Johnson & Johnson Q3 Earnings Affected by Talc Litigation Settlement, MedTech Slows Growth
Johnson & Johnson (JNJ) reported third-quarter results for 2026 with a 6% increase in revenue to $25.4 billion but experienced a 7.5% year-on-year decline in earnings per share (EPS). The stock dropped by approximately 5%. A significant portion of the EPS drop was attributed to a $5.5 billion provision set aside for talc-related litigation, which aims to resolve ongoing legal issues with an estimated 95% participation from plaintiffs. The Innovative Medicines segment showed strong performance and offset losses due to patent expirations in other areas. However, MedTech division growth slowed, leading the company to consider spinning off its orthopedics unit. Analyst Edmund Ingham views JNJ as a solid long-term hold but cautions against it being one of the most attractive pharmaceutical investments currently due to underperformance from MedTech and limited exposure to GLP-1 therapies.
Tickers: $JNJ
Topics: earnings EPS decline revenue growth spin-off plans talc litigation
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