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• Q4 2024 Revenue: $22.5 billion, a 6.7% increase.

• Full Year 2024 Revenue: $88.8 billion, a 5.9% increase.

• Q4 2024 Net Earnings: $3.4 billion.

• Q4 2024 Diluted EPS: $1.41, compared to $1.70 a year ago.

• Q4 2024 Adjusted Net Earnings: $4.9 billion.

• Q4 2024 Adjusted Diluted EPS: $2.04, a decrease of 10.9% from the previous year.

• Full Year 2024 Net Earnings: $14.1 billion.

• Full Year 2024 Diluted EPS: $5.79, compared to $5.20 a year ago.

• Full Year 2024 Adjusted Net Earnings: $24.2 billion.

• Full Year 2024 Adjusted Diluted EPS: $9.98, a 0.6% increase from the previous year.

• Innovative Medicine Q4 2024 Sales: $14.3 billion, a 6.5% increase excluding COVID-19 vaccine.

• MedTech Q4 2024 Sales: $8.2 billion, a 7.6% increase.

• R&D Investment 2024: $17 billion, 19.4% of sales.

• Free Cash Flow 2024: Approximately $20 billion.

• 2025 Operational Sales Growth Guidance: 2.5% to 3.5%.

• 2025 Adjusted Operational EPS Growth Guidance: 8.7% at the midpoint.

• Warning! GuruFocus has detected 7 Warning Sign with SFNC.

Release Date: January 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Johnson & Johnson (NYSE:JNJ) reported robust operational sales growth of 7% for the full year 2024, excluding the COVID-19 vaccine.

• The company achieved strong growth in oncology, neuroscience, and pulmonary hypertension, with 10 key brands growing double digits.

• Johnson & Johnson (NYSE:JNJ) made significant investments in R&D and M&A, totaling approximately $50 billion, including the acquisition of Intra-Cellular Therapies.

• The MedTech segment reported a second consecutive year of over $30 billion in sales, with strong momentum in cardiovascular and vision.

• Johnson & Johnson (NYSE:JNJ) achieved 27 approvals in major markets in 2024, including FDA approvals for TREMFYA and RYBREVANT LAZCLUZE.

Negative Points

• The loss of exclusivity for STELARA negatively impacted worldwide growth by 260 basis points.

• Net earnings for the fourth quarter of 2024 decreased by 11.1% compared to the same period in 2023.

• The MedTech margin declined from 15.5% to 10.8%, primarily due to acquired IPR&D expenses related to the V-Wave acquisition.

• Johnson & Johnson (NYSE:JNJ) faces headwinds from US biosimilar entries for STELARA and macroeconomic pressures in China.

• The company anticipates a dilutive impact on adjusted EPS of approximately $0.30 to $0.35 in 2025 due to the planned acquisition of Intra-Cellular Therapies.

Q & A Highlights

Q: Can you discuss the growth outlook for Johnson & Johnson's multiple myeloma franchise, particularly regarding bispecifics and CAR-T therapies? A: Jennifer Taubert, Executive Vice President, Worldwide Chairman, Innovative Medicine, highlighted the strong performance of the multiple myeloma franchise, with DARZALEX achieving over $3 billion in quarterly sales. CARVYKTI also showed robust growth, nearing $1 billion annually. The company is expanding into community settings and exploring new combinations with bispecifics like TECVAYLI and TALVEY. John Reed, Executive Vice President, Innovative Medicine, R&D, emphasized the potential of these combinations to achieve minimal residual disease negativity, a key metric for accelerated approvals.