A healthcare maker of prescription medicines — treatments for cancer, immune and nerve conditions, including DARZALEX and STELARA — plus medical devices such as ACUVUE contact lenses and surgical tools. Three Johnson brothers founded it in 1886 in New Jersey, inspired by a lecture on antiseptic surgery. Fun fact: an employee created BAND-AID bandages in 1920 for his wife, who kept cutting herself while cooking.
Q2 FY2026 revenue rose 9.9% to $24.1B while EPS fell 52.9% to $2.14 on absence of prior-year talc reversal
The year-ago $7.0B dropped out of comparisons this quarter. rose 9.9% to $24.1B and fell 52.9% to $2.14 as held at 67.9% and declined 56.1% to $6.0B. The underlying business grew, but earnings now reflect a normalized talc-charge baseline.
Key takeaways
rose 9.9% to $24.1B in Q2 FY2026, with of 6.4% and a 3.5% , while biosimilar competition reduced operational growth by 5.4%.
fell 52.9% to $2.14 and fell 52.4% to $5.2B because Q2 2025 included a $7.0B that did not recur, against $0.8B in talc charges recorded in H1 FY2026.
declined 56.1% to $6.0B and narrowed 37.4 points to 24.9% from the prior-year quarter inflated by the reversal.
Section summaries
Management's Discussion and Analysis
Worldwide sales rose 8.2% to $49.4B in H1 FY2026, driven by Innovative Medicine growth despite STELARA biosimilar erosion.
⌄
Consolidated H1 sales grew 8.2% to $49.4B, with operational growth of 6.0% and a 2.2% currency ; reduced operational growth by ~5.0%.
was 67.9%, down 0.1 point and 1.3 points from Q1 FY2026's 66.3% as product mix and promotion spend weighed on margins.
fell 39.8% to $3,878M and fell 56.6% to $2,835M , while cash and equivalents decreased 43.6% to $18.6B from a year earlier after the acquisition funding.
H1 FY2026 sales rose 8.2% to $49.4B with up 9.4% to $31.8B on Oncology and Neuroscience, and up 6.0% to $17.6B led by Cardiovascular.
What changed
The Q1 FY2026 flag for next talc charge was partially met: H1 FY2026 includes $0.8B in talc charges versus the $7.0B Q1 2025 reversal, leaving a remaining reserve still unquantified in this filing.
Immunology decline stabilized to 8.8% in Q1 then 6.2% H1 fall from biosimilar erosion, versus the 16.0% operational drop flagged in Q2 FY2025 as a watch item.
separation progresses on the 18–24 month timeline from October 2025; H1 Orthopaedics grew 5.6% despite planned separation costs, with no charge disclosed this quarter.
Cardiovascular growth matured to +8.3% in H1 FY2026 versus +22.3% operational in Q2 FY2025, as and contributions lapped.
widened to $28.2B at H1 end from $32.9B in Q1 after the $14.5B Intra-Cellular acquisition, with a new $12.5B noted for liquidity.
What to watch
Next talc charge or trust funding against the remaining reserve after the $0.8B H1 FY2026 charges and the $7.0B Q1 2025 reversal.
separation progress and any associated charges against the 18–24 month timeline announced October 2025.
Immunology sales as further 2026 biosimilar launches and OPSUMIT generic competition proceed.
Cardiovascular growth rate as and contributions mature through the rest of FY2026.
Innovative Medicine H1 sales increased 9.4% to $31.8B, led by Oncology ( +20.6%, +55.1%) and Neuroscience ( +43.2%, ), while Immunology fell 6.2% due to (-57.4%).
MedTech H1 sales rose 6.0% to $17.6B, with Cardiovascular (+8.3%) and Vision (+6.3%) leading; Orthopaedics grew 5.6% despite planned separation costs.
H1 earnings before tax fell to $12.7B (25.8% of sales) from $20.1B (44.1%), largely due to a $7.0B talc reserve reversal in the prior year; current year includes $0.8B in talc charges.
Innovative Medicine margin declined to 36.4% from 37.0% on unfavorable product mix and higher commercial investments; MedTech margin fell to 13.8% from 15.9% on separation costs and tariffs.
Cash and equivalents rose to $20.4B; was $11.1B, and the company maintains strong liquidity with a new $12.5B and of $28.2B.
Quantitative and Qualitative Disclosures About Market Risk
There has been no material change in the Company’s assessment of its sensitivity to market risk since its presentation set forth in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in its Annual Report on Form 10-K for the fiscal year ended December 28, 202…
⌄
There has been no material change in the Company’s assessment of its sensitivity to market risk since its presentation set forth in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in its Annual Report on Form 10-K for the fiscal year ended December 28, 2025.
The information called for by this item is incorporated herein by reference to Note 11 included in Part I, Item 1, Financial Statements (unaudited) — Notes to Consolidated Financial Statements.
⌄
The information called for by this item is incorporated herein by reference to Note 11 included in Part I, Item 1, Financial Statements (unaudited) — Notes to Consolidated Financial Statements.