Item 1. Financial statements

Johnson & Johnson and subsidiaries consolidated balance sheets

(Unaudited; Dollars in Millions Except Share and Per Share Data)

						March 29, 2026						December 28, 2025
Assets
Current assets:
Cash and cash equivalents (Note 4)						$21,688						19,709
Marketable securities						363						393
Accounts receivable, trade, less allowances $174 (2025, $183)						17,721						17,178
Inventories (Note 2)						14,583						14,191
Prepaid expenses and other						4,818						4,153
Total current assets						59,173						55,624
Property, plant and equipment at cost						54,695						54,364
Less: accumulated depreciation						(31,425)						(31,195)
Property, plant and equipment, net						23,270						23,169
Intangible assets, net (Note 3)						49,061						50,403
Goodwill (Note 3)						48,558						48,772
Deferred taxes on income (Note 5)						6,727						6,874
Other assets						14,105						14,368
Total assets						$200,894						199,210
Liabilities and shareholders’ equity
Current liabilities:
Loans and notes payable						$17,460						8,495
Accounts payable						10,460						11,991
Accrued liabilities						7,399						8,594
Accrued rebates, returns and promotions						18,399						19,124
Accrued compensation and employee related obligations						2,911						4,534
Accrued taxes on income (Note 5)						1,087						1,388
Total current liabilities						57,716						54,126
Long-term debt (Note 4)						37,527						39,438
Deferred taxes on income (Note 5)						7,011						6,791
Employee related obligations (Note 6)						6,760						6,957
Long-term taxes payable (Note 5)						486						486
Other liabilities						10,208						9,868
Total liabilities						$119,708						117,666
Commitments and Contingencies (Note 11)
Shareholders’ equity:
Common stock — par value $1.00 per share (authorized 4,320,000,000 shares; issued 3,119,843,000 shares)						$3,120						3,120
Accumulated other comprehensive income (loss) (Note 7)						(14,831)						(14,930)
Retained earnings and Additional paid-in capital						169,161						168,978
Less: common stock held in treasury, at cost (713,258,000 and 711,904,000 shares)						76,264						75,624
Total shareholders’ equity						$81,186						81,544
Total liabilities and shareholders’ equity						$200,894						199,210

See Notes to Consolidated Financial Statements

Form 10-Q			1

Johnson & Johnson and subsidiaries consolidated statements of earnings

(Unaudited; Dollars & Shares in Millions Except Per Share Amounts)

						Fiscal First Quarter Ended
						March 29, 2026						Percent to Sales						March 30, 2025						Percent to Sales
Sales to customers (Note 9)						$24,062						100.0		%				$21,893						100.0		%
Cost of products sold						8,106						33.7						7,357						33.6
Gross profit						15,956						66.3						14,536						66.4
Selling, marketing and administrative expenses						6,034						25.1						5,112						23.3
Research and development expense						3,527						14.7						3,225						14.7
In-process research and development impairments						36						0.1						—						—
Interest income						(229)						(1.0)						(332)						(1.5)
Interest expense, net of portion capitalized						272						1.2						204						0.9
Other (income) expense, net						294						1.2						(7,321)						(33.4)
Restructuring (Note 12)						32						0.1						17						0.1
Earnings before provision for taxes on income						5,990						24.9						13,631						62.3
Provision for taxes on income (Note 5)						755						3.1						2,632						12.1
Net earnings						$5,235						21.8		%				$10,999						50.2		%
Net earnings per share (Note 8)
Basic						$2.17												$4.57
Diluted						$2.14												$4.54
Avg. shares outstanding
Basic						2,408.7												2,407.2
Diluted						2,445.2												2,423.8

See Notes to Consolidated Financial Statements

2

Johnson & Johnson and subsidiaries consolidated statements of comprehensive income

(Unaudited; Dollars in Millions)

			Fiscal First Quarter Ended
			March 29, 2026						March 30, 2025
Net earnings			$5,235						10,999
Other comprehensive income (loss), net of tax
Foreign currency translation			334						(575)
Employee benefit plans:
Prior service cost amortization during period			(36)						(35)
Gain (loss) amortization during period			75						77
Net change			39						42
Derivatives & hedges:
Unrealized gain (loss) arising during period			(77)						676
Reclassifications to earnings			(197)						(142)
Net change			(274)						534
Other comprehensive income (loss)			99						1
Comprehensive income			$5,334						11,000

See Notes to Consolidated Financial Statements

The tax cost/(benefit) effects in other comprehensive income/(loss) for the fiscal first quarter were as follows for 2026 and 2025, respectively: Foreign Currency Translation: $(279) million and $400 million; Employee Benefit Plans: $10 million and $11 million; Derivatives & Hedges: $(73) million and $142 million.

Form 10-Q			3

Johnson & Johnson and subsidiaries consolidated statements of equity

(Unaudited; Dollars in Millions)

Fiscal First Quarter Ended March 29, 2026

			Total						Retained Earnings and Additional Paid-in Capital						Accumulated Other Comprehensive Income (AOCI)						Common Stock Issued Amount						Treasury Stock Amount
Balance, December 28, 2025			$81,544						168,978						(14,930)						3,120						(75,624)
Net earnings			5,235						5,235						—						—						—
Cash dividends paid ($1.30 per share)			(3,131)						(3,131)						—						—						—
Employee compensation and stock option plans			1,473						(1,921)						—						—						3,394
Repurchase of common stock (including excise tax)			(4,034)						—						—						—						(4,034)
Other comprehensive income (loss), net of tax			99						—						99						—						—
Balance, March 29, 2026			$81,186						169,161						(14,831)						3,120						(76,264)

Fiscal First Quarter Ended March 30, 2025

			Total						Retained Earnings and Additional Paid-in Capital						Accumulated Other Comprehensive Income						Common Stock Issued Amount						Treasury Stock Amount
Balance, December 29, 2024			$71,490						155,791						(11,741)						3,120						(75,680)
Net earnings			10,999						10,999						—						—						—
Cash dividends paid ($1.24 per share)			(2,989)						(2,989)						—						—						—
Employee compensation and stock option plans			737						(1,166)						—						—						1,903
Repurchase of common stock (including excise tax)			(2,129)						—						—						—						(2,129)
Other comprehensive income (loss), net of tax			1						—						1						—						—
Balance, March 30, 2025			$78,109						162,635						(11,740)						3,120						(75,906)

See Notes to Consolidated Financial Statements

4

Johnson & Johnson and subsidiaries consolidated statements of cash flows

(Unaudited; Dollars in Millions)

						Fiscal Three Months Ended
						March 29, 2026						March 30, 2025
Cash flows from operating activities
Net earnings						$5,235						10,999
Adjustments to reconcile net earnings to cash flows from operating activities:
Depreciation and amortization of property and intangibles						2,004						1,772
Stock based compensation						300						288
Asset write-downs						36						30
Charges for acquired in-process research and development assets						2						16
Net loss/(gain) on sale of assets/businesses						12						(75)
Deferred tax provision						159						2,172
Credit losses and accounts receivable allowances						(8)						(4)
Changes in assets and liabilities, net of effects from acquisitions and divestitures:
Increase in accounts receivable						(595)						(926)
Increase in inventories						(431)						(146)
Decrease in accounts payable and accrued liabilities						(3,920)						(2,126)
Decrease/(Increase) in other current and non-current assets						349						(1,317)
Decrease in other current and non-current liabilities						(629)						(6,509)
Net cash flows from operating activities						2,514						4,174
Cash flows used for investing activities
Additions to property, plant and equipment						(1,049)						(795)
Proceeds from the disposal of assets/businesses, net (Note 10)						29						279
Acquired in-process research and development assets / related milestones (Note 10)						—						(14)
Purchases of investments						(144)						(251)
Sales of investments						209						218
Credit support agreements activity, net						(31)						296
Other (including capitalized licenses and milestones)						(54)						(30)
Net cash used for investing activities						(1,040)						(297)
Cash flows from financing activities
Dividends to shareholders						(3,131)						(2,989)
Repurchase of common stock						(4,028)						(2,127)
Proceeds from short-term debt, net						12,439						8,784
Repayment of short-term debt, net						(3,223)						(2,120)
Proceeds from long-term debt, net of issuance costs						—						9,138
Repayment of long-term debt						(2,002)						(751)
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net						1,172						450
Credit support agreements activity, net						(109)						(3)
Other						(588)						40
Net cash from financing activities						530						10,422
Effect of exchange rate changes on cash and cash equivalents						(25)						70
Increase in cash and cash equivalents						1,979						14,369
Cash and cash equivalents, beginning of period						19,709						24,105
Cash and cash equivalents, end of period						21,688						38,474

See Notes to Consolidated Financial Statements

Form 10-Q			5

Notes to consolidated financial statements

Note 1 — The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of Johnson & Johnson and its subsidiaries (the Company) and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2025. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented.

Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures.

Recently Adopted Accounting Standards

ASU 2025-07: Derivates and Hedging (Topic 815) and Revenue from Contracts with Customers (TOPIC 606)

Effective beginning fiscal year 2026, the Company prospectively adopted the amended guidance issued by the FASB that adds a scope exception to exclude from derivative accounting non-exchange-traded contracts with variables (underlyings) that are based on operations or activities specific to one of the parties to the contract. The adoption of this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

There were no new material accounting standards issued in the fiscal first quarter of 2026.

