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Get filing alertsJohnson & Johnson's fiscal third quarter net earnings fell 95.9% to $210.0M, as a charge of approximately $5.5 billion related to the proposed talc ovarian litigation resolution and $1.0 billion of acquired in-process research and development expense related to the acquisition of Firefly Bio, Inc. overwhelmed a 5.9% rise in sales.
Filed October 21, 2026 · Period ending September 27, 2026 · Compared to 10-Q Oct 22, 2025 · ~1 min read
Key Financials
SEC XBRL| Metric | PriorSep 28, 2025 | CurrentSep 27, 2026 | Δ |
|---|---|---|---|
| Revenue | $24.0B | $25.4B | ▲ +5.9% |
| Net income | $5.15B | $210.0M | ▼ -95.9% |
| Diluted EPS | $2.12 | $0.09 | ▼ -95.8% |
| Cash & equivalents | $18.2B | $16.9B | ▼ -7.2% |
| Long-term debt (noncurrent) | $39.4B | $35.8B | ▼ -9.2% |
| Total assets | $192.8B | $197.4B | ▲ +2.4% |
As reported in XBRL by the filer · 10-Q vs 10-Q. Income figures cover the fiscal quarter (not year-to-date); cash & assets are period-end balances. n/m = not meaningful (sign change; a % would mislead). about this table · verify on EDGAR →
Key Changes
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medium
Worldwide sales rose 5.9% to $25.40B in the fiscal third quarter, with U.S. sales up 9.1% to $14.96B, Innovative Medicine up 7.7% to $16.76B, and MedTech up 2.5% to $8.64B.
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high
Net earnings dropped 95.9% to $210.0M, and diluted EPS fell to $0.09 from $2.12, as the quarter included a charge of approximately $5.5 billion related to the proposed talc ovarian litigation resolution and $1.0 billion of acquired in-process research and development expense related to the acquisition of Firefly Bio, Inc..
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high
The company recorded a charge of approximately $5.5 billion related to the proposed talc ovarian litigation resolution in the fiscal third quarter, compared with a $7.0 billion related to the talc reserve reversal in the prior-year nine-month period.
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low
The company declared a quarterly dividend of $1.34 per share on October 13, 2026, payable December 8, 2026.
Summary
Johnson & Johnson reported fiscal third quarter sales of $25.40B, up 5.9% from $23.99B a year earlier. U.S. sales rose 9.1% to $14.96B, while international sales increased 1.5% to $10.44B. Innovative Medicine sales grew 7.7% to $16.76B, and MedTech sales rose 2.5% to $8.64B.
The prior-year quarter included a $7.0 billion related to the talc reserve reversal.
The company continues to return cash to shareholders, declaring a quarterly dividend of $1.34 per share on October 13, 2026. Cash and cash equivalents were $16.91B at quarter end, down from $19.71B at fiscal year-end 2025.
Section-by-Section Diff
MD&A
The MD&A now discloses a charge for a proposed talc ovarian litigation resolution and an acquired IPR&D expense for Firefly Bio, driving a sharp decline in earnings.
Previous filing · verify on EDGAR →
The fiscal nine months of 2025 includes the reversal of approximately $7.0 billion, a significant portion of the previously accrued talc reserve.
Current filing · verify on EDGAR →
The fiscal third quarter and nine months of 2026 includes a charge of approximately $5.5 billion related to the proposed talc ovarian litigation resolution
The current period records a $5.5 billion charge for a proposed talc ovarian litigation resolution, whereas the prior year included a $7.0 billion reversal of the talc reserve. This swing significantly reduces earnings before tax.
Added in current filing · verify on EDGAR →
$1.0 billion of acquired in-process research and development expense related to the acquisition of Firefly Bio, Inc.
The current MD&A discloses a $1.0 billion acquired in-process research and development expense from the Firefly Bio acquisition, which was not present in the prior year.
Added in current filing · verify on EDGAR →
Orthopaedics separation related costs of $0.7 billion in 2026
The current period includes $0.7 billion of costs related to the planned separation of the Orthopaedics business, which was announced in October 2025 and is expected to complete in mid-2027.
Added in current filing · verify on EDGAR →
Expense of $0.3 billion primarily related to the option premium associated with Sail Biomedicines (Sail) in 2026
A $0.3 billion expense for an option premium related to Sail Biomedicines is newly disclosed in the current period.
