Johnson & Johnson reports Q2 2024 results

Rhea-AI Summary

Johnson & Johnson (NYSE: JNJ) reported strong Q2 2024 results with reported sales growth of 4.3% to $22.4 Billion and adjusted operational growth of 6.5%. The company's EPS decreased by 5.9% to $1.93 due to one-time special charges, while adjusted EPS increased by 10.2% to $2.82.

Key highlights include:

• Robust pipeline progress with TREMFYA, RYBREVANT, and VARIPULSE
• Increased full-year 2024 operational sales guidance reflecting Shockwave Medical acquisition
• Updated full-year 2024 adjusted operational EPS guidance
• Strong performance in Innovative Medicine and MedTech segments

The company's focus on medical innovation and strategic acquisitions positions it for continued growth.

Positive

• Reported sales growth of 4.3% to $22.4 Billion in Q2 2024
• Adjusted operational growth of 6.5% (7.1% excluding COVID-19 Vaccine)
• Adjusted EPS increased by 10.2% to $2.82
• Innovative Medicine worldwide operational sales grew 7.8%
• MedTech worldwide operational sales grew 4.4%
• Increased full-year 2024 operational sales guidance
• Strong performance of key products: DARZALEX, ERLEADA, TREMFYA, and STELARA

Negative

• EPS decreased by 5.9% to $1.93 due to one-time special charges
• Costs associated with recent strategic acquisitions offset some performance improvements

Insights

Financial Analyst

The second-quarter financials for Johnson & Johnson are a mixed bag for retail investors. On one hand, the company reported sales growth of 4.3% to $22.4 billion, with operational growth even higher at 6.6%. This indicates a robust demand for J&J's diverse product lines, especially in their Innovative Medicine and MedTech segments, which grew by 7.8% and 4.4%, respectively. However, the net earnings declined by 12.8% due to one-time special charges. Adjusted earnings per share (EPS), which account for these charges, rose by 10.2% to $2.82, demonstrating strong underlying performance.

For investors, the increase in full-year operational sales and EPS guidance is a positive signal, reflecting confidence in the integration of Shockwave Medical and the overall strategic direction. Yet, the decline in net earnings might be a cause for concern, as it indicates that one-time charges and possibly increasing costs could have a recurring impact. It's important to monitor if these are truly one-offs or an indicator of future financial health.

Market Research Analyst

Johnson & Johnson's pipeline progress and regulatory milestones are noteworthy. The company's mention of significant advancements in TREMFYA for inflammatory bowel disease and other subcutaneous filings, as well as the VARIPULSE platform, shows a strong focus on expanding its market share in innovative treatments. Investors should pay attention to upcoming regulatory approvals for these products, as successful approvals could result in significant market penetration and revenue growth.

The strategic acquisition of Shockwave Medical further supports J&J's commitment to expanding its MedTech capabilities, particularly in cardiovascular solutions. This is a strategic move, considering the aging global population and increasing prevalence of cardiovascular diseases. The integration and performance of these new acquisitions will be critical to watch in the coming quarters.

Healthcare Industry Expert

The healthcare sector is driven by innovation and Johnson & Johnson's updates on its product pipeline, especially in areas like oncology, immunology and neuroscience, position it well for future growth. Products like DARZALEX and STELARA have already shown strong sales, contributing significantly to the company's revenue. The mention of new filings for RYBREVANT and the strong performance of already launched products like ACUVUE OASYS MAX contact lenses, indicates a diversified and robust pipeline.

However, investors should consider the highly competitive nature of the pharmaceutical and MedTech industries. Regulatory delays, competitive products and market acceptance will all be key factors that could impact future performance. Thus, while the pipeline news is promising, cautious optimism is advised as these products progress through various stages of approval and market release.

• 2024 Second-Quarter reported sales growth of 4.3% to $22.4 Billion with operational growth of 6.6%* and adjusted operational growth of 6.5%*. Adjusted operational growth excluding COVID-19 Vaccine of 7.1%*
• 2024 Second-Quarter Earnings per share (EPS) of $1.93 decreasing by 5.9% due to one-time special charges and adjusted EPS of $2.82 increasing by 10.2%*
• Significant new product pipeline progress including TREMFYA IBD and subcutaneous filings, RYBREVANT subcutaneous filing, and VARIPULSE admIRE data release
• Company increases Full-Year 2024 operational sales⁵ guidance to reflect the acquisition of Shockwave Medical
• Company updates Full-Year 2024 adjusted operational EPS guidance to reflect improved performance; costs associated with recent strategic acquisitions more than offset the improvement

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2024. “Johnson & Johnson's second quarter performance reflects our relentless focus on advancing the next wave of medical innovation and resulted in strong sales and adjusted operational earnings per share growth,” said Joaquin Duato, Chairman and Chief Executive Officer. “With a robust pipeline, upcoming regulatory milestones for RYBREVANT and TREMFYA, the integration of Shockwave, and continued expansion of newly launched products, including ACUVUE OASYS MAX 1-Day contact lenses and our VARIPULSE platform, we have a strong foundation for near and long-term growth.”

Unless otherwise noted, the financial results and earnings guidance included below reflect the continuing operations of Johnson & Johnson.

Overall financial results

	Q2
($ in Millions, except EPS)	2024	2023	% Change
Reported Sales	$22,447	$21,519	4.3%
Net Earnings	$4,686	$5,376	-12.8%
EPS (diluted)	$1.93	$2.05	-5.9%
	Q2
Non-GAAP* ($ in Millions, except EPS)	2024	2023	% Change
Operational Sales1,2			6.6%
Adjusted Operational Sales1,3			6.5%
Adjusted Operational Sales ex. COVID-19 Vaccine1,3			7.1%
Adjusted Net Earnings1,4	$6,840	$6,730	1.6%
Adjusted EPS (diluted)1,4	$2.82	$2.56	10.2%

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
4		Excludes intangible amortization expense and special items
5		Excludes COVID-19 Vaccine
Note: values may have been rounded

Regional sales results

Q2				% Change
($ in Millions)	2024	2023	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$12,569	$11,657	7.8%	7.8	—	7.6
International	9,878	9,862	0.2	5.1	(4.9)	5.3
Worldwide	$22,447	$21,519	4.3%	6.6	(2.3)	6.5

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
Note: values may have been rounded

Segment sales results

Q2				% Change
($ in Millions)	2024	2023	Reported	Operational1,2	Currency	Adjusted Operational1,3
Innovative Medicine	$14,490	$13,731	5.5%	7.8	(2.3)	8.0
MedTech	7,957	7,788	2.2	4.4	(2.2)	4.0
Worldwide	$22,447	$21,519	4.3%	6.6	(2.3)	6.5

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
Note: values may have been rounded

Second Quarter 2024 segment commentary:

Operational sales* reflected below excludes the impact of translational currency.

Innovative Medicine

Innovative Medicine worldwide operational sales, excluding the COVID-19 Vaccine, grew 8.8%*. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), and Other Oncology in Oncology, TREMFYA (guselkumab) and STELARA (ustekinumab) in Immunology, and SPRAVATO (esketamine) in Neuroscience. Growth was partially offset by Other Neuroscience. Including the COVID-19 Vaccine, Innovative Medicine worldwide operational sales grew 7.8%*.

MedTech

MedTech worldwide operational sales grew 4.4%*, with acquisitions and divestitures positively impacting growth by 0.4%. Operational sales growth was driven primarily by electrophysiology products and Abiomed in Cardiovascular, previously referred to as Interventional Solutions, and wound closure products in General Surgery.

