JNJ 10-K & 10-Q changes, risk factors and insider trading

The industry’s failure to mitigate the threat of counterfeit medicines could adversely impact our business and reputation by impacting patient confidence in our authentic products, potentially resulting in lost sales, product recalls, and an increased threat of litigation. In addition, diversion of our products from their authorized market into other channels may result in reduced revenues and negatively affect our profitability.

WeThe areCompany is subject to an increasing number of costly and complex governmental regulations in the countries in which operations are conducted which may materiallyhave adverselya material adverse affect on the Company’s financial condition and business operations.

Product concerns, whether raised internally or by litigants, regulators or consumer advocates, and whether or not based on scientific evidence, can result in safety alerts, field actions, such as product recalls, governmental investigations, regulatory action on the part of the U.S. FDA (or its counterpart in other countries), private claims and lawsuits, payment of fines and settlements, declining sales and reputational damage. These circumstances can also result in damage to brand image, brand equity and consumer trust in the Company’s products. Product recalls have in the past, and could in the future, prompt government investigations and inspections, the shutdown of manufacturing facilities, continued product shortages and related sales declines, significant remediation costs, reputational damage, possible civil penalties and criminal prosecution.

Changes in tax laws or regulations in the U.S. and around the world, including in the U.S. and as led by the Organization for Economic Cooperation and Development, such as the enactment by certain EU and non-EU countries, and the anticipated enactment by additional countries, of a global minimum tax,taxes could negatively impact the Company’s effective tax rate and results of operations. A change in statutory tax rate or certain international tax provisions in any country would result in the revaluation of the Company’s deferred tax assets and liabilities related to that particular jurisdiction in the period in which the new tax law is enacted. This change would result in an expense or benefit recorded toin the Company’s Consolidated Statement of Earnings. The Company closely monitors these proposals as they arise in the countries where it operates. Changes to tax laws or regulations may occur at any time, and any related expense or benefit recorded may be material to the fiscal quarter and year in which the law change is enacted.

Inflation and currency devaluation risks: The Company faces challenges in maintaining profitability of operations in economies experiencing high inflation rates. Specifically, the Company has accounted for operations in Argentina, Turkey, Venezuela and Egypt (beginning in the fiscal fourth quarter of 2024) as highly inflationary, as the prior three-year cumulative inflation rate surpassed 100%. While the Company strives to maintain profit margins in these areas through cost reduction programs, productivity improvements and periodic price increases, it might experience operating losses as a result of continued inflation.

Anti-briberyAnti-corruption and other regulations: The Company is subject to various federal and foreign laws that govern its international business practices with respect to payments to government officials. Those laws include the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits U.S. publicly traded companies from promising, offering, or giving anything of value to foreign officials with the corrupt intent of influencing the foreign official for the purpose of helping the Company obtain or retain business or gain any improper advantage. The Company’s business is heavily regulated and therefore involves significant interaction with foreign officials. Also, in many countries outside the U.S., the healthcare providers who prescribe human pharmaceuticals are employed by the government and the purchasers of human pharmaceuticals are government entities; therefore, the Company’s interactions with these prescribers and purchasers are subject to regulation under the FCPA. In addition to the U.S. application and enforcement of the FCPA, various jurisdictions in which the Company operates have laws and regulations, including the U.K. Bribery Act 2010, aimed at preventing and penalizing corrupt and anticompetitive behavior. Enforcement activities under these laws could subject the Company to additional administrative and legal proceedings and actions, which could include claims for civil penalties, criminal sanctions, and administrative remedies, including exclusion from healthcare programs.

As described above, the Company has extensive operations and business activity throughout the world. Global tensions, conflict and/or war among any of the countries in which we conduct business or distribute our products may result in foreign currency volatility, decreased demand for our products in affected countries, and challenges to our global supply chain related to increased costs of materials and other inputs for our products and suppliers. Most recently, we have experienced, and expect to continue to experience, impacts to the Company's business resulting from the Russia-Ukraine war, rising conflict in the Middle East as well as increasing tensions between the U.S. and China. In response to heightened conflict, such as the Russia-Ukraine war, governments may impose export controls and broad financial and economic sanctions. Our business and operations may be further impacted by the imposition of tariffs, trade protection measures or other policies - including data localization laws and restrictions on data transfers - adopted by any country that favor domestic companies and technologies over foreign competitors. Additional sanctions or other measures may be imposed by the global community, including but not limited to limitations on our ability to file, prosecute and maintain patents, trademarks and other intellectual property rights. Furthermore, in some countries, such as in Russia, action may be taken that allows companies and individuals to exploit inventions owned by patent holders from the United States and many other countries without consent or compensation and we may not be able to prevent third parties from practicing the Company's inventions in Russia or from selling or importing products in and into Russia.products. In addition, the U.S. government recentlyhas imposed and/or announced the potential imposition of tariffs on products manufactured in severalother jurisdictions, including China, Mexico and Canada, and hasjurisdictions.

made announcements regarding the potential imposition of tariffs on other jurisdictions. While certain of the announced tariffs have been delayed, the U.S. government may in the future pause, reimpose or increase tariffs, and countries subject to such tariffs have and in the future may impose reciprocal tariffs or other restrictive trade measures in response. Any of these actions could increase uncertainties and associated risks relating to the Company’s global operations.

