Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Worldwide Sales | $25.4 billion | 6% |
| Innovative Medicine Sales | $16.8 billion | 7.9% |
| MedTech Sales | $8.6 billion | 2.5% |
| Adjusted Diluted EPS | $2.59 | -7.5% |
| Free Cash Flow | $6 billion | Not stated |
Guidance and outlook
- Full year operational sales growth is expected in the range of 6.7% to 7.1%.
- Adjusted operational earnings per share is expected in the range of $10.95 to $11.05.
- Reported adjusted earnings per share is expected to be $11.05 to $11.15.
- Full year effective tax rate is expected to be 17.0% to 17.5%.
How management sounded
Positive (+6 on our -10 to +10 scale). Management raised full-year guidance and expressed strong conviction in long-term growth drivers, though they acknowledged that MedTech performance fell short of internal expectations. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
MedTech Performance
Asked: Asad Haider from Goldman Sachs asked about the urgency to fix MedTech and if M&A is needed.
Answer: Management stated the urgency is to fix current operations, noting they like the current three focus areas and believe they have the portfolio to drive improvement.
2027 Outlook
Asked: Larry Biegelsen from Wells Fargo asked about 2027 earnings growth and the impact of Firefly and Salio Biomedicines.
Answer: Management noted that Firefly and Salio dilution is $1.36 per share for next year and that EPS growth should be slightly better than sales growth.
Icotide Launch
Asked: Chris Schott from JPMorgan asked about patient uptake and peak sales potential.
Answer: Management noted over 20,000 patients have initiated therapy and they foresee it becoming one of their largest assets.
MedTech International Headwinds
Asked: Jayson Bedford from Raymond James asked about the impact of Middle East dynamics and VBP.
Answer: Management explained that Middle East conflict has disrupted ordering patterns and tender timing, but they view these as short-term factors.
What to watch before the next call
- The Enterprise Business Review on December 8, where management will provide more details on the 2027 outlook.
- The progress of the planned separation of DePuy Synthes by mid-2027.
- Data readouts for pasritamig and J&J-6143 in the fourth quarter.
- The U.S. approval of Varipulse Pro expected in the fourth quarter.
