J&J Raises Sales Guidance, Will Split Off Orthopedics Unit

Johnson & Johnson said it plans to separate its slower-growing orthopedics business from the rest of the company within 18 to 24 months, giving its innovative drug and device operations more breathing room as the Trump administration pressures pharmaceutical companies to lower prices in the US.

The move comes as J&J announced third-quarter sales and earnings that modestly beat expectations, and raised revenue guidance for the full year. The pharmaceutical and medical technology company, though, kept its adjusted earnings guidance intact for 2025, saying it was absorbing higher taxes.