J&J beats earnings estimates; Middle East conflict weighs on medical-device sales
Business News and FinanceVIEW IN APPMarketsBusinessInvestingTechPoliticsSelectMake ItHealth and ScienceJ&J beats earnings estimates; Middle East conflict weighs on medical-device salesPublished Tue, Oct 13 2026 6:52 AM EDTReutersWATCH LIVEIn this article
Johnson & Johnson â reported a slightly higher-than-expected profit on Tuesday, driven by strong sales of immune disease treatment Tremfya, but geopolitical âissues, including the Middle âEast conflict, were a drag âon its medical-devices business.
The company posted third-quarter revenue of $25.4 billion, above analysts' average estimate of $25.28 billion, according to LSEG data. Adjusted earnings of $2.59 per share also topped â Wall Street âexpectations of $2.54.
Pharmaceutical sales jumped 7.7% in the quarter â to $16.76 billion. Medical technology division sales rose only 2.5% to $8.6 billion overall. Outside the U.S., the division's sales were essentially flat.
J&J Chief Financial Officer Joe Wolk said in an interview that the Mideast conflict, austerity measures in Europe, and pricing in China continued to weigh on international results, "but maybe in a little bit more pronounced way."
He said âthe Mideast conflict, which has driven up fuel costs at home and abroad, has not yet affected the company's costs but has hurt sales in the region.
"These are countries that still value and actually â want premium healthcare systems, think Kuwait, UAE, Saudi Arabia. They pride themselves on having solid healthcare, âvery good healthcare," Wolk said. "But their budgets now are âbeing resourced and allocated towards defense."
Sales at its Abiomed heart pump business also remained slow after a UK study earlier this year raised questions about using Impella pumps during certain high-risk coronary procedures.
Tremfya sales rose 68% to $2.4 billion, beating analyst estimates of about $2.19 billion, while Stelara sales, which face generic competition, fell 54% to $716 million, still well above Wall Street expectations of $591 million. Tremfya has increasingly replaced lost Stelara revenue following recent approvals in inflammatory âbowel diseases.
Sales of blood cancer treatment âDarzalex rose about 16% to $4.24 billion, short of analyst expectations of $4.4 billion.
The company raised its full-year sales forecast to about $101.2 billion at the midpoint, from $101.1 billion previously. It increased its adjusted earnings forecast range with a new midpoint of $11.10 per share, up from $11.04.
J&J âshares closed at $263.73 on Monday. They âhave risen 27% this year, outperforming both the broader market and most healthcare peers.
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