The rapid development of new drugs cannot conceal the fatigue of medical devices: the growth of medical devices has slowed down, dragging down Johnson & Johnson's impressive financial report for Q2.

Thanks to strong growth in drugs for treating cancer, inflammatory diseases, and treatment-resistant depression, Johnson & Johnson (JNJ.US) exceeded expectations in sales for the second quarter. The financial report shows that Johnson & Johnson's Q2 revenue reached $25.31 billion, a 6.6% year-on-year increase, exceeding expectations by $250 million; non-GAAP earnings per share were $2.90, exceeding expectations by $0.05. Johnson & Johnson also slightly raised its performance guidance for sales and profits in 2026, expecting revenue of $101.1 billion in 2026 (previously $100.8 billion) with adjusted earnings per share of $11.58 (previously $11.40). Segmented by division, revenue in the innovative drug business segment increased by 7.8% year-on-year (about $16.4 billion), while revenue in the medical technology business segment increased by 4.5% year-on-year (about $8.9 billion). It is worth noting that sales in the medical technology business segment were slightly lower than expected. Johnson & Johnson's stock price fell by 1.7% in pre-market trading in New York. As of the close on Tuesday, Johnson & Johnson's stock price has risen more than 60% over the past 12 months. Johnson & Johnson's quarterly reports are released earlier than its competitors' and are seen as a barometer for the industry. Its second-quarter report indicates that despite recent turmoil at the Food and Drug Administration (FDA) and agreements between Johnson & Johnson and its competitors with the White House to lower the net prices of certain drugs, large pharmaceutical companies are still thriving. Despite a decrease in sales of the psoriasis drug Stelara due to pressure from low-priced competitors, revenue still increased by 6.6% compared to the previous year. Several newer drugs drove strong growth, including Tremfya (guselkumab) growing by 72.5% to around $2 billion; Carvykti (sotagliflozin) growing by 49.4% to $657 million; and Darzalex growing by 18.9% to $4.2 billion. This is the first quarter of complete sales for the new oral psoriasis drug Icosyde, and the company hopes this drug will become a bestseller. Joseph Wolk, CFO of Johnson & Johnson, said in an interview that the acceptance of the therapy is "remarkable," with over 11,000 patients using it. He said, "This will bring in billions of dollars in revenue for the company. It could become one of Johnson & Johnson's biggest drugs." Johnson & Johnson is heavily investing in launching a new series of drugs to try to offset revenue declines from Stelara losing exclusivity last year. In addition to the cancer field, Johnson & Johnson is also investing in drugs to treat mental illnesses, including Caplyta, acquired last year for treating schizophrenia and bipolar disorder. In the medical device field, Johnson & Johnson is focusing on faster-growing products and has announced plans to spin off its mature orthopedic business from other parts of the company. Sales of medical devices increased by 4.5% this quarter.