Supplier finance program obligations

The Company has agreements for supplier finance programs with third-party financial institutions. These programs provide enrolled suppliers the ability to finance payment obligations from the Company with the third-party financial institutions. The Company is not a party to the arrangements between the suppliers and the third-party financial institutions. The Company’s obligations to its suppliers, including amounts due, and scheduled payment dates (which have general payment terms of 90 days), are not affected by a participating supplier’s decision to join in the program.

Confirmed obligations under the program as of March 29, 2026, and December 28, 2025, were $0.7 billion and $0.8 billion, respectively. The obligations are presented as Accounts payable on the Consolidated Balance Sheets.

Note 2 — Inventories

(Dollars in Millions)			March 29, 2026						December 28, 2025
Raw materials and supplies			$2,612						2,530
Goods in process			4,033						3,828
Finished goods			7,938						7,833
Total inventories			$14,583						14,191

6

Note 3 — Intangible assets and goodwill

Intangible assets that have finite useful lives are amortized over their estimated useful lives. The latest annual impairment assessment of goodwill and indefinite lived intangible assets was completed in the fiscal fourth quarter of 2025. Future impairment tests for goodwill and indefinite lived intangible assets will be performed annually in the fiscal fourth quarter, or sooner, if warranted.

(Dollars in Millions)			March 29, 2026						December 28, 2025
Intangible assets with definite lives:
Patents and trademarks — gross			$58,515						59,156
Less accumulated amortization			(32,939)						(32,507)
Patents and trademarks — net			$25,576						26,649
Customer relationships and other intangibles — gross			21,340						21,361
Less accumulated amortization			(15,156)						(14,998)
Customer relationships and other intangibles — net(1)			$6,184						6,363
Intangible assets with indefinite lives:
Trademarks			1,766						1,772
Purchased in-process research and development			15,535						15,619
Total intangible assets — net			$49,061						50,403

(1)The majority is comprised of customer relationships

Goodwill as of March 29, 2026 was allocated by segment of business as follows:

(Dollars in Millions)									Innovative Medicine						MedTech						Total
Goodwill at December 28, 2025									$14,967						33,805						48,772
Goodwill, related to acquisitions									—						—						—
Goodwill, related to divestitures									—						—						—
Currency translation/Other									(155)						(59)						(214)
Goodwill at March 29, 2026									$14,812						33,746						48,558

The weighted average amortization period for patents and trademarks is approximately 12 years. The weighted average amortization period for customer relationships and other intangible assets is approximately 19 years. The amortization expense of amortizable intangible assets included in the cost of products sold was $1.2 billion and $1.1 billion for the fiscal first quarters ended March 29, 2026 and March 30, 2025, respectively.

The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately:

(Dollars in Millions)
2026						2027						2028						2029						2030
$5,100						4,400						3,700						3,600						3,500

See Note 10 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures.

Form 10-Q			7

Note 4 — Fair value measurements

The Company uses forward foreign exchange contracts to manage its exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of future intercompany product and third-party purchases of materials denominated in a foreign currency. The Company uses cross currency interest rate swaps to manage currency risk primarily related to borrowings. Both types of derivatives are designated as cash flow hedges.

Additionally, the Company uses interest rate swaps as an instrument to manage interest rate risk related to fixed rate borrowings. These derivatives are designated as fair value hedges. The Company uses cross currency interest rate swaps and forward foreign exchange contracts designated as net investment hedges. Additionally, the Company uses forward foreign exchange contracts to offset its exposure to certain foreign currency assets and liabilities. These forward foreign exchange contracts are not designated as hedges, and therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency assets and liabilities.

The Company does not enter into derivative financial instruments for trading or speculative purposes, or that contain credit risk related contingent features. The Company maintains credit support agreements (CSA) with certain derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. As of March 29, 2026, the cumulative amount of cash collateral paid by the Company under the CSA amounted to $4.7 billion net, related to net investment and cash flow hedges. On an ongoing basis, the Company monitors counter-party credit ratings. The Company considers credit non-performance risk to be low because the Company primarily enters into agreements with commercial institutions that have at least an investment grade credit rating. Refer to the table on significant financial assets and liabilities measured at fair value contained in this footnote for receivables and payables with these commercial institutions. As of March 29, 2026, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $43.9 billion, $37.9 billion and $8.0 billion, respectively. As of December 28, 2025, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $40.6 billion, $38.9 billion and $8.0 billion, respectively.

All derivative instruments are recorded on the balance sheet at fair value. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction.

The designation as a cash flow hedge is made at the entrance date of the derivative contract. At inception, all derivatives are expected to be highly effective. Foreign exchange contracts designated as cash flow hedges are accounted for under the forward method and all gains/losses associated with these contracts will be recognized in the income statement when the hedged item impacts earnings. Changes in the fair value of these derivatives are recorded in accumulated other comprehensive income until the underlying transaction affects earnings and are then reclassified to earnings in the same account as the hedged transaction.

Gains and losses associated with interest rate swaps and changes in fair value of hedged debt attributable to changes in interest rates are recorded to interest expense in the period in which they occur. Gains and losses on net investment hedges are accounted for through the currency translation account within accumulated other comprehensive income. The portion excluded from effectiveness testing is recorded through interest (income) expense using the spot method. On an ongoing basis, the Company assesses whether each derivative continues to be highly effective in offsetting changes of hedged items. If and when a derivative is no longer expected to be highly effective, hedge accounting is discontinued.

The Company designated its Euro denominated notes with due dates ranging from 2028 to 2055 as a net investment hedge of the Company's investments in certain of its international subsidiaries that use the Euro as their functional currency in order to reduce the volatility caused by changes in exchange rates.

As of March 29, 2026, the balance of deferred net loss on derivatives included in accumulated other comprehensive income was $0.6 billion after-tax. For additional information, see the Consolidated Statements of Comprehensive Income and Note 7. The Company expects that substantially all of the amounts related to forward foreign exchange contracts will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The maximum length of time over which the Company is hedging transaction exposure is 18 months, excluding interest rate contracts and net investment hedge contracts. The amount ultimately realized in earnings may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity of the derivative.

8

The following table is a summary of the activity related to derivatives and hedges for the fiscal first quarters ended March 29, 2026 and March 30, 2025, net of tax:

			March 29, 2026																		March 30, 2025
(Dollars in Millions)			Sales			Cost of Products Sold			R&D Expense			Interest (Income) Expense			Other (Income) Expense						Sales			Cost of Products Sold			R&D Expense			Interest (Income) Expense			Other (Income) Expense
The effects of fair value, net investment and cash flow hedging:
Gain (Loss) on fair value hedging relationship:
Interest rate swaps contracts:
Hedged items			$—			—			—			36			—						—			—			—			188			—
Derivatives designated as hedging instruments			—			—			—			(36)			—						—			—			—			(188)			—
Gain (Loss) on net investment hedging relationship:
Cross currency interest rate swaps contracts:
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing			—			—			—			47			—						—			—			—			49			—
Amount of gain or (loss) recognized in AOCI			—			—			—			47			—						—			—			—			49			—
Gain (Loss) on cash flow hedging relationship:
Forward foreign exchange contracts:
Amount of gain or (loss) reclassified from AOCI into income			1			73			(5)			—			(2)						(1)			10			1			—			—
Amount of gain or (loss) recognized in AOCI			(7)			(195)			37			—			25						3			105			(36)			—			(11)
Cross currency interest rate swaps contracts:
Amount of gain or (loss) reclassified from AOCI into income			—			—			—			83			—						—			—			—			83			—
Amount of gain or (loss) recognized in AOCI			$—			—			—			16			—						—			—			—			566			—

Form 10-Q			9

As of March 29, 2026, and December 28, 2025, the following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges:

Line item in the Consolidated Balance Sheet in which the hedged item is included						Carrying Amount of the Hedged Liability												Cumulative Amount of Fair Value Hedging Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability
(Dollars in Millions)						March 29, 2026						December 28, 2025						March 29, 2026						December 28, 2025
Long-term Debt						$7,360						8,318						(647)						(694)

The following table is the effect of derivatives not designated as hedging instruments for the fiscal first quarters ended 2026 and 2025:

												Gain/(Loss) Recognized In Income on Derivative
(Dollars in Millions)						Location of Gain /(Loss) Recognized in Income on Derivative						Fiscal First Quarter Ended
Derivatives Not Designated as Hedging Instruments												March 29, 2026						March 30, 2025
Foreign Exchange Contracts						Other (income) expense						$(65)						62

The following table is the effect of net investment hedges for the fiscal first quarters ended in 2026 and 2025:

						Gain/(Loss) Recognized In Accumulated OCI												Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income						Gain/(Loss) Reclassified From Accumulated OCI Into Income
(Dollars in Millions)						March 29, 2026						March 30, 2025												March 29, 2026						March 30, 2025
Debt						$213						(316)						Interest (income) expense						—						—
Cross Currency interest rate swaps						$217						840						Interest (income) expense						—						—

10

The Company holds equity investments with readily determinable fair values and equity investments without readily determinable fair values. The Company has elected to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

The following table is a summary of the activity related to equity investments:

						December 28, 2025																		March 29, 2026
(Dollars in Millions)						Carrying Value						Changes in Fair Value Reflected in Net Income (1)						(Sales)/ Purchases/Other (2)						Carrying Value						Non Current Other Assets
Equity Investments with readily determinable value						$665						43						(5)						703						703
Equity Investments without readily determinable value						$910						46						(68)						888						888

(1)Recorded in Other (income)/expense, net

(2)Other includes impact of currency

Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement determined using assumptions that market participants would use in pricing an asset or liability. In accordance with ASC 820, a three-level hierarchy was established to prioritize the inputs used in measuring fair value. The levels within the hierarchy are described below with Level 1 inputs having the highest priority and Level 3 inputs having the lowest.

