Johnson & Johnson AGM: CEO Duato touts “catalyst year,” 5.3% sales growth and $32B investment push

Key Points

• CEO Joaquin Duato called 2025 a "catalyst year," reporting operational sales up 5.3% (11.5% ex‑Stelara), adjusted net earnings of $26.2 billion, nearly $20 billion in free cash flow, a 64th consecutive dividend increase, and more than $32 billion invested in R&D and acquisitions with a plan to invest $55 billion in the U.S. by early 2029.
• Management highlighted strong commercial and pipeline momentum — including 51 approvals, 32 regulatory submissions, 28 platforms generating over $1 billion each (Darzalex >$14B; Carvykti has treated >10,000 patients) — alongside MedTech growth and multiple major product launches.
• Governance items passed: all 12 director nominees were re‑elected and advisory pay and auditor ratification were approved while a shareholder proposal failed; the company reiterated its unchanged position on talc litigation after returning to the tort system following dismissal of its bankruptcy proceeding.

Johnson & Johnson NYSE: JNJ used its 2026 annual meeting of shareholders to highlight what management described as a “catalyst year” in 2025, pointing to broad-based operational sales growth, major product launches and pipeline progress, and significant capital deployment across research, acquisitions, and manufacturing.

Marc Larkins, worldwide vice president of corporate governance and corporate secretary, opened the meeting and noted shareholders could access the agenda, rules of order, proxy statement, and annual report through the meeting website. Larkins said the company was joined by its executive committee, its board of directors, and Jonathan Hirschfeld representing PricewaterhouseCoopers, the company’s independent auditor.

Management highlights 2025 performance and priorities

In prepared remarks, Chairman and CEO Joaquin Duato said 2025 sharpened the company’s focus on “six areas of high growth and high unmet medical need: oncology, immunology, neuroscience, cardiovascular, surgery, and vision.” Duato also welcomed two new board members, John Morikis and Daniel Pinto.

Duato reported operational sales grew 5.3% in 2025, and “excluding Stelara, the company grew 11.5%.” He said adjusted net earnings were $26.2 billion and adjusted earnings per share were $10.79. Duato also cited nearly $20 billion in free cash flow and said the company raised its dividend for the 64th consecutive year. He added that in 2025 the share price rose 43%, producing a total shareholder return of 47.5%, which he described as “one of the best annual returns in our 82-year history” as a publicly traded company.

Duato said the portfolio “continues” to show resilience, and with the addition of Shockwave and Carvykti the company has “28 platforms generating more than $1 billion in annual sales.” He also said Johnson & Johnson invested more than $32 billion in R&D and strategic acquisitions in 2025, including Intra-Cellular Therapies and Halda Therapeutics, along with “40 other collaborations, partnerships, and licenses.” He said the company initiated “billions of dollars in new state-of-the-art manufacturing facilities” as part of a plan to invest $55 billion in the U.S. by early 2029.

Innovative Medicine: sales milestones, approvals, and pipeline updates

Duato said the Innovative Medicine segment delivered 5.3% operational sales growth, with “13 brands growing double digits,” and that “for the first time, pharmaceutical sales exceeded $60 billion.” He said the company secured 51 approvals across major markets and filed 32 regulatory submissions, had positive readouts from 17 key studies, and initiated 11 new phase III programs.

In oncology, Duato said the company is the number one provider in multiple myeloma, where “80% of patients are treated with at least one of our four medicines.” He said Darzalex exceeded $14 billion in annual sales, and that Carvykti has treated more than 10,000 patients across 14 markets. Duato also referenced an FDA national priority review voucher and said results on a Tecvayli and Darzalex combination contributed to a recent approval for multiple myeloma “as early as second-line.” He cited FDA approvals for RYBREVANT FASPRO in lung cancer and Ilexo, a drug-releasing system for bladder cancer, and said the Halda Therapeutics acquisition added a clinical-stage prostate cancer treatment candidate with potential across tumor types.

