncology innovation and announced a proposed resolution of ovarian talc litigation.