Full-year 2024 guidance:

Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses, and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

Johnson & Johnson is updating its 2024 guidance, including adjusted operational EPS guidance, to reflect improved performance and the impact for the recent acquisitions of Shockwave Medical, Proteologix, and NM26 Bispecific Antibody.

Non-GAAP*	2024
April 2024 Adjusted Operational EPS1,2	$10.68
Improved performance outlook	$0.05
July 2024 Adjusted Operational EPS1,2 pre-M&A	$10.73
M&A impact	($0.68)
July 2024 Adjusted Operational EPS1,2	$10.05

1		Non-GAAP financial measure; excludes the impact of translational currency
2		Non-GAAP financial measure; excludes intangible amortization expense and special items
Note: Adjusted operational EPS figures reflect midpoint of issued guidance

($ in Billions, except EPS)	July 2024	April 2024
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point	5.5% – 6.0% / 5.8%	5.5% – 6.0% / 5.8%
Operational Sales2,5/ Mid-point Change vs. Prior Year / Mid-point	$89.2B – $89.6B / $89.4B 6.1% – 6.6% / 6.4%	$88.7B – $89.1B / $88.9B 5.5% – 6.0% / 5.8%
Estimated Reported Sales3,5/ Mid-point Change vs. Prior Year / Mid-point	$88.0B – $88.4B / $88.2B 4.7% – 5.2% / 5.0%	$88.0B – $88.4B / $88.2B 4.7% – 5.2% / 5.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point Change vs. Prior Year / Mid-point	$10.00 – $10.10 / $10.05 0.8% – 1.8% / 1.3%	$10.60 – $10.75 / $10.68 6.9% – 8.4% / 7.7%
Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point	$9.97 – $10.07 / $10.02 0.5% – 1.5% / 1.0%	$10.57 – $10.72 / $10.65 6.6% – 8.1% / 7.4%

1		Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures
2		Non-GAAP financial measure; excludes the impact of translational currency
3		Calculated using Euro Average Rate: July 2024 = $1.08 and April 2024 = $1.08 (Illustrative purposes only)
4		Non-GAAP financial measure; excludes intangible amortization expense and special items
5		Excludes COVID-19 Vaccine
Note: percentages may have been rounded

Other modeling considerations will be provided on the webcast.

Notable announcements in the quarter:

The information contained in this section should be read together with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investor Relations section of the company’s website at News Releases, as well as Innovative Medicine News Center, MedTech News & Events, www.factsabouttalc.com, and www.LLTManagementInformation.com.

Regulatory	CHMP adopts positive opinion for BALVERSA (erdafitinib) for the treatment of adult patients with unresectable or metastatic urothelial carcinoma with susceptible FGFR3 genetic alterations	Press Release
	RYBREVANT (amivantamab) in combination with chemotherapy is the first therapy approved by the European Commission for the first-line treatment of patients with advanced non-small cell lung cancer with activating EGFR exon 20 insertion mutations	Press Release
	Johnson & Johnson submits application to U.S. FDA seeking approval of TREMFYA (guselkumab) for the treatment of moderately to severely active Crohn’s disease	Press Release
	Subcutaneous amivantamab Biologics License Application submitted to U.S. FDA for patients with EGFR-mutated non-small cell lung cancer	Press Release
	DePuy Synthes Receives 510(k) FDA Clearance of the VELYS Robotic-Assisted Solution for Use in Unicompartmental Knee Arthroplasty Procedures	Press Release
	Johnson & Johnson submits regulatory applications to European Medicines Agency for TREMFYA (guselkumab) for treatment of patients with ulcerative colitis and Crohn's disease	Press Release
	CARVYKTI (ciltacabtagene autoleucel; cilta-cel) is the first BCMA-targeted treatment approved by the European Commission for patients with relapsed and refractory multiple myeloma who have received at least one prior line of therapy	Press Release
Data Releases	CARVYKTI (ciltacabtagene autoleucel) achieved statistically significant and clinically meaningful improvement in overall survival in landmark CARTITUDE-4 study1	Press Release
	Nipocalimab pivotal Phase 3 trial demonstrates longest sustained disease control in FcRn class for broadest population of myasthenia gravis patients	Press Release
	TREMFYA (guselkumab) studies underscore its potential to be the only IL-23 inhibitor to offer both subcutaneous and intravenous induction	Press Release
	Johnson & Johnson showcases innovation and leadership in rheumatology at EULAR 2024 Congress	Press Release
	Johnson & Johnson pivotal study of seltorexant shows statistically significant and clinically meaningful improvement in depressive symptoms and sleep disturbance outcomes	Press Release
	Johnson & Johnson advances leadership in oncology innovation with more than 75 clinical study and real-world presentations at ASCO and EHA	Press Release
	TREMFYA (guselkumab) demonstrates superiority versus STELARA (ustekinumab) in Phase 3 Crohn’s disease program	Press Release
	TREMFYA (guselkumab) QUASAR Maintenance Study in UC met its primary endpoint and all major secondary endpoints, including highly statistically significant rates of endoscopic remission	Press Release
	Biosense Webster Presents Late-Breaking Data from admIRE Clinical Trial at the Heart Rhythm Society Annual Meeting	Press Release
	TAR-210 results show 90% recurrence-free survival and 90% complete response in patients with high-risk and intermediate-risk non–muscle-invasive bladder cancer, respectively	Press Release
	Johnson & Johnson Highlights Commitment to Transform Treatment of Retinal Diseases at ARVO 2024	Press Release
	Phase 2 data for ERLEADA (apalutamide) plus androgen deprivation therapy following radical prostatectomy in patients with high-risk localized prostate cancer show 100% biochemical free recurrence rate more than two years post-surgery	Press Release
	TAR-200 monotherapy shows greater than 80% complete response rate in patients with high-risk non–muscle-invasive bladder cancer	Press Release
Product Launch	Biosense Webster Launches New Version of CARTO 3 Electro-Anatomical Mapping System	Press Release
Other	Johnson & Johnson Strengthens Pipeline to Lead in Atopic Dermatitis With the Completion of the Acquisition of Yellow Jersey Therapeutics, Gaining Ownership of NM261	Press Release
	Johnson & Johnson Completes Acquisition of Proteologix, Inc.	Press Release
	Johnson & Johnson Completes Acquisition of Shockwave Medical	Press Release
	Johnson & Johnson to Obtain Rights to a Clinical-Stage Bispecific Antibody to Address Distinct Patient Needs in Atopic Dermatitis	Press Release
	Johnson & Johnson Announces Plan by its Subsidiary, LLT Management LLC, to Resolve All Current and Future Ovarian Cancer Talc Claims Through a Consensual “Prepackaged” Reorganization	Press Release
1 Subsequent to the quarter

Webcast information:

Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investor Relations section of the company's website at events-and-presentations.

About Johnson & Johnson:

At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at www.jnj.com.

Non-GAAP financial measures:

* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at quarterly results.

Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, an Innovative Medicine pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investor Relations section of the company's website at quarterly results.

