What You Need To Know
Johnson & Johnson reported strong Q4 results with $22.5 billion in revenue and adjusted EPS of $2.04, driven by a 20% increase in Darzalex sales to $3.08 billion. For 2025, the company anticipates sales growth of 2.5 to 3.5% and adjusted earnings per share of $10.75 to $10.95.
J&J is bolstering its neurology portfolio with a $15 billion acquisition of Intra-Cellular Therapies Inc., which includes the Caplyta drug for bipolar depression, projected to generate $5 billion annually if successful in other neurological indications. The company aims to offset challenges from Stelara's patent expiration, while addressing legal uncertainties with an $8 billion talc settlement pending court approval.
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Why This Is Important for Retail Investors
Strong Financial Performance: Revenue and EPS exceeded expectations, signaling robust business operations.
Growth Drivers: Rising Darzalex sales and acquiring Intra-Cellular Therapies' Caplyta drug for bipolar depression strengthen J&J’s portfolio in high-potential markets.
Dividend Stability: A clear outlook for 2025 sales and earnings supports confidence in consistent shareholder returns.
Patent Challenges Addressed: J&J's focus on new medicines offsets risks from Stelara's patent expiration.
Talc Settlement Progress: Resolving the $8 billion lawsuit could reduce long-term legal uncertainties.