Johnson & Johnson Reports Q4 and Full-Year 2023 Results

Rhea-AI Summary

Johnson & Johnson (NYSE: JNJ) reported a 7.3% sales growth to $21.4 billion in the fourth quarter of 2023, with operational growth of 7.2% and adjusted operational growth of 5.7%. Earnings per share (EPS) increased by 39.3% to $1.70, and adjusted EPS increased by 11.7% to $2.29. The full-year reported sales grew by 6.5% to $85.2 billion, with operational growth of 7.4% and adjusted operational growth of 5.9%. The EPS for the full year decreased by 15.3% due to a special one-time charge in the first quarter, but the adjusted EPS increased by 11.1%. The company re-confirmed guidance for 2024 with operational sales growth of 5.0% - 6.0% and adjusted operational EPS of $10.55 - $10.75. Johnson & Johnson's regional sales and segment sales results also showed positive growth.

Positive

• 7.3% sales growth to $21.4 billion in the fourth quarter of 2023
• 39.3% increase in earnings per share (EPS) to $1.70
• 7.4% full-year reported sales growth to $85.2 billion
• Re-confirmed guidance for 2024 with operational sales growth of 5.0% - 6.0% and adjusted operational EPS of $10.55 - $10.75

Negative

• None.

Insights

Financial Analyst

The reported increase in fourth-quarter sales growth of 7.3% and full-year sales growth of 6.5% by Johnson & Johnson indicates a robust performance, especially when considering the operational growth excluding the COVID-19 vaccine. The distinction between reported and operational growth is crucial, as operational growth adjusts for currency fluctuations, providing a clearer picture of the company's core business performance. The growth in the Innovative Medicine and MedTech segments, both operationally and adjusted operationally, suggests a strong market position and successful product portfolio expansion.

However, a notable point of concern is the decrease in full-year EPS by 15.3% due to a one-time charge, which investors should evaluate in the context of the company's long-term earnings potential. The re-confirmation of the 2024 guidance with expected operational sales growth and adjusted operational EPS growth provides a positive outlook, potentially signaling confidence in the company's strategic direction and ongoing initiatives.

Market Research Analyst

Johnson & Johnson's performance in the U.S. market, with an 11.0% increase in sales, outpaces its international growth, which is a reflection of the company's strong domestic market presence and could be attributed to factors such as consumer loyalty and effective marketing strategies. The MedTech segment's double-digit growth, driven by products in electrophysiology, contact lenses, wound closure and biosurgery, indicates a successful integration of new acquisitions and innovation within the segment.

The growth drivers in the Innovative Medicine segment, including DARZALEX and STELARA, highlight the company's strength in the oncology and immunology markets. The impact of declining sales from ZYTIGA and IMBRUVICA raises questions about the company's strategy to offset losses from older products with newer, high-growth treatments.

Medical Research Analyst

The growth contributions from DARZALEX, ERLEADA, TECVAYLI and CARVYKTI underscore Johnson & Johnson's competitive edge in the oncology market, where innovation and efficacy are critical for gaining market share. The mention of SPRAVATO in Neuroscience suggests strategic moves into treatment areas with high unmet medical needs, potentially opening new revenue streams. The growth offset by older drugs like ZYTIGA and IMBRUVICA is indicative of the industry's product lifecycle dynamics, where pharmaceutical companies must continuously innovate to stay ahead of patent expirations and market competition.

It's also important to note the acquisition of Abiomed and its contribution to MedTech's operational sales. Such strategic acquisitions can be transformative, enhancing a company's portfolio and providing access to cutting-edge technologies.

• 2023 Fourth-Quarter reported sales growth of 7.3% to $21.4 Billion with operational growth of 7.2%* and adjusted operational growth of 5.7%*. Operational growth excluding COVID-19 Vaccine of 10.9%*
• 2023 Fourth-Quarter Earnings per share (EPS) of $1.70 increasing 39.3% and adjusted EPS of $2.29 increasing by 11.7%* 
• 2023 Full-Year reported sales growth of 6.5% to $85.2 Billion with operational growth of 7.4%* and adjusted operational growth of 5.9%*. Operational growth excluding COVID-19 Vaccine of 9.0%*
• 2023 Full-Year EPS of $5.20 decreasing 15.3% due to a special one-time charge in the First-Quarter, and adjusted EPS of $9.92 increasing by 11.1%* 
• Company re-confirms guidance for 2024 with operational sales⁵ growth of 5.0% - 6.0%* and adjusted operational EPS of $10.55 - $10.75, reflecting growth of 7.4%* at the mid-point

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2023. “Johnson & Johnson’s full year 2023 results reflect the breadth and competitiveness of our business and our relentless focus on delivering for patients,” said Joaquin Duato, Chairman and Chief Executive Officer. “We have entered 2024 from a position of strength, and I am confident in our ability to lead the next wave of health innovation.”

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

Overall Financial Results

	Q4				Full Year
($ in Millions, except EPS)	2023	2022	% Change		2023	2022	% Change
Reported Sales	$21,395	$19,939	7.3%		$85,159	$79,990	6.5%
Net Earnings	$4,132	$3,227	28.0%		$13,326	$16,370	(18.6)%
EPS (diluted)	$1.70	$1.22	39.3%		$5.20	$6.14	(15.3)%
	Q4				Full Year
Non-GAAP* ($ in Millions, except EPS)	2023	2022	% Change		2023	2022	% Change
Operational Sales1,2			7.2%				7.4%
Adjusted Operational Sales1,3			5.7%				5.9%
Adjusted Net Earnings1,4	$5,562	$5,432	2.4%		$25,409	$23,796	6.8%
Adjusted EPS (diluted)1,4	$2.29	$2.05	11.7%		$9.92	$8.93	11.1%

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

Q4			% Change
($ in Millions)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$12,009	$10,820	11.0%	11.0	-	8.8
International	9,386	9,119	2.9	2.7	0.2	2.1
Worldwide	$21,395	$19,939	7.3%	7.2	0.1	5.7

Full Year			% Change
($ in Millions)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$46,444	$41,981	10.6%	10.6	-	8.2
International	38,715	38,009	1.9	3.8	(1.9)	3.4
Worldwide	$85,159	$79,990	6.5%	7.4	(0.9)	5.9

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
		Note: Values may have been rounded

