Shares of Johnson & Johnson dropped more than 5% Tuesday morning after the company reported weaker-than-expected results from its medical devices division.
"We are clear on where MedTech performance needs to improve," said J&J's chief financial officer Joe Wolk on the earnings call, citing its cardiovascular and surgery units. Its $16.6 billion acquisition of heart-pump maker Abiomed has been a drag.
Pharmaceuticals were the company's primary growth driver. But older medicines are behind some of the sales bump, rather than newer and more strategically important products, wrote Guggenheim analyst Vamil Divan.
The stock was on pace Tuesday for its largest decrease on a percentage basis since April 2025.
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