The fair value of a derivative financial instrument (i.e., forward foreign exchange contracts, interest rate contracts) is the aggregation by currency of all future cash flows discounted to its present value at the prevailing market interest rates and subsequently converted to the U.S. Dollar at the current spot foreign exchange rate. The Company does not believe that fair values of these derivative instruments materially differ from the amounts that could be realized upon settlement or maturity, or that the changes in fair value will have a material effect on the Company’s results of operations, cash flows or financial position. The Company also holds equity investments which are classified as Level 1 and debt securities which are classified as Level 2. The Company holds acquisition related contingent liabilities based upon certain regulatory and commercial events, which are classified as Level 3, whose values are determined using discounted cash flow methodologies or similar techniques for which the determination of fair value requires significant judgment or estimations.

The following three levels of inputs are used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets and liabilities.

Level 2 — Significant other observable inputs.

Level 3 — Significant unobservable inputs.

Form 10-Q			11

The Company’s significant financial assets and liabilities measured at fair value as of March 29, 2026 and December 28, 2025 were as follows:

						March 29, 2026																								December 28, 2025
(Dollars in Millions)						Level 1						Level 2						Level 3						Total						Total**(1)**
Derivatives designated as hedging instruments:
Assets:
Forward foreign exchange contracts						$—						549						—						549						686
Interest rate contracts(2)						—						610						—						610						589
Total						—						1,159						—						1,159						1,275
Liabilities:
Forward foreign exchange contracts						—						418						—						418						413
Interest rate contracts(2)						—						5,386						—						5,386						5,848
Total						—						5,804						—						5,804						6,261
Derivatives not designated as hedging instruments:
Assets:
Forward foreign exchange contracts						—						47						—						47						38
Liabilities:
Forward foreign exchange contracts						—						49						—						49						46
Other Investments:
Equity investments(3)						703						—						—						703						665
Debt securities(4)						—						6,675						—						6,675						2,854
Other Liabilities:
Contingent consideration(5)						$—						—						754						754						753

Gross to Net Derivative Reconciliation						March 29, 2026						December 28, 2025
(Dollars in Millions)
Total Gross Assets						$1,206						1,313
Credit Support Agreement (CSA)						(1,094)						(1,308)
Total Net Asset						112						5
Total Gross Liabilities						5,853						6,307
Credit Support Agreement (CSA)						(5,829)						(5,903)
Total Net Liabilities						$24						404

Summarized information about changes in liabilities for contingent consideration for the fiscal first quarters ended March 29, 2026 and March 30, 2025 is as follows:

						March 29, 2026						March 30, 2025
(Dollars in Millions)
Beginning Balance						$753						1,217
Changes in estimated fair value(6)						1						14
Additions						—						—
Payments						—						—
Ending Balance						$754						1,231

(1)2025 assets and liabilities are all classified as Level 2 with the exception of equity investments of $665 million, which are classified as Level 1 and contingent consideration of $753 million, classified as Level 3.

(2)Includes cross currency interest rate swaps and interest rate swaps.

(3)Classified as non-current other assets.

12

(4)Classified within cash equivalents and current marketable securities.

(5)Classified as non-current other liabilities.

(6)Ongoing fair value adjustment amounts are primarily recorded in Research and Development expense.

As of March 29, 2026 and December 28, 2025, cash and cash equivalents includes money market funds of $5,089 million and $5,993 million, respectively, which would be considered level 1 in the fair value hierarchy

The Company's cash, cash equivalents and current marketable securities as of March 29, 2026 comprised:

(Dollars in Millions)			Carrying Amount																		Estimated Fair Value						Cash & Cash Equivalents						Current Marketable Securities
Cash			$3,310																		3,310						3,310						—
U.S. reverse repurchase agreements			6,253																		6,253						6,253						—
Money market funds			5,089																		5,089						5,089						—
Time deposits(1)			724																		724						724						—
Subtotal			15,376																		15,376						15,376						—
​
U.S. Gov’t securities			6,225																		6,225						6,207						18
Other sovereign securities			234																		234						76						158
Corporate and other debt securities			216																		216						29						187
Subtotal available for sale debt(2)			$6,675																		6,675						6,312						363
Total cash, cash equivalents and current marketable securities			$22,051																		22,051						21,688						363

(1)Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings.

(2)Available for sale debt securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income.

As of the fiscal year ended December 28, 2025, the carrying amount of cash, cash equivalents and current marketable securities was the same as the estimated fair value.

Fair value of government securities and obligations and corporate debt securities was estimated using quoted broker prices and significant other observable inputs.

The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities. Available for sale securities with stated maturities of greater than one year from the date of purchase are available to fund current operations and are classified as current marketable securities.

The contractual maturities of the available for sale securities as of March 29, 2026 are as follows:

(Dollars in Millions)						Cost Basis						Fair Value
Due within one year						$6,659						6,659
Due after one year through five years						16						16
Due after five years through ten years						—						—
Total debt securities						$6,675						6,675

Form 10-Q			13

Financial instruments not measured at fair value

The following financial liabilities are held at carrying amount on the consolidated balance sheet as of March 29, 2026:

(Dollars in Millions)						Carrying Amount						Estimated Fair Value
Financial Liabilities
Current Debt						$17,460						17,455
Non-Current Debt
0.95% Notes due 2027						1,499						1,439
2.90% Notes due 2028						1,499						1,470
1.150% Notes due 2028 (750MM Euro 1.1541)						863						826
4.55% Notes due 2028						749						758
4.80% Notes due 2029						1,147						1,174
6.95% Notes due 2029						299						327
2.70% Notes due 2029 (600MM Euro 1.1541)						692						685
1.30% Notes due 2030						1,702						1,544
4.70% Notes due 2030						996						1,018
4.90% Notes due 2031						1,146						1,180
3.20% Notes due 2032 (700MM Euro 1.1541)						805						798
4.85% Notes due 2032						1,243						1,275
4.95% Notes due 2033						499						518
4.375% Notes due 2033						853						845
3.050% Notes due 2033 (700MM Euro 1.1541)						806						786
4.95% Notes due 2034						847						882
1.650% Notes due 2035 (1.5B Euro 1.1541)						1,722						1,463
5.00% Notes due 2035						1,244						1,275
3.35% Notes due 2036 (800MM Euro 1.1541)						919						892
3.587% Notes due 2036						925						903
5.95% Notes due 2037						995						1,085
3.625% Notes due 2037						1,414						1,333
3.350% Notes due 2037 (1.0B Euro 1.1541)						1,151						1,100
3.40% Notes due 2038						994						855
5.85% Notes due 2038						697						754
4.50% Notes due 2040						542						512
2.10% Notes due 2040						902						687
4.85% Notes due 2041						298						292
4.50% Notes due 2043						497						453
3.55% Notes due 2044 (1.0B Euro 1.1541)						1,144						1,057
3.60% Notes due 2045 (700MM Euro 1.1541)						802						741
3.73% Notes due 2046						1,980						1,565
3.75% Notes due 2047						877						778
3.50% Notes due 2048						744						555
2.25% Notes due 2050						864						572
5.25% Notes due 2054						843						831

14

3.70% Notes due 2055 (1.0B Euro 1.1541)						1,148						1,027
2.45% Notes due 2060						1,118						660
Other						62						77
Total Non-Current Debt						$37,527						34,992

The weighted average effective interest rate on non-current debt is 3.56%.

The excess of the carrying value over the estimated fair value of debt was $1.7 billion at December 28, 2025.

Fair value of the non-current debt was estimated using market prices, which were corroborated by quoted broker prices and significant other observable inputs.

The current debt balance as of March 29, 2026, includes $15.7 billion of commercial paper which has a weighted average interest rate of 3.67% and a weighted average maturity of approximately two months. The current debt balance as of December 28, 2025 included $6.5 billion of commercial paper which has a weighted average interest rate of 3.81% and a weighted average maturity of approximately two months.

Note 5 — Income taxes

The worldwide effective income tax rates for the fiscal first quarter of 2026 and 2025 were 12.6% and 19.3%, respectively. The primary drivers for year over year change in the Company’s effective tax were:

• In the fiscal first quarter of 2025, the Company reversed approximately $7.0 billion related to the talc reserve which was recorded at approximately 22%.

• Additional tax benefits in the fiscal first quarter of 2026 related to the Company’s share-based equity compensation programs that either vested or were exercised during the fiscal first quarters of 2026 and 2025, which reduced the effective tax rate by 5.1% and 0.4%, respectively.

As of March 29, 2026, the Company had approximately $2.6 billion of liabilities from unrecognized tax benefits. The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in several jurisdictions. With respect to the United States, the Internal Revenue Service has completed its audit for the tax years through 2016 and the audit for tax years 2017 through 2020 is ongoing. In other major jurisdictions where the Company conducts business, the years that remain open to tax audit go back to the year 2014.

