Johnson & Johnson Shares Drop More Than 5% Despite Higher 2026 Outlook

Johnson & Johnson shares fell more than 5% Tuesday even as the healthcare company posted $25.399 billion in third-quarter sales and raised its full-year outlook.

Sales increased 5.9% from a year earlier, while adjusted diluted earnings reached $2.59 per share. Reported diluted earnings were $0.09 per share after special charges tied to talc litigation, acquisitions and other items.

MedTech was the main pressure point. Worldwide operational sales in the unit grew 2.5%, with Cardiovascular and Surgery performance outside the U.S. needing improvement. Physician selectivity also continued to weigh on ABIOMED.

Innovative Medicine delivered stronger growth, with operational sales up 7.9%. TREMFYA revenue climbed 68.3% to $2.396 billion, providing support for the pharmaceutical business.

Johnson & Johnson lifted its 2026 reported-sales midpoint to $101.2 billion and its adjusted earnings midpoint to $11.10 per share. The company also remains on track to separate DePuy Synthes by mid-2027 and currently favors a spin-off structure.