Johnson & Johnson Q3 beats estimates, raises 2026 guidance, plans DePuy Synthes spinoff; MedTech misses as Middle East conflict hits sales, shares fall 4% (Oct 13)
What happened
Johnson & Johnson reported third-quarter 2026 results Tuesday, Oct 13: revenue of $25.4 billion (+5.9% year over year) and adjusted EPS of $2.59, both slightly above consensus (about $25.28-25.38 billion and $2.52-2.54). The company raised full-year 2026 guidance to reported sales of about $101.2 billion (+7.4% at the midpoint) and lifted adjusted EPS guidance by $0.06 to $11.10 at the midpoint. J&J also said it plans to spin off its orthopedics division, DePuy Synthes, into a stand-alone company around mid-2027. The offset: MedTech sales grew only 2.5% to about $8.6-8.7 billion, missing estimates by roughly 2%, as the Middle East conflict pushed Gulf-state healthcare budgets toward defense; shares fell more than 4% in morning trading.
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Who’s affected
- Johnson & Johnson (JNJ) — pharma strength (Tremfya, Darzalex) vs. MedTech softness (DePuy Synthes, Abiomed); healthcare / MedTech sector — Middle East conflict and European austerity as demand headwinds; orthopedics peers as read-through for the planned DePuy Synthes separation