Provide an update on ICOTYDE's launch metrics (prescribers, sampling, formulary, sales breakout) and how TREMFYA and ICOTYDE are co-positioned for psoriasis.

Jennifer Taubert reported over 18,000 prescriptions for 11,000 patients, 6,000 unique prescribers, and over 50% commercial coverage within 90 days for ICOTYDE. ICOTYDE is positioned as a first-choice systemic treatment, while TREMFYA is a first-choice biologic, especially for patients with psoriatic arthritis involvement. “ICOTYDE is the first choice systemic treatment. All of those patients who've been sickling on topicals who really need to have advanced, we think ICOTYDE sits right in that sweet spot as that first choice systemic.”

What were the Q2 procedure growth trends for MedTech, and what are the expectations for the rest of the year? Will MedTech grow faster in 2026, excluding the extra week?

Tim Schmid stated that overall procedure volumes are stable and in line with market trends, with no broad slowdown. Three of four MedTech businesses (Surgery, Vision, Orthopaedics) accelerated. Cardiovascular was muted due to a 400 bps negative impact from China inventory in EP and Abiomed's external trial impact, which is seen as temporary. H2 MedTech performance is expected to accelerate. “3 of our 4 businesses, Surgery, Vision and Orthopedics all accelerated in the quarter and performed above expectations.”

How is the new data impacting TECVAYLI's growth, and what are the trends in academic versus community use?

Jennifer Taubert reported TECVAYLI sales of $260 million, driven by significant launch uptake and share gains in earlier lines of therapy following the approval of TECVAYLI plus DARZALEX. U.S. sequential growth was 46.2%, with most patients starting in the second to third line setting. Community sites expanded by 25% quarter-over-quarter. “It's 3 years, 83% of patients remained alive and progression free. And so this is really resonating with physicians.”

JNJ

Johnson & Johnson (JNJ) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Jul 15, 2026

Source: earnings call transcript

Executive summary

Johnson & Johnson Q2 FY26 — Strong Growth Driven by New Launches and Raised Full-Year Guidance

Johnson & Johnson delivered a strong Q2 FY26, exceeding expectations with robust performance in Innovative Medicine driven by new launches like ICOTYDE and TREMFYA's IBD expansion. Despite headwinds from STELARA biosimilar competition and Abiomed's temporary slowdown, the company raised its full-year operational sales and EPS guidance, underscoring confidence in its broad portfolio and pipeline for sustained long-term growth and its ambition for double-digit growth by the end of the decade.

Highlights

Worldwide operational sales grew 5.6% to $25.3 billion, achieving double-digit growth excluding STELARA.
Innovative Medicine operational sales increased 6.8% to $16.4 billion, with 8 brands growing double digits.
ICOTYDE, a new psoriasis treatment, demonstrated significant early launch momentum with over 11,000 patients initiated and 6,000 unique prescribers.
TREMFYA sales reached $2 billion, growing over 70%, driven by market leadership in ulcerative colitis (58% induction share) and Crohn's disease (over 50% induction share).
Full-year 2026 operational sales guidance was raised by $400 million, with the midpoint now at $100.6 billion, and adjusted operational EPS guidance increased by $0.18 at the midpoint.