Added in current filing · verify on EDGAR →
In the fiscal second quarter of 2026, the Company initiated a supply chain restructuring program primarily in the Innovative Medicine segment to exit certain manufacturing locations as part of its optimization efforts to streamline operations.
A new supply chain restructuring program was initiated in the second quarter of 2026, with estimated costs between $0.7 billion and $0.8 billion and expected completion by end of 2029.
Previous filing · verify on EDGAR →
The Company maintains a policy that no end customer will be permitted direct delivery of product to a location other than the billing location.
Current filing · verify on EDGAR →
The Company recently announced a policy revising the 340B pricing offer on its covered outpatient drugs to require covered entities to submit limited, commercially standard claims data for each 340B-eligible drug dispense or administration.
The 340B policy has been revised to require claims data submission and limit contract pharmacy designations, a substantive change from the prior delivery location policy.
Show 1 minor / wording change
Previous filing · verify on EDGAR →
in June 2025, the Company secured a new 364-day Credit Facility of $10 billion (expiration on June 24, 2026)
Current filing · verify on EDGAR →
in June 2026, the Company secured a new 364-day Credit Facility of $12.5 billion (expiration on June 23, 2027)
The Company's 364-day credit facility increased from $10 billion to $12.5 billion, providing additional liquidity.
Legal Proceedings
Talc litigation reserve increased due to a proposed ovarian cancer settlement, and opioid litigation disclosure was removed.
Previous filing · verify on EDGAR →
As of the third quarter 2025, the total present value of the reserve is approximately $3.8 billion, comprising previously executed settlement agreements, litigation defense and other costs.
Current filing · verify on EDGAR →
As of the third quarter of 2026, the total present value of the reserve for talc related matters is approximately $9.0 billion, comprising the ovarian settlement agreement, executed settlement agreements, litigation defense, and other costs.
The talc reserve increased primarily due to a proposed commitment to resolve the ovarian cancer docket, conditioned on participation of at least 95% of remaining claims.
Removed from previous filing · verify on EDGAR →
Beginning in 2014 and continuing to the present, the Company and Janssen Pharmaceuticals, Inc. (JPI), along with other pharmaceutical companies, have been named in close to 3,500 lawsuits related to the marketing of opioids, including DURAGESIC, NUCYNTA and NUCYNTA ER.
The entire opioid litigation section present in the prior filing has been removed from the current filing.
Previous filing · verify on EDGAR →
Body powders containing talc, primarily JOHNSON’S Baby Powder 73,570
Current filing · verify on EDGAR →
As of September 27, 2026, there are approximately 76,500 plaintiffs in the United States with direct claims against the Company and its affiliates in pending lawsuits regarding injuries allegedly due to the use of body powders containing talc, primarily JOHNSON’S Baby Powder.
The number of talc plaintiffs increased, indicating continued new filings.
Previous filing · verify on EDGAR →
In August 2025, the District Court denied the insurers' appeal of the Settlement Order. The insurers have appealed that decision to the Third Circuit. Both appeals are pending.
Current filing · verify on EDGAR →
In August 2025, the United States District Court for the District of Delaware denied the insurers' appeal of the Settlement Order. The insurers appealed that decision and, in October 2026, the Third Circuit dismissed the appeal.
The Third Circuit dismissed the insurers' appeal of the Imerys Settlement Order, resolving a pending appellate matter in the Company's favor.
Previous filing · verify on EDGAR →
The following entities are named defendants: Sandoz Inc.; Hikma Pharmaceuticals Inc. USA; Hikma Pharmaceuticals PLC; and Alkem Laboratories Ltd.
Current filing · verify on EDGAR →
A trial against Sandoz took place in February 2026. In August 2026, the United States District Court for the District of New Jersey issued a decision finding that the asserted patents are infringed and not invalid. In September 2026, Sandoz appealed.
The Company won a trial against Sandoz on SPRAVATO patents, but Sandoz has appealed.
Show 3 minor / wording changes
Previous filing · verify on EDGAR →
The following entities are named defendants: Teva Pharmaceuticals USA, Inc.; Mylan Laboratories Limited; Pharmascience Inc.; Mallinckrodt PLC; Specgx LLC; Tolmar, Inc.; Accord Healthcare, Inc.; Qilu Pharmaceutical Co. Ltd.; Qilu Pharma Inc.; Sun Pharmaceutical Industries Ltd.; and Sun Pharmaceutical Industries, Inc.
