Financial Analysis

Acquisitions and divestitures 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 Companys 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 Companys financial statements from their respective dates of acquisition. 2025 Transactions During the fiscal year 2025, the Company acquired Intra-Cellular Therapies, Inc. (Intra-Cellular) and Halda Therapeutics OpCo, Inc. (Halda Therapeutics) 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 (RIPTAC TM ) 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 …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Borrowings The components of long-term debt are as follows: (Dollars in Millions) 2025 2024 2.625% Notes due 2025 $ 750 0.55% Notes due 2025 999 2.45% Notes due 2026 2,000 1,999 2.95% Notes due 2027 968 927 0.95% Notes due 2027 1,499 1,458 4.50% Notes due 2027 (4) 749 1.150% Notes due 2028 (750MM Euro 1.1785) (1) /(750MM Euro 1.0401) (2) 882 777 2.90% Notes due 2028 1,498 1,498 4.55% Notes due 2028 (4) 748 6.95% Notes due 2029 299 298 4.80% Notes due 2029 1,147 1,146 2.70% Notes due 2029 (4) (600MM Euro 1.1785) (1) 707 1.30% Notes due 2030 1,693 1,646 4.70% Notes due 2030 (4) 996 4.90% Notes due 2031 1,146 1,145 3.20% Notes due 2032 (700MM Euro 1.1785) (1) /($700MM Euro 1.0401) (2) 822 725 4.85% Notes due 2032 (4) 1,243 4.95% Notes due 2033 499 499 4.375% Notes due 2033 853 854 3.05% Notes due 2033 (4) ( 700MM Euro 1.1785) (1) 823 4.95% Notes due 2034 847 846 1.650% Notes due 2035 (1.5B Euro 1.1785) (1) /(1.5B Euro 1.0401) (2) 1,758 1,550 5.00% Notes due 2035 (4) 1,244 3.35% Notes due 2036 (800MM Euro 1.1785) (1) (800MM Euro 1.0401) (2) 938 827 3.587% Notes due 2036 919 869 5.95% Notes due 2037 995 994 3.625% Notes due 2037 1,409 1,358 3.35% Notes due 2037 (4) (1B Euro 1.1785) (1) 1,176 5.85% Notes due 2038 697 697 3.40% Notes due 2038 994 993 4.50% Notes due 2040 542 541 2.10% Notes due 2040 898 845 4.85% Notes due 2041 298 297 4.50% Notes due 2043 497 496 3.55% Notes due 2044 (1B Euro 1.1785) (1) (1B Euro 1.0401) (2) 1,168 1,030 3.60% Notes due 2045 (4) (700MM Euro 1.1785) …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Common stock, stock option plans and stock compensation agreements At December 28, 2025, the Company had one active stock-based compensation plan, the 2022 Long-Term Incentive Plan. The shares outstanding are for contracts under the Company's 2012 Long-Term Incentive Plan and 2022 Long-Term Incentive Plan. The 2012 Long-Term Incentive Plan expired on April 26, 2022. All awards (stock options, restricted shares units and performance share units) granted subsequent to that date were under the 2022 Long-Term Incentive Plan. Under the 2022 Long-Term Incentive Plan, the Company may issue up to 150 million shares of common stock, of which up to 110 million shares of common stock may be issued subject to stock options or stock appreciation rights and up to 40 million shares of common stock may be issued subject to full value awards. Awards will generally be counted on a 1-for-1 basis against the share reserve, provided that if more than 40 million full value awards are granted, each full value award in excess of 40 million will be counted on a 5-for-1 basis against the share reserve. Shares available for future grants under the 2022 Long-Term Incentive Plan were 93 million at the end of fiscal year 2025. The compensation cost that has been charged against income for these plans was $1.4 billion, $1.2 billion and $1.1 billion for fiscal years 2025, 2024 and 2023, respectively. The total income tax benefit recognized in the income statement for share-based compensation costs was $283 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 products 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 ra …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible assets and goodwill At the end of fiscal years 2025 and 2024, the gross and net amounts of intangible assets were: (Dollars in Millions) 2025 2024 Intangible assets with definite lives: Patents and trademarks gross (1) $59,156 44,695 Less accumulated amortization (32,507) (26,124) Patents and trademarks net $26,649 18,571 Customer relationships and other intangibles gross $21,361 20,310 Less accumulated amortization (14,998) (13,544) Customer relationships and other intangibles net (2) $6,363 6,766 Intangible assets with indefinite lives: Trademarks (3) 1,772 Purchased in-process research and development 15,619 12,281 Total intangible assets with indefinite lives $17,391 12,281 Total intangible assets net $50,403 37,618 (1) See Note 18 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures. (2) The majority is comprised of customer relationships. (3) In October 2025, the Company announced its intention to separate its Orthopaedics business, to be named DePuy Synthes. In connection with this strategic decision, the Company determined the DePuy Synthes trademarks will continue to be used on existing and future products. Therefore, $1.7 billion of trademarks associated with the DePuy Synthes brand were reclassified from definite lived to indefinite lived. This reclassification reflects managements revised