Form 10-Q			15

Note 6 — Pensions and other benefit plans

Components of net periodic benefit cost

Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans include the following components:

						Fiscal First Quarter Ended
						Retirement Plans												Other Benefit Plans
(Dollars in Millions)						March 29, 2026						March 30, 2025						March 29, 2026						March 30, 2025
Service cost						$236						214						80						72
Interest cost						360						351						52						54
Expected return on plan assets						(639)						(587)						(2)						(2)
Amortization of prior service cost/(credit)						(46)						(46)						—						—
Recognized actuarial (gains)/losses						69						83						26						16
Net periodic benefit cost/(credit)						$(20)						15						156						140

The service cost component of net periodic benefit cost is presented in the same line items on the Consolidated Statement of Earnings where other employee compensation costs are reported, including Cost of products sold, Research and development expense, and Selling, marketing and administrative expenses. All other components of net periodic benefit cost are presented as part of Other (income) expense, net on the Consolidated Statement of Earnings.

Company contributions

For the fiscal three months ended March 29, 2026, the Company contributed $35 million and $5 million to its U.S. and international retirement plans, respectively. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations.

16

Note 7 — Accumulated other comprehensive income

Components of other comprehensive income/(loss) consist of the following:

(Dollars in Millions)						Foreign Currency Translation						Gain/ (Loss) On Securities						Employee Benefit Plans						Gain/ (Loss) On Derivatives & Hedges						Total Accumulated Other Comprehensive Income/(Loss)
December 28, 2025						$(13,947)						—						(693)						(290)						(14,930)
Net change						334						—						39						(274)						99
March 29, 2026						(13,613)						—						(654)						(564)						(14,831)

Amounts in accumulated other comprehensive income are presented net of the related tax impact. Foreign currency translation is not adjusted for income taxes where it relates to permanent investments in international subsidiaries. For additional details on comprehensive income see the Consolidated Statements of Comprehensive Income.

Details on reclassifications out of Accumulated Other Comprehensive Income:

Gain/(Loss) On Securities - reclassifications released to Other (income) expense, net.

Employee Benefit Plans - reclassifications are included in net periodic benefit cost. See Note 6 for additional details.

Gain/(Loss) On Derivatives & Hedges - reclassifications to earnings are recorded in the same account as the underlying transaction. See Note 4 for additional details.

Note 8 — Earnings per share

The following is a reconciliation of basic net earnings per share to diluted net earnings per share:

						Fiscal First Quarter Ended
(Shares in Millions)						March 29, 2026						March 30, 2025
Basic net earnings per share						$2.17						4.57
Average shares outstanding — basic						2,408.7						2,407.2
Potential shares exercisable under stock option plans						100.6						69.0
Less: shares which could be repurchased under treasury stock method						(64.1)						(52.4)
Average shares outstanding — diluted						2,445.2						2,423.8
Diluted net earnings per share						$2.14						4.54
(Shares in Millions)
The diluted net earnings per share calculation excluded the following number of shares related to stock options, as the exercise price of these options was greater than the average market value of the Company’s stock.						3.5						60.9

Form 10-Q			17

Note 9 — Segments of business and geographic areas

The Company is organized into two business segments: Innovative Medicine and MedTech.

The Company’s chief operating decision maker (CODM) is the Chief Executive Officer (Principal Executive Officer). For the Innovative Medicine and MedTech segments, the CODM uses segment income before tax to allocate resources (including employees, financial, and capital resources) for each segment predominantly in the annual forecasting process. The CODM considers planning-to-actual variances on a quarterly basis to assess performance and make decisions about allocating resources to the segments.

Sales by segment of business

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						Percent Change
INNOVATIVE MEDICINE
Oncology
U.S.						$3,615						3,013						20.0		%
International						3,358						2,664						26.0
Worldwide						6,973						5,678						22.8
DARZALEX
U.S.						2,208						1,829						20.7
International						1,756						1,409						24.7
Worldwide						3,964						3,237						22.5
CARVYKTI
U.S.						433						318						36.2
International						164						51						*
Worldwide						597						369						62.1
TECVAYLI
U.S.						127						105						20.6
International						74						46						63.1
Worldwide						202						151						33.5
TALVEY
U.S.						101						68						48.5
International						51						18						*
Worldwide						152						86						76.7
RYBREVANT/ LAZCLUZE
U.S.						175						113						55.1
International						82						28						*
Worldwide						257						141						82.7
ERLEADA
U.S.						342						292						17.3
International						607						479						26.7
Worldwide						949						771						23.1
IMBRUVICA
U.S.						143						235						(39.1)
International						517						474						9.1
Worldwide						660						709						(6.9)

18

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						Percent Change
OTHER ONCOLOGY(1)
U.S.						85						54						58.8
International						106						160						(33.9)
Worldwide						192						214						(10.6)
Immunology
U.S.						1,855						2,196						(15.5)
International						1,524						1,510						0.9
Worldwide						3,380						3,707						(8.8)
TREMFYA
U.S.						1,042						599						73.9
International						566						356						58.9
Worldwide						1,608						956						68.3
SIMPONI / SIMPONI ARIA
U.S.						269						292						(7.8)
International						378						366						3.0
Worldwide						647						659						(1.7)
REMICADE
U.S.						269						314						(14.4)
U.S. Exports						18						10						78.6
International						136						143						(4.8)
Worldwide						422						467						(9.5)
STELARA
U.S.						220						981						(77.6)
International						435						644						(32.4)
Worldwide						656						1,625						(59.7)
OTHER IMMUNOLOGY
U.S.						38						1						*
International						9						0						*
Worldwide						46						1						*
Neuroscience
U.S.						1,494						968						54.3
International						681						679						0.3
Worldwide						2,175						1,647						32.0
SPRAVATO
U.S.						406						276						47.0
International						61						43						42.4
Worldwide						468						320						46.4
CAPLYTA(2)
U.S.						270						—						*
International						—						—						—
Worldwide						270						—						*

Form 10-Q			19

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						Percent Change
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
U.S.						758						625						21.2
International						280						277						1.1
Worldwide						1,038						903						15.0
CONCERTA / methylphenidate
U.S.						22						38						(43.4)
International						115						110						4.3
Worldwide						136						148						(8.0)
OTHER NEUROSCIENCE
U.S.						38						28						32.6
International						224						248						(9.7)
Worldwide						262						277						(5.4)
Pulmonary Hypertension (PH)
U.S.						831						744						11.7
International						304						281						8.2
Worldwide						1,135						1,025						10.7
UPTRAVI
U.S.						385						365						5.4
International						98						86						14.3
Worldwide						483						451						7.1
OPSUMIT/OPSYNVI
U.S.						433						363						19.3
International						172						159						8.7
Worldwide						606						522						16.1
OTHER PULMONARY HYPERTENSION
U.S.						12						15						(21.1)
International						34						37						(8.3)
Worldwide						46						52						(12.1)
Infectious Diseases (ID)
U.S.						342						315						8.6
International						547						487						12.2
Worldwide						889						802						10.8
EDURANT / rilpivirine
U.S.						7						8						(13.1)
International						402						350						14.8
Worldwide						409						358						14.1
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
U.S.						334						305						9.5
International						109						98						11.2
Worldwide						443						403						10.0

20

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						Percent Change
OTHER INFECTIOUS DISEASES
U.S.						1						2						(56.9)
International						36						39						(8.3)
Worldwide						37						41						(10.4)
Cardiovascular / Metabolism / Other (CVM)
U.S.						734						855						(14.2)
International						142						158						(10.4)
Worldwide						876						1,013						(13.6)
XARELTO
U.S.						642						690						(7.0)
International						—						—						—
Worldwide						642						690						(7.0)
OTHER
U.S.						91						165						(44.5)
International						142						158						(10.4)
Worldwide						233						323						(27.8)
Total PH, ID, CVM
U.S.						1,907						1,914						(0.4)
International						993						926						7.1
Worldwide						2,899						2,840						2.1
TOTAL INNOVATIVE MEDICINE
U.S.						8,871						8,092						9.6
International						6,555						5,781						13.4
Worldwide						15,426						13,873						11.2
MEDTECH
Cardiovascular
U.S.						1,399						1,261						10.9
International						978						842						16.1
Worldwide						2,377						2,103						13.0
ELECTROPHYSIOLOGY
U.S.						736						684						7.6
International						753						638						18.0
Worldwide						1,489						1,323						12.6
ABIOMED
U.S.						389						339						14.5
International						100						81						23.5
Worldwide						488						420						16.3
SHOCKWAVE
U.S.						242						206						17.8
International						63						52						21.3
Worldwide						305						258						18.5

Form 10-Q			21

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						Percent Change
OTHER CARDIOVASCULAR
U.S.						32						32						0.7
International						62						72						(13.4)
Worldwide						94						103						(9.1)
Surgery
U.S.						1,046						1,002						4.4
International						1,465						1,394						5.1
Worldwide						2,511						2,396						4.8
ADVANCED
U.S.						477						457						4.2
International						646						616						4.9
Worldwide						1,123						1,073						4.6
GENERAL
U.S.						569						544						4.5
International						819						778						5.2
Worldwide						1,388						1,323						4.9
Vision
U.S.						579						566						2.4
International						785						713						10.1
Worldwide						1,365						1,279						6.7
CONTACT LENSES / OTHER
U.S.						468						452						3.7
International						501						467						7.2
Worldwide						969						919						5.5
SURGICAL
U.S.						111						114						(2.9)
International						285						246						15.6
Worldwide						396						361						9.7
Orthopaedics*
U.S.						1,435						1,384						3.7
International						948						857						10.6
Worldwide						2,383						2,241						6.3
HIPS
U.S.						277						263						5.2
International						159						146						8.9
Worldwide						436						409						6.5
KNEES
U.S.						239						231						3.3
International						181						158						14.6
Worldwide						420						389						7.9

22

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						Percent Change
TRAUMA
U.S.						532						502						6.1
International						301						270						11.4
Worldwide						833						772						8.0
SPINE, SPORTS & OTHER
U.S.						387						388						(0.1)
International						307						283						8.4
Worldwide						694						671						3.5
TOTAL MEDTECH
U.S.						4,459						4,213						5.9
International						4,177						3,807						9.7
Worldwide						8,636						8,020						7.7
WORLDWIDE
U.S.						13,330						12,305						8.3
International						10,732						9,588						11.9
Worldwide						$24,062						21,893						9.9		%

• Percentage greater than 100% or not meaningful

(1) Includes the sales of ZYTIGA which were previously disclosed separately

(2) Acquired with Intra-Cellular Therapies on April 2, 2025

Adjustments to revenue recognized as a result of changes in estimates for the Company's most significant U.S. rebates and discounts liability balances for products shipped in previous periods were approximately 4.7% and 4.6% of U.S. Innovative Medicine revenue during the fiscal first quarter of 2026 and 2025, respectively.

