The dialogue outlines Johnson & Johnson's Q4 2025 earnings review, emphasizing business performance, growth drivers, and a detailed financial outlook for 2026. The CEO discusses the company's achievements, while the CFO presents cash position, capital allocation, and guidance. The call also previews key milestones for 2026, inviting participation from various executive vice presidents for Q&A.

Johnson & Johnson achieved significant growth in 2025, marking it as a pivotal year for the company. With a focus on innovation, strategic acquisitions, and expanding into high-growth areas, the company secured 51 approvals and initiated 11 new phase 3 programs. Key achievements include breakthroughs in oncology, immunology, and neuroscience, positioning Johnson & Johnson for double-digit growth by the end of the decade. The company's robust portfolio, including 28 billion-selling products, and its strong balance sheet contribute to its sustainable growth trajectory.

Johnson & Johnson showcases its leadership in cardiovascular, surgery, and vision segments, highlighting 15 major launches, over 40 regulatory approvals, and more than 60 active clinical trials. The company anticipates accelerated growth with innovations like the Monarch robotic platform, advancements in pulse field ablation, and the FDA submission of the Ataba robotic surgery system, aiming to redefine patient care and surgical experiences.

Johnson & Johnson reported Q4 sales of $24.6 billion, a 7.1% increase, and full year sales of $94.2 billion, growing double digits. Notable was the 24.1% growth in dazl X for multiple myeloma and 65.4% growth in tremfya for immunology. Acquisitions, particularly intracellular and shockwave, significantly boosted growth. Earnings per share rose to $2.10 in Q4 and $11.3 for the year, reflecting strong financial performance and strategic expansion.

The Medtech platform reported a 3.7% growth in surgery despite negative impacts from ISS vestiture. Biosurgery technology, wound closure, and envision contact lenses saw strong performance. Surgical vision and orthopedics also grew, driven by new product innovations and commercial execution. However, cost of goods sold deleveraged due to unfavorable product mix and tariffs. Litigation costs significantly increased, impacting net income, while a lower tax rate benefited earnings.

The dialogue outlines Johnson & Johnson's impressive Q4 2025 financial results, including margin improvements in innovative medicine and Medtech segments, leading to an overall increase in adjusted income before tax. It also discusses the company's litigation strategy regarding talc-related claims, emphasizing a focus on defending against meritless allegations.

Johnson & Johnson outlines its 2026 financial projections, highlighting a focus on free cash flow growth, strategic investments in new product launches, and a commitment to shareholder value. The company anticipates operational sales growth, driven by innovative medicines and Medtech products, while navigating challenges such as tariffs and generic competition. A separation of the orthopedics business is also discussed, with progress towards a mid-2027 separation. The guidance includes adjustments for currency impacts, a 53rd week, and a higher share count, reflecting the company's strong financial position and dedication to advancing healthcare solutions.

Discusses Johnson & Johnson's plans to achieve double-digit growth by 2026, focusing on oncology, immunology, and innovative medicines, with new blockbusters and market expansions. Highlights pipeline investments, successful launches, and strategic repositioning away from lower growth segments.

Johnson & Johnson highlights robust growth in its medtech business, particularly in cardiovascular and surgery markets, with innovations like PFA technology and OTAVA in robotics. Vision sector gains share and innovates, aiming to improve patient care with new product launches, reflecting confidence in 2026 guidance.

The dialogue discusses the company's positive outlook on the medtech market for 2026, expecting accelerated growth compared to 2025. It highlights the strategy shift towards higher innovation, growth, and margin markets, resulting in improved performance across cardiovascular, vision, and surgical segments. The EP business is noted for its acceleration, driven by product success and market leadership, with a focus on expanding offerings and maintaining competitive advantages in mapping and ablation technologies.

Discussion on achieving margin expansion through infrastructure improvements and efficiency gains, aligning with projected sales growth, with emphasis on long-term margin profile improvement commensurate with sales growth.

A discussion on vision care as a key growth area in medical technology, focusing on the performance of the contact lens market in the U.S. versus outside the U.S., and expressing confidence in the market's health.

Despite slight softness in Asia Pacific, the contact lens category showed robust underlying demand with significant share gains. Surgical vision grew strongly, led by premium IOLs, with market share expansion globally. Portfolio optimization and capital allocation are key strategies for future growth, focusing on RD, commercial execution, and digital transformation.

The dialogue discusses the positioning of Tech Valley franchise, particularly Tech Valley plus darzalex, relative to Carvic D in multiple myeloma treatment, emphasizing tailored therapies for different patient settings. It also touches on the implications of FDA's final guidance on MRD negativity and CRs endpoints for the development portfolio, highlighting growth potential for these agents across various lines of therapy.

The dialogue highlights advancements in myeloma treatments, focusing on dexamethasone-free regimens for improved patient quality of life and the FDA's priority review voucher for accelerated approval. It also discusses the potential of MRD-negative strategies and the promising efficacy and tolerability of the new trispecific antibody, rotamak, in combination with Dara for newly diagnosed myeloma.

The dialogue discusses the company's move towards higher growth end markets, questioning if the 70% target is aspirational or achievable. It also explores potential growth areas in innovative medicines and medtech, considering both organic and inorganic expansion strategies.

Focuses on achieving high growth in cardiovascular, surgery, and vision sectors, highlighting confidence in cardiovascular's double-digit growth, surgery's profitability, and vision's leadership. Emphasizes otava's unique role in surgical robotics, aiming for significant market impact with novel technology and global expansion strategies.

Discussed advancements in treating diseases like Sjogren's, lupus, and bladder cancer with new therapies and devices. Highlighted the launch success of a bladder cancer treatment, anticipation of a permanent J code, and expansion into different patient populations. Also, mentioned the potential of a targeted therapy device for intermediate-risk bladder cancer patients, showcasing a platform for addressing large unmet needs in bladder cancer treatment.

The company reaffirms its aggressive litigation strategy against TAC claims, emphasizing continued focus on business growth and innovation, despite ongoing legal challenges.

The dialogue highlights confidence in Mevacor's potential to outperform competitors, emphasizing its superior safety and efficacy in reducing bleeding risks. Anticipated data from trials later this year will focus on atrial fibrillation and secondary stroke, leveraging past successes with Xarelto to create a multi-billion dollar opportunity. The speaker underscores the product's alignment with a critical market need for safer anticoagulants, positioning it as a cornerstone asset in collaboration with Bristol Myers Squibb, aiming for significant growth and impact in key business areas.