Johnson & Johnson Q3 Profit Plunges, Lifts FY26 Outlook; Stock Drops

(RTTNews) - Drug major Johnson & Johnson on Tuesday reported sharply lower third-quarter profit mainly on special charge related to proposed talc litigation, despite sales growth. Further, the firm raised its fiscal 2026 outlook again and announced a quarterly dividend.

In pre-market activity, the shares were losing around 2.6 percent, trading at $257.14, after closing Monday's regular trading 0.88 percent higher.

For fiscal 2026, the company increased adjusted earnings per share guidance by $0.06 to $11.10 or 2.9 percent at the midpoint, with estimated reported sales of $101.2 billion or 7.4 percent at the midpoint.

Looking ahead for fiscal 2026, the company now projects adjusted earnings in a range of $11.05 to $11.15 per share, with $11.10 in mid-point, and adjusted operational earnings in a range of $10.95 to $11.05 per share, with $11.00 in mid-point.

The company previously expected adjusted earnings in a range of $10.96 to $11.11 per share, with $11.04 in mid-point, and adjusted operational earnings in a range of $10.86 to $11.01 per share, with $10.94 in mid-point.

At mid point, the company now expects year-over-year growth of 2.9 percent in adjusted earnings and 2 percent in adjusted operational earnings, compared to previous view of 2.3 percent and 1.4 percent, respectively.

Annual sales are now expected between $101.0 billion and $101.4 billion as well as operational sales between $100.5 billion and $100.9 billion, with adjusted operational sales growth of 6.4 to 6.8 percent.

The company previously expected sales between $100.8 billion and $101.4 billion as well as operational sales between $100.3 billion and $100.9 billion, with adjusted operational sales growth of 6.2 to 6.8 percent.

At mid point, the company now expects sales of $101.2 billion, an year-over-year growth of 7.4 percent, compared to previous view of 7.3 percent. Operational sales in mid-point would be $100.7 billion, a growth of 6.9 percent, higher than previous view of 6.8 percent.

Separately, Johnson & Johnson said its Board of Directors has declared a cash dividend for the fourth quarter of 2026 of $1.34 per share, payable on December 8 to shareholders of record at the close of business on November 24.

In the third quarter, net earnings fell 96 percent to $210 million or $0.09 per share from $5.15 billion or $2.12 per share in the prior year period.

The latest result included a one-time special charge for the proposed talc litigation resolution, the acquisition of Firefly Bio, Inc., and the strategic collaboration with Sail Biomedicines.

Johnson & Johnson's third-quarter adjusted net earnings fell 6.8 percent to $6.34 billion from $6.80 billion a year ago, and adjusted net earnings per share decreased to $2.59 from $2.80 a year ago.

Quarterly sales increased 5.9 percent to $25.40 billion from $24.00 billion in the same period last year with growth in all regions.

U.S. sales grew 9.1 percent and International sales increased 1.5 percent.

Operational sales growth was 6.0 percent and adjusted operational growth was 6.1 percent.

Innovative Medicine sales increased 7.7 percent, and the growth was 2.5 percent in MedTech.

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