J&J falls about 6% as a talc charge and weak MedTech overshadow a raised forecast
Adjusted profit beat estimates, but reported earnings dropped 96%.
Earnings · Tuesday, October 13, 2026 · 3:45 PM ET
Johnson & Johnson shares fell about 6% in midday trading Tuesday even though the company beat profit estimates and raised its full-year forecast. Investing.com put the stock down 6.8% at one point, at $245.91, from an open of $255.35.
A charge wiped out reported profit
J&J reported third-quarter sales growth of 5.9% to $25.4 billion and raised its 2026 outlook (J&J, WSJ). Reported net earnings fell 95.9% to $210 million, or 9 cents a share, because of special items (Investing.com, 24/7 Wall St., BioSpace). BioSpace says they include a $5.52 billion charge for settling long-running talc litigation, plus about $339 million tied to the Firefly Bio and Sail Biomedicines deals. Adjusted earnings of $2.59 a share beat the $2.53 consensus, per Investing.com.
MedTech was the weak spot
MedTech sales grew 2.5% to $8.6 billion, short of analyst estimates, for the second straight quarter (Investing.com, BioSpace). MedTech chief Tim Schmid said, "Our performance is below the standard we have set internally" (24/7 Wall St.). Innovative Medicine grew about 8% to $16.76 billion, with Tremfya sales up 68% (BioSpace, Investing.com). The Wall Street Journal reports the CFO said J&J is "leaning" toward spinning out its hips-and-knees business.
Shares of Eli Lilly and Pfizer, which have no device business, fell much less (24/7 Wall St.). See also the earnings roundup in our 8 AM Toast & Tickers and the bank earnings story.