Johnson & Johnson Reports Q3 2022 Results

Rhea-AI Summary

Johnson & Johnson (NYSE: JNJ) reported Q3 2022 sales of $23.8 billion, a 1.9% increase from Q3 2021. Earnings per share (EPS) rose 22.6% to $1.68, while adjusted EPS decreased 1.9% to $2.55. Operational sales grew 8.1%, driven by strong performances in the pharmaceutical sector, particularly from drugs like DARZALEX and TREMFYA. The company is maintaining its full-year guidance for adjusted operational sales and EPS, despite adverse currency impacts. The quarter also saw significant regulatory approvals and a new $5 billion share repurchase program.

Positive

• Reported sales increase of 1.9% to $23.8 billion.
• EPS of $1.68 increased by 22.6%.
• Operational sales grew by 8.1%, driven by strong pharmaceutical sales.
• Regulatory approvals for new treatments and drugs.
• Announcement of a $5 billion share repurchase program.

Negative

• Adjusted EPS decreased by 1.9% to $2.55.
• International sales slightly declined by 0.3%, impacted by unfavorable currency conditions.

• Reported sales growth of 1.9% to $23.8 Billion with operational growth of 8.1%* and adjusted operational growth of 8.2%*
• Earnings per share (EPS) of $1.68 increasing 22.6% and adjusted EPS of $2.55 decreasing by 1.9%*
• Company is maintaining 2022 full-year guidance midpoints for adjusted operational sales and reported adjusted EPS; increasing adjusted operational EPS performance offsetting continued unfavorable currency impacts

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2022. “Our third quarter performance demonstrates our continued strength and resilience across all three of our businesses,” said Joaquin Duato, Chief Executive Officer. “Through the ongoing efforts of our teams around the world, we continue to navigate the dynamic macroeconomic environment and remain focused on delivering transformative healthcare solutions. Looking ahead, I remain confident in our business and ability to continue advancing our innovative portfolio and pipeline.”

OVERALL FINANCIAL RESULTS

	Q3
($ in Millions, except EPS)	2022	2021	% Change
Reported Sales	$23,791	$23,338	1.9%
Net Earnings	4,458	3,667	21.6%
EPS (diluted)	$1.68	$1.37	22.6%
	Q3
Non-GAAP* ($ in Millions, except EPS)	2022	2021	% Change
Operational Sales1,2			8.1%
Adjusted Operational Sales1,3			8.2%
Adjusted Net Earnings1,4	6,779	6,968	(2.7)%
Adjusted EPS (diluted)1,4	$2.55	$2.60	(1.9)%

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
Note: values may have been rounded

REGIONAL SALES RESULTS

Q3			% Change
($ in Millions)	2022	2021	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$12,453	$11,963	4.1%	4.1	-	4.2
International	$11,338	$11,375	(0.3)	12.3	(12.6)	12.4
Worldwide	$23,791	$23,338	1.9%	8.1	(6.2)	8.2

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
Note: Values may have been rounded

SEGMENT SALES RESULTS

Q3			% Change
($ in Millions)	2022	2021	Reported	Operational1,2	Currency	Adjusted Operational1,3
Consumer Health4	$3,795	$3,812	(0.4)%	4.7	(5.1)	4.8
Pharmaceutical4	$13,214	$12,882	2.6	9.0	(6.4)	9.2
MedTech	$6,782	$6,644	2.1	8.1	(6.0)	8.1
Worldwide	$23,791	$23,338	1.9%	8.1	(6.2)	8.2

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 Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
Note: Values may have been rounded

THIRD QUARTER 2022 SEGMENT COMMENTARY:
Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Consumer Health
Consumer Health worldwide adjusted operational sales increased 4.8%*. Major contributors to growth include upper respiratory and analgesic products in the over-the-counter franchise, NEUTROGENA and AVEENO in Skin Health/Beauty and Women’s Health products outside the United States.

Pharmaceutical
Pharmaceutical worldwide adjusted operational sales grew 9.2%*, driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, and INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. Also contributing to growth were sales of the Janssen COVID-19 Vaccine (Ad26.COV2.S) for the prevention of the SARS-CoV-2 virus. This growth was partially offset by declines in sales of REMICADE (infliximab), a biologic approved for the treatment of several immune-mediated inflammatory diseases and IMBRUVICA (ibrutinib), an oral, once daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer.

MedTech
MedTech worldwide adjusted operational sales grew 8.1%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, Trauma in Orthopaedics and wound closure products in General Surgery.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction 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 Investors section of the company’s website at news releases, as well as www.factsabouttalc.com, www.factsaboutourprescriptionopioids.com, and www.LTLManagementInformation.com.

Regulatory Decisions	STELARA (ustekinumab) Approved by the U.S. Food and Drug Administration to Treat Pediatric Patients with Active Psoriatic Arthritis	Press Release
	European Commission Approves IMBRUVICA (ibrutinib) in a Fixed-Duration Combination Regimen for Adult Patients with Previously Untreated Chronic Lymphocytic Leukaemia (CLL)	Press Release
	Janssen Marks First Approval Worldwide for TECVAYLI (teclistamab) with EC Authorisation of First-in-Class Bispecific Antibody for the Treatment of Patients with Multiple Myeloma	Press Release
	U.S. FDA Approves IMBRUVICA (ibrutinib) as First and Only BTKi Treatment for Pediatric Patients with Chronic Graft-Versus-Host Disease	Press Release
Data Release	Janssen Announces New Data Supporting Safety and Efficacy of RYBREVANT and Lazertinib Combination for Patients with Non-Small Cell Lung Cancer and EGFR Mutations	Press Release
	Final Analysis of Phase 2 GRIFFIN Study Presented for DARZALEX (daratumumab)-based Investigational Quadruplet Regimen in Patients with Newly Diagnosed, Transplant-Eligible Multiple Myeloma	Press Release
	TREMFYA (guselkumab) Demonstrates Higher Rates of Complete Skin Clearance with Earlier Treatment in Adults with Moderate to Severe Plaque Psoriasis in Phase 3b GUIDE Study	Press Release
	Results of Novel Clinical Study of Guselkumab and Golimumab Combination Therapy Show Adults with Moderately to Severely Active Ulcerative Colitis Maintained Higher Rates of Clinical, Histologic, and Endoscopic Remission at Week 381	Press Release
	STELARA (ustekinumab) Demonstrated Sustained Symptomatic and Corticosteroid-Free Remission Through Four Years in Adults with Moderately to Severely Active Ulcerative Colitis1	Press Release
	Janssen Announces Late-Breaking Data from Two Gene Therapy Programs at the American Academy of Ophthalmology 2022 Annual Meeting	Press Release
Product Launches	Biosense Webster Launches the OCTARAY Mapping Catheter with TRUEref Technology	Press Release
	Johnson & Johnson Vision Introduces All Purpose EDOF, TECNIS Symfony OptiBlue IOL, the Latest PC-IOL Powered by InteliLight Technology	Press Release
	Johnson & Johnson Vision Launches New Contact Lens Innovation to Help Meet the Needs of Digitally Intense Lifestyles: ACUVUE OASYS MAX 1-Day	Press Release
	Biosense Webster Launches HELIOSTAR in Europe, the First Radiofrequency Balloon Ablation Catheter, Enabling Physicians to Perform More Efficient Cardiac Ablations1	Press Release
Other	Johnson & Johnson Announces $5 Billion Share Repurchase Program	Press Release
	Johnson & Johnson Appoints Larry Merlo as Non-Executive Chair Designate of Planned New Consumer Health Company	Press Release
	Johnson & Johnson Announces Kenvue as the Name for Planned New Consumer Health Company	Press Release