Segment Sales Results

Q4			% Change
($ in Millions)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
Innovative Medicine	$13,722	$13,163	4.2%	4.0	0.2	4.0
MedTech	7,673	6,776	13.3	13.4	(0.1)	9.1
Worldwide	$21,395	$19,939	7.3%	7.2	0.1	5.7
Full Year			% Change
($ in Millions)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
Innovative Medicine	$54,759	$52,563	4.2%	4.8	(0.6)	4.9
MedTech	30,400	27,427	10.8	12.4	(1.6)	7.8
Worldwide	$85,159	$79,990	6.5%	7.4	(0.9)	5.9

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
		Note: The Innovative Medicine segment was previously referred to as the Pharmaceutical segment
		Values may have been rounded

Full Year 2023 Segment Commentary:

Operational sales* reflected below excludes the impact of translational currency. Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Innovative Medicine

Innovative Medicine worldwide operational sales, excluding the COVID-19 Vaccine, grew 7.2%*. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), TECVAYLI (teclistamab-cqyv) in Other Oncology, and CARVYKTI (ciltacabtagene autoleucel) in Oncology, STELARA (ustekinumab) and TREMFYA (guselkumab) in Immunology, and SPRAVATO (esketamine) in Neuroscience. Growth was partially offset by ZYTIGA (abiraterone acetate) and IMBRUVICA (ibrutinib) in Oncology, and REMICADE (infliximab) in Immunology. Including the COVID-19 Vaccine, Innovative Medicine worldwide operational sales grew 4.8%*.

MedTech

MedTech worldwide operational sales grew 12.4%*, with the acquisition of Abiomed contributing 4.7%. MedTech worldwide adjusted operational sales grew 7.8%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, wound closure products in General Surgery, and biosurgery in Advanced Surgery.

Notable New 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, MedTech, www.factsabouttalc.com, www.factsaboutourprescriptionopioids.com, and www.LLTManagementInformation.com.

Regulatory	U.S. Food and Drug Administration Grants Full Approval for BALVERSA to Treat Locally Advanced or Metastatic Bladder Cancer with Select Genetic Alterations1	Press Release
	Biosense Webster Announces Regulatory Approval of VARIPULSE Pulsed Field Ablation (PFA) Platform in Japan1	Press Release
	Janssen Submits Marketing Authorisation Application to the European Medicines Agency Seeking Approval of Lazertinib, in combination with RYBREVANT (amivantamab), for the First-Line Treatment of Patients with EGFR-Mutated Non-Small Cell Lung Cancer	Press Release
	Johnson & Johnson Submits Supplemental Biologics License Application and New Drug Application to U.S. FDA Seeking Approval of RYBREVANT (amivantamab-vmjw) Plus Lazertinib for the Treatment of Patients with EGFR-Mutated Non-Small Cell Lung Cancer (NSCLC)	Press Release
	Johnson & Johnson’s Investigational TAR-200 Granted U.S. FDA Breakthrough Therapy Designation for the Treatment of High-Risk Non-Muscle-Invasive Bladder Cancer	Press Release
	Janssen Submits Application to the European Medicines Agency for RYBREVANT (amivantamab) in Combination with Chemotherapy for the Treatment of Adult Patients with Advanced EGFR-Mutated Non-Small Cell Lung Cancer After Failure of Prior Therapy	Press Release
	Janssen Submits Supplemental Biologics License Application to U.S. FDA Seeking Approval of RYBREVANT (amivantamab-vmjw) Plus Chemotherapy for the Treatment of Patients with EGFR-Mutated Non-Small Cell Lung Cancer Who Progressed on or after Osimertinib	Press Release
	MONARCH Platform for Bronchoscopy Receives Regulatory License for China	Press Release
Data Release	Johnson & Johnson highlights its preeminent leadership in hematology through differentiated blood cancer portfolio and pipeline with new clinical and real-world data at ASH	Press Release
	New Real-World Data Show TREMFYA (guselkumab) Was Associated With Clinically Meaningful Improvements in Patient-Reported Outcomes for Adults Living With Active Psoriatic Arthritis	Press Release
	Phase 2 Nipocalimab Data Establish Proof of Mechanism in Adults Living with Moderate to Severe Rheumatoid Arthritis, Supporting its Progression into a Combination Study	Press Release
	New Biosense Webster QDOT MICRO Catheter Data Demonstrate Very High-Power, Short-Duration Ablations Improved Quality of Life and Reduced Healthcare Utilization for AFib Patients	Press Release
	New Phase 3 TREMFYA (guselkumab) Results in Ulcerative Colitis Show a 77 Percent Overall Clinical Response Rate and Early Symptom Improvement	Press Release
	Janssen Aims to Define New Standards of Care in the Treatment of Solid Tumor Cancers with Transformative Data Planned for Presentation at ESMO	Press Release
Product Launch	Ethicon Introduces ETHIZIA Hemostatic Sealing Patch, Clinically Proven to Stop Disruptive Bleeding	Press Release
Other	Johnson & Johnson to Acquire Ambrx, Advancing Next Generation Antibody Drug Conjugates to Transform the Treatment of Cancer1	Press Release
	Johnson & Johnson Announces Key Drivers for Long-Term Competitive Growth at Enterprise Business Review	Press Release
	Johnson & Johnson Names Eugene A. Woods, Chief Executive Officer of Advocate Health, to its Board of Directors	Press Release
	Johnson & Johnson MedTech Acquires Laminar, Inc.	Press Release
	Johnson & Johnson MedTech Provides Details and Timeline for General Surgery Robot	Press Release
	Johnson & Johnson Announces Departure of Ashley McEvoy, Tim Schmid Named Executive Vice President, Worldwide Chairman of MedTech	Press Release
1 Subsequent to the quarter

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.