*In October 2025, the Company announced its intention to separate its Orthopaedics business. The Company continues to explore multiple paths to effect the planned separation with a targeted completion within 18 to 24 months after the initial announcement.

Form 10-Q			23

Segment income before tax

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026												March 30, 2025
						Innovative Medicine(1)			MedTech(2)			Total						Innovative Medicine(1)			MedTech(2)			Total
Sales to customers						$15,426			8,636									13,873			8,020
Cost of products sold						4,390			3,701									4,020			3,326
Selling, marketing and administrative						2,918			2,906									2,261			2,656
Research and development expense						2,813			714									2,548			677
Other segment items (3)						(12)			76									(166)			(60)
Segment income before tax						$5,317			1,239			6,556						5,210			1,421			6,631
(Income)/Expense not allocated to segments (4)												566												(7,000)
Earnings before provision for taxes on income												$5,990												$13,631

(1) Innovative Medicine includes:

• Intangible amortization expense of $0.8 billion and $0.6 billion in the fiscal first quarters of 2026 and 2025, respectively.

(2) MedTech includes:

• Intangible amortization expense of $0.5 billion in both the fiscal first quarters of 2026 and 2025.

• Orthopaedics Separation related charge of $0.1 billion in the fiscal first quarter of 2026.

• Acquisition and integration related expense of $0.1 billion in the fiscal first quarter of 2025, primarily related to Shockwave.

(3) Other segment items for each reportable segment include other income and expense (gains and losses on divestitures and gains and losses on sale of assets), restructuring activities and impairment charges related to in-process research and development

(4) Amounts not allocated to segments include interest (income)/expense and general corporate (income)/expense. The fiscal first quarter of 2026 includes charges for talc matters of $0.3 billion. The fiscal first quarter of 2025 includes approximately $7.0 billion related to the talc reserve reversal.

						Identifiable Assets
(Dollars in Millions)						March 29, 2026						December 28, 2025
Innovative Medicine						$78,118						78,057
MedTech						86,179						86,482
Total						164,297						164,539
General corporate (1)						36,597						34,671
Worldwide total						$200,894						199,210

(1)General corporate includes cash, cash equivalents, marketable securities and other corporate assets.

						Additions to Property, Plant & Equipment												Depreciation and Amortization
						Fiscal Three Months Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						March 29, 2026						March 30, 2025
Innovative Medicine						$508						276						$1,036						884
MedTech						509						480						903						836
Segments total						1,017						756						1,939						1,720
General corporate						32						39						65						52
Worldwide total						$1,049						795						$2,004						1,772

24

Sales by geographic area

						Fiscal First Quarter Ended
(Dollars in Millions)						March 29, 2026						March 30, 2025						Percent Change
United States						$13,330						12,305						8.3		%
Europe						5,848						5,110						14.5
Western Hemisphere, excluding U.S.						1,293						1,167						10.8
Asia-Pacific, Africa						3,591						3,311						8.5
Total						$24,062						21,893						9.9		%

Note 10 — Acquisitions, divestitures and other arrangements

Business combinations

Acquisitions of a business are accounted for as business combinations applying the acquisition method of accounting. Under this method, the assets acquired and liabilities assumed are recorded at their respective fair values as of the acquisition date in the Company’s consolidated financial statements. The excess of the purchase price over the fair value of the acquired net assets, where applicable, is recorded as goodwill. The results of operations of these acquisitions have been included in the Company’s financial statements from their respective dates of acquisition.

In the fiscal first quarter of 2026, there were no material business combinations.

2025 Transactions

During the fiscal year 2025, the Company acquired Halda Therapeutics OpCo, Inc. (Halda Therapeutics) and Intra-Cellular Therapies, Inc. (Intra-Cellular) for a total of $17.5 billion, net of cash acquired.

Halda Therapeutics

On December 26, 2025, the Company completed the acquisition of Halda Therapeutics, a clinical-stage biotechnology company with proprietary Regulated Induced Proximity TArgeting Chimera (RIPTACTM) platform to develop oral, targeting therapies for multiple types of solid tumors, including prostate cancer, in an all-cash merger transaction for total consideration transferred of approximately $3.05 billion, net of cash acquired. The acquisition was accounted for as a business combination and the results of operations and goodwill are included in the Innovative Medicine segment as of the acquisition date. Included in the total consideration transferred was $0.2 billion of acquisition-related costs, primarily related to post-closing compensation expense due to the acceleration of equity awards. This expense was recorded in Other (income) expense, net. Acquisition related costs before tax for the fiscal first quarter of 2026 were not material.

The fair value of the assets acquired is $3.4 billion, which primarily relates to acquired in-process research and development (IPR&D) of $2.8 billion and goodwill of $0.6 billion. The fair value of the liabilities assumed is $0.6 billion, primarily related to deferred taxes. These values are preliminary and based on the best estimate of management, which is subject to change within the measurement period. As of the fiscal first quarter ended March 29, 2026, there have been no material measurement period adjustments.

Intra-Cellular

On April 2, 2025, the Company completed the acquisition of Intra-Cellular, a biopharmaceutical company focused on the development and commercialization of therapeutics for central nervous system disorders. This acquisition advances the Company’s industry-leading portfolio in mental health with the addition of CAPLYTA (lumateperone), the first and only U.S. FDA-approved treatment for bipolar I and II depression as an adjunctive therapy and monotherapy and is also approved for the treatment of schizophrenia in adults. This acquisition also includes a promising clinical-stage pipeline with best-in-class potential in generalized anxiety disorder and Alzheimer’s disease-related psychosis and agitation.

The Company acquired all the outstanding shares of Intra-Cellular’s common stock for $132.00 per share in an all-cash merger transaction for total consideration transferred of $14.5 billion. The acquisition was accounted for as a business combination and the results of operations and goodwill are included in the Innovative Medicine segment as of the acquisition date. In addition, acquisition-related costs before tax incurred during the fiscal year 2025 were $0.4 billion, of which $0.1 billion related to post-closing compensation expense due to the acceleration of equity awards and were recorded to Other (income) expense, net. Acquisition related costs before tax for the fiscal first quarter of 2026 were not material.

Form 10-Q			25

The fair value of the assets acquired is $17.5 billion, which primarily relates to acquired in-process research and development (IPR&D) of $8.3 billion, an amortizable intangible asset of $5.2 billion, goodwill of $2.9 billion and other current and non-current assets of $1.1 billion. The fair value of the liabilities assumed is $3.0 billion, primarily related to deferred taxes. As of the fiscal first quarter ended March 29, 2026, there have been no material measurement period adjustments. During the fiscal fourth quarter of 2025, the U.S. FDA approved CAPLYTA as an adjunctive therapy with anti-depressants for the treatment of major depressive disorder in adults. This IPR&D asset was reclassified to a definite lived asset and began amortizing in the fiscal fourth quarter of 2025.

Asset acquisitions

If it is determined that the acquired set does not meet the definition of a business under the acquisition method of accounting, the transaction is accounted for as an asset acquisition. In this case, no goodwill is recorded, acquired in-process research and development (IPR&D) with no alternative future use is immediately recorded as research and development expense and contingent consideration is recorded when the related event occurs.

In the fiscal first quarters of 2026 and 2025, there were no material asset acquisitions.

Divestitures

In the fiscal first quarters of 2026 and 2025, there were no material divestitures.

Other arrangements

In the fiscal first quarter of 2026, the Company entered into a co-funding agreement with Royalty Pharma plc. (Royalty Pharma) under which the Company will receive up to a total of $0.5 billion during the fiscal years 2026 and 2027 to support the clinical development of JNJ-4804, a co-antibody therapy in development to treat chronic immune-mediated diseases. As there is a substantive and genuine transfer of risk to Royalty Pharma, the development funding will be recognized as an obligation to perform contractual services. Accordingly, the funding the Company receives will be recognized as a reduction to research & development expense as the Company performs its contractual services.

If successful, upon regulatory approval of certain indications in the U.S. or other major markets, Royalty Pharma will receive approval-based fixed milestone payments up to approximately $0.5 billion and will also be eligible to receive sales-based milestone payments and low-single digit royalties based on commercial sales.

