Johnson & Johnson (JNJ) Stock: Q3 Earnings Smash Expectations Amid Orthopaedics Spin-Off Bombshell

Healthcare giant delivers knockout quarter while shaking up corporate structure

The Earnings Surprise

Johnson & Johnson just posted Q3 numbers that crushed analyst forecasts. The healthcare behemoth demonstrated why it remains a Wall Street darling despite market turbulence. Revenue streams across pharmaceuticals and medical devices showed remarkable resilience.

Strategic Shake-Up

In a bold move that caught investors off-guard, JNJ announced plans to spin off its orthopaedics division. The restructuring signals a sharper focus on high-growth segments while shedding slower-moving business units. Market watchers immediately began speculating about valuation implications.

Market Reaction

Trading floors buzzed with the dual news—stellar earnings paired with corporate surgery. The stock responded with the kind of volatility that makes hedge fund managers reach for their antacids. Because nothing says 'stable investment' like suddenly becoming two different companies.

Looking Ahead

This quarter proves traditional healthcare giants can still deliver surprises. JNJ's performance demonstrates that sometimes the old guard can teach crypto's moonboys a thing or two about actual fundamentals. The orthopaedics spin-off? Just corporate restructuring—the financial world's version of 'hold my beer.'

TLDR

• Johnson & Johnson (JNJ) reported Q3 2025 EPS of $2.80, beating estimates of $2.76.
• Revenue grew 6.8% year-over-year to $24 billion, exceeding expectations.
• Company raised full-year sales outlook to as high as $93.9 billion.
• J&J plans to spin off its Orthopaedics business into a standalone company named DePuy Synthes.
• Declared a Q4 2025 dividend of $1.30 per share, payable December 9, 2025.

Johnson & Johnson (NYSE: JNJ) stock closed at $190.90, up 0.09% on October 13, before slipping 0.65% in premarket trading to $189.62.

Johnson & Johnson (JNJ)

The healthcare giant reported robust third-quarter 2025 results, with earnings and revenue surpassing analyst expectations. The company also unveiled plans to spin off its Orthopaedics business as part of a broader strategy to sharpen focus on high-growth segments.

Strong Q3 Performance and Upgraded Outlook

For the third quarter of 2025, Johnson & Johnson reported earnings per share (EPS) of $2.80, above Wall Street estimates of $2.76. Reported EPS came in at $2.12. Revenue ROSE 6.8% year-over-year to $24 billion, beating the consensus forecast of $23.76 billion.

Johnson & Johnson CEO: "Johnson & Johnson delivered another strong performance in the third quarter.."$JNJ: pic.twitter.com/aaNR3iV41d

— The Transcript (@TheTranscript_) October 14, 2025

J&J raised its full-year reported sales guidance to a range of $93.5 billion to $93.9 billion, compared with its previous estimate of $93.2 billion to $93.6 billion. The midpoint growth rate now stands at 5.7%. Adjusted EPS guidance remains between $10.80 and $10.90, reaffirming steady profit expectations despite higher tax costs.

CEO Joaquin Duato credited the results to “the depth and strength of our portfolio and significant progress across our pipeline,” citing J&J’s focus on six Core therapeutic areas — Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision.

Segment Performance: Innovative Medicine and MedTech

The Innovative Medicine segment delivered 5.3% operational sales growth, driven by oncology drugs such as DARZALEX, CARVYKTI, and RYBREVANT, alongside strong Immunology and Neuroscience performance. Growth was tempered by declines in STELARA and IMBRUVICA sales.

The MedTech division recorded 5.6% operational sales growth, propelled by strong demand for electrophysiology, cardiovascular devices like Abiomed and Shockwave, and wound closure products in General Surgery.

Orthopaedics Spin-Off: DePuy Synthes

In a major strategic move, J&J announced plans to spin off its Orthopaedics business, which will operate as DePuy Synthes, the world’s largest orthopaedics-focused company. The separation aims to streamline operations, allowing J&J to concentrate on higher-margin markets while enabling DePuy Synthes to pursue independent growth.

Today we’re announcing our intent to separate our Orthopaedics business. We’re confident this move WOULD further strengthen the focus of Johnson & Johnson on our six key growth areas – Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision. It would also… pic.twitter.com/ckMKnpkP55

— Johnson & Johnson (@JNJNews) October 14, 2025

Namal Nawana has been appointed Worldwide President of DePuy Synthes. He brings extensive experience leading global medical device companies and is expected to guide the new company through its transition.

Dividend Declaration and Market Performance

J&J’s Board declared a fourth-quarter dividend of $1.30 per share, payable on December 9, 2025, to shareholders of record as of November 25, 2025.

In 2025, J&J shares have returned 35.18% year-to-date, outperforming the S&P 500’s 13.14% gain. The company continues to reward shareholders with consistent dividends and solid growth across both pharmaceuticals and MedTech.

Johnson & Johnson’s third-quarter results and strategic portfolio realignment highlight its commitment to innovation, operational focus, and long-term shareholder value.