Concerns

STELARA sales declined 55.7% due to biosimilar competition and share loss.
Abiomed sales declined 2% due to increased decision selectivity by physicians following a recent external clinical trial.
Cardiovascular segment growth was muted at 3.1%, impacted by headwinds in electrophysiology (400 bps negative from China inventory) and Abiomed.
Selling, marketing, and administrative expenses deleveraged by 60 basis points due to increased investments in new product launches.
Innovative Medicine margin declined from 42.7% to 42.5% due to unfavorable mix and heavier investments in new product launches.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 operational sales growth	6.5% to 7.1% high materiality	FY26	High
Full-year 2026 reported sales growth	7.0% to 7.6% high materiality	FY26	High
Full-year 2026 free cash flow	approaching $21 billion medium materiality	FY26	High
Full-year 2026 adjusted pretax operating margin improvement	approximately 75 basis point improvement medium materiality	FY26	High
Full-year 2026 net interest expense	$250 million to $300 million low materiality	FY26	High
Full-year 2026 effective tax rate	17.0% to 18.0% low materiality	FY26	High
Full-year 2026 adjusted operational earnings per share	$11.50 to $11.65 high materiality	FY26	High
Full-year 2026 reported earnings per share	$11.60 to $11.75 high materiality	FY26	High
Double-digit growth	double-digit growth high materiality	by the end of the decade	High
Oncology company ranking	#1 oncology company high materiality	by 2030	High
DePuy Synthes business separation	mid-2027 separation medium materiality	mid-2027	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Worldwide Sales Sales increased despite an approximate 460 basis point headwind from STELARA. Operational growth excluding STELARA: double-digits	$25.3 billion	5.6%	—	—
U.S. Sales	—	7.3%	—	—
Outside U.S. Sales	—	3.4%	—	—
Innovative Medicine Financial results reflect depth of expertise and innovation. Margin declined from 42.7% primarily due to unfavorable mix and heavier investments in new product launches. Operational growth excluding STELARA: 14%+U.S. growth: 8.9%Outside U.S. growth: 3.6%STELARA headwind: 760 basis pointsSTELARA as % of Innovative Medicine business: 4%	$16.4 billion	6.8%	—	42.5%
MedTech Growth across each key focus area. Margin declined from 22.2% primarily due to commercial investments, increased R&D, and increased impact of tariffs. U.S. growth: 3.9%Outside U.S. growth: 3.2%	$8.9 billion	3.6%	—	22%
Oncology Strong performance across multiple myeloma, solid tumors, and lung cancer. DARZALEX is the largest product, exceeding $4 billion in sales. DARZALEX growth: 17.6%CARVYKTI growth: 47.7%TECVAYLI growth: 56.1%TALVEY growth: 62.6%RYBREVANT plus LAZCLUZE growth: 61.6%ERLEADA growth: 7.6%	—	—	—	—
Immunology TREMFYA's IBD launch is driving significant momentum. STELARA declined due to biosimilar competition and novel classes. TREMFYA growth: 71%STELARA decline: 55.7%	—	—	—	—
Neuroscience SPRAVATO and CAPLYTA performed strongly, with CAPLYTA new patient starts up 122% versus prior year. SPRAVATO growth: 40%CAPLYTA growth: 70.9%	—	—	—	—
Cardiovascular Growth lower than recent trend due to headwinds in electrophysiology and Abiomed. Abiomed decline due to pressures on U.S. procedures driven by usage patterns. Electrophysiology growth: 3.1%Electrophysiology China inventory impact: -400 basis pointsAbiomed decline: 2%Shockwave growth: 14.7%	—	3.1%	—	—
Surgery Growth driven by strength in biosurgery and enclosure, partially offset by VBP in China and competitive pressures. Divestitures impact: -40 basis points	—	2.3%	—	—
Vision Growth driven by premium innovation, strong execution, and global reach. ACUVUE portfolio delivered strong growth. Contact lenses growth: 6%Surgical vision growth: 4.7%	—	5.6%	—	—
Orthopaedics Primarily driven by new product launches such as Volt and Trauma and strong commercial execution.	—	4.2%	—	—

Product announcements

Product	Type	Timeline
CARTO Sound Sonata	launch	Q2 FY26
THERMALCOOL SMARTTOUCH SF platform	launch	Q2 FY26
Shockwave C2 AERO	launch	Q2 FY26
Ethicon 4000 Stapler	launch	Q2 FY26
TECNIS PureSee	expansion	Q2 FY26

Deals & partnerships

FireFly Bio acquisition

Planned acquisition to strengthen leadership in next-generation oncology innovation.

Halda Therapeutics acquisition

Recent acquisition, contributing to oncology pipeline with J&J-6143.

Risks & headwinds

STELARA biosimilar competition and share loss Q2 FY26

Sales declined 55.7%

Mitigation:Focus on new launches and strong performance of other key brands in Innovative Medicine.

Abiomed procedure volume decline due to external clinical trial Q2 FY26

Sales declined 2%

Mitigation:Actively engaging physicians and their teams to reinforce appropriate patient selection, leveraging significant depth of clinical evidence base; expecting gradual improvements and return to double-digit growth over coming quarters.

