Johnson & Johnson (NYSE: JNJ) reported better-than-expected third-quarter results and announced plans to spin off its Orthopaedics business as part of a strategic focus on higher-margin segments.

The company posted earnings per share of $2.80, exceeding the consensus estimate of $2.76. Revenue increased 6.8% year-over-year to $23.99 billion, above expectations of $23.76 billion.

J&J reaffirmed its full-year 2025 earnings outlook, maintaining guidance for EPS of $10.80 to $10.90, in line with consensus at $10.85. Adjusted operating EPS was projected at $10.63 to $10.73.

Revenue guidance was slightly raised to $93.5 billion-$93.9 billion, compared with the prior range of $93.2 billion-$93.6 billion.

Alongside the results, J&J announced it would separate its Orthopaedics division to streamline operations and sharpen its focus on higher-growth, higher-margin businesses in Innovative Medicine and MedTech. The company said the move aimed to enhance capital efficiency and improve the quality of long-term earnings.