Johnson & Johnson Reports 5.8% Revenue Growth to $23.7 Billion in Q2 2025

Johnson & Johnson reported its financial results for the fiscal second quarter and six months ended June 29, 2025, revealing a total revenue of $23.7 billion for the quarter, a 5.8% increase from $22.4 billion in the same period last year. For the first half of 2025, the company achieved revenues of $45.6 billion, up 4.1% from $43.8 billion in the prior year. The net earnings for the second quarter were $5.5 billion, or $2.29 per diluted share, compared to $4.7 billion, or $1.93 per diluted share, in the same quarter of 2024. The increase in profitability was attributed to a significant reversal of previously accrued reserves related to talc litigation, which positively impacted earnings.

The company experienced notable changes in its operational performance, with U.S. sales rising by 7.8% to $13.5 billion in the second quarter, while international sales increased by 3.2% to $10.2 billion. The operational growth was partially offset by a decline in sales of the STELARA product due to biosimilar competition, which negatively impacted overall sales growth by approximately 7.1%. The Innovative Medicine segment, which includes key products like DARZALEX and ERLEADA, reported a 4.9% increase in sales, while the MedTech segment saw a 7.3% rise in sales, driven by strong performance in cardiovascular and surgical products.

Strategically, Johnson & Johnson completed the acquisition of Intra-Cellular Therapies, Inc. on April 2, 2025, for approximately $14.5 billion. This acquisition is expected to enhance the company's portfolio in mental health therapeutics, particularly with the addition of CAPLYTA, a treatment for bipolar depression and schizophrenia. The company also reported ongoing restructuring efforts within its MedTech segment, aimed at optimizing operations and exiting non-strategic product lines, with estimated costs for the restructuring program ranging between $0.9 billion and $1.0 billion.

Operationally, Johnson & Johnson's total assets increased to $193.4 billion as of June 29, 2025, up from $180.1 billion at the end of 2024. The company reported a total of 2.4 billion shares outstanding as of July 18, 2025. The company’s cash and cash equivalents decreased to $18.6 billion from $24.1 billion at the end of the previous fiscal year, reflecting significant cash outflows related to acquisitions and operational expenses. The company anticipates continued growth driven by its strategic initiatives and product pipeline, despite facing challenges from market competition and regulatory pressures.

Looking ahead, Johnson & Johnson remains focused on leveraging its acquisitions and restructuring efforts to drive future growth. The company expects to continue its practice of paying regular quarterly dividends, with a recent declaration of $1.30 per share. The management expressed confidence in the company’s ability to navigate market challenges and capitalize on opportunities in the healthcare sector, while also addressing ongoing litigation matters related to talc and opioids.