Electrophysiology China inventory impact Q2 FY26

Negative impact of approximately 400 basis points on growth

Increased impact of tariffs on MedTech business Q2 FY26

Impacted MedTech margin

Mitigation:Anticipated reduction and recoupment of certain tariff-related costs based on latest rulings.

Unfavorable product mix in Innovative Medicine Q2 FY26

Contributed to 30 bps leverage in COGS and 0.2% decline in Innovative Medicine margin

Increased investments in new product launches Q2 FY26

Selling, marketing and administrative expenses deleveraged by 60 basis points

Value-Based Purchasing (VBP) in China Q2 FY26

Partially offset Surgery growth

Competitive pressures in energy and endocutters (Surgery) and U.S. Surgical Vision Q2 FY26

Partially offset growth in respective segments

Potential affordability pressures from ACA subsidy removals not stated

Not expected to translate into a material impact on demand for MedTech and procedures

Q&A highlights

Is the $400 million increase in operational sales guidance primarily driven by pharma, potentially offset by lower MedTech assumptions?

Joe Wolk confirmed this characterization, stating that better second-half revenue growth is expected, particularly from new pharma launches. MedTech is also anticipated to improve in H2, but Abiomed's expectations are tempered.

“I would say that's probably a fair characterization.”

asked by Chris Schott · answered by Joseph Wolk

2 min read 6 chapters

Detailed narrative

Strategic Portfolio Strength and Growth Trajectory

Johnson & Johnson emphasized its robust portfolio, comprising 28 products and platforms each generating over $1 billion in annual sales, as a key driver of its resilience and growth. The company is on track to surpass $100 billion in annual revenue for the first time in 2026 and maintains a clear line of sight to achieving double-digit growth by the end of the decade.

This broad and diversified base allows the company to absorb headwinds from specific products while continuing overall strong performance.

Oncology Leadership Ambition and Pipeline Expansion

J&J reiterated its ambitious goal to become the #1 oncology company by 2030, with projected sales exceeding $50 billion. This is supported by strong growth from key multiple myeloma treatments like DARZALEX (up 17.6%), CARVYKTI (up 47.7%), TECVAYLI (up 56.1%), and TALVEY (up 62.6%).

The company also highlighted new data for ERLEADA and RYBREVANT, and strengthened its oncology pipeline through the planned acquisition of FireFly Bio, adding a proprietary platform for KRAS-driven solid tumors.

MedTech Innovation and Targeted Recovery Efforts

Despite a temporary slowdown in Abiomed due to physician caution following an external clinical trial, J&J's MedTech segment saw acceleration in Surgery, Vision, and Orthopaedics. The company is actively engaging physicians to reinforce appropriate patient selection for Abiomed and expects gradual improvements, returning to double-digit growth in coming quarters.

Significant innovations include the anticipated FDA approval for the OTTAVA robotic surgical system and new cardiovascular product launches like VARIPULSE Pro and Shockwave C2 AERO.

ICOTYDE's Rapid Market Penetration

The launch of ICOTYDE, a first-in-class oral IL-23 inhibitor for psoriasis, is progressing ahead of expectations. Since launch, over 18,000 prescriptions have been written for 11,000 patients by 6,000 unique prescribers. The product has secured over 50% commercial payer coverage within 90 days, contributing significantly to Innovative Medicine's strong performance. J&J has also initiated direct-to-consumer advertising to further accelerate patient uptake.

TREMFYA's Dominance in IBD

TREMFYA achieved its first $2 billion sales quarter, marking over 70% growth, primarily driven by its strong performance in ulcerative colitis and Crohn's disease. The product holds market leadership in induction share for both conditions among IL-23 inhibitors, with 58% in ulcerative colitis and over 50% in Crohn's disease. New data presented at DDW demonstrated TREMFYA's efficacy in perianal fistulizing Crohn's, further differentiating its profile.

Capital Allocation and Strategic Acquisitions

J&J's capital allocation priorities remain focused on R&D investments, supporting commercial launches, and returning capital to shareholders through dividends. The company ended Q2 with $21 billion in cash and marketable securities and a net debt position of $28 billion, with YTD free cash flow of $8.7 billion.

The planned acquisition of FireFly Bio, expected to close in Q3 2026, exemplifies the strategy of acquiring innovative platforms to diversify and strengthen the pipeline, particularly in oncology.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.