Note to investors concerning forward-looking statements:

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; and the Company’s ability to realize the anticipated benefits from the separation of Kenvue Inc. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	SECOND QUARTER													SIX MONTHS
						Percent Change													Percent Change
	2024			2023		Total			Operations		Currency			2024			2023		Total			Operations		Currency
Sales to customers by
segment of business
Innovative Medicine (1)
U.S.	$	8,510		7,818		8.9		%	8.9		-			$	16,122		14,841		8.6		%	8.6		-
International		5,980		5,913		1.1			6.4		(5.3	)			11,930		12,303		(3.0	)		1.0		(4.0	)
		14,490		13,731		5.5			7.8		(2.3	)			28,052		27,144		3.3			5.2		(1.9	)
Innovative Medicine excluding COVID-19 Vaccine (1)
U.S.		8,510		7,818		8.9			8.9		-				16,122		14,841		8.6			8.6		-
International		5,808		5,628		3.2			8.7		(5.5	)			11,733		11,271		4.1			8.5		(4.4	)
		14,318		13,446		6.5			8.8		(2.3	)			27,855		26,112		6.7			8.6		(1.9	)
MedTech
U.S.		4,059		3,839		5.7			5.7		-				8,067		7,598		6.2			6.2		-
International		3,898		3,949		(1.3	)		3.2		(4.5	)			7,711		7,671		0.5			4.6		(4.1	)
		7,957		7,788		2.2			4.4		(2.2	)			15,778		15,269		3.3			5.4		(2.1	)
U.S.		12,569		11,657		7.8			7.8		-				24,189		22,439		7.8			7.8		-
International		9,878		9,862		0.2			5.1		(4.9	)			19,641		19,974		(1.7	)		2.4		(4.1	)
Worldwide		22,447		21,519		4.3			6.6		(2.3	)			43,830		42,413		3.3			5.2		(1.9	)
U.S.		12,569		11,657		7.8			7.8		-				24,189		22,439		7.8			7.8		-
International		9,706		9,577		1.3			6.4		(5.1	)			19,444		18,942		2.7			6.9		(4.2	)
Worldwide excluding COVID-19 Vaccine (1)	$	22,275		21,234		4.9		%	7.2		(2.3	)		$	43,633		41,381		5.4		%	7.4		(2.0	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales information schedules

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	SECOND QUARTER													SIX MONTHS
						Percent Change													Percent Change
	2024			2023		Total			Operations		Currency			2024			2023		Total			Operations			Currency
Sales to customers by
geographic area
U.S.	$	12,569		11,657		7.8		%	7.8		-			$	24,189		22,439		7.8		%	7.8			-
Europe		5,214		5,131		1.6			3.4		(1.8	)			10,377		10,721		(3.2	)		(2.4	)		(0.8	)
Western Hemisphere excluding U.S.		1,212		1,136		6.7			22.6		(15.9	)			2,406		2,212		8.8			21.9			(13.1	)
Asia-Pacific, Africa		3,452		3,595		(4.0	)		1.9		(5.9	)			6,858		7,041		(2.6	)		3.4			(6.0	)
International		9,878		9,862		0.2			5.1		(4.9	)			19,641		19,974		(1.7	)		2.4			(4.1	)
Worldwide	$	22,447		21,519		4.3		%	6.6		(2.3	)		$	43,830		42,413		3.3		%	5.2			(1.9	)
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	SECOND QUARTER													SIX MONTHS
						Percent Change													Percent Change
	2024			2023		Total			Operations		Currency			2024			2023		Total			Operations			Currency
Sales to customers by
geographic area (ex. COVID-19 Vaccine)
U.S.*	$	12,569		11,657		7.8		%	7.8		-			$	24,189		22,439		7.8		%	7.8			-
Europe(1)		5,042		4,846		4.1			6.0		(1.9	)			10,180		9,689		5.1			6.0			(0.9	)
Western Hemisphere excluding U.S.*		1,212		1,136		6.7			22.6		(15.9	)			2,406		2,212		8.8			21.9			(13.1	)
Asia-Pacific, Africa*		3,452		3,595		(4.0	)		1.9		(5.9	)			6,858		7,041		(2.6	)		3.4			(6.0	)
International		9,706		9,577		1.3			6.4		(5.1	)			19,444		18,942		2.7			6.9			(4.2	)
Worldwide	$	22,275		21,234		4.9		%	7.2		(2.3	)		$	43,633		41,381		5.4		%	7.4			(2.0	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales information schedules
*No COVID-19 Vaccine sales

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	SECOND QUARTER
	2024							2023							Percent
					Percent							Percent			Increase
	Amount				to Sales			Amount				to Sales			(Decrease)
Sales to customers	$	22,447			100.0			$	21,519			100.0			4.3
Cost of products sold		6,869			30.6				6,462			30.0			6.3
Gross Profit		15,578			69.4				15,057			70.0			3.5
Selling, marketing and administrative expenses		5,681			25.3				5,396			25.1			5.3
Research and development expense		3,440			15.3				3,703			17.2			(7.1	)
In-process research and development impairments		194			0.9				-			0.0
Interest (income) expense, net		(125	)		(0.6	)			(109	)		(0.5	)
Other (income) expense, net		653			2.9				(384	)		(1.8	)
Restructuring		(13	)		0.0				145			0.7
Earnings before provision for taxes on income		5,748			25.6				6,306			29.3			(8.8	)
Provision for taxes on income		1,062			4.7				930			4.3			14.2
Net earnings from Continuing Operations	$	4,686			20.9			$	5,376			25.0			(12.8	)
Net earnings/(loss) from Discontinued Operations, net of tax		-							(232	)
Net earnings	$	4,686						$	5,144
Net earnings per share (Diluted) from Continuing Operations	$	1.93						$	2.05						(5.9	)
Net earnings/(loss) per share (Diluted) from Discontinued Operations	$	-						$	(0.09	)
Average shares outstanding (Diluted)		2,422.0							2,625.7
Effective tax rate from Continuing Operations		18.5		%					14.7		%
Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1)
Earnings before provision for taxes on income from Continuing Operations	$	8,404			37.4			$	8,005			37.2			5.0
Net earnings from Continuing Operations	$	6,840			30.5			$	6,730			31.3			1.6
Net earnings per share (Diluted) from Continuing Operations	$	2.82						$	2.56						10.2
Effective tax rate from Continuing Operations		18.6		%					15.9		%
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	SIX MONTHS
	2024							2023							Percent
					Percent							Percent			Increase
	Amount				to Sales			Amount				to Sales			(Decrease)
Sales to customers	$	43,830			100.0			$	42,413			100.0			3.3
Cost of products sold		13,380			30.5				13,149			31.0			1.8
Gross Profit		30,450			69.5				29,264			69.0			4.1
Selling, marketing and administrative expenses		10,938			25.0				10,302			24.3			6.2
Research and development expense		6,982			16.0				7,158			16.9			(2.5	)
In-process research and development impairments		194			0.4				49			0.1
Interest (income) expense, net		(334	)		(0.8	)			(95	)		(0.2	)
Other (income) expense, net		3,057			7.0				6,556			15.5
Restructuring		151			0.3				275			0.6
Earnings before provision for taxes on income		9,462			21.6				5,019			11.8			88.5
Provision for taxes on income		1,521			3.5				134			0.3			1,035.1
Net earnings from Continuing Operations	$	7,941			18.1			$	4,885			11.5			62.6
Net earnings from Discontinued Operations, net of tax		-							191
Net earnings	$	7,941						$	5,076
Net earnings per share (Diluted) from Continuing Operations	$	3.27						$	1.86						75.8
Net earnings per share (Diluted) from Discontinued Operations	$	-						$	0.07
Average shares outstanding (Diluted)		2,428.5							2,630.7
Effective tax rate from Continuing Operations		16.1		%					2.7		%
Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1)
Earnings before provision for taxes on income from Continuing Operations	$	16,281			37.1			$	15,541			36.6			4.8
Net earnings from Continuing Operations	$	13,420			30.6			$	13,070			30.8			2.7
Net earnings per share (Diluted) from Continuing Operations	$	5.53						$	4.97						11.3
Effective tax rate from Continuing Operations		17.6		%					15.9		%
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
		Second Quarter						Six Months Ended
(Dollars in Millions Except Per Share Data)		2024			2023			2024			2023
Net Earnings from Continuing Operations, after tax- as reported		$4,686			$5,376			$7,941			$4,885
Pre-tax Adjustments
Litigation related		352			137			3,078			7,037
Intangible Asset Amortization expense		1,106			1,130			2,184			2,252
COVID-19 Vaccine related costs 1		64			165			73			609
Restructuring related 2		(11	)		145			160			275
Medical Device Regulation 3		68			85			119			149
Acquisition, integration and divestiture related		452			38			600			80
(Gains)/losses on securities		431			(1	)		411			71
IPR&D impairments		194			-			194			49
Tax Adjustments
Tax impact on special item adjustments 4		(437	)		(307	)		(1,293	)		(2,287	)
Tax legislation and other tax related		(65	)		(38	)		(47	)		(50	)
Adjusted Net Earnings from Continuing Operations, after tax		$6,840			$6,730			$13,420			$13,070
Average shares outstanding (Diluted)		2,422.0			2,625.7			2,428.5			2,630.7
Adjusted net earnings per share from Continuing Operations (Diluted)		$2.82			$2.56			$5.53			$4.97
Operational adjusted net earnings per share from Continuing Operations (Diluted)		$2.82						$5.54

