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

Finally, we are projecting an effective tax rate in the range of 17.5%-18.5%, with the increase largely due to a mixed change with income in higher tax jurisdictions.

| Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point | $10.95 – $11.05 / $11.00 1.5% – 2.4% / 2.0% | $10.86 – $11.01 / $10.94 0.7% – 2.1% / 1.4% |

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%.

| Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point | $11.50 – $11.65 / $11.58 6.6% – 8.0% / 7.3% | $11.30 – $11.50 / $11.40 4.7% – 6.7% / 5.7% |

Turning to adjusted operational earnings per share, we are increasing our guidance by $0.02 to a range of $11.30-$11.50, representing 5.7% growth at the midpoint.

| Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point | $11.30 – $11.50 / $11.40 4.7% – 6.7% / 5.7% | $11.28 – $11.48 / $11.38 4.5% – 6.5% / 5.5% |

Turning to adjusted operational earnings per share, we expect growth of 5.5% at the midpoint for a range of $11.28-$11.48.

| Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point | $11.28 – $11.48 / $11.38 4.5% – 6.5% / 5.5% |

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.

However, these were expected, and we remain confident in our full-year free cash flow outlook of approximately $21 billion.

As we move forward in 2026, we expect to elevate free cash flow generation to approximately $21 billion.

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

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

We expect net interest expense between $300 million and $400 million.

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.

We are maintaining our guidance for adjusted pre-tax operating margin to improve by at least 50 basis points in 2026.

Despite that increased investment, we are planning for our 2026 adjusted pre-tax operating margin to improve by at least 50 basis points.

| Estimated Reported Sales3/ Mid-point Change vs. Prior Year / Mid-point | $101.0B – $101.4B / $101.2B 7.2% – 7.6% / 7.4% | $100.8B – $101.4B / $101.1B 7.0% – 7.6% / 7.3% |

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.

| Estimated Reported Sales3/ Mid-point Change vs. Prior Year / Mid-point | $100.8B – $101.4B / $101.1B 7.0% – 7.6% / 7.3% | $100.3B – $101.3B / $100.8B 6.5% – 7.5% / 7.0% |

As a result, we estimate reported sales growth between 6.5%-7.5% with a midpoint of $100.8 billion or 7%.

| Estimated Reported Sales3/ Mid-point Change vs. Prior Year / Mid-point | $100.3B – $101.3B / $100.8B 6.5% – 7.5% / 7.0% | $100.0B – $101.0B / $100.5B 6.2% – 7.2% / 6.7% |

Turning now to guidance for the full year 2026, we anticipate operational sales growth in the range of 5.7%-6.7%, with a midpoint of $100 billion or 6.2%.

| Estimated Reported Sales3/ Mid-point Change vs. Prior Year / Mid-point | $100.0B – $101.0B / $100.5B 6.2% – 7.2% / 6.7% |

| 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% |

We are increasing our operational sales guidance to be in the range of 5.9%-6.9%, with a midpoint of $100.2 billion or 6.4%.

| Operational Sales2 / Mid-point Change vs. Prior Year / Mid-point | $99.7B – $100.7B / $100.2B 5.9% – 6.9% / 6.4% | $99.5B – $100.5B / $100.0B 5.7% – 6.7% / 6.2% |

| Operational Sales2 / Mid-point Change vs. Prior Year / Mid-point | $99.5B – $100.5B / $100.0B 5.7% – 6.7% / 6.2% |

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

| Adjusted Operational Sales1,2 Change vs. Prior Year / Mid-point | 5.6% – 6.6% / 6.1% | 5.4% – 6.4% / 5.9% |

Acquisitions and divestitures are expected to favorably impact operational growth by approximately 30 basis points, resulting in an adjusted operational sales growth midpoint of 5.9%.

| Adjusted Operational Sales1,2 Change vs. Prior Year / Mid-point | 5.4% – 6.4% / 5.9% |

We anticipate net other income to be $1 billion-$1.2 billion for 2026, relatively flat to last year.

| Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point | $10.63 – $10.73 / $10.68 6.5% – 7.5% / 7.0% | $10.63 – $10.73 / $10.68 6.5% – 7.5% / 7.0% |