TLDRJohnson & Johnson (JNJ) stock drops 5.39% despite beating Q3 earnings forecasts.JNJ reports $25.4 billion in Q3 revenue, topping Wall Street’s $25.28B estimate.MedTech revenue misses expectations as international market pressures weigh on JNJ.TREMFYA sales surge 68% to $2.4 billion, supporting strong pharmaceutical growth.Johnson & Johnson targets a mid-2027 spin-off of its DePuy Synthes orthopedics unit.Johnson & Johnson (JNJ) stock plunged 5.39% to $249.51 during Tuesday’s trading, losing $14.22 despite stronger-than-expected third-quarter earnings. The healthcare company reported higher revenue and raised its full-year outlook, supported by strong pharmaceutical sales. However, weaker MedTech performance and pressure across international markets weighed on the shares.Johnson & Johnson, JNJJohnson & Johnson Reports Strong Q3 Earnings and Raises 2026 GuidanceJohnson & Johnson reported third-quarter revenue of $25.4 billion, exceeding Wall Street estimates of $25.28 billion. Adjusted earnings reached $2.59 per share, surpassing analysts’ expectations of $2.54. Meanwhile, operational sales increased 6%, reflecting stronger performance across the company’s pharmaceutical portfolio.The company raised its full-year reported revenue forecast to approximately $101.2 billion, compared with $101.1 billion previously. It also increased its adjusted earnings guidance midpoint to $11.10 per share from $11.04. Chief Executive Officer Joaquin Duato attributed the performance to product launches and continued innovation.Additionally, Johnson & Johnson expects operational sales growth between 6.7% and 7.1% for 2026. The company anticipates exceeding $100 billion in annual revenue for the first time. Management also expects its strategic investments to support double-digit growth by the decade’s end.MedTech Weakness Weighs on Johnson & Johnson StockDespite stronger earnings, Johnson & Johnson’s MedTech division reported operational sales growth of just 2.5%. Segment revenue reached $8.6 billion, missing Wall Street estimates of $8.71 billion. Cardiovascular and surgical businesses contributed to the weaker performance, particularly outside the United States.Chief Financial Officer Joe Wolk identified several factors affecting the company’s international medical technology business. The Middle East conflict reduced regional healthcare spending, while European austerity measures and Chinese pricing pressures affected demand. Meanwhile, weak sales at the ABIOMED heart pump business continued to limit growth.The pharmaceutical business delivered stronger results, with quarterly revenue increasing 7.7% to $16.76 billion. TREMFYA sales surged 68% to $2.4 billion, exceeding analysts’ estimates of approximately $2.19 billion. Meanwhile, DARZALEX revenue increased approximately 16% to $4.24 billion, although it missed market expectations.Johnson & Johnson Plans Orthopedics Spin-Off by Mid-2027Johnson & Johnson continues preparing to separate its DePuy Synthes orthopedics business by mid-2027. Management favors a spin-off as the company shifts toward higher-growth pharmaceutical and medical technology operations. The proposed separation would mark another major restructuring following the earlier Kenvue consumer healthcare separation.Meanwhile, reports in September linked Apollo Global Management to potential acquisition talks involving the orthopedics division. Those reports suggested a transaction could value the business near $20 billion. However, management continues evaluating its options and has not announced a final transaction structure.Johnson & Johnson ended the third quarter with approximately $17 billion in cash and marketable securities. The company also reported $45 billion in debt and generated over $6 billion in quarterly free cash flow. Looking ahead, management expects approximately $21 billion in full-year free cash flow while advancing product launches and restructuring plans. The post Johnson & Johnson (JNJ) Stock: Plunges 5% Despite Strong Q3 Earnings appeared first on Blockonomi.