What it does
Johnson & Johnson states that it is a holding company whose operating companies research, develop, manufacture and sell healthcare products in virtually all countries. It organizes operations into Innovative Medicine and MedTech. Innovative Medicine focuses on therapeutic areas including oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism. MedTech develops and manufactures products used in cardiovascular care, orthopaedics, surgery, and vision. The filing also states that the company intends to separate its Orthopaedics business.
Source: Johnson & Johnson Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company reports revenue through two segments, with the segment table below providing the detailed figures. Innovative Medicine generated $60.4 billion in FY2025, representing 64.1% of revenue. The filing says this segment distributes prescription medicines directly to retailers, wholesalers, distributors, hospitals and healthcare professionals. MedTech generated $33.8 billion in FY2025, or 35.9% of revenue. Its products are distributed to wholesalers, hospitals and retailers and are used predominantly by healthcare professionals and clinics.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Innovative Medicine | $60.4 billion | 64.1% | 6.03% |
| MedTech | $33.8 billion | 35.9% | 6.07% |
Source: Johnson & Johnson Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The company states that it conducts business in virtually all countries and that international markets can differ by country and culture in their principal markets, products and distribution methods. The United States generated $53.8 billion in FY2025, or 57.1% of revenue, while Europe generated $21.5 billion, or 22.9%. Asia-Pacific and Africa generated $14.0 billion, or 14.9%, and the Western Hemisphere excluding the U.S. generated $4.9 billion, or 5.18%. Customers and users described in the filing include retailers, wholesalers, distributors, hospitals, healthcare professionals, and clinics.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $53.8 billion | 57.1% | 6.86% |
| Europe | $21.5 billion | 22.9% | 6.55% |
| Asia-Pacific, Africa | $14.0 billion | 14.9% | 3.22% |
| Western Hemisphere excluding U.S. | $4.9 billion | 5.18% | 3.42% |
Source: Johnson & Johnson Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The filing states that the company’s subsidiaries compete with companies locally and globally across all product lines, regardless of the number or size of competitors. It identifies competition in internally and externally sourced research, product development and improvement, and protection of underlying intellectual property as particularly significant. The filing does not name specific competing companies. It also states that the competitive environment requires continuing research investment.
Source: Johnson & Johnson Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
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The filing states that highly competitive product markets and competitive pressures could adversely affect earnings.
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Global Innovative Medicine and MedTech sales may be negatively affected by healthcare reforms and increasing pricing pressures.
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The company faces increased challenges to intellectual-property rights central to its business.
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Significant challenges or delays in innovation, development and implementation of new products, technologies and indications could adversely affect long-term success.
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The filing identifies financial, economic, legal, social and political risks associated with conducting business internationally.
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The planned Orthopaedics separation may not be completed on the contemplated terms or timeline, if at all.
Source: Johnson & Johnson Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
The company reports 138,200 full-time-equivalent positions at fiscal year-end. It states that its operating companies conduct business in virtually all countries, with U.S. and international senior management groups responsible for their own strategic plans and day-to-day operations within parameters set by the Executive Committee. The filing says raw materials essential to the business are generally available from multiple sources. It also states that worldwide sales have no significant seasonality, although spending has typically been heavier in the fourth quarter, principally for advertising and research and development.
Source: Johnson & Johnson Form 10-K for fiscal 2025, Item 1 — sec.gov