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Today at a glance:
💊 J&J: Catapulting Growth
🧴 P&G: The Softest Quarter
🧬 Abbott: Growing Pains
🦾 Intuitive Surgical: da Vinci 5 Liftoff
🏦 Schwab: Asset Gathering Machine
🛩️ United Airlines: Cleared for Takeoff
1. 💊 J&J: Catapulting Growth
Johnson & Johnson’s Q4 revenue rose 9% Y/Y to $24.6 billion ($440 million beat) and adjusted EPS came in at $2.46 (in-line). The results validated management’s declaration of 2025 as a “catapult year,” as robust performance in Innovative Medicine (+10%) and MedTech (+7%) helped the company successfully bridge its patent cliff.
The pharmaceutical portfolio executed a critical pivot. Soaring sales of Tremfya (+68%) and the oncology powerhouse Darzalex (+27%) more than offset a steep 48% decline in Stelara revenue caused by biosimilar competition.
In MedTech, the cardiovascular segment remained a standout, with Shockwave (+23%) and Abiomed (+20%) proving the value of recent high-profile acquisitions.
Looking ahead, J&J issued bullish FY26 guidance, projecting revenue to break the $100 billion barrier for the first time (midpoint $100.5 billion). Despite facing ~$500 million in expected tariff costs, a new drug pricing deal with the White House, and renewed volatility in talc litigation, management remains confident. J&J is targeting double-digit growth by the end of the decade as it finalizes the separation of its orthopedics business.
2. 🧴 P&G: The Softest Quarter
P&G hit a speed bump in Q2 FY26, reporting revenue growth of 1% Y/Y to $22.21 billion ($80 million miss) and core EPS of $1.88 ($0.02 beat). Organic sales growth stalled to flat (0%), as a 1% price increase was fully negated by a 1% decline in volume. This marks the slowest organic growth pace in a decade, driven largely by a 2% decline in the critical North American market.
Management attributed the volume weakness to tough year-over-year comparisons (consumers hoarded essentials last year ahead of port strikes) and temporary headwinds like the government shutdown. While the Family Care segment struggled (-3%), the International business remained a bright spot, with strong growth in Latin America (+8%) and Europe (+6%).
Despite the sluggish top-line, CFO Andre Schulten declared that P&G has “completed what we fully expect will be the softest quarter of the year.” The company maintained its full-year guidance for organic sales (0% to +4%) and Core EPS growth, betting on a second-half rebound driven by new product innovations and stabilizing US demand.