expectations regarding the future economic life and continued use of these trademarks through and following the pla …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income taxes The provision for taxes on income on continuing operations consists of: (Dollars in Millions) 2025 2024 2023 Currently payable: U.S. taxes $1,163 2,200 2,705 International taxes 3,076 2,604 3,090 Total currently payable 4,239 4,804 5,795 Deferred: U.S. taxes 2,008 (2,539) (3,440) International taxes (470) 356 (619) Total deferred 1,538 (2,183) (4,059) Provision for taxes on income $5,777 2,621 1,736 Below is a tabular rate reconciliation of the U.S. statutory income tax rate of 21% to the Company's effective income tax rate for the fiscal year 2025, pursuant to the new disclosure requirements of ASU 2023-09 (See Note 1 of the Consolidated Financial Statements): (Dollars in Millions) 2025 U.S. $15,254 International 17,327 Earnings before taxes on income: 32,581 Tax rates: U.S. federal statutory rate 6,842 21.0 % State & local taxes: (1) 162 0.5 Foreign tax effects: (861) (2.7) Ireland Statutory tax rate difference between Ireland & U.S. (473) (1.5) Other (11) (0.0) Switzerland Statutory tax rate difference between Switzerland & U.S. (607) (1.9) Other 283 0.9 All Other Jurisdictions (53) (0.2) Effects of changes in tax laws or rates enacted in the current period: 1,003 3.1 OBBBA Deferred NCTI Remeasurement 1,003 3.1 Effects of cross border tax laws: 1,601 4.9 NCTI (2) 999 3.1 Subpart F 522 1.6 Other 80 0.2 Tax credits: (2,455) (7.6) NCTI foreign tax credits (2) (1,324) (4.1) Subpart F foreign tax credits (656) (2.0) All other tax credits (475) (1.5) Cha …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"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 December 28, 2025, 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 t …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

New accounting standards Recently adopted accounting standards ASU 2023-09: Income Taxes (Topic 740) - Improvements to Income Tax Disclosures This update standardizes categories for the effective tax rate reconciliation, requires disaggregation of income taxes and additional income tax-related disclosures. The Company adopted this standard prospectively for fiscal year 2025. As this accounting standard only impacts disclosures, it did not have an impact on the Companys consolidated financial results. See Note 8 to the Company's financial statements for the required disclosures. Recently issued accounting standards Not adopted as of December 28, 2025 ASU 2024-03: Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses This update requires disclosure of disaggregated information about certain income statement expense line items on an annual and interim basis. This update will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. As this accounting standard only impacts disclosures, it will not have a material impact on the Companys Consolidated Financial Statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pensions and other benefit plans The Company sponsors various retirement and pension plans, including defined benefit, defined contribution and termination indemnity plans, which cover most employees worldwide. The Company also provides post-retirement benefits, primarily healthcare, to all eligible U.S. retired employees and their dependents. Many international employees are covered by government-sponsored programs and the cost to the Company is not significant. In the U.S., non-union pension benefits for employees hired before January 1, 2015 are primarily based on the employees compensation during the last five years before retirement and the number of years of service (the Final Average Pay formula). U.S. pension benefits for employees hired after 2014, are calculated using a different formula based on employee compensation over total years of service (the Retirement Value formula). In January 2021, the Company announced that, effective on January 1, 2026, all eligible U.S. non-union employees, regardless of hire date, will earn benefits under the Retirement Value formula. This amendment does not affect the benefits accrued under the Final Average Pay formula for service before January 1, 2026. International subsidiaries have plans under which funds are deposited with trustees, annuities are purchased under group contracts, or reserves are provided. The Company does not fund retiree healthcare benefits in advance and has the right to modify these plans in the future. In 2 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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 of $0.2 billion in the fiscal year 2025, primarily included costs related to asset impairments as well as product exits. 