		Notes:
1		COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments.
2		In fiscal 2023, the company completed a prioritization of its research and development (R&D) investment within the Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring income of $63 million in the fiscal second quarter of 2024 ($81 million expense Q2 2024 YTD) and $145 million expense in the fiscal second quarter of 2023 ($275 million Q2 2023 YTD) include asset divestments and the termination of partnered and non-partnered program costs and asset impairments.
		In fiscal 2023, the company initiated a restructuring program of its Orthopaedics franchise within the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The restructuring expenses of $52 million in the fiscal second quarter of 2024 ($79 million Q2 2024 YTD) includes costs related to market and product exits.
3		European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which will be completed during 2024.
4		The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
SECOND QUARTER 2024 ACTUAL vs. 2023 ACTUAL
Segments
		Innovative Medicine			MedTech			Total
WW As Reported		5.5	%		2.2	%		4.3	%
U.S.		8.9	%		5.7	%		7.8	%
International		1.1	%		(1.3	)%		0.2	%
WW Currency		(2.3	)		(2.2	)		(2.3	)
U.S.		-			-			-
International		(5.3	)		(4.5	)		(4.9	)
WW Operational		7.8	%		4.4	%		6.6	%
U.S.		8.9	%		5.7	%		7.8	%
International		6.4	%		3.2	%		5.1	%
Shockwave					(1.0	)		(0.4	)
U.S.					(2.0	)		(0.7	)
International					0.0			0.0
All Other Acquisitions and Divestitures (A&D)		0.2			0.6			0.3
U.S.		0.1			1.0			0.5
International		0.2			0.1			0.2
WW Adjusted Operational Ex A&D		8.0	%		4.0	%		6.5	%
U.S.		9.0	%		4.7	%		7.6	%
International		6.6	%		3.3	%		5.3	%
COVID-19 Vaccine		1.0						0.6
U.S.		0.0						0.0
International		2.3						1.3
WW Adjusted Operational Ex A&D & COVID-19 Vaccine		9.0	%		4.0	%		7.1	%
U.S.		9.0	%		4.7	%		7.6	%
International		8.9	%		3.3	%		6.6	%
Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
SIX MONTHS 2024 ACTUAL vs. 2023 ACTUAL
Segments
		Innovative Medicine			MedTech			Total
WW As Reported		3.3	%		3.3	%		3.3	%
U.S.		8.6	%		6.2	%		7.8	%
International		(3.0	)%		0.5	%		(1.7	)%
WW Currency		(1.9	)		(2.1	)		(1.9	)
U.S.		-			-			-
International		(4.0	)		(4.1	)		(4.1	)
WW Operational		5.2	%		5.4	%		5.2	%
U.S.		8.6	%		6.2	%		7.8	%
International		1.0	%		4.6	%		2.4	%
Shockwave					(0.5	)		(0.2	)
U.S.					(1.0	)		(0.3	)
International					0.0			0.0
All Other Acquisitions and Divestitures (A&D)		0.1			0.3			0.2
U.S.		0.1			0.6			0.3
International		0.1			0.1			0.1
WW Adjusted Operational Ex A&D		5.3	%		5.2	%		5.2	%
U.S.		8.7	%		5.8	%		7.8	%
International		1.1	%		4.7	%		2.5	%
COVID-19 Vaccine		3.4						2.2
U.S.		0.0						0.0
International		7.5						4.5
WW Adjusted Operational Ex A&D & COVID-19 Vaccine		8.7	%		5.2	%		7.4	%
U.S.		8.7	%		5.8	%		7.8	%
International		8.6	%		4.7	%		7.0	%
Note: Percentages are based on actual, non-rounded figures and may not sum

