Johnson & Johnson Reports Q1 2025 Revenue of $21.9 Billion, Cardiovascular Segment Surges 16.5%

Apr 16, 2025 11:00 CST Updated 11:00

Johnson & Johnson

Healthcare Product Manufacturers, Health Service Providers

Johnson & Johnson Releases Q1 2025 Earnings Report, with Q1 Revenue Reaching $21.9 Billion (+2.4%), ProfitNearly 11 billion USD. Johnson & Johnson's performance this quarter was quite impressive, with sales exceeding market expectations (marketThe projected revenue is $21.57 billion).

Among them, the medical device business of Johnson & Johnson reached 8.02 billion US dollars in sales this quarter.(+2.5%), as the overall environment becomes increasingly harsh,Johnson & Johnson's Q1 performance reflects its strong resilience.

In Johnson & Johnson's medical device business, the cardiovascular segment performed the best (with sales reaching $2.1 billion, a year-over-year increase of 16.5%), while the orthopedics segment performed the worst (Sales reached $2.24 billion, a year-on-year decrease of 4.2%.

This Quarter Johnson & JohnsonThe main growth drivers of the medical device business come fromAbiomed andWound closure products, butSluggish performance in spine, motion, and other orthopedic areas offsets strong performance in cardiovascular and surgical businesses. Today, Johnson & JohnsonJohnson & JohnsonThe medical device business is increasingly relying on acquisitions for fresh blood, with products like the Impella series and Shockwave IVL becoming part of Johnson & Johnson.Growth Driver for Medical Device Business. Johnson & Johnson's commitment to the cardiovascular path seems increasingly correct.

Executive Assessment

"The strength of Johnson & Johnson's uniquely diversified product portfolio was fully demonstrated this quarter, with robust operational growth reinforcing our confidence in the 2025 guidance. During the quarter, we made significant progress in our pipelines, including Tremfya in the IBD field, Rybrevant combined with Lazcluze for non-small cell lung cancer therapy, and the soft tissue surgical robot Ottava. Additionally, we strengthened our leadership in neuroscience through the completion of the acquisition of Intra-Cellular Therapies."

---Joaquin Duato Chairman and Chief Executive Officer

Looking Ahead

As the Trump administration's antics become increasingly outrageous, the future impact on Johnson & Johnson is also growing. Johnson & JohnsonChief Financial OfficerJoseph Wolk predicted that Johnson & Johnson would incur up to 400 million US dollars in additional costs (mainly impacting the medical device business, with relatively less effect on pharmaceuticals).

“(Johnson & Johnson's Tariff Costs) include Chinese tariffs and China's retaliatory tariffs, which may constitute the largest portion of the $400 million, and could be the most punitive factor. We are by no means taking this $400 million cost lightly... The plan is being implemented in phases as a cross-year project, primarily factored into the cost of goods. Therefore, it will be reflected in the inventory item of the balance sheet and gradually absorbed through the income statement in the future.Due to the limitations of existing contractual agreements, the medical technology business is finding it difficult to mitigate the impact through price adjustments.。”

---Joseph Wolk Johnson & JohnsonChief Financial Officer

Market Evaluation

Johnson & Johnson Management Believes Pricing Is Hard to Become a Relief Strategy (Restrictions from Existing Contract Agreements), but Anticipates that Domestic Production Capacity in the U.S. Will Help Offset Tariff Pressures Over Time. Analysts Predict That the Tariff Issue Will Become a Core Discussion Point in the First-Quarter Earnings Season of the Medical Technology Sector, Particularly Impacting Companies with Significant Business or Production Bases in China, Naming Boston Scientific, Medtronic, Integra, Intuitive Surgical, and Teleflex.

Market Forecast

Despite the increasingly challenging environment, the market remains bullish on Johnson & Johnson.The full-year revenue forecast for this yearFrom USD 89.2-90.0 billion to USD 91.0-91.8 billion.