Johnson & Johnson plans a mid-2027 spinoff of its DePuy Synthes orthopedics business following buyout discussions with Apollo Global Management near $20 billion. Despite beat Q3 2026 total sales of $25.4 billion and EPS of $2.59 driven by a 68% jump in Tremfya sales to $2.4 billion, MedTech revenues of $8.6 billion missed estimates as Middle East defense reallocations, European austerity, and China pricing pressures weighed on regional device sales.
Orthopedics business spinoff and buyout options
- ▪Johnson & Johnson engaged in talks with Apollo Global Management regarding a potential buyout of the DePuy Synthes orthopedics business valued at approximately $20 billion
- ▪Johnson & Johnson plans a mid-2027 separation of its DePuy Synthes orthopedics hips and knees unit into a standalone company via a spinoff
Q3 2026 financial results and guidance
- ▪Johnson & Johnson reported Q3 2026 overall revenue of $25.4 billion and adjusted earnings per share of $2.59, exceeding Wall Street revenue estimates of $25.28 billion
- ▪Johnson & Johnson raised its full-year 2026 reported sales forecast midpoint to $101.2 billion and increased its adjusted earnings midpoint to $11.10 per share
Pharmaceutical division performance
- ▪Guggenheim analyst Vamil Divan noted that Johnson & Johnson multiple myeloma treatment Tecvayli meaningfully beat sales expectations in Q3 2026
- ▪Johnson & Johnson pharmaceutical division sales rose 7.7% in Q3 2026 to $16.76 billion
- ▪Sales of Johnson & Johnson blood cancer treatment Darzalex rose 16% in Q3 2026 to $4.24 billion, missing analyst expectations of $4.4 billion
Tremfya growth and Stelara decline
- ▪Tremfya revenue growth helped Johnson & Johnson offset losses from psoriasis drug Stelara, whose Q3 2026 sales fell 54% to $716 million amid generic competition
- ▪Sales of Johnson & Johnson autoimmune drug Tremfya jumped 68% in Q3 2026 to $2.4 billion, exceeding Wall Street estimates of $2.2 billion
Medical Technology division performance
- ▪Sales at Johnson & Johnson Abiomed heart pump unit remained sluggish in Q3 2026 following a UK study published earlier this year questioning Impella pump usage during high-risk coronary procedures
- ▪Johnson & Johnson Medical Technology division Q3 2026 sales reached $8.6 billion, missing Wall Street estimates of $8.71 billion with flat sales growth outside the US
- ▪J.P. Morgan analyst Chris Schott stated that the sales miss in the Johnson & Johnson Medical Technology division was largely in cardio and surgery during Q3 2026
Headwinds on international MedTech sales
- ▪European austerity measures and China pricing pressures combined with Middle East conflict dynamics to weigh on Johnson & Johnson international MedTech sales in Q3 2026
- ▪Johnson & Johnson Chief Financial Officer Joe Wolk stated that budget reallocations toward defense due to Middle East conflicts hurt medical device sales in countries like Kuwait, Saudi Arabia, and the UAE during Q3 2026
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