	REPORTED SALES vs. PRIOR PERIOD ($MM)													REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER													SIX MONTHS
						% Change												% Change
INNOVATIVE MEDICINE SEGMENT (2)	2024			2023		Reported		Operational (1)		Currency				2024			2023	Reported		Operational (1)		Currency
IMMUNOLOGY
US	$	2,978			2,865	4.0	%	4.0	%	-				$	5,431		5,313	2.2	%	2.2	%	-
Intl		1,744			1,631	6.9	%	13.2	%	-6.3	%				3,538		3,295	7.4	%	12.1	%	-4.7	%
WW		4,722			4,496	5.0	%	7.3	%	-2.3	%				8,969		8,608	4.2	%	6.0	%	-1.8	%
REMICADE
US		231			277	-16.7	%	-16.7	%	-					497		553	-10.1	%	-10.1	%	-
US Exports (3)		35			33	7.9	%	7.9	%	-					62		74	-15.4	%	-15.4	%	-
Intl		127			152	-16.6	%	-12.0	%	-4.6	%				268		322	-16.9	%	-13.2	%	-3.7	%
WW		393			462	-14.9	%	-13.4	%	-1.5	%				827		949	-12.9	%	-11.6	%	-1.3	%
SIMPONI / SIMPONI ARIA
US		267			285	-6.3	%	-6.3	%	-					521		556	-6.2	%	-6.2	%	-
Intl		270			244	10.9	%	22.8	%	-11.9	%				569		510	11.7	%	21.3	%	-9.6	%
WW		537			529	1.6	%	7.1	%	-5.5	%				1,091		1,066	2.3	%	7.0	%	-4.7	%
STELARA
US		1,855			1,817	2.1	%	2.1	%	-					3,251		3,268	-0.5	%	-0.5	%	-
Intl		1,030			981	5.0	%	10.1	%	-5.1	%				2,085		1,974	5.6	%	9.1	%	-3.5	%
WW		2,885			2,797	3.1	%	4.9	%	-1.8	%				5,336		5,241	1.8	%	3.1	%	-1.3	%
TREMFYA
US		589			450	30.8	%	30.8	%	-					1,098		856	28.2	%	28.2	%	-
Intl		317			255	23.9	%	30.5	%	-6.6	%				616		489	25.8	%	31.0	%	-5.2	%
WW		906			706	28.3	%	30.7	%	-2.4	%				1,714		1,346	27.3	%	29.2	%	-1.9	%
OTHER IMMUNOLOGY
US		2			4	-51.5	%	-51.5	%	-					2		7	-75.4	%	-75.4	%	-
Intl		0			0	-		-		-					0		0	-		-		-
WW		2			4	-51.5	%	-51.5	%	-					2		7	-75.4	%	-75.4	%	-
INFECTIOUS DISEASES
US		334			395	-15.4	%	-15.4	%	-					658		787	-16.4	%	-16.4	%	-
Intl		631			727	-13.1	%	-11.6	%	-1.5	%				1,128		1,920	-41.3	%	-40.7	%	-0.6	%
WW		965			1,121	-13.9	%	-12.9	%	-1.0	%				1,786		2,707	-34.0	%	-33.7	%	-0.3	%
COVID-19 VACCINE
US		0			0	-		-		-					0		0	-		-		-
Intl		172			285	-39.7	%	-39.7	%	0.0	%				197		1,032	-80.9	%	-80.9	%	0.0	%
WW		172			285	-39.7	%	-39.7	%	0.0	%				197		1,032	-80.9	%	-80.9	%	0.0	%
EDURANT / rilpivirine
US		8			8	-2.8	%	-2.8	%	-					16		17	-7.0	%	-7.0	%	-
Intl		288			258	11.5	%	13.0	%	-1.5	%				603		529	14.1	%	14.4	%	-0.3	%
WW		297			266	11.0	%	12.5	%	-1.5	%				620		546	13.4	%	13.7	%	-0.3	%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		321			382	-16.0	%	-16.0	%	-					635		760	-16.5	%	-16.5	%	-
Intl		117			109	6.5	%	9.9	%	-3.4	%				221		208	6.0	%	7.8	%	-1.8	%
WW		438			491	-11.0	%	-10.3	%	-0.7	%				856		968	-11.6	%	-11.2	%	-0.4	%
OTHER INFECTIOUS DISEASES
US		5			5	18.5	%	18.5	%	-					7		10	-29.4	%	-29.4	%	-
Intl		55			74	-25.6	%	-21.1	%	-4.5	%				107		151	-29.3	%	-26.0	%	-3.3	%
WW		61			79	-23.1	%	-18.8	%	-4.3	%				114		161	-29.3	%	-26.2	%	-3.1	%
	REPORTED SALES vs. PRIOR PERIOD ($MM)													REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER													SIX MONTHS
						% Change												% Change
	2024			2023		Reported		Operational (1)		Currency				2024			2023	Reported		Operational (1)		Currency
NEUROSCIENCE
US		1,102			1,029	7.1	%	7.1	%	-					2,156		2,007	7.4	%	7.4	%	-
Intl		679			764	-11.1	%	-6.0	%	-5.1	%				1,428		1,590	-10.2	%	-5.2	%	-5.0	%
WW		1,782			1,793	-0.6	%	1.5	%	-2.1	%				3,585		3,597	-0.3	%	1.9	%	-2.2	%
CONCERTA / Methylphenidate
US		34			64	-47.7	%	-47.7	%	-					75		134	-44.3	%	-44.3	%	-
Intl		129			143	-9.8	%	-4.6	%	-5.2	%				265		279	-5.1	%	-0.2	%	-4.9	%
WW		163			208	-21.5	%	-17.9	%	-3.6	%				340		414	-17.8	%	-14.5	%	-3.3	%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		784			721	8.8	%	8.8	%	-					1,549		1,434	8.0	%	8.0	%	-
Intl		269			310	-13.1	%	-9.0	%	-4.1	%				561		641	-12.4	%	-8.8	%	-3.6	%
WW		1,054			1,031	2.2	%	3.5	%	-1.3	%				2,110		2,075	1.7	%	2.8	%	-1.1	%
SPRAVATO
US		226			144	57.9	%	57.9	%	-					417		255	63.9	%	63.9	%	-
Intl		44			25	73.5	%	77.4	%	-3.9	%				78		45	74.6	%	76.3	%	-1.7	%
WW		271			169	60.2	%	60.8	%	-0.6	%				496		300	65.5	%	65.7	%	-0.2	%
OTHER NEUROSCIENCE
US		57			100	-42.5	%	-42.5	%	-					115		184	-37.3	%	-37.3	%	-
Intl		237			286	-17.0	%	-10.8	%	-6.2	%				524		625	-16.2	%	-9.5	%	-6.7	%
WW		294			386	-23.7	%	-19.1	%	-4.6	%				639		809	-21.0	%	-15.8	%	-5.2	%
ONCOLOGY
US		2,636			2,069	27.4	%	27.4	%	-					5,019		3,958	26.8	%	26.8	%	-
Intl		2,455			2,329	5.4	%	10.8	%	-5.4	%				4,885		4,552	7.3	%	11.7	%	-4.4	%
WW		5,090			4,398	15.7	%	18.6	%	-2.9	%				9,904		8,510	16.4	%	18.7	%	-2.3	%
CARVYKTI
US		167			114	46.5	%	46.5	%	-					307		184	66.8	%	66.8	%	-
Intl		20			3	*		*		*					36		5	*		*		*
WW		186			117	59.8	%	59.9	%	-0.1	%				343		189	81.5	%	81.5	%	0.0	%
DARZALEX
US		1,641			1,322	24.2	%	24.2	%	-					3,105		2,513	23.6	%	23.6	%	-
Intl		1,237			1,110	11.5	%	17.9	%	-6.4	%				2,465		2,182	12.9	%	18.4	%	-5.5	%
WW		2,878			2,431	18.4	%	21.3	%	-2.9	%				5,570		4,695	18.6	%	21.2	%	-2.6	%
ERLEADA
US		318			241	32.2	%	32.2	%	-					603		490	23.0	%	23.0	%	-
Intl		418			326	28.0	%	32.8	%	-4.8	%				822		619	32.8	%	36.5	%	-3.7	%
WW		736			567	29.8	%	32.5	%	-2.7	%				1,425		1,109	28.4	%	30.5	%	-2.1	%
IMBRUVICA
US		246			262	-6.4	%	-6.4	%	-					511		532	-3.9	%	-3.9	%	-
Intl		525			579	-9.4	%	-5.6	%	-3.8	%				1,043		1,136	-8.3	%	-5.6	%	-2.7	%
WW		770			841	-8.5	%	-5.9	%	-2.6	%				1,554		1,668	-6.9	%	-5.1	%	-1.8	%
TECVAYLI
US		104			82	27.5	%	27.5	%	-					205		139	47.7	%	47.7	%	-
Intl		30			12	*		*		*					63		18	*		*		*
WW		135			94	42.9	%	43.5	%	-0.6	%				268		157	70.2	%	70.2	%	0.0	%
ZYTIGA / abiraterone acetate
US		11			9	21.6	%	21.6	%	-					20		25	-19.7	%	-19.7	%	-
Intl		154			218	-29.6	%	-23.6	%	-6.0	%				326		447	-27.2	%	-22.1	%	-5.1	%
WW		165			227	-27.7	%	-21.9	%	-5.8	%				346		472	-26.8	%	-22.0	%	-4.8	%
OTHER ONCOLOGY
US		148			40	*		*		-					267		75	*		*		-
Intl		71			80	-10.4	%	-6.0	%	-4.4	%				131		144	-8.5	%	-5.8	%	-2.7	%
WW		221			120	84.2	%	87.2	%	-3.0	%				399		219	82.4	%	84.2	%	-1.8	%
	REPORTED SALES vs. PRIOR PERIOD ($MM)												REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER												SIX MONTHS