¹ Subsequent to the quarter.

FULL-YEAR 2022 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.

($ in Billions, except EPS)	October 2022	July 2022
Adjusted Operational Sales1,2,5 Change vs. Prior Year	6.7% – 7.2%	6.5% – 7.5%
Operational Sales2,5/ Mid-point2,5 Change vs. Prior Year / Mid-point	$97.5B – $98.0B / $97.8B 6.7% – 7.2% / 7.0%	$97.3B – $98.3B / $97.8B 6.5% – 7.5% / 7.0%
Estimated Reported Sales3,5/ Mid-point3,5 Change vs. Prior Year / Mid-point	$93.0B – $93.5B / $93.3B 1.8% – 2.3% / 2.1%	$93.3B – $94.3B / $93.8B 2.1% – 3.1% / 2.6%
Adjusted Operational EPS (Diluted)2,4/ Mid-point2,4 Change vs. Prior Year / Mid-point	$10.70 – $10.75 / $10.73 9.2% – 9.7% / 9.5%	$10.65 – $10.75 / $10.70 8.7% – 9.7% / 9.2%
Adjusted EPS (Diluted)3,4 / Mid-point3,4 Change vs. Prior Year / Mid-point	$10.02 – $10.07 / $10.05 2.3% – 2.8% / 2.6%	$10.00 – $10.10 / $10.05 2.1% – 3.1% / 2.6 %

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: October 2022 = $1.04 and July 2022 = $1.05 (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.

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 Investors section of the company's website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

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 Investors 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, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors 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, market position and business strategy, and the anticipated separation of the Company’s Consumer Health business. 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; 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; the Company’s ability to satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; the New Consumer Health Company’s ability to succeed as a standalone publicly traded company; and risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic. 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 January 2, 2022, 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)	THIRD QUARTER													NINE MONTHS
					Percent Change													Percent Change
	2022		2021		Total			Operations		Currency				2022		2021		Total			Operations			Currency
Sales to customers by
segment of business
Consumer Health (1)
U.S.	$ 1,659		1,625		2.1		%	2.1		-				$ 4,903		4,987		(1.7	)	%	(1.7	)		-
International	2,136		2,187		(2.3	)		6.7		(9.0	)			6,283		6,320		(0.6	)		6.0			(6.6	)
	3,795		3,812		(0.4	)		4.7		(5.1	)			11,186		11,307		(1.1	)		2.6			(3.7	)
Pharmaceutical (1)
U.S.	7,438		7,221		3.0			3.0		-				21,229		20,536		3.4			3.4			-
International	5,776		5,661		2.0			16.7		(14.7	)			18,171		16,927		7.3			18.5			(11.2	)
	13,214		12,882		2.6			9.0		(6.4	)			39,400		37,463		5.2			10.2			(5.0	)
Pharmaceutical excluding COVID-19 Vaccine (1,3)
U.S.	7,438		6,951		7.0			7.0		-				21,109		20,115		4.9			4.9			-
International	5,287		5,429		(2.6	)		11.3		(13.9	)			16,801		16,582		1.3			11.7			(10.4	)
	12,725		12,380		2.8			8.9		(6.1	)			37,910		36,697		3.3			8.0			(4.7	)
MedTech (2)
U.S.	3,356		3,117		7.7			7.7		-				9,932		9,470		4.9			4.9			-
International	3,426		3,527		(2.9	)		8.5		(11.4	)			10,719		10,731		(0.1	)		8.2			(8.3	)
	6,782		6,644		2.1			8.1		(6.0	)			20,651		20,201		2.2			6.6			(4.4	)
U.S.	12,453		11,963		4.1			4.1		-				36,064		34,993		3.1			3.1			-
International	11,338		11,375		(0.3	)		12.3		(12.6	)			35,173		33,978		3.5			12.9			(9.4	)
Worldwide	23,791		23,338		1.9			8.1		(6.2	)			71,237		68,971		3.3			7.9			(4.6	)
U.S.	12,453		11,693		6.5			6.5		-				35,944		34,572		4.0			4.0			-
International	10,849		11,143		(2.6	)		9.5		(12.1	)			33,803		33,633		0.5			9.5			(9.0	)
Worldwide excluding COVID-19 Vaccine (3)	$ 23,302		22,836		2.0		%	8.0		(6.0	)			$ 69,747		68,205		2.3		%	6.7			(4.4	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes.
(2) Previously referred to as Medical Devices
(3) Refer to supplemental sales reconciliation schedule