($ in Billions, except EPS)	January 2024	December 2023
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point	5.0% – 6.0% / 5.5%
Operational Sales2,5/ Mid-point Change vs. Prior Year / Mid-point	$88.2B – $89.0B / $88.6B 5.0% – 6.0% / 5.5%	5.0% – 6.0% / 5.5%
Estimated Reported Sales3,5/ Mid-point Change vs. Prior Year / Mid-point	$87.8B – $88.6B / $88.2B 4.5% – 5.5% / 5.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point Change vs. Prior Year / Mid-point	$10.55 – $10.75 / $10.65 6.4% – 8.4% / 7.4%	$10.55 – $10.75 / $10.65 7.3% Mid-point
Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point	$10.55 – $10.75 / $10.65 6.4% – 8.4% / 7.4%
Average Shares Outstanding (Diluted)6	~2,435 million

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: January 2024 = $1.09 and December 2023 = $1.09 (Illustrative purposes only)
4		Non-GAAP financial measure; excludes intangible amortization expense and special items
5		Excludes COVID-19 Vaccine
6		Full Year 2024 Projected Average Shares Outstanding (Diluted) reflects impact from the Kenvue exchange offer
		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 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 https://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; the Company’s ability to realize the anticipated benefits from the separation of the Company’s Consumer Health business; and the New Consumer Health Company’s ability to succeed as a standalone publicly traded company. 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 1, 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)	FOURTH QUARTER														TWELVE MONTHS
						Percent Change														Percent Change
	2023			2022		Total			Operations			Currency			2023			2022		Total			Operations			Currency
Sales to customers by
segment of business
Innovative Medicine (1,2)
U.S.		8,079		7,375		9.5			9.5			-				31,169		28,604		9.0			9.0			-
International		5,643		5,788		(2.5	)		(3.1	)		0.6				23,590		23,959		(1.5	)		(0.2	)		(1.3	)
		13,722		13,163		4.2			4.0			0.2				54,759		52,563		4.2			4.8			(0.6	)
Innovative Medicine excluding COVID-19 Vaccine (1,2)
U.S.		8,079		7,375		9.5			9.5			-				31,169		28,484		9.4			9.4			-
International		5,599		5,099		9.8			9.4			0.4				22,473		21,900		2.6			4.3			(1.7	)
		13,678		12,474		9.7			9.5			0.2				53,642		50,384		6.5			7.2			(0.7	)
MedTech
U.S.		3,930		3,445		14.1			14.1			-				15,275		13,377		14.2			14.2			-
International		3,743		3,331		12.4			12.8			(0.4	)			15,125		14,050		7.7			10.6			(2.9	)
		7,673		6,776		13.3			13.4			(0.1	)			30,400		27,427		10.8			12.4			(1.6	)
U.S.		12,009		10,820		11.0			11.0			-				46,444		41,981		10.6			10.6			-
International		9,386		9,119		2.9			2.7			0.2				38,715		38,009		1.9			3.8			(1.9	)
Worldwide		21,395		19,939		7.3			7.2			0.1				85,159		79,990		6.5			7.4			(0.9	)
U.S.		12,009		10,820		11.0			11.0			-				46,444		41,861		10.9			10.9			-
International		9,342		8,430		10.8			10.7			0.1				37,598		35,950		4.6			6.7			(2.1	)
Worldwide excluding COVID-19 Vaccine (1)	$	21,351		19,250		10.9		%	10.9			0.0			$	84,042		77,811		8.0		%	9.0			(1.0	)

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(1) Refer to supplemental sales reconciliation schedule

(2) Previously referred to as Pharmaceutical

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FOURTH QUARTER														TWELVE MONTHS
						Percent Change														Percent Change
	2023			2022		Total			Operations			Currency			2023			2022		Total			Operations			Currency
Sales to customers by
geographic area
U.S.	$	12,009		10,820		11.0		%	11.0			-			$	46,444		41,981		10.6		%	10.6			-
Europe		4,962		5,124		(3.2	)		(5.8	)		2.6				20,410		20,664		(1.2	)		(2.2	)		1.0
Western Hemisphere excluding U.S.		1,166		1,024		14.0			18.1			(4.1	)			4,549		4,108		10.7			15.8			(5.1	)
Asia-Pacific, Africa		3,258		2,971		9.7			12.1			(2.4	)			13,756		13,237		3.9			9.5			(5.6	)
International		9,386		9,119		2.9			2.7			0.2				38,715		38,009		1.9			3.8			(1.9	)
Worldwide	$	21,395		19,939		7.3		%	7.2			0.1			$	85,159		79,990		6.5		%	7.4			(0.9	)
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)	FOURTH QUARTER
	2023						2022						Percent
					Percent						Percent		Increase
	Amount				to Sales		Amount				to Sales		(Decrease)
Sales to customers	$	21,395			100.0		$	19,939			100.0		7.3
Cost of products sold		6,798			31.8			6,084			30.5		11.7
Gross Profit		14,597			68.2			13,855			69.5		5.4
Selling, marketing and administrative expenses		5,810			27.1			5,339			26.8		8.8
Research and development expense		4,480			20.9			3,710			18.6		20.8
In-process research and development impairments		58			0.3			173			0.8
Interest (income) expense, net		(212	)		(1.0)			(77	)		(0.4)
Other (income) expense, net		(421	)		(2.0)			795			4.0
Restructuring		56			0.3			75			0.4
Earnings before provision for taxes on income		4,826			22.6			3,840			19.3		25.7
Provision for taxes on income		694			3.3			613			3.1		13.2
Net earnings from Continuing Operations	$	4,132			19.3		$	3,227			16.2		28.0
Net earnings/(loss) from Discontinued Operations, net of tax		(83	)					293
Net earnings	$	4,049					$	3,520
Net earnings per share (Diluted) from Continuing Operations	$	1.70					$	1.22					39.3
Net earnings/(loss) per share (Basic/Diluted) from Discontinued Operations*	$	(0.03	)				$	0.11
Average shares outstanding (Diluted)		2,430.7						2,650.1
Effective tax rate from Continuing Operations		14.4		%				16.0		%
Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1)
Earnings before provision for taxes on income from Continuing Operations	$	6,237			29.2		$	6,482			32.5		(3.8)
Net earnings from Continuing Operations	$	5,562			26.0		$	5,432			27.2		2.4
Net earnings per share (Diluted) from Continuing Operations	$	2.29					$	2.05					11.7
Effective tax rate from Continuing Operations		10.8		%				16.2		%
* Basic shares of 2,407.2 are used to calculate loss per share in the fourth quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive.
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	TWELVE MONTHS
	2023					2022					Percent
				Percent					Percent		Increase
	Amount			to Sales		Amount			to Sales		(Decrease)
Sales to customers	$	85,159		100.0		$	79,990		100.0		6.5
Cost of products sold		26,553		31.2			24,596		30.7		8.0
Gross Profit		58,606		68.8			55,394		69.3		5.8
Selling, marketing and administrative expenses		21,512		25.2			20,246		25.3		6.3
Research and development expense		15,085		17.7			14,135		17.7		6.7
In-process research and development impairments		313		0.4			783		1.0
Interest (income) expense, net		(489)		(0.6)			(214)		(0.3)
Other (income) expense, net		6,634		7.8			810		1.0
Restructuring		489		0.6			275		0.4
Earnings before provision for taxes on income		15,062		17.7			19,359		24.2		(22.2)
Provision for taxes on income		1,736		2.1			2,989		3.7		(41.9)
Net earnings from Continuing Operations	$	13,326		15.6		$	16,370		20.5		(18.6)
Net earnings from Discontinued Operations, net of tax		21,827					1,571
Net earnings	$	35,153				$	17,941
Net earnings per share (Diluted) from Continuing Operations	$	5.20				$	6.14				(15.3)
Net earnings per share (Diluted) from Discontinued Operations	$	8.52				$	0.59
Average shares outstanding (Diluted)		2,560.4					2,663.9
Effective tax rate from Continuing Operations		11.5	%				15.4	%
Adjusted earnings from continuing operations before provision for taxes and net earnings (1)
Earnings before provision for taxes on income from Continuing Operations	$	29,811		35.0		$	27,973		35.0		6.6
Net earnings from Continuing Operations	$	25,409		29.8		$	23,796		29.7		6.8
Net earnings per share (Diluted) from Continuing Operations	$	9.92				$	8.93				11.1
Effective tax rate from Continuing Operations		14.8	%				14.9	%
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
		Fourth Quarter				Twelve Months Ended
(Dollars in Millions Except Per Share Data)		2023		2022		2023		2022
Net Earnings from Continuing Operations, after tax- as reported		$4,132		$3,227		$13,326		$16,370
Pre-tax Adjustments
Litigation related		166		262		7,152		866
Intangible Asset Amortization expense		1,148		977		4,532		3,944
COVID-19 Vaccine related costs 1		10		821		663		1,474
Restructuring related 2		139		119		798		372
Medical Device Regulation 3		88		88		311		296
Acquisition, integration and divestiture related		237		196		339		196
(Gains)/losses on securities		(435)		6		641		690
IPR&D impairments		58		173		313		783
Other		-		-		-		(7)
Tax Adjustments
Tax impact on special item adjustments 4		75		(394)		(2,694)		(1,294)
Tax legislation and other tax related		(56)		(43)		28		106
Adjusted Net Earnings from Continuing Operations, after tax		$5,562		$5,432		$25,409		$23,796
Average shares outstanding (Diluted)		2,430.7		2,650.1		2,560.4		2,663.9
Adjusted net earnings per share from Continuing Operations (Diluted)		$2.29		$2.05		$9.92		$8.93
Operational adjusted net earnings per share from Continuing Operations (Diluted)		$2.28				$9.89