Current filing · verify on EDGAR →
In June 2026, Janssen entered into a confidential settlement with Eugia Pharma Specialities Ltd. and Eugia US, LLC.
The Company settled its INVEGA SUSTENNA patent litigation with Eugia, reducing the number of generic challengers.
Previous filing · verify on EDGAR →
Beginning in April 2025, Aragon Pharmaceuticals, Inc., Janssen Biotech, Inc., The Regents of the University of California, and Sloan-Kettering Institute for Cancer Research variously initiated patent infringement lawsuits in U.S. District Court for the District of New Jersey against generic manufacturers who have filed ANDAs seeking approval to market generic versions of ERLEADA before the expiration of certain Orange Book Listed Patents.
Current filing · verify on EDGAR →
Beginning in June 2026, Aragon Pharmaceuticals, Inc., Janssen Biotech, Inc., and Sloan-Kettering Institute for Cancer Research initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against MSN Pharmaceuticals Inc., MSN Laboratories Private Limited, and Novadoz Pharmaceuticals, LLC who filed an ANDA seeking approval to market 60 mg and 240 mg generic versions of ERLEADA before the expiration of certain Orange Book listed patents.
New ERLEADA patent infringement lawsuits were filed against MSN and Novadoz, expanding the litigation.
Previous filing · verify on EDGAR →
The following entities are named defendants: Aurobindo Pharma Ltd., Aurobindo Pharma USA, Inc., Alkem Laboratories Ltd., Dr. Reddy’s Laboratories Inc., Dr. Reddy’s Laboratories Ltd., Hetero USA, Inc., Hetero Labs Ltd. Unit-V, Hetero Labs Ltd., MSN Laboratories Private Ltd., Zydus Pharmaceuticals (USA) Inc., and Zydus Lifesciences Ltd.
Current filing · verify on EDGAR →
In August 2026, Intra-Cellular, Zydus Pharmaceuticals (USA) Inc., and Zydus Lifesciences Ltd. entered into a confidential settlement agreement and the case was dismissed.
The CAPLYTA litigation against Zydus was settled and dismissed.
Notes
The notes disclose a new supply chain restructuring program in Innovative Medicine, new talc settlement developments, and new patent litigation, while the prior year's acquisitions and restructuring programs have progressed.
Added in current filing · verify on EDGAR →
In the fiscal second quarter of 2026, the Company initiated a supply chain restructuring program primarily in the Innovative Medicine segment to exit certain manufacturing locations as part of its optimization efforts to streamline operations.
The Company initiated a new supply chain restructuring program in the Innovative Medicine segment in the second quarter of 2026, with estimated costs between $0.7 billion and $0.8 billion and expected completion by the end of 2029. This is a new restructuring initiative not present in the prior year.
Added in current filing · verify on EDGAR →
As of the third quarter of 2026, the total present value of the reserve for talc related matters is approximately $9.0 billion, comprising the ovarian settlement agreement, executed settlement agreements, litigation defense, and other costs.
The current filing also notes that the proposed agreement does not impact the mesothelioma docket, which remains ongoing.
Added in current filing · verify on EDGAR →
Beginning in June 2026, Aragon Pharmaceuticals, Inc., Janssen Biotech, Inc., and Sloan-Kettering Institute for Cancer Research initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against MSN Pharmaceuticals Inc., MSN Laboratories Private Limited, and Novadoz Pharmaceuticals, LLC who filed an ANDA seeking approval to market 60 mg and 240 mg generic versions of ERLEADA before the expiration of certain Orange Book listed patents.
New patent infringement lawsuits were filed in 2026 related to ERLEADA and SIMPONI, including against MSN, Lupin, Accord, and Alvotech. These lawsuits seek to prevent generic or biosimilar competition before patent expiration.
Previous filing · verify on EDGAR →
In October 2025, oral argument occurred on the Company's appeal to the Delaware Supreme Court.
Current filing · verify on EDGAR →
In January 2026, the Company paid a $0.8 billion judgment, inclusive of interest.
The Fortis Advisors litigation related to the Auris acquisition was resolved with a $0.8 billion payment in January 2026, whereas the prior year filing indicated the appeal was still pending.
Previous filing · verify on EDGAR →
Trial is scheduled for March 2026.
Current filing · verify on EDGAR →
In February 2026, the parties agreed to settle the matter. In July 2026, the court granted final approval of the settlement.
