Johnson & Johnson (NYSE:JNJ) stock fell 1.41% (As on July 17, 11:18:46 AM UTC-4, Source: Google Finance) after the company has lifted its full-year sales forecast, even as headwinds loom from potential U.S. tariffs on pharmaceutical imports. President Donald Trump has suggested that his administration will unveil levies on pharmaceuticals likely by the end of July, beginning with what he has described as a low tariff rate which will give companies enough time to shift their manufacturing operations to the United States. He added that a “very high tariff” will then snap into effect in a year or so. Johnson & Johnson previously said in the first quarter that, based on the information available at the time, it anticipated a $400 million impact from the tariffs. However, the company has said that, in the wake of a recent framework trade truce between the U.S. and China, the hit is “probably” down to $200 million.
Moreover, despite a 43.2% year-over-year revenue decline for Stelara from biosimilar competition, innovative medicine sales rose 3.8% operationally, with 13 brands achieving double-digit percentage growth, and medtech delivered 6.1% operational sales growth, led by a 22% surge in cardiovascular segment sales. The Stelara loss of exclusivity reduced top-line growth by approximately 710 basis points, yet U.S. pharmaceutical sales rose 7.6%, evidencing significant resilience across diversified revenue streams. Further, the oncology franchise achieved 22.3% growth, with multiple myeloma alone representing a portfolio where approximately 80% of patients receive a Johnson & Johnson product at some stage. Management reiterated a bold target: becoming the global leader in oncology by 2030 with projected sales exceeding $50 billion annually, exceeding current consensus levels by at least threefold in some product categories such as TAR-200 for bladder cancer, based on internal company forecasts for 2028.
JNJ in the second quarter of FY25 has reported the adjusted earnings per share of $2.77, beating the analysts’ estimates for the adjusted earnings per share of $2.68, according to LSEG data. The company had reported the adjusted revenue growth of 5.8 percent to $23.74 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $22.84 billion. Demand was partially fueled by Johnson & Johnson’s Darzalex blood cancer therapy, which raked in better-than-projected sales of $3.54 billion.
The firm said it now expects to post annual sales of $93.2 billion to $93.6 billion, up from a prior estimate of $91 billion to $91.8 billion. The company increased adjusted EPS guidance to $10.80-$10.90.