To meet business objectives, the Company relies on both internal information technology (IT) systems and networks, and those of third parties and their vendors, to process and store sensitive data (including confidential research, business plans, financial information, intellectual property, and personal data that may be subject to legal protection) to ensure the continuity of the Company’s supply chain and operations, and as part of many of the products we deliver to customers. The extensive range of information security and cybersecurity threats, which affect companies globally, pose a persistent risk to the security and availability of these systems and networks, including to customer products that are connected to or rely on such systems and networks, and the confidentiality, integrity, and availability of the Company’s sensitive data. The Company assesses these threats, responds to attacks and breaches that it has experienced, and makes investments to increase internal protection, detection, and response capabilities, as well as ensure the Company’s third-party providers have required capabilities and controls, to address this risk. Because of the frequently changing attack techniques, along with the increased volume and sophistication of the attacks and increasing use and reliance on third parties, there is the potential for the Company to be adversely impacted. This impact could result in reputational, competitive, operational or other business harm as well as financial costs and regulatory action. The increasing use of AI and other emerging technology could also increase these risks. The Company maintains cybersecurity insurance in the event of an information security or cyber incident; however, the coverage may not be sufficient to cover all financial, legal, business or reputational losses.

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, Neuroscience, Oncology, Pulmonary Hypertension, and Cardiovascular and Metabolism. 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, Surgery, Cardiovascular (previously referred to as Interventional Solutions) 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.

The Chief Operating Decision Maker (CODM) is the Company's Chief Executive Officer (Principal Executive Officer).The. The Executive Committee is Johnson & Johnson’s senior leadership team responsible for setting the strategy and priorities of the Company and driving accountability at all levels. Within the strategic parameters provided by the Executive Committee, senior management groups at U.S. and international operating companies are each responsible for their own strategic plans and the day-to-day operations of those companies.

For discussion on results of operations and financial condition pertaining to the fiscal years 20232024 and 20222023 see the Company’s Annual Report on Form 10-K for the fiscal year ended December 31,29, 2023,2024, Item 7. Management's discussion and analysis of results of operations and financial condition. Prior periods disclosed herein were recast to reflect the continuing operations of the Company.

The net impact of acquisitions and divestitures on the worldwide sales growth was a positive impact of 0.5%1.1% in 20242025, primarily related to CAPLYTA and Shockwave and a positive impact of 1.5%0.5% in 2023.2024 primarily related to Shockwave.

In 2024,2025, sales by companies in Europe experiencedachieved a declinegrowth of 1.0%6.5% as compared to the prior year, which included an operational declinegrowth of 0.6%2.4% and a negativepositive currency impact of 0.4%. In fiscal 2024, the net impact of the Covid-19 Vaccine on the European regions change in operational sales was a negative 4.7%.4.1%. Sales by companies in the Western Hemisphere, excluding the U.S., achieved growth of 3.6%3.4% as compared to the prior year, which included operational growth of 20.4%,8.4%, and a negative currency impact of 16.8%.5.0%. Sales by companies in the Asia-Pacific, Africa region experiencedachieved a declinegrowth of 1.2%3.2% as compared to the prior year, including operational growth of 2.3%3.1% offset byand a negativepositive currency impact of 3.5%.0.1%.

Innovative Medicine segment sales in 20242025 were $57.0$60.4 billion, an increase of 4.0%6.0% from 2023,2024, which included operational growth of 5.7%5.3% and a negativepositive currency impact of 1.7%.0.7%. U.S. sales were $34.0$36.3 billion, an increase of 9.0%.7.0%. International sales were $23.0$24.1 billion, aan decreaseincrease of 2.5%,4.6%, which included operational growth of 1.3%2.9% offset byand a negativepositive currency impact of 3.8%.1.7%. In 2024,2025, the net impact of acquisitions and divestitures had a net negative impact of 0.1% on the operational sales growth of the worldwide Innovative Medicine segment.segment operational sales growth was a positive 1.2%, related to CAPLYTA. In fiscal 2024,2025, the netnegative impact of the Covid-19STELARA Vaccinesales decline, primarily due to biosimilar competition, was an approximate 10.4%, 12.3% and 7.9% on theworldwide, totalU.S. and international Innovative Medicine and International change insegment operational sales was a negative 1.8% and 4.2%,sales, respectively.