		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 expenses of $55 million in the quarter ($479 million Q4 YTD) include 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 $84 million in the quarter ($319 million Q4 YTD) primarily includes inventory and instrument reserves related to the 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 is expected to 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
FOURTH QUARTER 2023 ACTUAL vs. 2022 ACTUAL
Segments
		Innovative Medicine		MedTech		Total
WW As Reported		4.2%		13.3%		7.3%
U.S.		9.5%		14.1%		11.0%
International		(2.5)%		12.4%		2.9%
WW Currency		0.2		(0.1)		0.1
U.S.		-		-		-
International		0.6		(0.4)		0.2
WW Operational		4.0%		13.4%		7.2%
U.S.		9.5%		14.1%		11.0%
International		(3.1)%		12.8%		2.7%
Abiomed				(4.5)		(1.6)
U.S.				(7.2)		(2.3)
International				(1.9)		(0.7)
All Other Acquisitions and Divestitures		0.0		0.2		0.1
U.S.		0.0		0.3		0.1
International		0.1		0.1		0.1
WW Adjusted Operational		4.0%		9.1%		5.7%
U.S.		9.5%		7.2%		8.8%
International		(3.0)%		11.0%		2.1%
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
TWELVE MONTHS 2023 ACTUAL vs. 2022 ACTUAL
Segments
		Innovative Medicine		MedTech		Total
WW As Reported		4.2%		10.8%		6.5%
U.S.		9.0%		14.2%		10.6%
International		(1.5)%		7.7%		1.9%
WW Currency		(0.6)		(1.6)		(0.9)
U.S.		-		-		-
International		(1.3)		(2.9)		(1.9)
WW Operational		4.8%		12.4%		7.4%
U.S.		9.0%		14.2%		10.6%
International		(0.2)%		10.6%		3.8%
Abiomed				(4.7)		(1.6)
U.S.				(7.7)		(2.5)
International				(1.7)		(0.6)
All Other Acquisitions and Divestitures		0.1		0.1		0.1
U.S.		0.0		0.1		0.1
International		0.2		0.1		0.2
WW Adjusted Operational		4.9%		7.8%		5.9%
U.S.		9.0%		6.6%		8.2%
International		0.0%		9.0%		3.4%
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)
	FOURTH QUARTER										TWELVE MONTHS
					% Change											% Change
INNOVATIVE MEDICINE SEGMENT (2,3,4)		2023		2022	Reported	Operational (1)	Currency					2023			2022	Reported	Operational (1)	Currency
IMMUNOLOGY
US		$3,033		2,805	8.1%	8.1%	-					$	11,539		11,036	4.6%	4.6%	-
Intl		1,562		1,312	19.0%	17.7%	1.3%						6,513		5,899	10.4%	12.0%	-1.6%
WW		4,595		4,118	11.6%	11.2%	0.4%						18,052		16,935	6.6%	7.1%	-0.5%
REMICADE
US		294		318	-7.4%	-7.4%	-						1,143		1,417	-19.3%	-19.3%	-
US Exports (5)		35		41	-15.1%	-15.1%	-						147		204	-28.0%	-28.0%	-
Intl		100		116	-13.4%	-12.4%	-1.0%						549		722	-23.9%	-21.3%	-2.6%
WW		429		475	-9.6%	-9.4%	-0.2%						1,839		2,343	-21.5%	-20.7%	-0.8%
SIMPONI / SIMPONI ARIA
US		258		280	-7.8%	-7.8%	-						1,124		1,166	-3.6%	-3.6%	-
Intl		244		220	10.1%	11.8%	-1.7%						1,073		1,017	5.4%	9.3%	-3.9%
WW		502		501	0.1%	0.8%	-0.7%						2,197		2,184	0.6%	2.4%	-1.8%
STELARA
US		1,786		1,621	10.1%	10.1%	-						6,966		6,388	9.0%	9.0%	-
Intl		967		764	26.4%	23.9%	2.5%						3,892		3,335	16.7%	17.4%	-0.7%
WW		2,753		2,386	15.3%	14.5%	0.8%						10,858		9,723	11.7%	11.9%	-0.2%
TREMFYA
US		657		541	21.6%	21.6%	-						2,147		1,844	16.5%	16.5%	-
Intl		252		211	19.4%	17.8%	1.6%						999		824	21.2%	22.4%	-1.2%
WW		910		752	21.0%	20.5%	0.5%						3,147		2,668	17.9%	18.3%	-0.4%
OTHER IMMUNOLOGY
US		2		3	-22.8%	-22.8%	-						11		17	-33.8%	-33.8%	-
Intl		0		0	-	-	-						0		0	-	-	-
WW		2		3	-22.8%	-22.8%	-						11		17	-33.8%	-33.8%	-
INFECTIOUS DISEASES
US		353		414	-14.6%	-14.6%	-						1,500		1,680	-10.7%	-10.7%	-
Intl		498		1,127	-55.8%	-58.2%	2.4%						2,918		3,769	-22.6%	-23.9%	1.3%
WW		852		1,540	-44.7%	-46.5%	1.8%						4,418		5,449	-18.9%	-19.8%	0.9%
COVID-19 VACCINE
US		0		0	-	-	-						0		120	*	*	-
Intl		44		689	-93.7%	-95.2%	1.5%						1,117		2,059	-45.8%	-47.2%	1.4%
WW		44		689	-93.7%	-95.2%	1.5%						1,117		2,179	-48.8%	-50.1%	1.3%
EDURANT / rilpivirine
US		9		9	-12.4%	-12.4%	-						35		36	-3.7%	-3.7%	-
Intl		299		281	6.4%	1.5%	4.9%						1,115		972	14.8%	12.1%	2.7%
WW		307		290	5.8%	1.0%	4.8%						1,150		1,008	14.1%	11.5%	2.6%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		341		398	-14.4%	-14.4%	-						1,446		1,494	-3.2%	-3.2%	-
Intl		98		95	3.1%	-0.8%	3.9%						408		449	-9.2%	-10.4%	1.2%
WW		439		493	-11.0%	-11.8%	0.8%						1,854		1,943	-4.6%	-4.9%	0.3%
OTHER INFECTIOUS DISEASES
