Johnson & Johnson Raises 2025 Outlook as Oncology and Neuroscience Drive Q2 Growth

Johnson & Johnson (J&J) has kicked off the second quarter 2025 pharmaceutical earnings season with a strong performance, reporting a 6% sales growth and raising its full-year sales estimate by $2 billion. The company's success was primarily driven by its oncology and neuroscience divisions, which offset pressures in other areas of the business.

Q2 Financial Highlights

J&J posted global sales of $23.7 billion for the second quarter, with its medicine unit accounting for $15.2 billion and medtech products contributing $8.5 billion. The company reported diluted earnings per share of $2.29, exceeding analyst expectations.

The pharmaceutical giant has now raised its estimated reported sales growth for the full year from the previous forecast of 2.6% to 3.6% to a new target of 5.1% to 5.6%. This adjustment adds $2 billion to the midpoint of J&J's full-year sales estimate.

Oncology and Neuroscience Lead the Way

Oncology Growth

J&J's oncology division reported an impressive 24% growth, fueled by several key factors:

Market share gains for multiple myeloma blockbuster Darzalex
Increased sales of prostate cancer drug Erleada
Growing adoption of CAR T cell therapy Carvykti
Successful launches of bispecific antibodies Tecvayli, Talvey, and Rybrevant

Neuroscience Advancements

The neuroscience division saw a 15.1% growth on a reported basis, primarily driven by rising demand for the depression drug Spravato. This growth was achieved despite challenges such as the Medicare Part D redesign and an unfavorable patient mix affecting sales of drugs like the atypical antipsychotic Invega Sustenna.

Challenges and Future Outlook

While J&J celebrates its successes in oncology and neuroscience, the company faces challenges in other areas. The immunology division experienced a 15.4% decline in sales, largely due to mounting pressure on its inflammatory disease drug Stelara.

Stelara is facing dual headwinds:

The impact of the Medicare Part D redesign
Increasing biosimilar competition

J&J expects Stelara biosimilar competition to accelerate in the second half of the year. Despite these challenges, the company remains optimistic about its overall growth trajectory.

In a bold move, CEO Joaquin Duato has set an ambitious target of $50 billion in oncology sales by 2030, underscoring the company's commitment to maintaining its strong position in the cancer treatment market.