Johnson & Johnson (NYSE: JNJ) delivered a solid Q1 performance, surpassing Wall Street expectations for both revenue and profit, as its pharmaceutical arm continues to shine — particularly in oncology. Despite some drag from biosimilar competition and U.S. tariffs, the company lifted its full-year revenue outlook, banking on its growing drug portfolio.

Q1 2025 Highlights

• Revenue: $21.89 billion (+2.4% YoY)

• Adjusted EPS: $2.77 (vs. $2.59 est.)

• Innovative Medicines revenue: $13.87 billion (vs. $13.43 billion est.)

• MedTech revenue: $8.02 billion (missed $8.17 billion est.)

Oncology Drives Growth

J&J's cancer portfolio continues to power results:

• Darzalex (multiple myeloma): $3.24 billion (+20% YoY)

• Carvykti (cell therapy): $369 million (vs. $324 million est.)

• Total oncology drug revenue: $5.68 billion (+18%)

These therapies not only beat expectations but signal strong demand resilience, especially for treatments with limited biosimilar threat.

Mixed Performance in Other Segments

• Stelara (psoriasis): Down 33% to $1.63 billion — but still beat estimates of $1.42 billion

• MedTech Division: Up 2.5% YoY, but short of expectations due to near-term softness (expected to improve H2 2025)

Guidance Update

• FY Sales Guidance: Raised to $91.6B-$92.4B (from $90.9B-$91.7B)

• Adjusted EPS Outlook: Lowered to $10.50-$10.70 (from $10.75-$10.95)

Why the EPS Cut?

• $14.6B Intra-Cellular acquisition (maker of Caplyta for schizophrenia)

• Impact of Trump-era tariffs

What to Watch

• The biosimilar pressure on Stelara will likely intensify in the U.S.

• Tariff policy shifts may weigh on future earnings

• Integration of Intra-Cellular and the performance of Caplyta will be crucial in H2

For Deeper Analysis

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Conclusion:
Johnson & Johnson's solid Q1 beat and oncology momentum are positives, but margin pressures and biosimilar risk mean investors should keep expectations balanced. H2 execution in MedTech and Caplyta integration will be pivotal.