US		4		6	-30.4%	-30.4%	-						19		30	-34.5%	-34.5%	-
Intl		58		61	-5.6%	-4.9%	-0.7%						278		289	-3.8%	-0.4%	-3.4%
WW		62		67	-7.8%	-7.1%	-0.7%						297		318	-6.7%	-3.6%	-3.1%
	REPORTED SALES vs. PRIOR PERIOD ($MM)										REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER											TWELVE MONTHS
					% Change											% Change
		2023		2022	Reported	Operational (1)	Currency						2023		2022	Reported	Operational (1)	Currency
NEUROSCIENCE
US		1,022		912	12.1%	12.1%	-						4,065		3,570	13.9%	13.9%	-
Intl		780		825	-5.5%	-2.0%	-3.5%						3,076		3,323	-7.5%	-3.7%	-3.8%
WW		1,801		1,737	3.7%	5.4%	-1.7%						7,140		6,893	3.6%	5.4%	-1.8%
CONCERTA / Methylphenidate
US		39		37	5.7%	5.7%	-						230		151	52.5%	52.5%	-
Intl		142		131	7.9%	9.2%	-1.3%						554		493	12.2%	16.4%	-4.2%
WW		180		168	7.4%	8.5%	-1.1%						783		644	21.6%	24.9%	-3.3%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		733		678	8.0%	8.0%	-						2,897		2,714	6.7%	6.7%	-
Intl		278		329	-15.5%	-15.7%	0.2%						1,218		1,426	-14.6%	-12.8%	-1.8%
WW		1,011		1,008	0.3%	0.3%	0.0%						4,115		4,140	-0.6%	0.0%	-0.6%
SPRAVATO
US		180		105	72.3%	72.3%	-						589		328	79.7%	79.7%	-
Intl		26		14	87.1%	83.4%	3.7%						100		46	*	*	*
WW		206		119	74.1%	73.6%	0.5%						689		374	84.1%	84.0%	0.1%
OTHER NEUROSCIENCE
US		71		91	-23.0%	-23.0%	-						349		376	-7.3%	-7.3%	-
Intl		334		351	-5.0%	3.2%	-8.2%						1,204		1,358	-11.3%	-5.4%	-5.9%
WW		404		442	-8.7%	-2.3%	-6.4%						1,553		1,734	-10.4%	-5.9%	-4.5%
ONCOLOGY
US		2,285		1,857	23.0%	23.0%	-						8,462		6,930	22.1%	22.1%	-
Intl		2,334		2,069	12.8%	12.0%	0.8%						9,199		9,052	1.6%	2.9%	-1.3%
WW		4,618		3,927	17.6%	17.2%	0.4%						17,661		15,983	10.5%	11.2%	-0.7%
CARVYKTI
US		145		54	*	*	-						469		133	*	*	-
Intl		13		-	*	*	-						30		-	*	*	-
WW		159		54	*	*	*						500		133	*	*	*
DARZALEX
US		1,395		1,139	22.5%	22.5%	-						5,277		4,210	25.4%	25.4%	-
Intl		1,155		944	22.3%	21.8%	0.5%						4,467		3,767	18.6%	20.2%	-1.6%
WW		2,550		2,083	22.4%	22.2%	0.2%						9,744		7,977	22.2%	22.9%	-0.7%
ERLEADA
US		287		275	4.4%	4.4%	-						1,065		968	10.0%	10.0%	-
Intl		361		266	35.6%	34.0%	1.6%						1,322		913	44.8%	46.0%	-1.2%
WW		647		541	19.8%	19.0%	0.8%						2,387		1,881	26.9%	27.5%	-0.6%
IMBRUVICA
US		255		318	-19.8%	-19.8%	-						1,051		1,390	-24.4%	-24.4%	-
Intl		533		547	-2.6%	-3.8%	1.2%						2,214		2,394	-7.5%	-6.7%	-0.8%
WW		788		866	-8.9%	-9.7%	0.8%						3,264		3,784	-13.7%	-13.2%	-0.5%
ZYTIGA / abiraterone acetate
US		9		20	-52.0%	-52.0%	-						50		74	-32.1%	-32.1%	-
Intl		191		250	-23.6%	-23.2%	-0.4%						837		1,696	-50.7%	-49.1%	-1.6%
WW		201		270	-25.6%	-25.3%	-0.3%						887		1,770	-49.9%	-48.4%	-1.5%
OTHER ONCOLOGY
US		192		52	*	*	-						549		156	*	*	-
Intl		82		63	32.2%	28.4%	3.8%						330		283	16.9%	17.0%	-0.1%
WW		274		114	*	*	*						879		438	*	*	*
	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER											TWELVE MONTHS
					% Change											% Change
		2023		2022	Reported	Operational (1)	Currency						2023		2022	Reported	Operational (1)	Currency
PULMONARY HYPERTENSION
US		733		610	20.2%	20.2%	-						2,697		2,346	15.0%	15.0%	-
Intl		282		261	8.6%	10.9%	-2.3%						1,117		1,071	4.3%	8.3%	-4.0%
WW		1,017		870	16.7%	17.4%	-0.7%						3,815		3,417	11.6%	12.9%	-1.3%
OPSUMIT
US		368		305	20.5%	20.5%	-						1,292		1,132	14.1%	14.1%	-
Intl		169		156	7.9%	8.3%	-0.4%						681		651	4.6%	7.2%	-2.6%
WW		536		461	16.2%	16.3%	-0.1%						1,973		1,783	10.6%	11.6%	-1.0%
UPTRAVI
US		348		280	24.3%	24.3%	-						1,326		1,104	20.1%	20.1%	-
Intl		70		56	26.4%	31.4%	-5.0%						255		218	17.3%	21.8%	-4.5%
WW		419		336	24.6%	25.4%	-0.8%						1,582		1,322	19.7%	20.4%	-0.7%
OTHER PULMONARY HYPERTENSION
US		18		24	-29.4%	-29.4%	-						79		110	-28.6%	-28.6%	-
Intl		45		48	-9.7%	-3.9%	-5.8%						182		202	-10.3%	-2.9%	-7.4%
WW		61		73	-16.2%	-12.4%	-3.8%						260		313	-16.7%	-12.0%	-4.7%
CARDIOVASCULAR / METABOLISM / OTHER
US		652		776	-15.9%	-15.9%	-						2,906		3,042	-4.5%	-4.5%	-
Intl		185		194	-4.7%	-6.7%	2.0%						765		845	-9.4%	-9.1%	-0.3%
WW		837		971	-13.7%	-14.1%	0.4%						3,671		3,887	-5.5%	-5.5%	0.0%
XARELTO
US		525		667	-21.2%	-21.2%	-						2,365		2,473	-4.4%	-4.4%	-
Intl		-		-	-	-	-						-		-	-	-	-
