J&J Shares Drop as MedTech Slowdown and Talc Charge Overshadow Earnings Beat
Johnson & Johnson shares fell nearly 6% as investors focused on slower MedTech growth and a $5.52 billion pretax talc litigation charge. The company still beat adjusted earnings expectations at $2.59 per share and reported revenue of $25.4 billion, up 5.9% from a year earlier. J&J raised its full-year outlook and said a spinoff is its preferred route for separating the orthopedics business.
J&J's third-quarter revenue reached $25.4 billion, a 5.9% yearly rise, while adjusted profit of $2.59 per share topped analyst estimates. Reported GAAP earnings, however, fell to $0.09 per share after a $5.52 billion pretax talc litigation charge tied mainly to a proposed $5.5 billion ovarian-claim settlement.
The company lifted its 2026 adjusted earnings forecast to $11.05–$11.15 per share and raised the low end of sales guidance to about $101.2 billion at the midpoint. MedTech revenue grew 2.5% to $8.64 billion, and J&J said a spinoff is preferred for orthopedics.
The share decline may affect investors and retirement savers holding J&J, while the talc charge could influence how claimants view settlement prospects. A slower MedTech segment and possible orthopedics spinoff may reshape product focus, supply relationships and jobs, potentially affecting patients and clinicians who depend on those devices. Higher guidance could offer some reassurance, but litigation and restructuring may keep uncertainty elevated for employees, partners and communities tied to J&J's operations.