From Yahoo Finance: 2025-04-15 11:51:00

Johnson & Johnson (JNJ) beat first quarter earnings, reporting revenue of $21.9 billion and adjusted EPS of $2.69, both surpassing Wall Street estimates. Despite concerns over Trump’s tariffs impacting its medical device and pharmaceutical businesses, J&J’s stock only dropped less than 1%. The company raised its 2025 sales guidance by $700 million, aiming for 3.3% to 4.3% growth.

CFO Joe Wolk estimated a $400 million tariff impact, primarily affecting the medical devices business. The tariffs include steel, aluminum, China, and China retaliatory tariffs. The impact will be reflected in future periods as a cost of goods on the balance sheet. The industry is preparing for an investigation into pharmaceutical tariffs announced by the Trump administration.

CEO Joaquin Duato emphasized the need for healthcare companies to partner with the administration to address vulnerabilities in the healthcare supply chain. J&J faces pressure from various sources, including Medicare price negotiations, talc litigation, and a recent setback in court where a $10 billion settlement was rejected. J&J has returned $7 billion and is pursuing a different legal strategy for resolution.

Analysts anticipate J&J challenging plaintiffs’ experts via Daubert motions in the talc litigation case. The company is expected to have significant Daubert hearings and rulings within six months, by the end of October 2025. J&J’s legal battle in the talc litigation is ongoing, aiming for resolution in the second half of the year.



Read more at Yahoo Finance: J&J sees tariff impact from exports to China more than global imports: CFO