J&J 3Q26 EPS call read-through: Innovative Medicines carries the quarter as key franchises gain depth

J&J kicked off Biopharma's 3Q26 EPS season with a solid print, reporting $25.4B revenue (+$1.3M vs. BBG consensus) and $2.59/sh adjusted EPS (+$0.07/sh). Innovative Medicines maintained stronger momentum ($16.8B; +7.7% y/y) than MedTech ($8.6B; +2.5% y/y), led by Tremfya ($2.4B; +68.3% y/y), whose growth underscores continued expansion of the IL-23 class across IBD and psoriatic diseases. Icotyde (oral IL-23) adds a complementary growth opportunity by expanding the systemic-treated psoriasis market; more than 20k patients have initiated it through ~9k prescribers, with ~60% systemic-naive, ~20% transitioning from other orals and improving Medicare access. Strong Carvykti ($710M; +35.5% y/y) and Tecvayli ($312M; +76.3% y/y) performance highlights multiple-myeloma market growth and demand across treatment lines, while Spravato's ($624M;