Johnson & Johnson

Good morning and welcome to Johnson & Johnson's first quarter 2026 earnings conference call. All participants will be in listen-only mode until the question and answer session of the conference. This call is being recorded. If anyone has any objections, you may disconnect at this time. If you experience technical difficulties during the conference, you may press star zero to reach the operator. I will now turn the call over to Johnson & Johnson. You may begin.

Hello, everyone. This is Darren Snellgrove, Vice President of Investor Relations for Johnson & Johnson. Welcome to our company's review of business results for the first quarter of 2026 and our financial outlook for the fall year. First, a few logistics. As a reminder, today's presentation and associated schedules are available on the Investor Relations section of the Johnson & Johnson website at investor.jnj.com. Please note that this presentation contains forward-looking statements regarding, among other things, the company's future operating and financial performance, market position, and business strategy. You are cautioned not to rely on these forward-looking statements, which are based on the current expectations of future events, using the information available as of the date of this recording. and are subject to certain risks and uncertainties that may cause the company's actual results to differ materially from those projected. The description of these risks, uncertainties, and other factors can be found in our SEC filings, including our 2025 Form 10-K, which is available at investor.jnj.com and on the SEC's website. Additionally, several of the products and compounds discussed today are being developed in collaboration with strategic partners or licensed from other companies. This slide acknowledges those relationships. Moving to today's agenda, Joaquin Duarte, our Chairman and CEO, will discuss our business performance and growth drivers. I will then review the first quarter sales and P&L results. Joe Walk, our CFO, will then close by sharing an overview of our capital allocation priorities and updated guidance for 2026. Jennifer Talbot, Executive Vice President, Worldwide Chairman, Innovative Medicine, John Reed, Executive Vice President, Innovative Medicine Research and Development, and Tim Schmid, Executive Vice President, Worldwide Chairman, MedTech, will be joining us for Q&A. To ensure we provide enough time to address your questions, we anticipate the webcast will last approximately 60 minutes. With that, I will now turn the call over to Joaquin.

Good morning, everyone, and thank you for joining us. We said 2026 would be a year of accelerated growth and impact for Johnson & Johnson. And with our strong Q1 performance, including our bid on consensus and race guidance, you can see we are delivering on that promise. In the first three months of the year, we delivered operational sales growth of 6.4%. Our focus on areas of high innovation, high unmet need, and high growth is delivering results today and for the future. Across each of our six key businesses, oncology, immunology, neuroscience, cardiovascular, surgery, and vision, we have multiple differentiated assets to drive sustained growth and a strong competitive advantage. Our success is fueled by the strongest portfolio and pipeline in the history of Johnson & Johnson. We currently have 28 platforms or products that generate at least $1 billion in annual revenue, and we are aiming to add even more. Our unique combination of innovative medicine and medtech, together with strong execution and industry-leading investment in innovation, is delivering resilient growth. We are on track to meet our 2026 target of $100 billion in annual revenue for the first time. And we are confident our progress will continue to improve into 2027, with line of sight to double-digit growth by the end of the decade. Let's start with innovative medicine, where we delivered operational sales growth of 7.4% in the quarter, with 10 brands growing double digits. In oncology, we are aiming to cure and treat more cancers with the world's leading portfolio and pipeline. Darsalex remains the gold standard in multiple myeloma and our number one product, with sales of $4 billion and operational sales growth of 18%. Carvicti, Tecvali, and Talve also continue to deliver high double-digit growth, reflecting the importance of our multiple myeloma portfolio across the full treatment journey. Progress in our pipeline accelerated in Q1 with the FDA approval of Tecvioli plus Darzalex Faspro for relapsed or refractory multiple myeloma. That positions the regimen as a potential new standard of care as early as second line. In solid tumors, Libro and FastPro received FDA approval for subcutaneous monthly dosing for patients with EGFR-mutated non-small cell lung cancer. Ribraman also received FDA breakthrough therapy designation in advanced head and neck cancer with new data showing 56% overall response rate in first-line recurrent or metastatic head and neck cancer when combined with immunotherapy. The treatment is being further evaluated in the ongoing Phase III Origami 5 study. And in high-risk non-muscle-invasive bladder cancer, Inlexo is outperforming all recent launches based on unique patients treated in the first six months post-approval. In immunology, we continue to raise the bar in a category we have built for more than three decades, from single innovations like Remicade and Stellara to now a dual powerhouse of Icotide and Trenfaya. Trenfaya had another very strong quarter with sales up 64%. It continues to be the fastest growing IL-23 therapy in the U.S. and is now the share leader for new patient starts in inflammatory bowel disease. And with last month's FDA approval of Icotide for the first-line treatment of plaque psoriasis, we are once again transforming the standard of care for immunology patients. Icotide is the first and only IL-23-targeted oral peptide and has the potential to fundamentally change how psoriatic disease is treated by offering a convenient once-daily pill. The full launch of Icotide took place the same day as approval with the first patient receiving treatment that very day. While it is just the beginning, we are already seeing strong demand through our patient hub. Together, Icotide and Trenfaya create a complementary category shaping portfolio. Icotide is the first choice systemic treatment and Trenfaya is the first choice biologic treatment for patients with moderate to severe plaque psoriasis. Icotide has the potential to be one of our largest products ever. Trenfaya is projected to deliver more than $10 billion in peak year sales. In neuroscience, we are focused on meaningfully improving outcomes in mental health. The U.S. launch of Kaplaita in adjunctive major depressive disorder is building momentum and Spravato continues its strong growth trajectory. Now, let's turn to MedTech, where we reported Q1 operational sales growth of 4.6% with growth across all of our key focus areas. In cardiovascular, we are investing in the growing need for complex interventions. Johnson & Johnson is the market leader in heart recovery, circulatory restoration, and electrophysiology, and we continue to deliver sustained growth. In her recovery, a biomed had another strong quarter as did shockwave in circulatory restoration. And in electrophysiology, body pulse, our post-field ablation platform for atrial fibrillation, keeps building momentum. Our confidence of continued leadership in electrophysiology was further strengthened by our recent launch of BodyPulse Pro in Europe, with five times faster ablation, which helps streamline procedures and improve efficiency. As well as our recent BodyPure 12-month data, presented just a few days ago, which show a strong safety profile with zero reported strokes. We also continue to receive strong feedback in Europe for our dual energy thermocool smart touch SF catheter, which we expect to launch in the U.S. later this year, having recently submitted the complete platform to FDA. And finally, we recently announced 12-month data for Omnipulse, our large focal tip PFA catheter showing positive outcomes, no safety events, and 100% procedural success rate. In surgery, our strong performance reflects the deep levels of trust and our expanding presence in the operating room. In Q1, we made progress on our Otava robotic surgical system and we are building on our recent de novo filing for approval with a second investigational device exemption trial now underway for inguinal hernia repair. In vision, we are restoring sight to its healthiest state with expanding access globally for our Acuvue Oasis Max disposable lenses for presbyopia and astigmatism and our Technis intraocular lenses. Most significantly, we received FDA approval of technispur-C, the first and only extended depth of focus intraocular lens in the US to maintain contrast sensitivity comparable to a monofocal lens. 97% of patients reported no very bothersome visual disturbances like halos or glare. As you can see, we are off to a fast start in 2026, building momentum that will accelerate our impact and growth throughout the year and for the balance of the decade. The depth of our portfolio and pipeline has never been stronger, and I'm confident we'll continue to deliver on our commitments for 2026 and beyond. And with that, I will turn the call back over to Darren.