Note 11 — Legal proceedings

Johnson & Johnson and certain of its subsidiaries are involved in various lawsuits and claims regarding product liability; intellectual property; commercial; indemnification and other matters; governmental investigations; and other legal proceedings that arise from time to time in the ordinary course of their business.

The Company records accruals for loss contingencies associated with these legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. As of March 29, 2026, the Company has determined that the liabilities associated with certain litigation matters are probable and can be reasonably estimated. The Company has accrued for these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on new information and further developments in accordance with ASC 450-20-25. For these and other litigation and regulatory matters discussed below for which a loss is probable or reasonably possible, the Company is unable to estimate the possible loss or range of loss beyond the amounts accrued. Amounts accrued for legal contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on estimates and assumptions including timing of related payments. The ability to make such estimates and judgments can be affected by various factors including, among other things, whether damages sought in the proceedings are unsubstantiated or indeterminate; scientific and legal discovery has not commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant facts in dispute; procedural or jurisdictional issues; the uncertainty and unpredictability of the number of potential claims; ability to achieve comprehensive multi-party settlements; complexity of related cross-claims and counterclaims; and/or there are numerous parties involved. To the extent adverse awards, judgments or verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated.

In the Company’s opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company’s balance sheet, is not expected to have a material adverse effect on the Company’s financial position. However, the resolution of, or increase in accruals for, one or more of these

matters in any reporting period may have a material adverse effect on the Company’s results of operations and cash flows for that period.

Matters concerning talc

As of March 29, 2026, there are approximately 75,000 plaintiffs in the United States with direct claims against the Company and its affiliates in pending lawsuits regarding injuries allegedly due to use of body powders containing talc, primarily JOHNSON’S Baby Powder.

In talc cases that have gone to trial, the Company has obtained a number of defense verdicts, but there also have been verdicts against the Company, many of which have been reversed on appeal. The Company continues to believe that it has strong legal grounds to contest all the talc verdicts that it has appealed. Notwithstanding the Company’s confidence in the safety of its talc products, in certain circumstances the Company has settled cases.

In an effort to expeditiously resolve the litigation for the overwhelming majority of claimants, beginning in October 2021, the Company underwent a series of corporate restructurings which ultimately resulted in two entities, Red River Talc, LLC (Red River) and Pecos River Talc LLC (Pecos River), being assigned all liabilities related in any way to injury or damage, or alleged injury or damage, sustained or incurred in the purchase or use of, or exposure to, talc, including talc contained in any product, or to the risk of, or responsibility for, any such damage or injury, except for any liabilities for which the exclusive remedy is provided under a workers’ compensation statute or act. As a result of the restructurings, all claims in North America related to ovarian and other gynecological cancers were separated and allocated to Red River, and mesothelioma, governmental unit and certain other claims in North America were allocated to Pecos River. In connection with these restructurings, the Company filed a series of three Chapter 11 bankruptcy proceedings. Ultimately, each of the bankruptcy proceedings was dismissed and, as a result, the Company reversed substantially all, or approximately $7.0 billion, from amounts previously reserved for the bankruptcy resolution in the fiscal first quarter of 2025. Litigation in the tort system recommenced.

As of the first quarter of 2026, the total present value of the reserve for talc related matters is approximately $3.4 billion, comprising previously executed settlement agreements, litigation defense and other costs. Approximately one-third of the reserve is recorded as a current liability.

As in years prior, both ovarian cancer and mesothelioma trials are being scheduled in various state courts throughout 2026 and beyond. In the ovarian cancer multi-district litigation in New Jersey, the court is addressing the Company's Daubert motions related to general causation, specific causation, and certain asbestos testing methods. In January 2026, the Special Master issued her Report and Recommendation related to general causation, excluding certain opinions by plaintiff experts, but also allowing other opinions to proceed. The Company has filed an appeal of the Report and Recommendation to the District Court. The remaining Daubert motions are expected to be decided in 2026. The Company also faces litigation in Canada.

In February 2018, a securities class action lawsuit was filed against the Company and certain named officers in the United States District Court for the District of New Jersey, alleging that the Company violated the federal securities laws by failing to disclose alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S Baby Powder, and that purchasers of the Company’s shares suffered losses as a result. In April 2019, the Company moved to dismiss the complaint. In December 2019, the court denied, in part, the motion to dismiss. In December 2023, the court granted plaintiffs’ motion for class certification. In July 2025, the Third Circuit affirmed the court's order granting class certification. In September 2025, the Company petitioned the Third Circuit for rehearing or rehearing en banc, which was denied in October 2025. In February 2026, the Company filed a writ of certiorari with the United States Supreme Court regarding the Third Circuit’s decision, which the Supreme Court denied in April 2026.

In February 2019, the Company’s talc supplier, Imerys Talc America, Inc., and two of its affiliates, Imerys Talc Vermont, Inc. and Imerys Talc Canada, Inc. (collectively, Imerys), filed voluntary petitions for relief under Chapter 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware. In February 2021, Cyprus Mines Corporation (Cyprus), which sold certain talc mines and assets to Imerys, filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the Delaware Bankruptcy Court. In July 2024, the Company, Imerys, and Cyprus and certain of their affiliates (including their parent entities), and the tort claimants' committees and future claimants' representatives appointed in the Imerys debtors' and Cyprus debtors' respective Chapter 11 cases, entered into a global settlement agreement (the Imerys Settlement Agreement) to resolve the parties' ongoing disputes, including disputes raised in the Imerys and Cyprus bankruptcies regarding (i) the Company's alleged obligations to indemnify Imerys and Cyprus for personal injury claims allegedly caused by exposure to talc contained in the Company's products and (ii) entitlements to proceeds of certain of the Company's insurance policies. In October 2024, the Delaware Bankruptcy Court entered an order approving the Imerys Settlement Agreement (the Settlement Order). Certain insurers have appealed the Settlement Order and sought a stay of the Settlement Order pending appeal, which the Delaware Bankruptcy Court denied in January 2025. In August 2025, the District Court denied the insurers' appeal of the Settlement Order. The insurers have appealed that decision to the Third Circuit.

Intellectual property

Certain subsidiaries of the Company are subject, from time to time, to legal proceedings and claims related to patent, trademark and other intellectual property matters arising out of their businesses. Many of these matters involve challenges to the scope and/or validity of patents that relate to various products and allegations that certain of the Company’s products infringe the intellectual property rights of third parties. Although these subsidiaries believe that they have substantial defenses to these challenges and allegations with respect to all significant patents, there can be no assurance as to the outcome of these matters. A loss in any of these cases could adversely affect the ability of these subsidiaries to sell their products, result in loss of sales due to loss of market exclusivity, require the payment of past damages and future royalties, and may result in a non-cash impairment charge for any associated intangible asset.

The Company’s Innovative Medicine subsidiaries have brought lawsuits against generic companies that have filed ANDAs with the U.S. FDA (or similar lawsuits outside of the United States) seeking to market generic versions of products sold by various subsidiaries of the Company prior to expiration of the applicable patents covering those products. These lawsuits typically include allegations of non-infringement and/or invalidity of patents listed in FDA’s publication “Approved Drug Products with Therapeutic Equivalence Evaluations” (commonly known as the Orange Book). In each of these lawsuits, the Company’s subsidiaries are seeking an order enjoining the defendant from marketing a generic version of a product before the expiration of the relevant patents (Orange Book Listed Patents). In the event the Company’s subsidiaries are not successful in an action, or any automatic statutory stay expires before the court rulings are obtained, the generic companies involved would have the ability, upon regulatory approval, to introduce generic versions of their products to the market resulting in the potential for substantial market share and revenue losses for the applicable products, and which may result in a non-cash impairment charge in any associated intangible asset. In addition, from time to time, the Company’s subsidiaries may settle these types of actions and such settlements can involve the introduction of generic versions of the products at issue to the market prior to the expiration of the relevant patents.

The Inter Partes Review (IPR) process with the United States Patent and Trademark Office (USPTO), created under the 2011 America Invents Act, is also being used at times by generic companies in conjunction with ANDAs and lawsuits to challenge the applicable patents.

Innovative Medicine

XARELTO

Beginning in March 2021, Janssen Pharmaceuticals, Inc., Bayer Pharma AG, Bayer AG, and Bayer Intellectual Property GmbH filed patent infringement lawsuits in United States district courts against generic manufacturers who have filed ANDAs seeking approval to market generic versions of XARELTO before expiration of certain Orange Book Listed Patents. The following entities are named defendants: Dr. Reddy’s Laboratories, Inc.; Dr. Reddy’s Laboratories, Ltd.; Lupin Limited; Lupin Pharmaceuticals, Inc.; Taro Pharmaceutical Industries Ltd.; Taro Pharmaceuticals U.S.A., Inc.; Teva Pharmaceuticals USA, Inc.; Mylan Pharmaceuticals Inc.; Mylan Inc.; Mankind Pharma Limited; Apotex Inc.; Apotex Corp.; Cipla Ltd.; Cipla USA Inc.; InvaGen Pharmaceuticals, Inc.; and Prinston Pharmaceuticals, Inc. The following U.S. patents are included in one or more cases: 9,539,218 and 10,828,310. In December 2025 and January 2026, the cases against Dr. Reddy's Laboratories, Inc.; Dr. Reddy's Laboratories, Ltd.; Lupin Limited; Lupin Pharmaceuticals, Inc.; Taro Pharmaceutical Industries Ltd.; Taro Pharmaceuticals U.S.A., Inc.; Teva Pharmaceuticals USA, Inc.; Mylan Pharmaceuticals Inc.; Mylan Inc.; Mankind Pharma Limited; Apotex Inc.; Apotex Corp.; Cipla Ltd.; Cipla USA Inc.; InvaGen Pharmaceuticals, Inc.; and Prinston Pharmaceuticals, Inc. were dismissed with prejudice. In January 2026, the Company entered into a confidential settlement agreement with Mankind Pharma Limited.

