Johnson & Johnson (NYSE:JNJ) traded higher in the premarket on Tuesday after the New Brunswick, New Jersey-based company kicked off the healthcare earnings season, reporting better-than-expected results for Q3 2025 and raising its full-year sales outlook.
Concurrently, J&J (NYSE:JNJ) announced plans to separate its Orthopaedics division as a standalone unit named DePuy Synthes within 18–24 months in a bid to fast-track its MedTech portfolio’s shift toward higher-growth and higher-margin markets.
“This transaction enables Johnson & Johnson to further strengthen its focus and investment toward higher-growth areas where we can meaningfully extend and improve patient lives,” CEO Joaquin Duato remarked.
The company named Namal Nawana, a former CEO and a board member of U.K.-based MedTech company Smith & Nephew (SNN), as Worldwide President of DePuy Synthes, effective immediately.
Nawana, who most recently served a privately held diagnostics company called Sapphiros as executive chairman and founder, will lead the separation process and will give leadership to DePuy once the transaction is complete, J&J (NYSE:JNJ) said.
As for earnings, JNJ increased its full-year reported sales outlook to $93.5B–$93.9B, compared to $93.45B in the consensus and $93.2B–$93.6B projected in July. However, the company reiterated its adjusted full-year earnings outlook at $10.80–$10.90 per diluted share, compared to $10.85 in the consensus.