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 the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The pre-tax restructuring expense of $0.3 billion in the fiscal year 2025 primarily included costs related asset impairments as well as market and product exits. The pre-tax restructuring expense of $0.2 billion in the fiscal year 2024 primarily included costs related to market and product exits. The pre-tax restructuring expense of $0.3 billion in the fiscal year 2023 primarily included inventory and instrument charges related to market and product exits. Total project costs of approximately $0.8 billion have been recorded since the restructuring was announced and the program has been substantially completed in the fiscal year 2025. In fiscal 2023, the Company completed a prioritization of its res …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Segments of business and geographic areas Following the separation of the Consumer Health business in the fiscal third quarter of 2023, the Company is now organized into two reportable segments: Innovative Medicine and MedTech. The Companys 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 to Customers % Change (Dollars in Millions) 2025 2024 2023 25 vs. 24 24 vs. 23 INNOVATIVE MEDICINE Oncology U.S. $13,659 10,854 8,462 25.8 % 28.3 International 11,721 9,926 9,199 18.1 7.9 Worldwide 25,380 20,781 17,661 22.1 17.7 CARVYKTI U.S. 1,492 869 469 71.6 85.2 International 395 94 30 * * Worldwide 1,887 963 500 95.9 92.7 DARZALEX U.S. 8,266 6,588 5,277 25.5 24.8 International 6,085 5,082 4,467 19.7 13.8 Worldwide 14,351 11,670 9,744 23.0 19.8 ERLEADA U.S. 1,453 1,282 1,065 13.4 20.3 International 2,121 1,717 1,322 23.5 29.8 Worldwide 3,574 2,999 2,387 19.2 25.6 IMBRUVICA U.S. 892 1,020 1,051 (12.5) (3.0) International 1,931 2,018 2,214 (4.3) (8.8) Worldwide 2,823 3,038 3,264 (7.1) (6.9) RYBREVANT/ LAZCLUZE (1) U.S. 534 257 66 * * International 200 7 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of significant accounting policies Principles of consolidation The consolidated financial statements include the accounts of Johnson & Johnson and its subsidiaries (the Company). Intercompany accounts and transactions are eliminated. Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures. Description of the company The Company has approximately 138,200 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the healthcare field. The Company conducts business in virtually all countries of the world and its primary focus is on products related to human health and well-being. Business segments The Company is organized into two business segments: Innovative Medicine and MedTech. The Innovative Medicine segment is focused on the following therapeutic areas: Oncology, Immunology, Neuroscience, Pulmonary Hypertension, Infectious Diseases, and Cardiovascular and Metabolic. Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals and healthcare professionals for prescription use. The MedTech segment includes a broad portfolio of products used in the Surgery, Orthopaedic, Cardiovascular and Vision fields. These products are distributed to wholesalers, hospitals and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics. In October …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

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 ra …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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) June 28, 2026 December 28, 2025 Intangible assets with definite lives: Patents and trademarks gross $58,542 59,156 Less accumulated amortization (33,727) (32,507) Patents and trademarks net $24,815 26,649 Customer relationships and other intangibles gross 21,283 21,361 Less accumulated amortization (15,334) (14,998) Customer relationships and other intangibles net (1) $5,949 6,363 Intangible assets with indefinite lives: Trademarks 1,744 1,772 Purchased in-process research and development 15,721 15,619 Total intangible assets net $48,229 50,403 (1) The majority is comprised of customer relationships Goodwill as of June 28, 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 3 3 Goodwill, related to divestitures Currency translation/Other (212) (84) (296) Goodwill at June 28, 2026 $14,755 33,724 48,479 The weighted average amortization period for patents and trademarks is approximately 12 year …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income taxes The worldwide effective income tax rates for the fiscal six months of 2026 and 2025 were 15.5% and 17.8%, respectively. The primary drivers for year over year change in the Companys 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%. In the first fiscal six months of 2025, the effective tax rate benefited from changes in uncertain international tax positions due to expiration of statute of limitations. Additional tax benefits in the fiscal first six months of 2026 related to the Companys share-based equity compensation programs that either vested or were exercised during the fiscal six months of 2026 and 2025, which reduced the effective tax rate by 2.9% and 0.3%, respectively. As of June 28, 2026, the Company had approximately $2.7 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. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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 June 28, 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 pr …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

There were no new material accounting standards issued in the fiscal six months of 2026.

