Johnson & Johnson reported better-than-expected first-quarter earnings on Tuesday, even as the pharmaceutical industry faces potential disruption from the Trump administration’s latest trade moves, Bloomberg reports.
The healthcare giant also reaffirmed its full-year guidance, signaling confidence in its diversified portfolio despite looming tariff concerns.
Adjusted earnings rose 2.2% to $2.77 per share, exceeding analyst forecasts, while revenue reached $21.9 billion, also ahead of Wall Street expectations. The company maintained its 2025 adjusted earnings outlook between $10.50 and $10.70 per share, a range that includes a 25-cent-per-share charge tied to its recent $15 billion acquisition of Intra-Cellular Therapies, a maker of treatments for bipolar depression.
The earnings report arrives just one day after the Trump administration launched a federal investigation into pharmaceutical imports — widely seen as a precursor to imposing tariffs on foreign-made drugs. While this has stirred concern among industry observers, Johnson & Johnson’s Chief Financial Officer Joe Wolk struck a cautiously optimistic tone.
“In some respects, it could very much be good news,” Wolk said in an interview.
He noted that many imported medicines are lower-cost generics rather than the innovative therapies J&J develops, suggesting the company could be less vulnerable than others to policy changes.
“The last thing anybody wants is to deny a cancer patient the oncology therapeutic that will help them not only cope with the disease but conquer it.”
Nonetheless, the prospect of tariffs is likely to remain a key issue for J&J and the broader pharmaceutical sector. While drugs were excluded from the administration’s initial tariff lists, officials have signaled that levies on the industry may be introduced in the coming months.
J&J’s performance in its key pharmaceutical division helped bolster the quarter. Blood cancer drug Darzalex brought in $3.2 billion in revenue, while autoimmune treatment Tremfya generated $956 million — both exceeding analyst expectations. However, the company continues to face a patent cliff, particularly with Stelara, its second-largest drug, which is facing generic competition in the US and Europe.
Outside of pharmaceuticals, the medical devices division delivered $8 billion in revenue, slightly below projections. This segment, along with pharmaceuticals, could be affected by future tariffs, given J&J’s extensive global manufacturing footprint.
J&J is also navigating legal challenges, including the recent rejection of its proposed settlement plan for thousands of talc-related lawsuits. Despite this, the company’s stock rose modestly in premarket trading following the earnings announcement and has gained 6.7% so far in 2025.
In an effort to bolster its US presence, Johnson & Johnson announced last month that it would invest more than $55 billion domestically over the next four years. The company has not disclosed how the funds will be distributed but said they will support manufacturing, research and development, and technology initiatives.
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