Johnson & Johnson reported third-quarter 2026 results that came in above analyst earnings estimates, according to Reuters. The company also raised its guidance for the full year, Business Wire reported.
Alongside the results, the healthcare group signaled it is leaning toward spinning off its hips-and-knees business, with a possible separation targeted for mid-2027, Reuters reported. The Wall Street Journal and Bloomberg both described the company as moving toward an orthopedics spinoff.
The picture was mixed. Barron's reported that J&J shares slipped after the company's medtech sales fell short of expectations, even as the broader earnings beat held. Bloomberg likewise framed the orthopedics spinoff talk against disappointing medtech sales.
The reported direction points to a narrower J&J, with the hip and knee unit separated from the rest of the company if the plan proceeds. Reuters ties the timing to mid-2027.
What to watch next: whether J&J confirms a final decision on the spinoff and sets a firm timetable for the separation.
