Johnson & Johnson (JNJ) Q1 FY26 earnings call: guidance and Q&A

How is ICOTYDE being positioned in the market, considering its label and pricing? What is the expected ramp for reimbursement coverage and sampling plans?

ICOTYDE is positioned as the preferred first-line systemic therapy for plaque psoriasis, given its differentiated label, efficacy, safety, and once-daily oral administration. The company is pursuing early and broad access with payers and has seen strong early enthusiasm, with 1,500 prescriptions and over 1,000 unique prescribers. TREMFYA remains the first-choice biologic, especially for patients with active or suspected psoriatic arthritis.

“ICOTYDE is the first and only targeted oral peptide that precisely blocks the IL-23 receptor. ICOTYDE, maybe as a reminder, delivers complete skin clearance, favorable safety and the simplicity of a once-daily pill, and we think it's got the potential to become one of our biggest products.”

asked by Terence Flynn · answered by Jennifer Taubert

What are the current trends in MedTech end markets, given the relatively low sentiment? How does the Q1 growth rate compare to expectations, and what is the outlook for the remainder of the year?

MedTech Q1 growth of 4.6% was solid and unfolded as expected, with normal seasonality making it the most subdued quarter. The underlying market demand is robust, with only minor, localized procedural softness due to weather. The company is confident in accelerating growth through the remainder of 2026, driven by its focused strategy on high-growth areas like Cardiovascular, Vision, and Surgery, and upcoming product launches.

“Q1 unfolded as we expected the year to start seasonally quieter but operationally solid, and this was also not a one business or one region quarter, as you've seen by the results, we saw growth across the board.”

asked by Larry Biegelsen · answered by Tim Schmid

Regarding the goal of double-digit top-line growth by the end of the decade, what specific product variances are underestimated by the Street? How important is business development (BD) to this growth algorithm?

The double-digit growth target is grounded in current performance, with J&J already achieving double-digit growth excluding STELARA. Key underestimated products include ICOTYDE (psoriatic arthritis, IBD), RYBREVANT (non-small cell lung cancer, head and neck, colorectal cancer), and INLEXZO (bladder cancer). MedTech launches like next-gen PFA catheters, Impella ECP, and OTTAVA robotics are also underestimated. The separation of Orthopaedics will further boost growth rates. This target does not rely on BD, which remains opportunistic for early-stage deals, but the priority is investing in the existing pipeline.

“If you look at the first quarter of 2026, we are already delivering double-digit growth as total Johnson & Johnson when you exclude the STELARA. So it's already happening today.”

asked by Asad Haider · answered by Joaquin Duato

Can you provide color on the 1,500 ICOTYDE prescriptions, specifically where these patients are coming from (new, switching from orals/injectables)? Will ICOTYDE's sales be balanced between psoriasis and IBD, or skew more towards one indication like TREMFYA?

It's too early to provide granular data on ICOTYDE patient demographics. ICOTYDE is expected to firmly establish itself in the systemic first-line therapy for psoriasis, expanding the market by attracting patients cycling on topicals. For IBD, while studies are ongoing, it's anticipated to be a very large opportunity. The expectation is for a more balanced sales contribution between psoriatic disease and inflammatory bowel diseases, given the strong potential in both.

“I think here, we're going to see maybe more of a balanced scenario given the strength that we really anticipate having in psoriasis, but I think both segments, both psoriatic disease and inflammatory bowel diseases are going to be very big offer a lot of potential and promise for ICOTYDE.”

asked by Christopher Schott · answered by Jennifer Taubert

How do you view Abiomed's performance given potential reduction in high-risk population post-ACC? How will you manage market leadership in the increasingly competitive IVL space? Should MedTech be a high single-digit growth contributor to the overall double-digit growth target?

Abiomed's 14.4% growth is strong, driven by Impella adoption and robust pipeline. Long-term data from DanGer Shock trial confirms Impella's survival benefit. For Shockwave (+18.1%), J&J created the IVL market and maintains leadership through its portfolio of 9 catheters, extensive clinical evidence (1M+ cases, 25k patient outcomes), and global presence. While competition is emerging, Shockwave's fifth-generation products and continuous innovation (one new catheter/year) will sustain its lead. MedTech is expected to accelerate from mid-single-digit to higher single-digit growth by the end of the decade, with catalysts like OTTAVA and MONARCH robotics.

“Most importantly, I'd say is we remain hyper-focused on continuing to earn our innovative disruptor reputation with plans to launch at least one new IVL catheter per year that we expect will redefine the future of IVL in new indications and new disease states.”

asked by Shagun Singh Chadha · answered by Tim Schmid

What are your views on the U.S. surgical and U.S. contact lens markets? Specifically, how to interpret the almost 3% decline in U.S. Surgical Vision in Q1 and its recovery for the rest of the year?

Vision delivered a solid Q1 with 3.6% growth, consistent with expectations for a seasonally slower start. Contact lenses grew 2.7%, driven by ACUVUE OASYS 1-Day family. Surgical Vision grew 6% globally, but U.S. performance was offset by competitive pressures from new entrants. The company is confident in its clinical position with TECNIS Odyssey and the upcoming U.S. launch of TECNIS PureSee, which has seen strong global uptake. Accelerated growth is expected in the second half of the year for Surgical Vision and Vision overall, including in the U.S.

“I think to your pointed question on U.S. performance, if we look at Surgical Vision growth in the quarter, it was offset in the U.S. due to competitive pressures as new entrants came into the market, which is not unexpected given the fierce stature of this portfolio.”

asked by Joanne Wuensch · answered by Tim Schmid

Can you provide details on the commercialization plan and rollout for INLEXZO, including any metrics on its performance and where it stands?

INLEXZO is outperforming recent launches in non-muscle invasive bladder cancer, with 1 in 5 eligible patients starting treatment in Q1. Following the J-code approval in early April, new patient insertions increased over 50% in the first week and almost 90% in the second week. The product was designed for seamless integration into urology practice. J&J leverages its combined Innovative Medicine and MedTech capabilities for commercialization, including world-class training institutes for urologists. The next iteration, IRDA, targets intermediate-risk NMIBC with over 90% complete response rates in biomarker-defined populations.

“What we saw in the first week was actually a over 50% increase in new patient insertions and the second week we that we have under our belt, we actually saw that jump up to almost 90% increase in new patient insertion.”

asked by Matthew Miksic · answered by Jennifer Taubert