Johnson & Johnson (JNJ)
Description
Johnson & Johnson is a global healthcare leader in pharmaceuticals, medical devices and consumer health products, with operations in more than 60 countries and worldwide sales exceeding $80 billion annually.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $523 billion
- Debt History
- Debt increased by 55.7% year-over-year (from $336 billion in Q1 2024 to $523 billion in Q1 2025).
- Debt Trend
- Increasing
Profit Information
- Profit
- $10.999 billion
- Profit History
- Profit grew by 237.9% year-over-year (from $3.255 billion in Q1 2024 to $10.999 billion in Q1 2025).
- Profit Trend
- Increasing
Detailed Report
Johnson & Johnson – Q1 2025 10-Q Financial Report
Report Date: 2025-04-30
Period Covered: Quarter ended March 30, 2025 (Q1 2025)
Executive Summary
- Revenue: $21.893 B, +2.4% vs. Q1 2024 ($21.383 B)
- Net Earnings: $10.999 B, +238% vs. $3.255 B
- EPS (Diluted): $4.54 vs. $1.34
- Total Debt: $523 B, +56% vs. $336 B
- Cash & Equivalents: $38.474 B
Profit & Debt Analysis
- Profit Surge: A reversal of a $0.07 B talc contingency accrual drove net income up to $10.999 B, benefiting from strong operational performance and lower one-time charges.
- Debt Build: Total debt climbed to $523 B following strategic acquisitions (Intracellular Therapies and Shockwave) partially funded with long-term notes; interest expense rose modestly.
Revenue Drivers
- Innovative Medicine (63% of sales): $13.873 B, +2.3% Y/Y
- High-growth oncology (Darzalex +20.3%, Carvykti +135%) and immunology (Tremfya +17.6%), offset Stelara decline from biosimilars.
- Medtech (37% of sales): $8.020 B, +3.0% Y/Y
- Cardiovascular (Shockwave acquisition, +17.7%), Electrophysiology modest decline; Orthopaedics headwinds from lapping prior year events.
Pros and Cons
Pros:
- Diversified, high-margin pharmaceutical and device portfolio
- Exceptional free cash flow and dividend coverage
- Robust pipeline launches (Tecvayli, Talvey, Rybrevant)
Cons:
- Elevated leverage post-M&A
- Ongoing litigation exposure (talc, opioid, product liability)
- Patent cliffs and biosimilar pressure on key brands
- Currency headwinds impacting international sales
Conclusion
Johnson & Johnson delivered strong top-line growth and exceptional earnings in Q1 2025, fueled by product momentum and lower one-time charges. Debt has risen substantially due to M&A, but the company’s cash-flow generation and dividend policy remain well supported. Watch for legal outcomes and biosimilar entries as key near-term catalysts.
Statistics Breakdown
Q1 2025 revenue by segment: Innovative Medicine $13.873 B (63%), Medtech $8.020 B (37%). By geography: US $12.305 B, Europe $5.110 B, Asia & Emerging $3.311 B. Top franchises: Darzalex $3.237 B; Stelara $1.625 B; Xarelto $0.690 B; Shockwave $0.206 B.
Company Direction Insights
Johnson & Johnson appears on a solid growth trajectory, with diversified revenue streams and strong cash-flow resilience. Profitability is robust, but leverage has increased and litigation risks remain elevated. Future opportunities lie in pipeline commercialization and accretive acquisitions, while challenges include managing debt levels, defending intellectual property against generics/biosimilars, and resolving high-profile legal matters.