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Johnson & Johnsons Q4 2024 Earnings Boost Stock, Highlights Resilient Portfolio
Johnson & Johnson’s fourth‑quarter 2024 earnings release sent the company’s shares soaring 22 percent in the first half of the year, a rally that reflects the firm’s steady growth in a market increasingly favoring defensive names.
In the quarter ending September 30, 2024, J&J generated sales of $22.5 billion, up 5.3 percent year‑over‑year. Adjusted operational sales rose 6.7 percent, according to the earnings statement, prompting the company to lift its full‑year outlook on the back of continued momentum in its core therapeutic areas.
The earnings highlight the strength of the company’s immunology portfolio. Tremfya (guselkumab), a monoclonal antibody for plaque psoriasis, saw revenue climb 72 percent to $2 billion. Darzalex (daratumumab), used to treat multiple myeloma, grew 18 percent to more than $4.2 billion. These gains offset a decline in Stelara (ustekinumab) sales, which the company expects to fall as exclusivity ends and competitors enter the market.
J&J’s medtech division faced a headwind. Chief financial officer Joseph Wolk told CNBC that sales of Abiomed heart pumps slipped after a study questioned the use of Impella pumps in certain high‑risk procedures. Wolk said the company plans to release data in the first half of next year that should address the concerns.
Despite the weakness in medtech, overall revenue grew more than 6 percent to $25 billion in the quarter referenced by the earnings release, keeping J&J on track to reach its $100 billion annual revenue goal. The firm disclosed that it has 28 products or platforms that generate at least $1 billion in revenue, providing a diversified foundation for continued growth. The consumer health division was spun off as Kenvue in 2022–2023 to focus J&J’s resources on higher‑growth pharmaceuticals and medical technologies; Kenvue now owns well‑known brands such as Band‑Aid, Tylenol and Neutrogena.
J&J’s solid performance has attracted investors seeking stability amid geopolitical uncertainties and concerns about the artificial‑intelligence growth narrative. The company’s AAA credit rating from S&P Global and its history of earnings growth have reinforced its appeal.
The company’s Q4 2024 results come as the broader market remains volatile, with investors increasingly turning to defensive names. J&J’s earnings beat expectations and the raised outlook suggest the company is well positioned to navigate the current environment.
Looking ahead, J&J will continue to monitor the impact of the Impella study on its medtech sales and will provide additional data in the first half of 2025. The company’s focus on high‑margin immunology and oncology products, combined with its diversified product base, will likely sustain its growth trajectory.
In summary, Johnson & Johnson’s fourth‑quarter earnings reaffirm the company’s resilience and its ability to deliver solid revenue growth across its pharmaceutical, immunology and medical‑device segments. The raised full‑year outlook and the company’s diversified product portfolio position it favorably for the remainder of 2024 and beyond.
In the quarter ending September 30, 2024, J&J generated sales of $22.5 billion, up 5.3 percent year‑over‑year. Adjusted operational sales rose 6.7 percent, according to the earnings statement, prompting the company to lift its full‑year outlook on the back of continued momentum in its core therapeutic areas.
The earnings highlight the strength of the company’s immunology portfolio. Tremfya (guselkumab), a monoclonal antibody for plaque psoriasis, saw revenue climb 72 percent to $2 billion. Darzalex (daratumumab), used to treat multiple myeloma, grew 18 percent to more than $4.2 billion. These gains offset a decline in Stelara (ustekinumab) sales, which the company expects to fall as exclusivity ends and competitors enter the market.
J&J’s medtech division faced a headwind. Chief financial officer Joseph Wolk told CNBC that sales of Abiomed heart pumps slipped after a study questioned the use of Impella pumps in certain high‑risk procedures. Wolk said the company plans to release data in the first half of next year that should address the concerns.
Despite the weakness in medtech, overall revenue grew more than 6 percent to $25 billion in the quarter referenced by the earnings release, keeping J&J on track to reach its $100 billion annual revenue goal. The firm disclosed that it has 28 products or platforms that generate at least $1 billion in revenue, providing a diversified foundation for continued growth. The consumer health division was spun off as Kenvue in 2022–2023 to focus J&J’s resources on higher‑growth pharmaceuticals and medical technologies; Kenvue now owns well‑known brands such as Band‑Aid, Tylenol and Neutrogena.
J&J’s solid performance has attracted investors seeking stability amid geopolitical uncertainties and concerns about the artificial‑intelligence growth narrative. The company’s AAA credit rating from S&P Global and its history of earnings growth have reinforced its appeal.
The company’s Q4 2024 results come as the broader market remains volatile, with investors increasingly turning to defensive names. J&J’s earnings beat expectations and the raised outlook suggest the company is well positioned to navigate the current environment.
Looking ahead, J&J will continue to monitor the impact of the Impella study on its medtech sales and will provide additional data in the first half of 2025. The company’s focus on high‑margin immunology and oncology products, combined with its diversified product base, will likely sustain its growth trajectory.
In summary, Johnson & Johnson’s fourth‑quarter earnings reaffirm the company’s resilience and its ability to deliver solid revenue growth across its pharmaceutical, immunology and medical‑device segments. The raised full‑year outlook and the company’s diversified product portfolio position it favorably for the remainder of 2024 and beyond.