In immunology, Duato said Tremfya became the first IL-23 inhibitor with a fully subcutaneous regimen for both ulcerative colitis and Crohn’s disease and is the fastest-growing IL-23 therapy in the U.S. He reported more than $5 billion in 2025 global Tremfya sales and said the company recently received approval for Icotide, described as “the first and only IL-23 receptor targeted oral peptide” for moderate to severe plaque psoriasis.

In neuroscience, Duato said Spravato has treated more than 200,000 patients worldwide and highlighted the U.S. launch of Caplyta as an adjunctive therapy for major depressive disorder.

MedTech: growth, launches, and focus areas

Duato said MedTech delivered 5.4% operational sales growth with sales of nearly $34 billion. He said the company launched 15 major products, secured more than 40 regulatory approvals across major markets, and advanced more than 60 active clinical trials.

He highlighted cardiovascular progress, including growth in pulsed field ablation and the Varipulse platform, which he said has treated nearly 50,000 atrial fibrillation patients. Duato also cited positive 12-month data for an investigational OMNIPULSE catheter and initial European cases using the dual energy ThermoCool SmartTouch SF catheter.

In surgery, he said the company filed an FDA De Novo submission for OTTAVA, its next-generation robotic surgery system, and launched the ETHICON 4000 stapler. In vision, he cited the launch of ACUVUE OASYS MAX 1-Day disposable lenses for astigmatism and presbyopia, and said TECNIS PureSee and TECNIS Odyssey intraocular lenses are expanding into new markets. Duato also reiterated the company’s planned separation of its orthopedics business to increase focus on higher-growth areas.

Shareholder votes and Q&A: governance, talc litigation, and capital allocation

Larkins said a quorum was present, representing more than 85% of shares entitled to vote. He presented four voting items:

• Election of 12 director nominees
• An advisory vote to approve named executive officer compensation
• Ratification of PricewaterhouseCoopers LLP as independent auditor for fiscal year 2026
• A shareholder proposal submitted by The Accountability Board Inc.

Matt Prescott, founder and president of The Accountability Board, briefly introduced the shareholder proposal and encouraged support, referring shareholders to the proxy statement for details. Larkins said the board recommended a vote against the proposal, stating it believed the requested policy “would unduly limit the board’s discretion to choose the appropriate leadership structure.”

After polls closed, Larkins reported preliminary results: all 12 director nominees were elected, the advisory compensation proposal was approved, the auditor ratification was approved, and the shareholder proposal did not pass. He said final results would be filed within four business days in a Form 8-K with the SEC.

In the Q&A portion, the company addressed questions on director selection, saying the board has a record of refreshment and considers candidates from multiple sources, including shareholders, while also maintaining limits on outside board service. On talc litigation, the company said its position “has not changed,” that it no longer sells consumer health products including Johnson’s Baby Powder, and that “decades of independent scientific testing confirm” the product was safe. The company noted dismissal of its most recent bankruptcy proceeding in March 2025 and said it returned to the tort system to litigate claims and is pursuing legal actions against parties it said engaged in improper conduct.

Asked about a potential stock split, the company pointed to its long-term capital allocation approach, citing the 2025 share price increase, total shareholder return, and returning more than 60% of free cash flow to shareholders via dividends or repurchases over the past five years, while saying it would make announcements “as appropriate.”

About Johnson & Johnson NYSE: JNJ

Johnson & Johnson is a multinational healthcare company headquartered in New Brunswick, New Jersey, that develops, manufactures and markets a broad range of products across pharmaceuticals, medical devices and previously consumer health. Founded in 1886 by the Johnson family, the company has grown into a global healthcare organization with operations and sales in many countries around the world.

The company's pharmaceuticals business, organized largely under its Janssen research and development organization, focuses on prescription medicines across therapeutic areas such as immunology, infectious disease, oncology and neuroscience.

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