Johnson & Johnson (JNJ) official guidance

Our effective tax rate is now expected to be lower in a range of 17.0%-18.0% for the full year based on year-to-date results.

We are pleased to increase our adjusted operational earnings per share range to $11.50-$11.65, which equates to an increase of $0.18 at the midpoint. This represents a year-on-year adjusted operational EPS growth of 7.3%.

Reported earnings per share is projected to be $11.60-$11.75, or $11.68 at the midpoint, which represents an 8.2% increase over the prior year.

As expected, we had significant improvement in the second quarter with year to date totaling approximately $8.7 billion and are on track for our full year free cash flow outlook approaching $21 billion.

For net interest expense, we now project $250 million-$300 million, slightly lower than previous guidance.

At the beginning of the year, we guided to more than a 50 basis point improvement in adjusted pre-tax operating margin. We now expect approximately a 75 basis point improvement, supported by continuing operating efficiencies and anticipated reduction and recoupment of certain tariff-related costs based on the latest rulings.

Driven by second quarter performance and uptake of new product launches, we are increasing operational sales growth by $400 million, now expecting operational sales growth for the full year to be in the range of 6.5%-7.1%, with a midpoint of $100.6 billion.

| Operational Sales2 / Mid-point Change vs. Prior Year / Mid-point | $100.3B – $100.9B / $100.6B 6.5% – 7.1% / 6.8% | $99.7B – $100.7B / $100.2B 5.9% – 6.9% / 6.4% |

| Adjusted Operational Sales1,2 Change vs. Prior Year / Mid-point | 6.2% – 6.8% / 6.5% | 5.6% – 6.6% / 6.1% |

As such, we now expect reported adjusted earnings per share of $11.55 at the midpoint, or a growth of 7.1%.

We are maintaining our guidance for net interest expense, net other income, and the effective tax rate for the full year.

Since announcing our plans to invest $55 billion in U.S.-based manufacturing technology and research and development through early 2029, we are well on our way to reaching that target.

Regarding our share count, due to the rapid share price appreciation in the second half of 2025 into early 2026, our diluted share count is increasing to approximately 2.44 billion shares based on U.S. GAAP accounting rules for the diluted share count calculation, in line with how the fourth quarter of 2025 landed.

We are expecting a higher effective tax rate to be in the range of 17.5%-18% for the full year, with the increase largely due to the recently enacted One Big Beautiful Bill Act.

As such, our expected adjusted earnings per share guidance remains $10.85 or 8.7% at the midpoint, with a range of $10.80-$10.90.

Assuming what we know today as it relates to tariffs for net interest expense, we are now projecting between $0 and $50 million, an improvement from the previous guidance primarily driven by higher cash balances.

We are reiterating our operating margin guide of an approximate 300 basis point improvement for the full year.

This commentary considers investments we will be making behind many of the new product launches I just highlighted, but you can also expect some margin improvement.

Turning now to full year guidance for 2025, we are increasing operational sales guidance for the full year by approximately $300 million, resulting in operational sales growth for the full year in the range of 4.8%-5.3%. With a midpoint of $93.2 billion or 5.1% excluding the impact from acquisitions and divestitures.

Our adjusted operational sales growth is now expected to be in the range of 4.0% compared to 2024.

In fact, based on my last look at your 2026 models, it appears the current revenue consensus of 4.6% growth in your models for 2026 is lower than we project, which we believe in total will exceed 5%.

| Operational Sales2,5 / Mid-point Change vs. Prior Year / Mid-point | $93.0B – $93.4B / $93.2B 4.8% – 5.3% / 5.1% | $92.7B – $93.1B / $92.9B 4.5% – 5.0% / 4.8% |