WW		525		667	-21.2%	-21.2%	-						2,365		2,473	-4.4%	-4.4%	-
OTHER
US		127		110	15.9%	15.9%	-						541		569	-5.0%	-5.0%	-
Intl		185		194	-4.7%	-6.7%	2.0%						765		845	-9.4%	-9.1%	-0.3%
WW		312		304	2.8%	1.5%	1.3%						1,306		1,414	-7.6%	-7.4%	-0.2%
TOTAL INNOVATIVE MEDICINE
US		8,079		7,375	9.5%	9.5%	-						31,169		28,604	9.0%	9.0%	-
Intl		5,643		5,788	-2.5%	-3.1%	0.6%						23,590		23,959	-1.5%	-0.2%	-1.3%
WW		$13,722		13,163	4.2%	4.0%	0.2%					$	54,759		52,563	4.2%	4.8%	-0.6%
See footnotes at end of schedule
	REPORTED SALES vs. PRIOR PERIOD ($MM)										REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER										TWELVE MONTHS
					% Change											% Change
MEDTECH SEGMENT (2,3)		2023		2022	Reported	Operational (1)	Currency						2023		2022	Reported	Operational (1)	Currency
INTERVENTIONAL SOLUTIONS
US		$971		603	61.0%	61.0%	-					$	3,633		2,169	67.5%	67.5%	-
Intl		698		495	40.8%	41.7%	-0.9%						2,717		2,131	27.5%	31.7%	-4.2%
WW		1,669		1,098	51.9%	52.3%	-0.4%						6,350		4,300	47.7%	49.8%	-2.1%
ELECTROPHYSIOLOGY
US		667		547	22.0%	22.0%	-						2,458		2,036	20.7%	20.7%	-
Intl		572		447	28.0%	29.0%	-1.0%						2,230		1,901	17.3%	21.5%	-4.2%
WW		1,239		994	24.7%	25.2%	-0.5%						4,688		3,937	19.1%	21.1%	-2.0%
ABIOMED
US		276		31	*	*	-						1,066		31	*	*	-
Intl		64		-	*	*	-						240		-	*	*	-
WW		340		31	*	*	-						1,306		31	*	*	-
OTHER INTERVENTIONAL SOLUTIONS
US		28		25	8.8%	8.8%	-						109		102	6.7%	6.7%	-
Intl		61		48	26.5%	27.1%	-0.6%						247		230	7.3%	11.4%	-4.1%
WW		89		73	20.4%	20.7%	-0.3%						356		332	7.1%	9.9%	-2.8%
ORTHOPAEDICS
US		1,425		1,385	2.9%	2.9%	-						5,525		5,321	3.8%	3.8%	-
Intl		843		763	10.5%	8.8%	1.7%						3,417		3,267	4.6%	5.8%	-1.2%
WW		2,268		2,148	5.6%	5.0%	0.6%						8,942		8,587	4.1%	4.6%	-0.5%
HIPS
US		266		250	6.3%	6.3%	-						996		943	5.6%	5.6%	-
Intl		132		135	-2.0%	-3.9%	1.9%						564		571	-1.2%	-0.1%	-1.1%
WW		398		385	3.4%	2.7%	0.7%						1,560		1,514	3.0%	3.5%	-0.5%
KNEES
US		242		231	4.5%	4.5%	-						896		851	5.3%	5.3%	-
Intl		144		122	18.1%	15.6%	2.5%						559		508	10.2%	11.1%	-0.9%
WW		387		354	9.2%	8.4%	0.8%						1,456		1,359	7.1%	7.5%	-0.4%
TRAUMA
US		487		470	3.6%	3.6%	-						1,949		1,882	3.6%	3.6%	-
Intl		255		240	5.9%	4.1%	1.8%						1,030		989	4.1%	4.8%	-0.7%
WW		741		710	4.4%	3.8%	0.6%						2,979		2,871	3.8%	4.0%	-0.2%
SPINE, SPORTS & OTHER
US		430		434	-0.7%	-0.7%	-						1,684		1,645	2.4%	2.4%	-
Intl		311		265	17.5%	16.5%	1.0%						1,263		1,198	5.4%	7.3%	-1.9%
WW		742		699	6.2%	5.8%	0.4%						2,947		2,843	3.7%	4.5%	-0.8%
	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER										TWELVE MONTHS
					% Change											% Change
		2023		2022	Reported	Operational (1)	Currency						2023		2022	Reported	Operational (1)	Currency
SURGERY
US		1,047		1,000	4.6%	4.6%	-						4,031		3,897	3.4%	3.4%	-
Intl		1,484		1,383	7.2%	7.8%	-0.6%						6,006		5,793	3.7%	7.0%	-3.3%
WW		2,530		2,384	6.1%	6.4%	-0.3%						10,037		9,690	3.6%	5.5%	-1.9%
ADVANCED
US		468		456	2.5%	2.5%	-						1,833		1,784	2.8%	2.8%	-
Intl		698		653	7.0%	7.2%	-0.2%						2,837		2,785	1.9%	5.1%	-3.2%
WW		1,167		1,109	5.1%	5.2%	-0.1%						4,671		4,569	2.2%	4.2%	-2.0%
GENERAL
US		579		544	6.4%	6.4%	-						2,198		2,113	4.0%	4.0%	-
Intl		785		731	7.4%	8.3%	-0.9%						3,168		3,008	5.3%	8.7%	-3.4%
WW		1,364		1,275	7.0%	7.5%	-0.5%						5,366		5,121	4.8%	6.8%	-2.0%
VISION
US		487		456	6.8%	6.8%	-						2,086		1,990	4.8%	4.8%	-
Intl		721		689	4.6%	6.4%	-1.8%						2,986		2,859	4.5%	7.9%	-3.4%
WW		1,208		1,145	5.5%	6.6%	-1.1%						5,072		4,849	4.6%	6.6%	-2.0%
CONTACT LENSES / OTHER
US		374		343	8.9%	8.9%	-						1,626		1,522	6.8%	6.8%	-
Intl		508		489	4.2%	7.2%	-3.0%						2,076		2,022	2.7%	7.0%	-4.3%
WW		882		831	6.1%	7.9%	-1.8%						3,702		3,543	4.5%	6.9%	-2.4%
SURGICAL
US		114		113	0.4%	0.4%	-						460		468	-1.8%	-1.8%	-
Intl		212		200	5.6%	4.7%	0.9%						910		837	8.6%	10.0%	-1.4%
WW		326		314	3.7%	3.1%	0.6%						1,370		1,306	4.9%	5.8%	-0.9%
TOTAL MEDTECH
US		3,930		3,445	14.1%	14.1%	-						15,275		13,377	14.2%	14.2%	-
Intl		3,743		3,331	12.4%	12.8%	-0.4%						15,125		14,050	7.7%	10.6%	-2.9%
WW		$7,673		6,776	13.3%	13.4%	-0.1%					$	30,400		27,427	10.8%	12.4%	-1.6%