NewAccountingPronouncementsPolicyPolicyTextBlock

Pensions and other benefit plans Components of net periodic benefit cost Net periodic benefit costs for the Companys defined benefit retirement plans and other benefit plans include the following components: Fiscal Second Quarter Ended Fiscal Six Months Ended Retirement Plans Other Benefit Plans Retirement Plans Other Benefit Plans (Dollars in Millions) June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Service cost $235 219 80 72 471 433 160 144 Interest cost 360 356 52 53 720 707 104 107 Expected return on plan assets (638) (599) (2) (1) (1,277) (1,186) (4) (3) Amortization of prior service cost/(credit) (46) (46) (1) (1) (92) (92) (1) (1) Recognized actuarial (gains)/losses 70 85 26 15 139 168 52 31 Curtailments and settlements 1 1 Net periodic benefit cost/(credit) $(19) 16 155 138 (39) 31 311 278 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 six months ended June 28, 2026, the Company contributed $70 million and $10 million to its U.S. and international retirement plans, resp …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring In the fiscal second quarter of 2026, the Company initiated a supply chain restructuring program primarily in the Innovative Medicine segment to exit certain manufacturing locations as part of its optimization efforts to streamline operations. The program is expected to be substantially complete by the end of 2029 with estimated costs between $650 million and $750 million, and include site and supplier exit costs, decommissioning and asset impairments costs. Restructuring expenses of $200 million, primarily related to asset impairments, were recorded in the fiscal second quarter of 2026. 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 second 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 $0.6 billion - $0.7 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 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Segments of business and geographic areas The Company is organized into two business segments: Innovative Medicine and MedTech. The Companys 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 Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 28, 2026 June 29, 2025 Percent Change June 28, 2026 June 29, 2025 Percent Change INNOVATIVE MEDICINE Oncology U.S. $4,069 3,385 20.3 % $7,684 6,398 20.1 % International 3,337 2,928 14.0 6,695 5,592 19.7 Worldwide 7,406 6,312 17.3 14,379 11,990 19.9 DARZALEX U.S. 2,435 2,017 20.7 4,643 3,846 20.7 International 1,772 1,521 16.4 3,528 2,930 20.4 Worldwide 4,207 3,539 18.9 8,171 6,776 20.6 CARVYKTI U.S. 472 358 31.7 905 676 33.8 International 185 81 * 349 132 * Worldwide 657 439 49.4 1,254 808 55.1 TECVAYLI U.S. 186 114 63.9 313 219 43.1 International 74 52 40.7 148 98 51.1 Worldwide 260 166 56.5 462 317 45.5 TALVEY U.S. 112 82 36.2 213 150 41.7 International 62 24 * 113 42 * Worldwide 174 106 63.3 326 192 69.3 RYBREVANT/ LAZCLUZE U.S. 190 139 36.8 365 252 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing