Johnson & Johnson’s 6% Decline After a Mixed Quarter Offers Value Opportunity for Long‑Term Investors
<p>Johnson & Johnson (JNJ) fell more than 6% on Tuesday following a third‑quarter earnings report that, while revenue and adjusted earnings beat consensus, highlighted weakness in its medical devices segment. Total revenue rose 5.9% to $25.4 billion, surpassing the $25.28 billion consensus. Adjusted earnings per share were $2.59, $0.05 above expectations, but down 7.5% year‑over‑year, reflecting charges from recent business development transactions. The decline was driven primarily by disappointing performance in the MedTech division, where cardiovascular and surgical businesses faced headwinds in the Middle East and China. Nonetheless, the company’s Innovative Medicines segment showed strong growth, led by the newly launched psoriasis drug Icotyde, which has attracted over 20,000 patients and nearly 9,000 prescribing physicians, and is now covered by all major insurers. Sales of Tremfya increased 68% year‑over‑year, extending its label to Crohn’s disease and ulcerative colitis, while the oncology portfolio grew 16% to $7.6 billion and neuroscience sales rose 17%, propelled by Caplyta. Adjusted EPS declined 7.5% YoY, partly due to acquisition‑related charges. Analysts note that the company’s valuation has expanded to a 22‑times forward earnings multiple, versus 17‑times for the pharmaceutical index, creating price‑to‑earnings debate. J&J reaffirmed a buy‑equivalent rating and a $275 price target, and plans to spin off its orthopedics business in mid‑2027 rather than sell it, citing favorable long‑term value creation. The firm also set aside roughly $5.5 billion for the talc settlement. Management expects double‑digit growth by decade‑end, driven by organic investments and the continued launch of Icotyde, and anticipates revenue to exceed $100 billion for the first time, with 10% annual growth thereafter.</p>
<div class="also-read-section amp-wp-70dc194" data-amp-original-style="margin: 40px 0; padding: 20px; background: #f9f9f9; border-left: 4px solid #e74c3c;">
<h3 data-amp-original-style="margin-top: 0; color: #333;" class="amp-wp-de18dc4">Also Read</h3>
<ul data-amp-original-style="list-style: none; padding: 0; margin: 0;" class="amp-wp-23c7e5e">
<li data-amp-original-style="margin-bottom: 12px;" class="amp-wp-7b754ee">
<a href="https://globalindepth.com/hurricane-season-is-here-what-every-traveler-needs-to-know-about-insurance/?amp=1" data-amp-original-style="text-decoration: none; color: #1e3a8a; font-weight: 500;" class="amp-wp-cfdda47">
Hurricane Season Is Here: What Every Traveler Needs to Know About Insurance </a>
</li>
<li data-amp-original-style="margin-bottom: 12px;" class="amp-wp-7b754ee">
<a href="https://globalindepth.com/how-trumps-diesel-deal-with-russia-will-impact-the-united-states-and-ukraine/?amp=1" data-amp-original-style="text-decoration: none; color: #1e3a8a; font-weight: 500;" class="amp-wp-cfdda47">
How Trump’s diesel deal with Russia will impact the United States and Ukraine </a>
</li>
<li data-amp-original-style="margin-bottom: 12px;" class="amp-wp-7b754ee">
<a href="https://globalindepth.com/burnham-navigates-delicate-diplomatic-visit-with-zelensky-balancing-uk-ties-to-trump-and-ukraine/?amp=1" data-amp-original-style="text-decoration: none; color: #1e3a8a; font-weight: 500;" class="amp-wp-cfdda47">
Burnham navigates delicate diplomatic visit with Zelensky, balancing UK ties to Trump and Ukraine </a>
</li>
<li data-amp-original-style="margin-bottom: 12px;" class="amp-wp-7b754ee">
<a href="https://globalindepth.com/investors-boost-put-options-on-coreweave-as-neocloud-stocks-slide/?amp=1" data-amp-original-style="text-decoration: none; color: #1e3a8a; font-weight: 500;" class="amp-wp-cfdda47">
Investors Boost Put Options on CoreWeave as Neocloud Stocks Slide </a>
</li>
</ul>
</div>
<p><a href="https://www.cnbc.com/investingclub/2026/10/13/jj-falls-6percent-on-an-imperfect-quarter-why-this-is-a-good-chance-to-buy.html">Source link </a></p>