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) Previously referred to as Pharmaceutical

(5) Reported as U.S. sales

Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
			FOURTH QUARTER											TWELVE MONTHS
								Percent Change											Percent Change
			2023			2022		Total		Operations		Currency		2023			2022		Total		Operations		Currency
	Innovative Medicine
	U.S.		$	8,079		7,375		9.5	%	9.5		-		$	31,169		28,604		9.0	%	9.0		-
	International			5,643		5,788		(2.5)		(3.1)		0.6			23,590		23,959		(1.5)		(0.2)		(1.3)
	Worldwide			13,722		13,163		4.2		4.0		0.2			54,759		52,563		4.2		4.8		(0.6)
	COVID-19 Vaccine
	U.S.			-		-		-		-		-			-		120		*		*		-
	International			44		689		(93.7)		(95.2)		1.5			1,117		2,059		(45.8)		(47.2)		1.4
	Worldwide			44		689		(93.7)		(95.2)		1.5			1,117		2,179		(48.8)		(50.1)		1.3
	Innovative Medicine excluding COVID-19 Vaccine
	U.S.			8,079		7,375		9.5		9.5		-			31,169		28,484		9.4		9.4		-
	International			5,599		5,099		9.8		9.4		0.4			22,473		21,900		2.6		4.3		(1.7)
	Worldwide			13,678		12,474		9.7		9.5		0.2			53,642		50,384		6.5		7.2		(0.7)
	Worldwide
	U.S.			12,009		10,820		11.0		11.0		-			46,444		41,981		10.6		10.6		-
	International			9,386		9,119		2.9		2.7		0.2			38,715		38,009		1.9		3.8		(1.9)
	Worldwide			21,395		19,939		7.3		7.2		0.1			85,159		79,990		6.5		7.4		(0.9)
	COVID-19 Vaccine
	U.S.			-		-		-		-		-			-		120		*		*		-
	International			44		689		(93.7)		(95.2)		1.5			1,117		2,059		(45.8)		(47.2)		1.4
	Worldwide			44		689		(93.7)		(95.2)		1.5			1,117		2,179		(48.8)		(50.1)		1.3
	Worldwide
	U.S.			12,009		10,820		11.0		11.0		-			46,444		41,861		10.9		10.9		-
	International			9,342		8,430		10.8		10.7		0.1			37,598		35,950		4.6		6.7		(2.1)
	Worldwide excluding COVID-19 Vaccine		$	21,351		19,250		10.9	%	10.9		-		$	84,042		77,811		8.0	%	9.0		(1.0)
	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
Q4 QTD - Income Before Tax* and Research & Development Expense by Segment
Dollars in Millions
				Innovative Medicine				MedTech				Unallocated					Worldwide Total
				2023		2022		2023		2022		2023		2022			2023		2022
Reported Income Before Tax by Segment From Continuing Operations		$		4,238		3,223		404		806		184		(189)			4,826		3,840
% to Sales				30.9%		24.5%		5.3%		11.9%		0.9%		-0.9%			22.6%		19.3%
Intangible asset amortization expense				747		717		401		260		-		-			1,148		977
In-process research and development impairments				-		173		58		-		-		-			58		173
Litigation related				17		76		149		136		-		50			166		262
Loss/(gain) on securities				(112)		23		(59)		(17)		(264)		-			(435)		6
Restructuring related				55		31		84		88		-		-			139		119
Acquisition, integration and divestiture related				175		(104)		62		300		-		-			237		196
Medical Device Regulation				-		-		88		88		-		-			88		88
COVID-19 Vaccine related costs				10		821		-		-		-		-			10		821
Adjusted Income Before Tax by Segment From Continuing Operations		$		5,130		4,960		1,187		1,661		(80)		(139)			6,237		6,482
% to Sales				37.4%		37.7%		15.5%		24.5%		-0.4%		-0.7%			29.2%		32.5%
*Estimated as of 1/23/2024
As Reported Research and Development Expense		$		3,357		3,070		1,123		640							4,480		3,710
% to Sales				24.5%		23.3%		14.6%		9.4%							20.9%		18.6%

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q4 YTD - Income Before Tax* and Research & Development Expense by Segment
Dollars in Millions
				Innovative Medicine				MedTech				Unallocated					Worldwide Total
				2023		2022		2023		2022		2023		2022			2023		2022
Reported Income Before Tax by Segment From Continuing Operations		$		18,246		15,647		4,669		4,447		(7,853)		(735)			15,062		19,359
% to Sales				33.3%		29.8%		15.4%		16.2%		-9.2%		-0.9%			17.7%		24.2%
Intangible asset amortization expense				2,983		2,911		1,549		1,033		-		-			4,532		3,944
In-process research and development impairments				206		783		107		-		-		-			313		783
Litigation related				(108)		104		190		612		7,070		150			7,152		866
Loss/(gain) on securities				362		696		(102)		(6)		381		-			641		690
Restructuring related				479		63		319		309		-		-			798		372
Acquisition, integration and divestiture related				175		(104)		164		300		-		-			339		196
Medical Device Regulation				-		-		311		296		-		-			311		296
COVID-19 Vaccine related costs				663		1,474		-		-		-		-			663		1,474
Other				-		-		-		-		-		(7)			-		(7)
Adjusted Income Before Tax by Segment From Continuing Operations		$		23,006		21,574		7,207		6,991		(402)		(592)			29,811		27,973
% to Sales				42.0%		41.0%		23.7%		25.5%		-0.5%		-0.7%			35.0%		35.0%
*Estimated as of 1/23/2024
As Reported Research and Development Expense		$		11,963		11,642		3,122		2,493							15,085		14,135
% to Sales				21.8%		22.1%		10.3%		9.1%							17.7%		17.7%

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Quarter to Date
									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
	Fourth Quarter Dec. 31, 2023 GAAP				Intangible asset amortization		Litigation related				Restructuring related						Medical Device Regulation						Other		Fourth Quarter . 31, 2023 Non-GAAP
Cost of products sold	$	6,798			(1,131)						(83)						(42)		(12)		-		-		5,530
Selling, marketing and admin expenses		5,810															(8)								5,802
Research and development expense		4,480											(16)				(38)		(1)						4,425
Other (Income) / Expense		(421)			(17)		(166)				-		(221)		435				3				-		(387)
In-process research and development impairments		58							(58)																-
Restructuring		56									(56)														-
Provision for taxes on income		694			175		(134)		13		16		30		(191)		16		-		56		-		675
Net Earnings from Continuing Operations		4,132			973		300		45		123		207		(244)		72		10		(56)		-		5,562
									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
	Fourth Quarter Jan. 1, 2023 GAAP				Intangible asset amortization		Litigation related				Restructuring related						Medical Device Regulation						Other		Fourth Quarter Jan. 1, 2023 Non-GAAP
Cost of products sold	$	6,084			(977)						(25)						(33)		(160)		-		-		4,889
Selling, marketing and admin expenses		5,339															(9)								5,330
Research and development expense		3,710											-				(46)		(114)						3,550
Other (Income) / Expense		795			-		(262)				(19)		(196)		(6)				(547)				-		(235)
In-process research and development impairments		173							(173)																-
Restructuring		75									(75)														-
Provision for taxes on income		613			148		(36)		40		19		5		2		17		199		43		-		1,050
Net Earnings from Continuing Operations		3,227			829		298		133		100		191		4		71		622		(43)		-		5,432
Year to Date
									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
	Twelve Months Dec. 31, 2023 GAAP				Intangible asset amortization		Litigation related				Restructuring related						Medical Device Regulation						Other		Twelve Months Dec. 31, 2023 Non-GAAP
Cost of products sold	$	26,553			(4,511)						(309)						(133)		(189)						21,411
Selling, marketing and admin expenses		21,512															(29)		-						21,483
Research and development expense		15,085											(32)				(149)		(99)						14,805
Other (Income) / Expense		6,634			(21)		(7,152)				-		(307)		(641)				(375)				-		(1,862)
In-process research and development impairments		313							(313)		-		-		-				-						-
Restructuring		489									(489)														-
Provision for taxes on income		1,736			707		1,505		70		157		52		(9)		57		155		(28)		-		4,402
Net Earnings from Continuing Operations		13,326			3,825		5,647		243		641		287		650		254		508		28		-		25,409
									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
	Twelve Months Jan. 1, 2023 GAAP				Intangible asset amortization		Litigation related				Restructuring related						Medical Device Regulation						Other		Twelve Months Jan. 1, 2023 Non-GAAP
Cost of products sold	$	24,596			(3,944)						(62)						(109)		(456)						20,025
Selling, marketing and admin expenses		20,246															(28)								20,218
Research and development expense		14,135											-				(159)		(304)						13,672
Other (Income) / Expense		810			-		(866)				(35)		(196)		(690)				(714)				7		(1,684)
In-process research and development impairments		783							(783)		-														-
Restructuring		275									(275)														-
Provision for taxes on income		2,989			590		(125)		178		66		5		166		56		360		(106)		(2)		4,177
Net Earnings from Continuing Operations		16,370			3,354		991		605		306		191		524		240		1,114		106		(5)		23,796

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240123117409/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 the reported sales growth for Johnson & Johnson in the fourth quarter of 2023?

Johnson & Johnson reported a 7.3% sales growth to $21.4 billion in the fourth quarter of 2023.

What was the increase in earnings per share (EPS) for Johnson & Johnson in the fourth quarter of 2023?

The EPS increased by 39.3% to $1.70.

What was the full-year reported sales growth for Johnson & Johnson in 2023?

The full-year reported sales grew by 6.5% to $85.2 billion.

What guidance did Johnson & Johnson re-confirm for 2024?

The company re-confirmed guidance for 2024 with operational sales growth of 5.0% - 6.0% and adjusted operational EPS of $10.55 - $10.75.