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	THIRD QUARTER													NINE MONTHS
					Percent Change													Percent Change
	2022		2021		Total			Operations		Currency				2022		2021		Total			Operations		Currency
Sales to customers by
geographic area
U.S.	$ 12,453		11,963		4.1		%	4.1		-				$ 36,064		34,993		3.1		%	3.1		-
Europe	5,524		5,587		(1.1	)		14.5		(15.6	)			17,633		16,669		5.8			18.2		(12.4	)
Western Hemisphere excluding U.S.	1,562		1,500		4.1			9.1		(5.0	)			4,580		4,291		6.7			9.6		(2.9	)
Asia-Pacific, Africa	4,252		4,288		(0.9	)		10.5		(11.4	)			12,960		13,018		(0.4	)		7.2		(7.6	)
International	11,338		11,375		(0.3	)		12.3		(12.6	)			35,173		33,978		3.5			12.9		(9.4	)
Worldwide	$ 23,791		23,338		1.9		%	8.1		(6.2	)			$ 71,237		68,971		3.3		%	7.9		(4.6	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	THIRD QUARTER
	2022							2021						Percent
					Percent						Percent			Increase
	Amount				to Sales			Amount			to Sales			(Decrease)
Sales to customers	$	23,791			100.0			$	23,338		100.0			1.9
Cost of products sold		7,807			32.8				7,250		31.1			7.7
Gross Profit		15,984			67.2				16,088		68.9			(0.6	)
Selling, marketing and administrative expenses		6,089			25.6				6,000		25.7			1.5
Research and development expense		3,597			15.1				3,422		14.7			5.1
In-process research and development		-			-				900		3.9
Interest (income) expense, net		(99	)		(0.4	)			7		0.0
Other (income) expense, net		493			2.1				1,850		7.9
Restructuring		82			0.3				60		0.2
Earnings before provision for taxes on income		5,822			24.5				3,849		16.5			51.3
Provision for taxes on income		1,364			5.8				182		0.8			649.5
Net earnings	$	4,458			18.7			$	3,667		15.7			21.6
Net earnings per share (Diluted)	$	1.68						$	1.37					22.6
Average shares outstanding (Diluted)		2,661.3							2,674.9
Effective tax rate		23.4		%					4.7	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	8,073			33.9			$	8,058		34.5			0.2
Net earnings	$	6,779			28.5			$	6,968		29.9			(2.7	)
Net earnings per share (Diluted)	$	2.55						$	2.60					(1.9	)
Effective tax rate		16.0		%					13.5	%
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	NINE MONTHS
	2022							2021					Percent
					Percent						Percent		Increase
	Amount				to Sales			Amount			to Sales		(Decrease)
Sales to customers	$	71,237			100.0			$	68,971		100.0		3.3
Cost of products sold		23,324			32.7				21,900		31.8		6.5
Gross Profit		47,913			67.3				47,071		68.2		1.8
Selling, marketing and administrative expenses		18,253			25.7				17,505		25.4		4.3
Research and development expense		10,762			15.1				9,994		14.5		7.7
In-process research and development		610			0.9				900		1.3
Interest (income) expense, net		(137	)		(0.2	)			83		0.1
Other (income) expense, net		664			0.9				480		0.7
Restructuring		237			0.3				169		0.2
Earnings before provision for taxes on income		17,524			24.6				17,940		26.0		(2.3	)
Provision for taxes on income		3,103			4.4				1,798		2.6		72.6
Net earnings	$	14,421			20.2			$	16,142		23.4		(10.7	)
Net earnings per share (Diluted)	$	5.41						$	6.04				(10.4	)
Average shares outstanding (Diluted)		2,667.5							2,674.6
Effective tax rate		17.7		%					10.0	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	24,462			34.3			$	24,125		35.0		1.4
Net earnings	$	20,820			29.2			$	20,517		29.7		1.5
Net earnings per share (Diluted)	$	7.81						$	7.67				1.8
Effective tax rate		14.9		%					15.0	%
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
		Third Quarter						Nine Months Ended
	(Dollars in Millions Except Per Share Data)	2022			2021			2022			2021
	Net Earnings, after tax- as reported	$4,458			$3,667			$14,421			$16,142
	Pre-tax Adjustments
	Intangible Asset Amortization expense	1,041			1,159			3,244			3,576
	Litigation related	219			2,077			604			2,054
	IPR&D	-			900			610			900
	Restructuring related	123			121			323			333
	Acquisition, integration and divestiture related ¹	-			20			-			(504	)
	(Gains)/losses on securities	164			(127	)		684			(335	)
	Medical Device Regulation 2	78			59			208			161
	COVID-19 Vaccine related costs 3	377			-			653			-
	Consumer Health separation costs	249			-			619			-
	Other	-			-			(7	)		-
	Tax Adjustments
	Tax impact on special item adjustments 4	(379	)		(849	)		(1,085	)		(1,097	)
	Consumer Health separation tax related costs	361			-			459			-
	Tax legislation and other tax related	88			(59	)		87			(713	)
	Adjusted Net Earnings, after tax	$6,779			$6,968			$20,820			$20,517
	Average shares outstanding (Diluted)	2,661.3			2,674.9			2,667.5			2,674.6
	Adjusted net earnings per share (Diluted)	$2.55			$2.60			$7.81			$7.67
	Operational adjusted net earnings per share (Diluted)	$2.75						$8.25
	Notes:
1	Acquisition, integration and divestiture related for the nine months of 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S.
2	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 is expected to be completed during 2024.
3	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 modification of its COVID-19 vaccine research program and manufacturing capacity to levels that meet all customer contractual requirements.
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
THIRD QUARTER 2022 ACTUAL vs. 2021 ACTUAL
Segments
			Consumer Health			Pharmaceutical			MedTech			Total
WW As Reported			(0.4	)%		2.6	%		2.1	%		1.9	%
U.S.			2.1	%		3.0	%		7.7	%		4.1	%
International			(2.3	)%		2.0	%		(2.9	)%		(0.3	)%
WW Currency			(5.1	)		(6.4	)		(6.0	)		(6.2	)
U.S.			-			-			-			-
International			(9.0	)		(14.7	)		(11.4	)		(12.6	)
WW Operational			4.7	%		9.0	%		8.1	%		8.1	%
U.S.			2.1	%		3.0	%		7.7	%		4.1	%
International			6.7	%		16.7	%		8.5	%		12.3	%
All Other Acquisitions and Divestitures			0.1			0.2			0.0			0.1
U.S.			0.2			0.2			(0.2	)		0.1
International			0.0			0.1			0.2			0.1
WW Adjusted Operational			4.8	%		9.2	%		8.1	%		8.2	%
U.S.			2.3	%		3.2	%		7.5	%		4.2	%
International			6.7	%		16.8	%		8.7	%		12.4	%
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
NINE MONTHS 2022 ACTUAL vs. 2021 ACTUAL
Segments
			Consumer Health			Pharmaceutical			MedTech			Total
WW As Reported			(1.1	)%		5.2	%		2.2	%		3.3	%
U.S.			(1.7	)%		3.4	%		4.9	%		3.1	%
International			(0.6	)%		7.3	%		(0.1	)%		3.5	%
WW Currency			(3.7	)		(5.0	)		(4.4	)		(4.6	)
U.S.			-			-			-			-
International			(6.6	)		(11.2	)		(8.3	)		(9.4	)
WW Operational			2.6	%		10.2	%		6.6	%		7.9	%
U.S.			(1.7	)%		3.4	%		4.9	%		3.1	%
International			6.0	%		18.5	%		8.2	%		12.9	%
All Other Acquisitions and Divestitures			0.5			0.1			0.1			0.2
U.S.			0.2			0.1			(0.2	)		0.1
International			0.7			0.1			0.2			0.2
WW Adjusted Operational			3.1	%		10.3	%		6.7	%		8.1	%
U.S.			(1.5	)%		3.5	%		4.7	%		3.2	%
International			6.7	%		18.6	%		8.4	%		13.1	%
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)
	THIRD QUARTER															NINE MONTHS
							% Change															% Change
		2022			2021		Reported			Operational (1)			Currency				2022			2021		Reported			Operational (1)			Currency
CONSUMER HEALTH SEGMENT (2,3)
OTC
US		$	695		686		1.4	%		1.4	%		-				$	2,028		1,960		3.5	%		3.5	%		-
Intl			825		798		3.4	%		12.2	%		-8.8	%				2,434		2,223		9.5	%		16.3	%		-6.8	%
WW			1,519		1,484		2.5	%		7.2	%		-4.7	%				4,462		4,183		6.7	%		10.3	%		-3.6	%
SKIN HEALTH / BEAUTY
US			591		569		3.7	%		3.7	%		-					1,764		1,862		-5.3	%		-5.3	%		-
Intl			535		555		-3.6	%		6.2	%		-9.8	%				1,500		1,595		-6.0	%		1.5	%		-7.5	%
WW			1,126		1,124		0.1	%		5.0	%		-4.9	%				3,264		3,457		-5.6	%		-2.2	%		-3.4	%
ORAL CARE
US			158		150		5.2	%		5.2	%		-					471		478		-1.5	%		-1.5	%		-
Intl			217		248		-12.4	%		-4.3	%		-8.1	%				664		762		-12.8	%		-7.2	%		-5.6	%
WW			375		398		-5.8	%		-0.7	%		-5.1	%				1,135		1,240		-8.5	%		-5.0	%		-3.5	%
BABY CARE
US			91		95		-4.0	%		-4.0	%		-					264		288		-8.2	%		-8.2	%		-
Intl			283		296		-4.5	%		3.4	%		-7.9	%				840		879		-4.4	%		0.8	%		-5.2	%
WW			375		391		-4.3	%		1.6	%		-5.9	%				1,105		1,167		-5.4	%		-1.5	%		-3.9	%
WOMEN'S HEALTH
US			2		3		-22.0	%		-22.0	%		-					9		9		-2.8	%		-2.8	%		-
Intl			222		229		-2.7	%		8.4	%		-11.1	%				674		675		-0.1	%		8.0	%		-8.1	%
WW			225		232		-3.0	%		7.9	%		-10.9	%				684		684		-0.1	%		7.8	%		-7.9	%
WOUND CARE / OTHER
US			122		122		-0.2	%		-0.2	%		-					366		390		-6.0	%		-6.0	%		-
Intl			53		61		-11.4	%		-7.1	%		-4.3	%				170		186		-8.2	%		-5.4	%		-2.8	%
WW			176		182		-3.9	%		-2.5	%		-1.4	%				537		575		-6.7	%		-5.8	%		-0.9	%
TOTAL CONSUMER HEALTH
US			1,659		1,625		2.1	%		2.1	%		-					4,903		4,987		-1.7	%		-1.7	%		-
Intl			2,136		2,187		-2.3	%		6.7	%		-9.0	%				6,283		6,320		-0.6	%		6.0	%		-6.6	%
WW		$	3,795		3,812		-0.4	%		4.7	%		-5.1	%			$	11,186		11,307		-1.1	%		2.6	%		-3.7	%
See footnotes at end of schedule

		REPORTED SALES vs. PRIOR PERIOD ($MM)															REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER																NINE MONTHS
							% Change															% Change
PHARMACEUTICAL SEGMENT (2,3)		2022			2021		Reported			Operational (1)			Currency				2022			2021		Reported			Operational (1)			Currency
IMMUNOLOGY
US		$	2,876		2,771		3.8	%		3.8	%		-				$	8,230		7,932		3.8	%		3.8	%		-
Intl			1,411		1,480		-4.7	%		8.9	%		-13.6	%				4,587		4,464		2.8	%		12.9	%		-10.1	%
WW			4,287		4,250		0.9	%		5.6	%		-4.7	%				12,817		12,395		3.4	%		7.1	%		-3.7	%
REMICADE
US			350		480		-27.0	%		-27.0	%		-					1,099		1,508		-27.1	%		-27.1	%		-
US Exports (4)			39		47		-16.9	%		-16.9	%		-					163		197		-17.2	%		-17.2	%		-
Intl			169		234		-27.8	%		-22.8	%		-5.0	%				606		721		-16.0	%		-11.9	%		-4.1	%
WW			558		761		-26.6	%		-25.1	%		-1.5	%				1,868		2,426		-23.0	%		-21.8	%		-1.2	%
SIMPONI / SIMPONI ARIA
US			298		295		0.9	%		0.9	%		-					886		840		5.4	%		5.4	%		-
Intl			248		276		-10.4	%		3.0	%		-13.4	%				797		877		-9.2	%		0.4	%		-9.6	%
WW			545		571		-4.6	%		1.9	%		-6.5	%				1,682		1,717		-2.0	%		2.9	%		-4.9	%
STELARA
US			1,655		1,569		5.5	%		5.5	%		-					4,766		4,396		8.4	%		8.4	%		-
Intl			794		809		-1.9	%		12.9	%		-14.8	%				2,571		2,404		6.9	%		18.2	%		-11.3	%
WW			2,449		2,378		3.0	%		8.0	%		-5.0	%				7,336		6,800		7.9	%		11.9	%		-4.0	%
TREMFYA
US			530		376		40.7	%		40.7	%		-					1,303		975		33.6	%		33.6	%		-
Intl			200		161		24.6	%		44.5	%		-19.9	%				613		459		33.7	%		49.0	%		-15.3	%
WW			729		537		35.9	%		41.9	%		-6.0	%				1,916		1,434		33.6	%		38.5	%		-4.9	%
OTHER IMMUNOLOGY
US			5		3		*			*			-					14		15		-3.5	%		-3.5	%		-
Intl			0		0		*			*			*					0		3		*			*			*
WW			5		3		*			*			*					14		18		-19.3	%		-19.3	%		0.0	%
INFECTIOUS DISEASES
US			390		679		-42.7	%		-42.7	%		-					1,266		1,635		-22.6	%		-22.6	%		-
Intl			905		698		29.7	%		49.1	%		-19.4	%				2,642		1,758		50.3	%		67.1	%		-16.8	%
WW			1,295		1,378		-6.0	%		3.8	%		-9.8	%				3,908		3,394		15.2	%		23.9	%		-8.7	%
COVID-19 VACCINE
US			0		270		*			*			-					120		421		-71.5	%		-71.5	%		-
Intl			489		233		*			*			*					1,370		346		*			*			*
WW			489		502		-2.7	%		13.1	%		-15.8	%				1,490		766		*			*			*
EDURANT / rilpivirine
US			9		12		-27.1	%		-27.1	%		-					27		31		-14.5	%		-14.5	%		-
Intl			237		247		-4.2	%		9.8	%		-14.0	%				691		733		-5.7	%		4.8	%		-10.5	%
WW			245		259		-5.2	%		8.2	%		-13.4	%				718		764		-6.1	%		4.0	%		-10.1	%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US			372		380		-2.2	%		-2.2	%		-					1,096		1,128		-2.9	%		-2.9	%		-
Intl			112		137		-17.9	%		-6.3	%		-11.6	%				354		440		-19.5	%		-11.2	%		-8.3	%
WW			485		517		-6.4	%		-3.3	%		-3.1	%				1,450		1,568		-7.5	%		-5.2	%		-2.3	%
OTHER INFECTIOUS DISEASES
US			10		18		-46.4	%		-46.4	%		-					24		55		-57.2	%		-57.2	%		-
Intl			68		82		-17.1	%		-10.8	%		-6.3	%				228		240		-5.0	%		0.2	%		-5.2	%
WW			77		99		-22.4	%		-17.2	%		-5.2	%				251		295		-14.8	%		-10.6	%		-4.2	%

		REPORTED SALES vs. PRIOR PERIOD ($MM)														REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER															NINE MONTHS
						% Change														% Change
		2022		2021		Reported			Operational (1)			Currency				2022		2021		Reported			Operational (1)			Currency
NEUROSCIENCE
US		919		835		10.0	%		10.0	%		-				2,658		2,448		8.6	%		8.6	%		-
Intl		763		845		-9.9	%		1.8	%		-11.7	%			2,498		2,751		-9.2	%		-0.6	%		-8.6	%
WW		1,681		1,680		0.0	%		5.9	%		-5.9	%			5,156		5,199		-0.8	%		3.7	%		-4.5	%
CONCERTA / Methylphenidate
US		41		35		19.3	%		19.3	%		-				114		117		-2.2	%		-2.2	%		-
Intl		117		122		-4.4	%		8.0	%		-12.4	%			362		372		-2.6	%		6.5	%		-9.1	%
WW		158		157		0.8	%		10.5	%		-9.7	%			476		489		-2.5	%		4.4	%		-6.9	%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		684		648		5.3	%		5.3	%		-				2,036		1,882		8.1	%		8.1	%		-
Intl		348		355		-2.3	%		12.2	%		-14.5	%			1,097		1,111		-1.3	%		9.4	%		-10.7	%
WW		1,031		1,004		2.6	%		7.8	%		-5.2	%			3,132		2,994		4.6	%		8.6	%		-4.0	%
RISPERDAL CONSTA
US		67		71		-6.1	%		-6.1	%		-				195		210		-7.1	%		-7.1	%		-
Intl		52		69		-24.2	%		-11.3	%		-12.9	%			178		242		-26.3	%		-17.0	%		-9.3	%
WW		119		140		-14.9	%		-8.6	%		-6.3	%			373		452		-17.4	%		-12.4	%		-5.0	%
OTHER NEUROSCIENCE
US		127		81		57.2	%		57.2	%		-				313		239		31.1	%		31.1	%		-
Intl		246		298		-17.9	%		-10.0	%		-7.9	%			861		1,026		-16.2	%		-10.2	%		-6.0	%
WW		374		379		-1.9	%		4.3	%		-6.2	%			1,174		1,265		-7.3	%		-2.4	%		-4.9	%
ONCOLOGY
US		1,812		1,525		18.8	%		18.8	%		-				5,073		4,364		16.2	%		16.2	%		-
Intl		2,252		2,140		5.2	%		20.9	%		-15.7	%			6,983		6,406		9.0	%		20.8	%		-11.8	%
WW		4,064		3,665		10.9	%		20.0	%		-9.1	%			12,056		10,770		11.9	%		19.0	%		-7.1	%
DARZALEX
US		1,097		841		30.3	%		30.3	%		-				3,071		2,302		33.4	%		33.4	%		-
Intl		955		739		29.3	%		48.2	%		-18.9	%			2,823		2,076		36.0	%		50.8	%		-14.8	%
WW		2,052		1,580		29.8	%		38.7	%		-8.9	%			5,894		4,378		34.6	%		41.6	%		-7.0	%
ERLEADA
US		254		214		19.1	%		19.1	%		-				693		578		20.0	%		20.0	%		-
Intl		235		130		*			*			*				647		329		*			*			*
WW		490		344		42.2	%		51.2	%		-9.0	%			1,340		907		47.7	%		54.9	%		-7.2	%
IMBRUVICA
US		353		413		-14.6	%		-14.6	%		-				1,072		1,311		-18.3	%		-18.3	%		-
Intl		559		654		-14.6	%		-2.5	%		-12.1	%			1,847		1,996		-7.5	%		1.9	%		-9.4	%
WW		911		1,066		-14.6	%		-7.2	%		-7.4	%			2,918		3,307		-11.8	%		-6.1	%		-5.7	%
ZYTIGA / abiraterone acetate
US		16		25		-33.1	%		-33.1	%		-				54		96		-43.4	%		-43.4	%		-
Intl		440		523		-15.9	%		-1.2	%		-14.7	%			1,446		1,653		-12.5	%		-1.9	%		-10.6	%
WW		456		548		-16.7	%		-2.6	%		-14.1	%			1,500		1,749		-14.2	%		-4.2	%		-10.0	%
OTHER ONCOLOGY
US		92		32		*			*			-				183		76		*			*			-
Intl		64		94		-32.1	%		-22.6	%		-9.5	%			220		352		-37.5	%		-31.2	%		-6.3	%
WW		155		126		23.1	%		30.2	%		-7.1	%			403		428		-5.9	%		-0.8	%		-5.1	%

		REPORTED SALES vs. PRIOR PERIOD ($MM)															REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER															NINE MONTHS
							% Change															% Change
		2022			2021		Reported			Operational (1)			Currency				2022			2021		Reported			Operational (1)			Currency
PULMONARY HYPERTENSION
US			604		610		-1.1	%		-1.1	%		-					1,736		1,778		-2.4	%		-2.4	%		-
Intl			247		258		-3.8	%		12.5	%		-16.3	%				810		821		-1.3	%		10.5	%		-11.8	%
WW			852		868		-1.9	%		3.0	%		-4.9	%				2,547		2,599		-2.0	%		1.7	%		-3.7	%
OPSUMIT
US			289		299		-3.4	%		-3.4	%		-					827		861		-4.0	%		-4.0	%		-
Intl			152		159		-4.7	%		11.6	%		-16.3	%				495		510		-3.0	%		8.7	%		-11.7	%
WW			441		458		-3.9	%		1.8	%		-5.7	%				1,322		1,371		-3.6	%		0.7	%		-4.3	%
UPTRAVI
US			283		265		6.6	%		6.6	%		-					824		792		3.9	%		3.9	%		-
Intl			50		44		14.2	%		29.5	%		-15.3	%				162		135		20.4	%		32.1	%		-11.7	%
WW			333		309		7.7	%		9.9	%		-2.2	%				986		927		6.3	%		8.0	%		-1.7	%
OTHER PULMONARY HYPERTENSION
US			33		47		-29.5	%		-29.5	%		-					86		125		-31.3	%		-31.3	%		-
Intl			46		54		-15.7	%		1.2	%		-16.9	%				154		176		-13.0	%		-1.0	%		-12.0	%
WW			78		101		-22.1	%		-12.9	%		-9.2	%				239		301		-20.5	%		-13.5	%		-7.0	%
CARDIOVASCULAR / METABOLISM / OTHER
US			837		800		4.5	%		4.5	%		-					2,266		2,379		-4.8	%		-4.8	%		-
Intl			198		241		-17.5	%		-8.8	%		-8.7	%				651		727		-10.4	%		-3.8	%		-6.6	%
WW			1,034		1,041		-0.6	%		1.4	%		-2.0	%				2,916		3,106		-6.1	%		-4.5	%		-1.6	%
XARELTO
US			689		636		8.4	%		8.4	%		-					1,806		1,794		0.7	%		0.7	%		-
Intl			-		-		-			-			-					-		-		-			-			-
WW			689		636		8.4	%		8.4	%		-					1,806		1,794		0.7	%		0.7	%		-
INVOKANA / INVOKAMET
US			49		66		-25.8	%		-25.8	%		-					164		249		-34.1	%		-34.1	%		-
Intl			60		67		-11.0	%		-2.5	%		-8.5	%				193		194		-0.6	%		6.1	%		-6.7	%
WW			109		133		-18.4	%		-14.1	%		-4.3	%				357		443		-19.5	%		-16.6	%		-2.9	%
OTHER
US			98		98		-0.1	%		-0.1	%		-					295		336		-12.2	%		-12.2	%		-
Intl			138		173		-20.0	%		-11.3	%		-8.7	%				458		533		-14.0	%		-7.3	%		-6.7	%
WW			236		271		-12.8	%		-7.3	%		-5.5	%				753		869		-13.3	%		-9.2	%		-4.1	%
TOTAL PHARMACEUTICAL
US			7,438		7,221		3.0	%		3.0	%		-					21,229		20,536		3.4	%		3.4	%		-
Intl			5,776		5,661		2.0	%		16.7	%		-14.7	%				18,171		16,927		7.3	%		18.5	%		-11.2	%
WW		$	13,214		12,882		2.6	%		9.0	%		-6.4	%			$	39,400		37,463		5.2	%		10.2	%		-5.0	%
See footnotes at end of schedule

		REPORTED SALES vs. PRIOR PERIOD ($MM)															REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER																NINE MONTHS
							% Change															% Change
MEDTECH SEGMENT (2,3,5)		2022			2021		Reported			Operational (1)			Currency				2022			2021		Reported			Operational (1)			Currency
INTERVENTIONAL SOLUTIONS
US		$	547		444		23.2	%		23.2	%		-				$	1,566		1,353		15.7	%		15.7	%		-
Intl			513		513		0.0	%		13.0	%		-13.0	%				1,636		1,599		2.3	%		11.1	%		-8.8	%
WW			1,060		957		10.8	%		17.7	%		-6.9	%				3,202		2,952		8.5	%		13.2	%		-4.7	%
ORTHOPAEDICS
US			1,309		1,249		4.8	%		4.8	%		-					3,936		3,821		3.0	%		3.0	%		-
Intl			785		843		-6.9	%		4.6	%		-11.5	%				2,504		2,611		-4.1	%		4.3	%		-8.4	%
WW			2,095		2,093		0.1	%		4.7	%		-4.6	%				6,440		6,433		0.1	%		3.5	%		-3.4	%
HIPS
US			228		209		9.1	%		9.1	%		-					693		651		6.5	%		6.5	%		-
Intl			124		146		-15.1	%		-4.5	%		-10.6	%				437		451		-3.3	%		4.6	%		-7.9	%
WW			352		355		-0.9	%		3.5	%		-4.4	%				1,129		1,102		2.5	%		5.7	%		-3.2	%
KNEES
US			203		184		9.8	%		9.8	%		-					620		579		6.9	%		6.9	%		-
Intl			115		131		-12.8	%		-2.1	%		-10.7	%				386		403		-4.4	%		3.7	%		-8.1	%
WW			317		316		0.4	%		4.9	%		-4.5	%				1,005		983		2.3	%		5.6	%		-3.3	%
TRAUMA
US			473		455		3.8	%		3.8	%		-					1,412		1,352		4.4	%		4.4	%		-
Intl			244		260		-6.0	%		6.5	%		-12.5	%				749		805		-7.0	%		2.3	%		-9.3	%
WW			717		715		0.2	%		4.8	%		-4.6	%				2,161		2,157		0.2	%		3.6	%		-3.4	%
SPINE, SPORTS & OTHER
US			406		401		1.3	%		1.3	%		-					1,211		1,239		-2.2	%		-2.2	%		-
Intl			303		306		-1.1	%		10.2	%		-11.3	%				933		952		-2.0	%		6.1	%		-8.1	%
WW			708		706		0.3	%		5.2	%		-4.9	%				2,144		2,190		-2.1	%		1.4	%		-3.5	%

		REPORTED SALES vs. PRIOR PERIOD ($MM)															REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER															NINE MONTHS
							% Change															% Change
		2022			2021		Reported			Operational (1)			Currency				2022			2021		Reported			Operational (1)			Currency
SURGERY
US			984		948		3.7	%		3.7	%		-					2,897		2,881		0.5	%		0.5	%		-
Intl			1,439		1,457		-1.2	%		9.3	%		-10.5	%				4,410		4,418		-0.2	%		7.3	%		-7.5	%
WW			2,422		2,405		0.7	%		7.1	%		-6.4	%				7,306		7,299		0.1	%		4.6	%		-4.5	%
ADVANCED
US			457		440		3.8	%		3.8	%		-					1,328		1,304		1.8	%		1.8	%		-
Intl			701		705		-0.4	%		9.8	%		-10.2	%				2,132		2,126		0.3	%		7.2	%		-6.9	%
WW			1,158		1,144		1.2	%		7.5	%		-6.3	%				3,460		3,430		0.9	%		5.2	%		-4.3	%
GENERAL
US			527		508		3.6	%		3.6	%		-					1,569		1,577		-0.5	%		-0.5	%		-
Intl			737		752		-2.0	%		8.8	%		-10.8	%				2,277		2,292		-0.6	%		7.3	%		-7.9	%
WW			1,264		1,261		0.3	%		6.7	%		-6.4	%				3,846		3,869		-0.6	%		4.1	%		-4.7	%
VISION
US			517		475		8.8	%		8.8	%		-					1,534		1,414		8.5	%		8.5	%		-
Intl			689		714		-3.5	%		8.4	%		-11.9	%				2,170		2,103		3.2	%		12.9	%		-9.7	%
WW			1,206		1,189		1.4	%		8.6	%		-7.2	%				3,704		3,517		5.3	%		11.1	%		-5.8	%
CONTACT LENSES / OTHER
US			405		359		12.6	%		12.6	%		-					1,179		1,082		9.0	%		9.0	%		-
Intl			503		522		-3.6	%		9.5	%		-13.1	%				1,533		1,525		0.5	%		11.1	%		-10.6	%
WW			908		882		3.0	%		10.8	%		-7.8	%				2,712		2,607		4.0	%		10.2	%		-6.2	%
SURGICAL
US			112		117		-3.2	%		-3.2	%		-					355		333		6.8	%		6.8	%		-
Intl			186		191		-3.3	%		5.6	%		-8.9	%				637		577		10.3	%		17.6	%		-7.3	%
WW			298		308		-3.2	%		2.3	%		-5.5	%				992		910		9.0	%		13.6	%		-4.6	%
TOTAL MEDTECH
US			3,356		3,117		7.7	%		7.7	%		-					9,932		9,470		4.9	%		4.9	%		-
Intl			3,426		3,527		-2.9	%		8.5	%		-11.4	%				10,719		10,731		-0.1	%		8.2	%		-8.3	%
WW		$	6,782		6,644		2.1	%		8.1	%		-6.0	%			$	20,651		20,201		2.2	%		6.6	%		-4.4	%

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) Certain prior year amounts have been reclassified to conform to current year product disclosures

(4) Reported as U.S. sales

(5) Previously referred to as Medical Devices

Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
			THIRD QUARTER													NINE MONTHS
								Percent Change													Percent Change
			2022			2021		Total			Operations		Currency			2022			2021		Total			Operations			Currency
	Pharmaceutical
	U.S.		$	7,438		7,221		3.0		%	3.0		-			$	21,229		20,536		3.4		%	3.4			-
	International			5,776		5,661		2.0			16.7		(14.7	)			18,171		16,927		7.3			18.5			(11.2	)
	Worldwide			13,214		12,882		2.6			9.0		(6.4	)			39,400		37,463		5.2			10.2			(5.0	)
	COVID-19 Vaccine
	U.S.			0		270		*			*		-				120		421		(71.5	)		(71.5	)		-
	International			489		233		*			*		*				1,370		346		*			*			*
	Worldwide			489		502		(2.7	)		13.1		(15.8	)			1,490		766		*			*			*
	Pharmaceutical excluding COVID-19 Vaccine
	U.S.			7,438		6,951		7.0			7.0		-				21,109		20,115		4.9			4.9			-
	International			5,287		5,429		(2.6	)		11.3		(13.9	)			16,801		16,582		1.3			11.7			(10.4	)
	Worldwide			12,725		12,380		2.8			8.9		(6.1	)			37,910		36,697		3.3			8.0			(4.7	)
	Worldwide
	U.S.			12,453		11,963		4.1			4.1		-				36,064		34,993		3.1			3.1			-
	International			11,338		11,375		(0.3	)		12.3		(12.6	)			35,173		33,978		3.5			12.9			(9.4	)
	Worldwide			23,791		23,338		1.9			8.1		(6.2	)			71,237		68,971		3.3			7.9			(4.6	)
	COVID-19 Vaccine
	U.S.			0		270		*			*		-				120		421		(71.5	)		(71.5	)		-
	International			489		233		*			*		*				1,370		346		*			*			*
	Worldwide			489		502		(2.7	)		13.1		(15.8	)			1,490		766		*			*			*
	Worldwide
	U.S.			12,453		11,693		6.5			6.5		-				35,944		34,572		4.0			4.0			-
	International			10,849		11,143		(2.6	)		9.5		(12.1	)			33,803		33,633		0.5			9.5			(9.0	)
	Worldwide excluding COVID-19 Vaccine		$	23,302		22,836		2.0		%	8.0		(6.0	)		$	69,747		68,205		2.3		%	6.7			(4.4	)
	Note: Columns and rows within tables may not add due to rounding
	* Percentage greater than 100% or not meaningful

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q3 QTD - Income Before Tax by Segment*
Dollars in Millions
		Consumer Health1						Pharmaceutical1						MedTech						Unallocated						Consumer Health Separation Costs						Worldwide Total
		2022			2021			2022			2021			2022			2021			2022			2021			2022			2021			2022			2021
Reported Income Before Tax by Segment	$	809			(577	)		4,249			4,200			1,124			423			(111	)		(197	)		(249	)		-			5,822			3,849
% to Sales		21.3	%		-15.1	%		32.2	%		32.6	%		16.6	%		6.4	%		-0.5	%		-0.8	%		-1.0	%		0.0	%		24.5	%		16.5	%
Intangible asset amortization expense		83			103			698			799			260			257			-			-			-			-			1,041			1,159
In-process research and development		-						-						-			900			-			-			-			-			-			900
Litigation related		-			1,359			7			756			212			(38	)		-			-			-			-			219			2,077
Loss/(gain) on securities		-			1			177			(135	)		(13	)		7			-			-			-			-			164			(127	)
Restructuring related		31			36			23			17			69			68			-			-			-			-			123			121
Acquisition, integration and divestiture related		-			-			-			3			-			17			-			-			-			-			-			20
Medical Device Regulation		-			-			-			-			78			59			-			-			-			-			78			59
COVID-19 Vaccine related costs		-			-			377			-			-			-			-			-			-			-			377			-
Consumer Health separation costs		-			-			-			-			-			-			-			-			249			-			249			-
Other		-			-			-			-			-			-			-			-			-			-			-			-
Adjusted Income Before Tax by Segment	$	923			922			5,531			5,640			1,730			1,693			(111	)		(197	)		-			-			8,073			8,058
% to Sales		24.3	%		24.2	%		41.9	%		43.8	%		25.5	%		25.5	%		-0.5	%		-0.8	%		0.0	%		0.0	%		33.9	%		34.5	%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 10/18/2022

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q3 YTD - Income Before Tax by Segment*
Dollars in Millions
		Consumer Health1						Pharmaceutical1						MedTech						Unallocated						Consumer Health Separation Costs						Worldwide Total
		2022			2021			2022			2021			2022			2021			2022			2021			2022			2021			2022			2021
Reported Income Before Tax by Segment	$	2,279			1,131			12,593			13,663			3,742			3,798			(471	)		(652	)		(619	)		-			17,524			17,940
% to Sales		20.4	%		10.0	%		32.0	%		36.5	%		18.1	%		18.8	%		-0.7	%		-0.9	%		-0.9	%		0.0	%		24.6	%		26.0	%
Intangible asset amortization expense		277			314			2,194			2,497			773			765			-			-			-			-			3,244			3,576
In-process research and development		-			-			610			-			-			900			-			-			-			-			610			900
Litigation related		78			1,481			43			675			483			(102	)		-			-			-			-			604			2,054
Loss/(gain) on securities		-			(19	)		673			(249	)		11			(67	)		-			-			-			-			684			(335	)
Restructuring related		70			91			32			54			221			188			-			-			-			-			323			333
Acquisition, integration and divestiture related		-			-			-			(567	)		-			63			-			-			-			-			-			(504	)
Medical Device Regulation		-			-			-			-			208			161			-			-			-			-			208			161
COVID-19 Vaccine related costs		-			-			653			-			-			-			-			-			-			-			653			-
Consumer Health separation costs		-			-			-			-			-			-			-			-			619			-			619			-
Other		-			-			-			-			-			-			(7	)		-			-			-			(7	)		-
Adjusted Income Before Tax by Segment	$	2,704			2,998			16,798			16,073			5,438			5,706			(478	)		(652	)		-			-			24,462			24,125
% to Sales		24.2	%		26.5	%		42.6	%		42.9	%		26.3	%		28.2	%		-0.7	%		-0.9	%		0.0	%		0.0	%		34.3	%		35.0	%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 10/18/2022

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Quarter to Date
	Third Quarter Oct 2, 2022 GAAP				Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Third Quarter Oct 2, 2022 Non-GAAP
Cost of products sold	$	7,807			(1,041	)								(13	)								(29	)		(102	)		-			-			-			-			6,622
Selling, marketing and admin expenses		6,089																					(7	)					(2	)											6,080
Research and development expense		3,597															-						(42	)		(80	)		-												3,475
Other (Income) / Expense		493			-			(219	)					(28	)		-			(164	)					(195	)		(247	)		-						-			(360	)
In-process research and development		-									-																														-
Restructuring		82												(82	)																										-
Provision for taxes on income		1,364			164			(7	)		-			23			-			43			15			96			45			(361	)		(88	)		-			1,294
Net Earnings		4,458			877			226			-			100			-			121			63			281			204			361			88			-			6,779
	Third Quarter Oct 3, 2021 GAAP				Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Second Quarter Oct 3, 2021 Non-GAAP
Cost of products sold	$	7,250			(1,133	)								(18	)								(22	)																	6,077
Selling, marketing and admin expenses		6,000																					(6	)																	5,994
Research and development expense		3,422															-						(31	)																	3,391
Other (Income) / Expense		1,850			(26	)		(2,077	)					(43	)		(20	)		127						-			-			-						-			(189	)
In-process research and development		900									(900	)																													-
Restructuring		60												(60	)																										-
Provision for taxes on income		182			165			433			202			22			(6	)		22			11			-			-			-			59			-			1,090
Net Earnings		3,667			994			1,644			698			99			26			(149	)		48			-			-			-			(59	)		-			6,968
Year to Date
	Nine Months Oct 2, 2022 GAAP				Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Nine Months Oct 2, 2022 Non-GAAP
Cost of products sold	$	23,324			(3,232	)								(46	)								(76	)		(296	)														19,674
Selling, marketing and admin expenses		18,253																					(19	)					(2	)											18,232
Research and development expense		10,762															-						(113	)		(190	)														10,459
Other (Income) / Expense		664			(12	)		(604	)					(40	)		-			(684	)					(167	)		(617	)		-						7			(1,453	)
In-process research and development		610									(610	)																													-
Restructuring		237												(237	)																										-
Provision for taxes on income		3,103			502			(89	)		138			60			-			164			39			161			112			(459	)		(87	)		(2	)		3,642
Net Earnings		14,421			2,742			693			472			263			-			520			169			492			507			459			87			(5	)		20,820
	Nine Months Oct 3, 2021 GAAP				Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related (1)			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Nine Months Oct 3, 202 Non-GAAP
Cost of products sold	$	21,900			(3,550	)								(65	)								(59	)																	18,226
Selling, marketing and admin expenses		17,505																					(17	)																	17,488
Research and development expense		9,994															-						(85	)																	9,909
Other (Income) / Expense		480			(26	)		(2,054	)					(99	)		504			335						-			-			-						-			(860	)
In-process research and development		900									(900	)																													-
Restructuring		169												(169	)																										-
Provision for taxes on income		1,798			505			432			202			59			(104	)		(27	)		30			-			-			-			713			-			3,608
Net Earnings		16,142			3,071			1,622			698			274			(400	)		(308	)		131			-			-			-			(713	)		-			20,517
(1) 2021 primarily includes gains on the divestitures of two Pharmaceutical brands outside of the United States.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221018005309/en/

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Jessica Moore

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Source: Johnson & Johnson

FAQ

What were Johnson & Johnson's Q3 2022 results for sales and EPS?

In Q3 2022, Johnson & Johnson reported sales of $23.8 billion and EPS of $1.68, a 22.6% increase from the previous year.

What are the key drivers of Johnson & Johnson's operational sales growth in Q3 2022?

Key drivers include strong pharmaceutical sales, particularly from drugs like DARZALEX and TREMFYA, contributing to an operational sales growth of 8.1%.

How did Johnson & Johnson's adjusted EPS perform in Q3 2022?

The adjusted EPS for Q3 2022 decreased by 1.9% to $2.55, compared to $2.60 in Q3 2021.

What guidance did Johnson & Johnson provide for 2022 after their Q3 report?

Johnson & Johnson is maintaining its full-year guidance midpoints for adjusted operational sales and reported adjusted EPS despite unfavorable currency impacts.

What notable announcements were made by Johnson & Johnson in Q3 2022?

In Q3 2022, Johnson & Johnson announced significant regulatory approvals and a $5 billion share repurchase program.