						% Change												% Change
	2024			2023		Reported		Operational (1)		Currency				2024			2023	Reported		Operational (1)		Currency
PULMONARY HYPERTENSION
US		743			684	8.7	%	8.7	%	-					1,509		1,284	17.5	%	17.5	%	-
Intl		296			289	2.6	%	11.2	%	-8.6	%				579		561	3.4	%	11.0	%	-7.6	%
WW		1,039			972	6.9	%	9.4	%	-2.5	%				2,088		1,844	13.2	%	15.5	%	-2.3	%
OPSUMIT
US		373			328	13.7	%	13.7	%	-					729		601	21.3	%	21.3	%	-
Intl		170			179	-5.0	%	0.5	%	-5.5	%				339		346	-2.2	%	2.5	%	-4.7	%
WW		544			507	7.1	%	9.1	%	-2.0	%				1,068		947	12.7	%	14.4	%	-1.7	%
UPTRAVI
US		349			338	3.3	%	3.3	%	-					741		642	15.5	%	15.5	%	-
Intl		76			61	24.6	%	34.4	%	-9.8	%				152		119	27.6	%	36.4	%	-8.8	%
WW		426			399	6.6	%	8.1	%	-1.5	%				894		761	17.4	%	18.7	%	-1.3	%
OTHER PULMONARY HYPERTENSION
US		20			18	18.8	%	18.8	%	-					38		41	-6.1	%	-6.1	%	-
Intl		50			48	3.1	%	21.0	%	-17.9	%				89		95	-6.7	%	10.2	%	-16.9	%
WW		71			66	7.2	%	20.4	%	-13.2	%				127		136	-6.5	%	5.3	%	-11.8	%
CARDIOVASCULAR / METABOLISM / OTHER
US		717			776	-7.7	%	-7.7	%	-					1,348		1,491	-9.6	%	-9.6	%	-
Intl		176			174	0.6	%	4.0	%	-3.4	%				373		386	-3.6	%	-1.9	%	-1.7	%
WW		892			950	-6.2	%	-5.5	%	-0.7	%				1,721		1,877	-8.3	%	-8.0	%	-0.3	%
XARELTO
US		587			637	-7.9	%	-7.9	%	-					1,105		1,215	-9.1	%	-9.1	%	-
Intl		-			-	-		-		-					-		-	-		-		-
WW		587			637	-7.9	%	-7.9	%	-					1,105		1,215	-9.1	%	-9.1	%	-
OTHER
US		129			138	-6.4	%	-6.4	%	-					243		275	-11.8	%	-11.8	%	-
Intl		176			174	0.6	%	4.0	%	-3.4	%				373		386	-3.6	%	-1.9	%	-1.7	%
WW		305			313	-2.5	%	-0.6	%	-1.9	%				616		662	-7.0	%	-6.0	%	-1.0	%
TOTAL INNOVATIVE MEDICINE
US		8,510			7,818	8.9	%	8.9	%	-					16,122		14,841	8.6	%	8.6	%	-
Intl		5,980			5,913	1.1	%	6.4	%	-5.3	%				11,930		12,303	-3.0	%	1.0	%	-4.0	%
WW	$	14,490			13,731	5.5	%	7.8	%	-2.3	%			$	28,052		27,144	3.3	%	5.2	%	-1.9	%
See footnotes at end of schedule
	REPORTED SALES vs. PRIOR PERIOD ($MM)													REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER												SIX MONTHS
						% Change												% Change
MEDTECH SEGMENT (2)	2024			2023		Reported		Operational (1)		Currency				2024			2023	Reported		Operational (1)		Currency
CARDIOVASCULAR (4)
US	$	1,119			908	23.3	%	23.3	%	-				$	2,144		1,771	21.1	%	21.1	%	-
Intl		753			712	5.7	%	11.2	%	-5.5	%				1,534		1,352	13.4	%	18.9	%	-5.5	%
WW		1,873			1,620	15.6	%	18.0	%	-2.4	%				3,679		3,123	17.8	%	20.2	%	-2.4	%
ELECTROPHYSIOLOGY
US		705			609	15.7	%	15.7	%	-					1,397		1,180	18.4	%	18.4	%	-
Intl		618			587	5.4	%	11.1	%	-5.7	%				1,270		1,109	14.6	%	20.4	%	-5.8	%
WW		1,323			1,196	10.6	%	13.4	%	-2.8	%				2,667		2,288	16.5	%	19.4	%	-2.9	%
ABIOMED
US		309			272	13.2	%	13.2	%	-					612		536	14.1	%	14.1	%	-
Intl		72			59	20.7	%	25.3	%	-4.6	%				139		119	16.5	%	20.0	%	-3.5	%
WW		379			331	14.5	%	15.4	%	-0.9	%				750		655	14.5	%	15.2	%	-0.7	%
SHOCKWAVE (5)
US		77			-	*		*		-					77		-	*		*		-
Intl		0			-	-		-		-					0		-	-		-		-
WW		77			-	*		*		-					77		-	*		*		-
OTHER CARDIOVASCULAR (4)
US		29			27	12.5	%	12.5	%	-					59		55	7.7	%	7.7	%	-
Intl		64			67	-4.5	%	-1.0	%	-3.5	%				126		125	0.8	%	4.8	%	-4.0	%
WW		93			93	0.3	%	2.8	%	-2.5	%				185		180	2.9	%	5.7	%	-2.8	%
ORTHOPAEDICS
US		1,422			1,388	2.5	%	2.5	%	-					2,870		2,751	4.3	%	4.3	%	-
Intl		890			878	1.4	%	4.5	%	-3.1	%				1,782		1,759	1.3	%	3.6	%	-2.3	%
WW		2,312			2,265	2.1	%	3.3	%	-1.2	%				4,652		4,510	3.2	%	4.0	%	-0.8	%
HIPS
US		265			250	5.8	%	5.8	%	-					535		491	8.9	%	8.9	%	-
Intl		152			147	3.4	%	6.8	%	-3.4	%				304		296	2.6	%	5.0	%	-2.4	%
WW		417			397	4.9	%	6.2	%	-1.3	%				839		787	6.5	%	7.4	%	-0.9	%
KNEES
US		230			221	4.2	%	4.2	%	-					472		447	5.5	%	5.5	%	-
Intl		163			142	14.9	%	17.7	%	-2.8	%				323		284	13.6	%	15.4	%	-1.8	%
WW		394			363	8.4	%	9.5	%	-1.1	%				795		731	8.7	%	9.4	%	-0.7	%
TRAUMA
US		498			483	3.0	%	3.0	%	-					1,002		974	2.9	%	2.9	%	-
Intl		260			255	2.4	%	5.5	%	-3.1	%				521		522	0.0	%	2.1	%	-2.1	%
WW		759			739	2.8	%	3.8	%	-1.0	%				1,524		1,496	1.9	%	2.6	%	-0.7	%
SPINE, SPORTS & OTHER
US		430			433	-0.8	%	-0.8	%	-					862		839	2.7	%	2.7	%	-
Intl		314			334	-6.1	%	-2.9	%	-3.2	%				634		657	-3.5	%	-1.0	%	-2.5	%
WW		743			766	-3.1	%	-1.7	%	-1.4	%				1,495		1,495	0.0	%	1.1	%	-1.1	%
	REPORTED SALES vs. PRIOR PERIOD ($MM)												REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER												SIX MONTHS
						% Change												% Change
	2024			2023		Reported		Operational (1)		Currency				2024			2023	Reported		Operational (1)		Currency
SURGERY
US		995			1,015	-2.0	%	-2.0	%	-					1,982		1,990	-0.4	%	-0.4	%	-
Intl		1,493			1,580	-5.5	%	-0.7	%	-4.8	%				2,922		3,039	-3.8	%	0.7	%	-4.5	%
WW		2,488			2,594	-4.1	%	-1.2	%	-2.9	%				4,904		5,028	-2.5	%	0.3	%	-2.8	%
ADVANCED
US		466			466	0.1	%	0.1	%	-					912		910	0.2	%	0.2	%	-
Intl		675			757	-10.8	%	-6.4	%	-4.4	%				1,316		1,430	-8.0	%	-3.7	%	-4.3	%
WW		1,141			1,222	-6.7	%	-3.9	%	-2.8	%				2,228		2,340	-4.8	%	-2.2	%	-2.6	%
GENERAL
US		528			548	-3.7	%	-3.7	%	-					1,070		1,079	-0.9	%	-0.9	%	-
Intl		818			823	-0.7	%	4.5	%	-5.2	%				1,606		1,608	-0.2	%	4.7	%	-4.9	%
WW		1,346			1,372	-1.9	%	1.2	%	-3.1	%				2,676		2,688	-0.5	%	2.4	%	-2.9	%
VISION
US		523			529	-1.2	%	-1.2	%	-					1,070		1,087	-1.5	%	-1.5	%	-
Intl		763			778	-2.0	%	2.2	%	-4.2	%				1,473		1,521	-3.2	%	0.6	%	-3.8	%
WW		1,285			1,308	-1.7	%	0.8	%	-2.5	%				2,543		2,608	-2.5	%	-0.3	%	-2.2	%
CONTACT LENSES / OTHER
US		409			409	0.2	%	0.2	%	-					847		853	-0.6	%	-0.6	%	-
Intl		509			530	-4.0	%	1.2	%	-5.2	%				981		1,039	-5.6	%	-0.9	%	-4.7	%
WW		918			939	-2.2	%	0.7	%	-2.9	%				1,828		1,892	-3.4	%	-0.8	%	-2.6	%
SURGICAL
US		113			120	-5.8	%	-5.8	%	-					223		234	-4.8	%	-4.8	%	-
Intl		254			249	2.1	%	4.5	%	-2.4	%				492		482	2.1	%	4.0	%	-1.9	%
WW		367			369	-0.5	%	1.2	%	-1.7	%				715		716	-0.1	%	1.1	%	-1.2	%
TOTAL MEDTECH
US		4,059			3,839	5.7	%	5.7	%	-					8,067		7,598	6.2	%	6.2	%	-
Intl		3,898			3,949	-1.3	%	3.2	%	-4.5	%				7,711		7,671	0.5	%	4.6	%	-4.1	%
WW	$	7,957		$	7,788	2.2	%	4.4	%	-2.2	%			$	15,778		15,269	3.3	%	5.4	%	-2.1	%

Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and,

therefore, may not recalculate precisely

* Percentage greater than 100% or not meaningful

(1) Operational growth excludes the effect of translational currency

(2) Unaudited

(3) Reported as U.S. sales

(4) Previously referred to as Interventional Solutions

(5) Acquired on May 31, 2024

Supplemental Sales Information (Unaudited)
(Dollars in Millions)
			SECOND QUARTER															SIX MONTHS
									Percent Change																Percent Change
			2024				2023		Total			Operations			Currency				2024				2023		Total			Operations			Currency
	Innovative Medicine
	U.S.		$	8,510			7,818		8.9		%	8.9			-				$	16,122			14,841		8.6		%	8.6			-
	International			5,980			5,913		1.1			6.4			(5.3	)				11,930			12,303		(3.0	)		1.0			(4.0	)
	Worldwide			14,490			13,731		5.5			7.8			(2.3	)				28,052			27,144		3.3			5.2			(1.9	)
	COVID-19 Vaccine
	U.S.			-			-		-			-			-					-			-		-			-			-
	International			172			285		(39.7	)		(39.7	)		0.0					197			1,032		(80.9	)		(80.9	)		0.0
	Worldwide			172			285		(39.7	)		(39.7	)		0.0					197			1,032		(80.9	)		(80.9	)		0.0
	Innovative Medicine excluding COVID-19 Vaccine
	U.S.			8,510			7,818		8.9			8.9			-					16,122			14,841		8.6			8.6			-
	International			5,808			5,628		3.2			8.7			(5.5	)				11,733			11,271		4.1			8.5			(4.4	)
	Worldwide			14,318			13,446		6.5			8.8			(2.3	)				27,855			26,112		6.7			8.6			(1.9	)
	Worldwide
	U.S.			12,569			11,657		7.8			7.8			-					24,189			22,439		7.8			7.8			-
	International			9,878			9,862		0.2			5.1			(4.9	)				19,641			19,974		(1.7	)		2.4			(4.1	)
	Worldwide			22,447			21,519		4.3			6.6			(2.3	)				43,830			42,413		3.3			5.2			(1.9	)
	COVID-19 Vaccine
	U.S.			-			-		-			-			-					-			-		-			-			-
	International			172			285		(39.7	)		(39.7	)		0.0					197			1,032		(80.9	)		(80.9	)		0.0
	Worldwide			172			285		(39.7	)		(39.7	)		0.0					197			1,032		(80.9	)		(80.9	)		0.0
	Worldwide
	U.S.			12,569			11,657		7.8			7.8			-					24,189			22,439		7.8			7.8			-
	International			9,706			9,577		1.3			6.4			(5.1	)				19,444			18,942		2.7			6.9			(4.2	)
	Worldwide excluding COVID-19 Vaccine		$	22,275			21,234		4.9		%	7.2			(2.3	)			$	43,633			41,381		5.4		%	7.4			(2.0	)
	Europe		$	5,214			5,131		1.6		%	3.4			(1.8	)			$	10,377			10,721		(3.2	)	%	(2.4	)		(0.8	)
	Europe COVID-19 Vaccine Sales			172			285		(39.7	)		(39.7	)		0.0					197			1,032		(80.9	)		(80.9	)		0.0
	Europe excluding COVID-19 Vaccine Sales		$	5,042			4,846		4.1		%	6.0			(1.9	)			$	10,180			9,689		5.1		%	6.0			(0.9	)

