Johnson & Johnson reported full-year 2025 revenues of $94.5 billion, up 6.2% year-over-year on a constant-currency basis, driven by broad-based growth across its diversified operations. During the January 21 conference call, management raised the 2026 sales target to in excess of $100 billion, surpassing the prior analyst consensus of $98 billion. The company reiterated its goal of mid-single-digit adjusted operating margin expansion, targeting a 2026 operating margin near 30% for its consolidated business.

The Pharmaceuticals segment achieved $55.8 billion in 2025 sales, growing 8.4% organically. Key contributors included the oncology franchise, which delivered $15.2 billion (up 12.1%), led by strong uptake of a recently approved PD-1 inhibitor in lung and head-and-neck cancers. Immunology brands grew 9.5% to $10.4 billion, supported by the launch of a next-generation IL-23 antagonist. Management forecasts mid-teens growth for the segment in 2026, underpinned by a $2 billion contribution from new product launches.

The Medical Devices division posted $28.7 billion in revenue, up 4.8% with strength in orthopedic reconstruction and minimally invasive surgery tools. Growth in joint reconstruction implants accelerated 7.3%, reflecting expanded hospital purchasing and new implant designs. Consumer Health sales rose 3.1% to $10.0 billion, driven by double-digit gains in oral care and skin-health categories in emerging markets. Together, these segments are expected to add approximately $5 billion in incremental revenues toward the 2026 sales objective.

Johnson & Johnson plans to allocate $15 billion to share repurchases and dividends in 2026, maintaining a dividend yield near 2.6% and projecting a 5% annual dividend increase. The company reaffirmed its R&D investment of $15 billion for 2026, with a focus on gene therapies and robotic surgery platforms. Additionally, J&J is evaluating up to $10 billion in bolt-on acquisitions over the next two years to bolster its biosurgery and cardiovascular device portfolios.