U.S. Patent No. 10,828,310 was also under consideration by the USPTO in an IPR proceeding. In July 2023, the USPTO issued a final written decision finding the claims of the patent invalid. In September 2023, Bayer Pharma AG filed an appeal to the U.S. Court of Appeals for the Federal Circuit. In September 2025, the Federal Circuit entered a decision affirming-in-part, vacating-in-part, and remanding for further proceedings. In January 2026, the USPTO entered judgment against petitioners upon remand.

INVEGA SUSTENNA

Beginning in January 2018, Janssen Pharmaceutica NV and Janssen Pharmaceuticals, Inc. filed patent infringement lawsuits in United States district courts against generic manufacturers who have filed ANDAs seeking approval to market generic versions of INVEGA SUSTENNA before expiration of the Orange Book Listed Patent. The following entities are named defendants: Pharmascience Inc.; Mallinckrodt PLC; Specgx LLC; Tolmar, Inc.; Eugia Pharma Specialties Ltd.; Eugia US, LLC; and Aurobindo Pharma USA, Inc. The following U.S. patent is included in one or more cases: 9,439,906. In February 2024, the district court issued a decision in the case against Tolmar Inc. finding that United States Patent No. 9,439,906 is not invalid. Tolmar previously stipulated to infringement of a subset of the claims, and based on a claim construction ruling, the district court entered a non-infringement order with respect to the remaining asserted claims. Tolmar has appealed the validity decision, and Janssen appealed the non-infringement decision. In March 2026, Janssen and Tolmar entered into a confidential settlement agreement.

Beginning in February 2018, Janssen Inc. and Janssen Pharmaceutica NV initiated a Statement of Claim under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against generic manufacturers who have filed ANDSs seeking approval to market generic versions of INVEGA SUSTENNA before expiration of the listed patent. The following entity is a named defendant: Pharmascience Inc. The following Canadian patent is included in one or more cases: 2,655,335. In September 2024, the Supreme Court granted Pharmascience's motion to appeal the Federal Court's decision that the 2,655,335 Patent is not invalid.

ERLEADA

Beginning in January 2025, Aragon Pharmaceuticals, Inc., Janssen Inc. (collectively, Janssen Inc.), and Sloan-Kettering Institute for Cancer Research (SKI) initiated Statements of Claims under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Sandoz Canada Inc. (Sandoz) in response to Sandoz’s filing of ANDSs seeking approval to market 60 mg and 240 mg generic versions of ERLEADA before the expiration of CA Patent Nos. 3,008,345, 2,875,767, 2,885,415, and 3,128,331. Janssen Inc. and SKI are seeking orders enjoining Sandoz from marketing 60 mg and 240 mg generic versions of ERLEADA before the expiration of the relevant patents.

Beginning in June 2025, Aragon Pharmaceuticals, Inc., Janssen Biotech, Inc., The Regents of the University of California, and Sloan-Kettering Institute for Cancer Research initiated a patent infringement lawsuit in United States District Court for the District of New Jersey against Hetero Labs Limited Unit V and Hetero USA, Inc. who filed an ANDA seeking approval to market a 240 mg generic version of ERLEADA before the expiration of certain Orange Book Listed Patents. The following U.S. patents are included in the case: 8,445,507; 8,802,689; 9,338,159; 9,987,261; 9,481,663; 9,884,054; RE49,353; 10,849,888; 10,702,508; 11,963,952; 12,303,493; and 12,303,497.

SPRAVATO

Beginning in May 2023, Janssen Pharmaceuticals, Inc. and Janssen Pharmaceutica NV filed patent infringement lawsuits in United States district courts against generic manufacturers who have filed ANDAs seeking approval to market generic versions of SPRAVATO before expiration of certain Orange Book Listed Patents. The following entities are named defendants: Sandoz Inc. and Alkem Laboratories Ltd. The following U.S. patents are included in one or more cases: 10,869,844; 11,173,134; 11,311,500; and 11,446,260. A trial against Sandoz took place in February 2026. Post-trial briefing is ongoing.

CAPLYTA

Beginning in March 2024, Intra-Cellular Therapies, Inc. (Intra-Cellular) filed patent infringement lawsuits in the United States District Court for the District of New Jersey against generic manufacturers who have filed ANDAs seeking approval to market generic versions of CAPLYTA before expiration of certain Orange Book Listed Patents. The following entities are named defendants: Aurobindo Pharma Ltd., Aurobindo Pharma USA, Inc., Alkem Laboratories Ltd., MSN Laboratories Private Ltd., Zydus Pharmaceuticals (USA) Inc., and Zydus Lifesciences Ltd. The following U.S. Patents are included in one or more cases: RE 48,825; RE 48,839; 8,648,077; 9,168,258; 9,199,995; 9,616,061; 9,956,227; 10,117,867; 10,464,938; 10,960,009; 11,026,951; 11,753,419; 11,980,617; 12,070,459; 12,090,155; 12,122,792; 12,128,043; 12,409,176; and 12,410,195. In February 2026, Intra-Cellular and MSN Laboratories Private Ltd. entered into a confidential settlement agreement and the case was dismissed. In March 2026, Intra-Cellular and Alkem Laboratories Ltd. entered into a confidential settlement agreement and the case was dismissed.

UPTRAVI

Beginning in September 2025, Actelion Pharmaceuticals Ltd, Actelion Pharmaceuticals US, Inc. (collectively, Actelion), and Nippon Shinyaku Co. Ltd. filed a patent infringement lawsuit in the United States District Court for the District of New Jersey against generic manufacturers who have filed ANDAs seeking approval to market generic versions of UPTRAVI before expiration of certain Orange Book Listed Patents. The following entities are named defendants: Apotex Inc. and Apotex Corp. The following U.S. patents are included in one or more cases: 8,791,122; and 9,284,280. In April 2026, Actelion, Nippon Shinyaku Co. Ltd., Apotex Inc., and Apotex Corp. entered into a confidential settlement agreement resolving the action.

CARVYKTI

In January 2026, 2seventy bio, Inc. filed suit in the Unified Patent Court, Local Division of Brussels, against the Company, Janssen Biotech, Inc., Janssen Pharmaceuticals Inc., Janssen-Cilag International NV, Janssen Pharmaceutica NV, Janssen-Cilag NV, Janssen Biologics B.V., Janssen-Cilag B.V., Janssen-Cilag GmbH, Janssen-Cilag, Janssen-Cilag SpA, Janssen-Cilag A/S, Janssen-Cilag Aktiebolag, Janssen-Cilag Farmaceutica Lda., Legend Biotech Corporation, Legend Biotech USA Inc., Legend Biotech Ireland Limited, and Legend Biotech Belgium BV alleging that the manufacture and sale of CARVYKTI infringes EU Patent No. 3 689 383. In the suit, 2seventy bio, Inc. seeks damages and an injunction.

MedTech

In March 2016, Abiomed, Inc. filed a declaratory judgment action against Maquet Cardiovascular LLC (Maquet) in the United States District Court for the District of Massachusetts seeking a declaration that certain Impella products do not infringe Maquet patents. Maquet counterclaimed for infringement against Abiomed, Inc., Abiomed Europe GmbH, and Abiomed R&D, Inc. The following U.S. patents are at issue: 8,888,728; 9,327,068; 9,545,468; 9,561,314; and 9,597,437. In February 2026, the U.S. Court of Appeals for the Federal Circuit remanded the case after considering the District Court's claim constructions. Discovery will begin based on the altered constructions.

In November 2017, Maquet Cardiovascular LLC filed suit against Abiomed, Inc., Abiomed R&D, Inc., and Abiomed Europe GmbH in the United States District Court for the District of Massachusetts alleging that certain Impella products infringe Maquet patents. U.S. Patent No. 10,238,783 remains in the suit, and trial is scheduled to begin in May 2026.

Government proceedings

Like other companies in the pharmaceutical and medical technologies industries, the Company and certain of its subsidiaries are subject to extensive regulation by national, state, and local government agencies in the United States and other countries in which they operate. Such regulation has been the basis of government investigations and litigations. The most significant litigation brought by, and investigations conducted by, government agencies are listed below. It is possible that criminal charges and substantial fines and/or civil penalties or damages could result from government investigations or litigation.

MedTech

In July 2023, the DOJ issued Civil Investigative Demands to the Company, Johnson & Johnson Surgical Vision, Inc., and Johnson & Johnson Vision Care, Inc. (collectively, J&J Vision) in connection with a civil investigation under the False Claims Act relating to free or discounted intraocular lenses and equipment used in eye surgery, such as phacoemulsification and laser systems. J&J Vision has provided documents and information responsive to the Civil Investigative Demands and is continuing to cooperate with the DOJ regarding its inquiry. In the pending qui tam action, the Government filed a notice of declination, and the court ordered the complaint unsealed in February 2026. In March 2026, relators voluntarily dismissed their complaint without prejudice, and the court entered an order of dismissal.

