3Q Takeaways: Immunology Upside Offset By MedTech Headwinds

Exiting JNJ's 3Q results, J.P. Morgan sees 1) additional upside from the company's immunology business, 2) a pharma portfolio ex immunology largely performing inline with expectations, and 3) headwinds continuing to impact MedTech growth in the near term. These dynamics translate to only modest changes to estimates (ex FX) for 2026 and beyond. Icotyde is off to a strong launch and is growing the market for biologics, with "other immunology" sales rising to $147mm in 3Q (+$43mm vs 2Q) and 20K+ patients having initiated therapy since launch. MedTech missed estimates again, growing +2.5% YoY operationally amid VBP pricing pressure in China and a broadening Middle East slowdown;