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 QTD - Income Before Tax and Research & Development Expense by Segment
Dollars in Millions
			Innovative Medicine						MedTech						Unallocated							Worldwide Total
			2024			2023			2024			2023			2024			2023				2024			2023
Reported Income Before Tax by Segment From Continuing Operations	$		5,459			4,812			1,089			1,671			(800	)		(177	)			5,748			6,306
% to Sales			37.7	%		35.0	%		13.7	%		21.5	%		-3.6	%		-0.8	%			25.6	%		29.3	%
Intangible asset amortization expense			694			748			412			382			-			-				1,106			1,130
In-process research and development impairments			194			-			-			-			-			-				194			-
Litigation related			43			(93	)		(4	)		60			313			170				352			137
Loss/(gain) on securities			70			38			22			(39	)		339			-				431			(1	)
Restructuring related			(63	)		145			52			-			-			-				(11	)		145
Acquisition, integration and divestiture related			1			-			409			38			42			-				452			38
Medical Device Regulation			-			-			68			85			-			-				68			85
COVID-19 Vaccine related costs			64			165			-			-			-			-				64			165
Adjusted Income Before Tax by Segment From Continuing Operations	$		6,462			5,815			2,048			2,197			(106	)		(7	)			8,404			8,005
% to Sales			44.6	%		42.3	%		25.7	%		28.2	%		-0.5	%		0.0	%			37.4	%		37.2	%
Estimated as of 7/17/2024
As Reported Research and development expense	$		2,722			3,048			718			655										3,440			3,703
% to Sales			18.8	%		22.2	%		9.0	%		8.4	%									15.3	%		17.2	%

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 YTD - Income Before Tax and Research & Development Expense by Segment
Dollars in Millions
			Innovative Medicine						MedTech						Unallocated							Worldwide Total
			2024			2023			2024			2023			2024			2023				2024			2023
Reported Income Before Tax by Segment From Continuing Operations	$		10,428			9,214			2,609			3,080			(3,575	)		(7,275	)			9,462			5,019
% to Sales			37.2	%		33.9	%		16.5	%		20.2	%		-8.2	%		-17.2	%			21.6	%		11.8	%
Intangible asset amortization expense			1,392			1,487			792			765			-			-				2,184			2,252
In-process research and development impairments			194			-			-			49			-			-				194			49
Litigation related			43			(93	)		(4	)		60			3,039			7,070				3,078			7,037
Loss/(gain) on securities			15			76			44			(5	)		352			-				411			71
Restructuring related			81			275			79			-			-			-				160			275
Acquisition, integration and divestiture related			48			-			470			80			82			-				600			80
Medical Device Regulation			-			-			119			149			-			-				119			149
COVID-19 Vaccine related costs			73			609			-			-			-			-				73			609
Adjusted Income Before Tax by Segment From Continuing Operations	$		12,274			11,568			4,109			4,178			(102	)		(205	)			16,281			15,541
% to Sales			43.8	%		42.6	%		26.0	%		27.4	%		-0.2	%		-0.5	%			37.1	%		36.6	%
Estimated as of 7/17/2024
As Reported Research and development expense	$		5,618			5,826			1,364			1,332										6,982			7,158
% to Sales			20.0	%		21.5	%		8.6	%		8.7	%									16.0	%		16.9	%

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Quarter to Date
	Second Quarter June 30, 2024 GAAP					Intangible asset amortization			Litigation related			In-process research and development impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Tax legislation and other tax related			Second Quarter June 30, 2024 Non-GAAP
Cost of products sold	$	6,869				(1,106	)								(2	)		(50	)					(30	)		(4	)		-			5,677
Selling, marketing and admin expenses		5,681																						(5	)								5,676
Research and development expense		3,440																(15	)					(33	)		(10	)					3,382
Other (Income) / Expense		653				-			(352	)					-			(387	)		(431	)					(50	)					(567	)
In-process research and development impairments		194										(194	)					-															-
Restructuring		(13	)												13																		-
Provision for taxes on income		1,062				156			70			43			(6	)		125			21			14			14			65			1,564
Net Earnings from Continuing Operations		4,686				950			282			151			(5	)		327			410			54			50			(65	)		6,840
	Second Quarter July 2, 2023 GAAP					Intangible asset amortization			Litigation related			In-process research and development impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Tax legislation and other tax related			Second Quarter July 2, 2023 Non-GAAP
Cost of products sold	$	6,462				(1,130	)								-									(34	)		38			-			5,336
Selling, marketing and admin expenses		5,396																						(8	)								5,388
Research and development expense		3,703																-						(44	)		(46	)					3,613
Other (Income) / Expense		(384	)			-			(137	)					-			(38	)		1						(156	)					(714	)
In-process research and development impairments		-										-																					-
Restructuring		145													(145	)																	-
Provision for taxes on income		930				177			29			-			37			12			(1	)		15			38			38			1,275
Net Earnings from Continuing Operations		5,376				953			108			-			108			26			-			71			126			(38	)		6,730
Year to Date
	Six Months June 30, 2024 GAAP					Intangible asset amortization			Litigation related			In-process research and development impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Tax legislation and other tax related			Six Months June 30, 2024 Non-GAAP
Cost of products sold	$	13,380				(2,184	)								(9	)		(50	)					(50	)		(6	)					11,081
Selling, marketing and admin expenses		10,938																						(9	)		-						10,929
Research and development expense		6,982																(33	)					(60	)		(17	)					6,872
Other (Income) / Expense		3,057				-			(3,078	)					-			(517	)		(411	)					(50	)					(999	)
In-process research and development impairments		194										(194	)		-			-			-						-						-
Restructuring		151													(151	)																	-
Provision for taxes on income		1,521				304			697			43			33			163			14			23			16			47			2,861
Net Earnings from Continuing Operations		7,941				1,880			2,381			151			127			437			397			96			57			(47	)		13,420
												In-process research and development impairments						Acquisition, integration and divestiture related			(Loss)/gain on securities						COVID-19 Vaccine Related Costs			Tax legislation and other tax related
	Six Months July 2, 2023 GAAP					Intangible asset amortization			Litigation related						Restructuring related									Medical Device Regulation									Six Months  July 2, 2023 Non-GAAP
Cost of products sold	$	13,149				(2,248	)								-									(57	)		(168	)					10,676
Selling, marketing and admin expenses		10,302																						(15	)								10,287
Research and development expense		7,158																(16	)					(78	)		(62	)					7,002
Other (Income) / Expense		6,556				(4	)		(7,037	)					-			(64	)		(71	)					(378	)					(998	)
In-process research and development impairments		49										(49	)		-																		-
Restructuring		275													(275	)																	-
Provision for taxes on income		134				354			1,651			11			69			17			15			27			143			50			2,471
Net Earnings from Continuing Operations		4,885				1,898			5,386			38			206			63			56			123			465			(50	)		13,070

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240716943616/en/

Media contact:

Tesia Williams

media-relations@its.jnj.com

Investor contact:

Jessica Moore

investor-relations@its.jnj.com

Source: Johnson & Johnson

FAQ

What was Johnson & Johnson's (JNJ) reported sales growth in Q2 2024?

Johnson & Johnson (JNJ) reported sales growth of 4.3% to $22.4 Billion in Q2 2024.

How did Johnson & Johnson's (JNJ) adjusted EPS perform in Q2 2024?

Johnson & Johnson's (JNJ) adjusted EPS increased by 10.2% to $2.82 in Q2 2024.

What were the key growth drivers for Johnson & Johnson (JNJ) in Q2 2024?

Key growth drivers for Johnson & Johnson (JNJ) in Q2 2024 included DARZALEX, ERLEADA, TREMFYA, STELARA, and strong performance in the Innovative Medicine and MedTech segments.

Has Johnson & Johnson (JNJ) updated its guidance for 2024?

Yes, Johnson & Johnson (JNJ) has increased its full-year 2024 operational sales guidance to reflect the acquisition of Shockwave Medical and updated its adjusted operational EPS guidance.