Innovative Medicine

In July 2016, the Company and Janssen Products, LP were served with a qui tam complaint pursuant to the False Claims Act filed in the United States District Court for the District of New Jersey alleging the off-label promotion of two HIV products, PREZISTA and INTELENCE, and anti-kickback violations in connection with the promotion of these products. The complaint was filed under seal in December 2012. The federal and state governments have declined to intervene, and the lawsuit is being prosecuted by the relators. The Court denied summary judgment on all claims in December 2021. Daubert motions were granted in part and denied in part in January 2022, and trial commenced in May 2024. In June 2024, a jury found no liability regarding the anti-kickback violations but found liability for a portion of the off-label promotion claims. The Company challenged the verdict on the off-label claims in post-trial briefing. In March 2025, the court dismissed the state law portion of the claims but entered judgment on the federal claims. The Company appealed the remainder of the verdict to the Third Circuit. The federal government has intervened for the limited purpose of defending the qui tam provision of the False Claims Act. Briefing is complete and oral argument was held in March 2026. A decision is pending. In April 2026, the Third Circuit ordered the parties to engage in mediation.

In March 2017, Janssen Biotech, Inc. (JBI) received a Civil Investigative Demand from the United States Department of Justice (DOJ) regarding a False Claims Act investigation concerning management and advisory services provided to rheumatology and gastroenterology practices that purchased REMICADE or SIMPONI ARIA. In August 2019, the DOJ notified JBI that it was closing the investigation. Subsequently, the United States District Court for the District of Massachusetts unsealed a qui tam False Claims Act complaint, which was served on the Company. The DOJ had declined to intervene in the qui tam lawsuit in August 2019. The Company filed a motion to dismiss, which was granted in part and denied in part. The Court will hear argument on the parties’ summary judgment motions in May 2026. The Court has scheduled a trial date in November 2026.

General litigation

The Company or its subsidiaries regularly face claims in legal proceedings related to contracts, trade secrets, antitrust, unfair competition, consumer protection, and environmental issues, the most significant of which are listed below. Although the Company and its subsidiaries believe that they have substantial defenses to these cases, there can be no assurance as to the outcome of these matters. A loss in any of these cases could require the payment of damages, injunctions, and/or other relief.

In October 2017, certain United States service members and their families brought a complaint against a number of pharmaceutical and medical devices companies, including the Company and certain of its subsidiaries in the United States District Court for the District of Columbia, alleging that the defendants violated the United States Anti-Terrorism Act. The complaint alleges that the defendants provided funding for terrorist organizations through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health. In July 2020, the District Court dismissed the complaint. In January 2022, the United States Court of Appeals for the District of Columbia Circuit reversed the District Court’s decision. In June 2024, the

Supreme Court vacated the D.C. Circuit's decision and remanded the case to the D.C. Circuit for reconsideration. In January 2026, the D.C. Circuit affirmed its reversal of the District Court's dismissal of the complaint. In February 2026, the defendants sought rehearing en banc with the D.C. Circuit.

In February 2024, a putative class action was filed against the Company and the Pension & Benefits Committee of Johnson & Johnson in the United States District Court for the District of New Jersey. The complaint alleges that defendants breached fiduciary duties under the Employee Retirement Income Security Act (ERISA) by allegedly mismanaging the Company’s prescription-drug benefits program. The complaint seeks damages and other relief. In March 2025, plaintiffs filed a second amended complaint. In November 2025, the court granted defendants' motion to dismiss plaintiffs' fiduciary duty claims. Plaintiffs voluntarily withdrew their remaining claim, and the court entered final judgment in defendants' favor in January 2026. Plaintiffs have appealed to the United States Court of Appeals for the Third Circuit.

MedTech

In October 2020, Fortis Advisors LLC, in its capacity as representative of the former stockholders of Auris Health Inc. (Auris), filed a complaint against the Company, Ethicon Inc., and certain named officers and employees (collectively, Ethicon) in the Court of Chancery of the State of Delaware. The complaint alleges breach of contract, fraud, and other causes of action against Ethicon in connection with Ethicon’s acquisition of Auris in 2019. The complaint seeks damages and other relief. In December 2021, the court granted in part and denied in part defendants’ motion to dismiss certain causes of action. All claims against the individual defendants were dismissed. Trial occurred in January 2024. In September 2024, the court found liability with respect to certain claims and no liability with respect to other claims. In January 2026, the Delaware Supreme Court reversed in part and affirmed in part the Chancery Court's decision, including a $0.8 billion judgment, inclusive of interest, against the Company that was accrued in the fiscal fourth quarter of 2025 and subsequently paid in January 2026.

In October 2019, Innovative Health, LLC filed a complaint against Biosense Webster, Inc. (BWI) in the United States District Court for the Central District of California. The complaint alleges that certain of BWI's business practices and contractual terms violate the antitrust laws of the United States and the State of California by restricting competition in the sale of High Density Mapping Catheters and Ultrasound Catheters. In May 2025, a jury returned its verdict in favor of Innovative Health. In August 2025, the court issued a permanent injunction concerning BWI's business practices. BWI appealed both the jury verdict and the permanent injunction. In February 2026, BWI filed its opening brief.

Innovative Medicine

In October 2018, two separate putative class actions were filed against Actelion Pharmaceuticals Ltd., Actelion Pharmaceuticals US, Inc. and Actelion Clinical Research, Inc. (collectively, Actelion) in the United States District Court for the District of Maryland and the United States District Court for the District of Columbia. The complaints allege that Actelion violated state and federal antitrust and unfair competition laws by allegedly refusing to supply generic pharmaceutical manufacturers with samples of TRACLEER. TRACLEER is subject to a Risk Evaluation and Mitigation Strategy required by the U.S. Food and Drug Administration, which imposes restrictions on distribution of the product. In January 2019, the plaintiffs dismissed the District of Columbia case and filed a consolidated complaint in the United States District Court for the District of Maryland. In September 2024, the district court granted plaintiffs' motion for class certification. In February 2026, the parties agreed to settle the matter, which is pending court approval.

In December 2023, a putative class action lawsuit was filed against the Company and Janssen Biotech Inc. (collectively, Janssen) in the United States District Court for the Eastern District of Virginia. The complaint alleges that Janssen violated federal and state antitrust laws and other state laws by delaying biosimilar competition with STELARA through Janssen's enforcement of patent rights covering STELARA. The complaint seeks damages and other relief. In August 2024, the court granted in part and denied in part Janssen's motion to dismiss plaintiffs' amended complaint. In December 2025, the court granted plaintiffs' motion for class certification. In January 2026, the court granted summary judgment for Janssen on plaintiffs' claim regarding patents obtained through the acquisition of Momenta Pharmaceuticals, Inc. in 2020.

In December 2018, Janssen Biotech, Inc., Janssen Oncology, Inc., Janssen Research & Development, LLC, and the Company (collectively, Janssen) were served with a qui tam complaint on behalf of the United States, certain states, and the District of Columbia. The complaint alleges that Janssen violated the federal False Claims Act and state law when providing pricing information for ZYTIGA to the government in connection with direct sales and reimbursement programs. At this time, the federal and state governments have declined to intervene. In December 2021, the United States District Court for the District of New Jersey denied Janssen's motion to dismiss. Daubert briefing is ongoing.

In August 2025, Xoma Corporation (Xoma) filed a complaint against Janssen Biotech, Inc. (Janssen) in the United States District Court for the Eastern District of Pennsylvania. The complaint alleges breach of contract, unjust enrichment, and declaratory relief claims against Janssen regarding the alleged failure to obtain a license from Xoma in connection with Janssen's commercialization of TREMFYA. In December 2025, the court denied Janssen's motion to dismiss.

Note 12 — Restructuring

In fiscal 2025, the Company initiated a restructuring program of its Surgery franchise within the MedTech segment to simplify and focus operations by exiting certain non-strategic product lines and optimize select sites across the network. The pre-tax restructuring expense in the fiscal first quarter of 2026 primarily included costs related to product exits. Total project costs of approximately $0.3 billion have been recorded since the restructuring was announced. The estimated costs of the total program are between $0.9 billion - $1.0 billion and is expected to be substantially completed by the end of fiscal year 2026.

In fiscal 2023, the Company initiated a restructuring program of its Orthopaedics franchise within its MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The pre-tax restructuring expense in the fiscal first quarter of 2026 primarily included costs related to market and product exits. The pre-tax restructuring expense in the fiscal first quarter of 2025 primarily included costs related to asset impairments as well as market and product exits. Total project costs of approximately $0.8 billion have been recorded since the restructuring was announced and the program was substantially completed in the fiscal year 2025.

The following table summarizes the restructuring expenses for 2026 and 2025:

(Pre-tax Dollars in Millions)						Q1 2026						Q1 2025
MedTech Segment Surgery franchise(1)						$55						—
MedTech Segment Orthopaedics franchise(2)						7						55
Total Programs						$62						55

(1)Included $30 million in Restructuring, $20 million in Cost of products sold and $5 million in Other (Income)/Expense on the Consolidated Statement of Earnings in the fiscal first quarter of 2026.

(2)Included $17 million in Restructuring, $8 million in Cost of products sold and $30 million in Other (Income)/Expense on the Consolidated Statement of Earnings in the fiscal first quarter of 2025.

Restructuring reserves as of March 29, 2026 and December 28, 2025 were insignificant.

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