The TRACLEER antitrust class action was settled and received final court approval in July 2026, whereas the prior year filing indicated a trial was scheduled for March 2026.
Added in current filing · verify on EDGAR →
In June 2026, three Relators filed an Amended False Claims Act Complaint in the United States District Court for the Southern District of Florida alleging the Company and DePuy Synthes, along with Tenet Healthcare Corporation, Delray Medical Center, and West Boca Medical Center caused the submission of false claims to federal and Florida healthcare programs.
A new False Claims Act complaint was filed in June 2026 against the Company and DePuy Synthes, alleging submission of false claims to federal and Florida healthcare programs. The Department of Justice declined to intervene.
Show 2 minor / wording changes
Previous filing · verify on EDGAR →
The estimated costs of the total program are between $0.9 billion - $1.0 billion and is expected to be substantially completed by the end of fiscal year 2026.
Current filing · verify on EDGAR →
This program will be completed as of the fiscal fourth quarter of 2026 at a total project cost of approximately $0.6 billion.
The estimated total cost for the Surgery franchise restructuring program was reduced from $0.9-$1.0 billion to approximately $0.6 billion, and the completion date was updated to the fiscal fourth quarter of 2026.
Previous filing · verify on EDGAR →
The estimated costs of the total program are between $0.7 billion - $0.8 billion and will be substantially completed by the end of fiscal year 2025.
Current filing · verify on EDGAR →
This program will be completed as of the fourth quarter of 2026 at a total cost of approximately $1.0 billion.
The estimated total cost for the Orthopaedics franchise restructuring program increased from $0.7-$0.8 billion to approximately $1.0 billion, and the completion date was extended to the fourth quarter of 2026.
Financial Statements
Primary statements as printed on the EDGAR filing (iXBRL face). Companyfacts is used only when a statement is not on the HTML face. Not generated by the model.
Consolidated Statements of Operations (Unaudited)
(in millions, except per share amounts; mapped from filer XBRL tags, not printed on the filing face)
| Description | Q3 ended Sep 27, 2026 | Q3 ended Sep 28, 2025 |
|---|---|---|
| Revenue: | ||
| Total revenue / net sales | 25,399 | 23,993 |
| Cost of revenue / cost of sales | 8,097 | 7,303 |
| Gross profit | 17,302 | 16,690 |
| Operating expenses: | ||
| Research and development | 4,652 | 3,672 |
| Selling, general and administrative | 6,285 | 5,922 |
| Interest expense | 217.0 | 245.0 |
| Other income/(expense), net | (5,780) | 478.0 |
| Income before income taxes | 34.0 | 7,493 |
| Income tax expense/(benefit) | (176.0) | 2,341 |
| Net income | 210.0 | 5,152 |
| Basic earnings per share | 0.09 | 2.14 |
| Diluted earnings per share | 0.09 | 2.12 |
consolidated balance sheets (Unaudited)
(Unaudited; Dollars in Millions Except Share and Per Share Data)
| Description | September 27, 2026 | December 28, 2025 |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents (Note 4) | 16,910 | 19,709 |
| Marketable securities | 318 | 393 |
| Accounts receivable, trade, less allowances $187 (2025, $183) | 18,987 | 17,178 |
| Inventories (Note 2) | 15,377 | 14,191 |
| Prepaid expenses and other | 4,759 | 4,153 |
| Total current assets | 56,351 | 55,624 |
| Property, plant and equipment at cost | 55,472 | 54,364 |
| Less: accumulated depreciation | (31,368) | (31,195) |
| Property, plant and equipment, net | 24,104 | 23,169 |
| Intangible assets, net (Note 3) | 46,652 | 50,403 |
| Goodwill (Note 3) | 48,474 | 48,772 |
| Deferred taxes on income (Note 5) | 6,748 | 6,874 |
| Other assets | 15,096 | 14,368 |
| Total assets | 197,425 | 199,210 |
| Liabilities and shareholders’ equity | ||
| Current liabilities: | ||
| Loans and notes payable | 8,852 | 8,495 |
| Accounts payable | 9,317 | 11,991 |
| Accrued liabilities | 12,255 | 8,594 |
| Accrued rebates, returns and promotions | 18,936 | 19,124 |
| Accrued compensation and employee related obligations | 4,121 | 4,534 |
| Accrued taxes on income (Note 5) | 1,976 | 1,388 |
| Total current liabilities | 55,457 | 54,126 |
| Long-term debt (Note 4) | 35,799 | 39,438 |
| Deferred taxes on income (Note 5) | 4,835 | 6,791 |
| Employee related obligations (Note 6) | 6,559 | 6,957 |
| Long-term taxes payable (Note 5) | 497 | 486 |
| Other liabilities | 12,749 | 9,868 |
| Total liabilities | 115,896 | 117,666 |
| Commitments and Contingencies (Note 11) | ||
| Shareholders’ equity: | ||
| Common stock par value $1.00 per share (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) | 3,120 | 3,120 |
| Accumulated other comprehensive income (loss) (Note 7) | (13,765) | (14,930) |
| Retained earnings and Additional paid-in capital | 168,358 | 168,978 |
| Less: common stock held in treasury, at cost (712,725,000 and 711,904,000 shares) | 76,184 | 75,624 |
| Total shareholders’ equity | 81,529 | 81,544 |
| Total liabilities and shareholders’ equity | 197,425 | 199,210 |
consolidated statements of cash flows (Unaudited)
(Unaudited; Dollars in Millions)
| Description | Fiscal nine months ended September 27, 2026 | Fiscal nine months ended September 28, 2025 |
|---|---|---|
| Cash flows from operating activities | ||
| Net earnings | 10,979 | 21,688 |
| Adjustments to reconcile net earnings to cash flows from operating activities: | ||
| Depreciation and amortization of property and intangibles | 6,080 | 5,492 |
| Stock based compensation | 1,115 | 1,045 |
| Asset write-downs | 801 | 123 |
| Charges for acquired in-process research and development assets | 964 | 109 |
| Net gain on sale of assets/businesses | (27) | (131) |
| Deferred tax provision | (2,110) | 5,215 |
| Credit losses and accounts receivable allowances | 5 | (6) |
| Changes in assets and liabilities, net of effects from acquisitions and divestitures: | ||
| Increase in accounts receivable | (1,759) | (2,172) |
| Increase in inventories | (1,152) | (1,404) |
| Increase in accounts payable and accrued liabilities | 1,449 | 1,111 |
| Decrease/(Increase) in other current and non-current assets | 1,421 | (7,653) |
| Increase/(Decrease) in other current and non-current liabilities | 1,084 | (6,196) |
| Net cash flows from operating activities | 18,850 | 17,221 |
| Cash flows used for investing activities | ||
| Additions to property, plant and equipment | (3,732) | (2,995) |
| Proceeds from the disposal of assets/businesses, net (Note 10) | 88 | 408 |
| Acquisitions, net of cash acquired (Note 10) | (352) | (14,459) |
| Acquired in-process research and development assets / related milestones (Note 10) | (995) | (385) |
| Purchases of investments | (1,218) | (677) |
| Sales of investments | 676 | 1,442 |
| Credit support agreements activity, net | 873 | (2,338) |
| Other (including capitalized licenses and milestones) | (199) | (99) |
| Net cash used for investing activities | (4,859) | (19,103) |
| Cash flows used for financing activities | ||
| Dividends to shareholders | (9,585) | (9,250) |
| Repurchase of common stock | (5,958) | (4,029) |
| Proceeds from short-term debt, net | 15,422 | 10,673 |
| Repayment of short-term debt, net | (16,310) | (10,524) |
| Proceeds from long-term debt, net of issuance costs | — | 9,138 |
| Repayment of long-term debt | (2,004) | (1,755) |
| Proceeds from the exercise of stock options/employee withholding tax on stock awards, net | 2,274 | 1,831 |
| Credit support agreements activity, net | (32) | (246) |
| Other | (587) | (8) |
| Net cash used for financing activities | (16,780) | (4,170) |
| Effect of exchange rate changes on cash and cash equivalents | (10) | 178 |
| Decrease in cash and cash equivalents | (2,799) | (5,874) |
| Cash and cash equivalents, beginning of period | 19,709 | 24,105 |
| Cash and cash equivalents, end of period | 16,910 | 18,231 |
Face scale: (Unaudited; Dollars in Millions Except Share and Per Share Data); (Unaudited; Dollars in Millions). Statements found on the EDGAR/iXBRL face print as filed; the rest are presentation-friendly mappings of filer XBRL tags, at the scale noted on each table. EPS as reported. Use EDGAR for interactive notes and detail. Interactive statements & notes on EDGAR ↗
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Figures/quotes linked to EDGAR · Narrative written by AI · Oct 21, 2026 · How we verify