Oncology products achieved sales of $20.8$25.4 billion in 2024,2025, representing an increase of 17.7%22.1% as compared to the prior year. Strong sales of DARZALEX (daratumumab) were driven by continued share gains and market growth. Growth of ERLEADA (apalutamide) was primarily due to continued share gains and market growth.growth Salespartially offset by the impact of Medicare Part D redesign. Increased sales of CARVYKTI (ciltacabtagene autoleucel) were driven by continued share gains,gains and capacity expansion and manufacturing efficiencies.expansion. Additionally, sales from the ongoing launches and share gains of TECVAYLI (teclistamab-cqyv), TALVEY (talquetamab-tgvs) and RYBREVANT (amivantamab),/LAZCLUZE included in Other Oncology,(lazertinib) contributed to the growth. Growth was partially offset by ZYTIGA (abiraterone acetate) due to loss of exclusivity and IMBRUVICA (ibrutinib) due to global competitive pressures.pressures and the impact of Medicare Part D redesign.

Pulmonary Hypertension products achieved sales wereof $4.3$4.4 billion, representing an increase of 12.3%3.6% as compared to the prior year. Sales growth of both OPSUMIT (macitentan)/OPSYNVI (macitentan/tadalafil) was driven by share gains and market growth partially offset by the impact of Medicare Part D redesign and UPTRAVI (selexipag) was driven by market growth andpartially shareoffset gains.by Growththe impact of Medicare Part D redesign. The Company expects generic competition for OPSUMIT in Other2026, Pulmonarywhich Hypertensionwould waslikely drivenresult byin OPSYNVIa (macitentan/tadalafil).significant reduction in future sales.

Cardiovascular/Metabolism/OtherInfectious disease products sales were $3.6$3.2 billion,billion in 2025, a decline of 3.0%4.6% as compared to the prior year primarily driven by declines across the portfolio including COVID-19 vaccine revenue in Other.Other Infectious Diseases. The decline was partially offset by growth of EDURANT/rilpivirine.

The MedTech segment sales in 20242025 were $31.9$33.8 billion, an increase of 4.8%6.1% from 2023,2024, which included operational growth of 6.2%5.4% and a negativepositive currency impact of 1.4%.0.7%. U.S. sales were $16.3$17.4 billion, an increase of 6.9%6.6% as compared to the prior year. International sales were $15.5$16.4 billion, an increase of 2.6%5.5% as compared to the prior year, which included operational growth of 5.4%4.1% and a negativepositive currency impact of 2.8%.1.4%. In 2024,2025, the net impact of acquisitions and divestitures on the MedTech segment worldwide operational sales growth was a positive 1.5%1.1% primarily related to the Shockwave acquisition.

The Surgery franchise achieved sales wereof $9.8$10.1 billion in 2024,2025, representing aan decreaseincrease of 1.9%3.0% from 2023.2024. The declineGrowth in Advanced Surgery was primarily due to the strength of the portfolio and commercial execution in Biosurgery as well as new products in Endocutters. This was partially offset by China volume-based procurement across all platforms and competitive pressures in Energy and Endocutters. This was partially offset by the strength of the portfolio and commercial execution in Biosurgery as well as the strength of new products in Endocutters. Growth in General Surgery was primarily driven by technology penetration and benefitsupgrades fromwithin the differentiated Wound Closure portfolio as well as increased procedure volume.portfolio. This growth was partially offset by the negative impact offrom currency and the Acclarent divestiture.divestitures.

The Orthopaedics franchise achieved sales wereof $9.2$9.3 billion in 2024,2025, representing an increase of 2.4%1.1% from 2023.2024. The fiscal 2024 includes a one-time revenue recognition timing change related to certain products across all OrthopaedicAll platforms inwere the U.S. which positivelynegatively impacted the worldwide Orthopaedics franchise growth as well as the negative impact from the near-termby revenue disruption related tofrom the previously announced Orthopaedics restructuring.restructuring, which is now substantially complete, the negative impact of volume-based procurement in China and selling days. The growth in Hips reflects continued strength of the portfoliowas primarily indue theto Anteriornew approach,product and global procedure growth.launches. The growth in Knees was primarily driven by the ATTUNE portfolio, pull through related to the VELYS Robotic assisted solution and global procedure growth.solution. Growth in Trauma was driven by the adoption of recently launched products.products and commercial execution. The decline in Spine, Sports & Other was primarily driven by competitive pressures and impactsprice frompressures Chinain volume-basedthe procurement.U.S. ThisEarly wasInterventional segment partially offset by growthnew inproduct the U.S. market.launches.

The Cardiovascular franchise, which includes sales from Shockwave Medical (Shockwave) acquired on May 31, 2024,franchise achieved sales of $7.7$8.9 billion in 2024,2025, representing an increase of 21.4%15.8% from 2023.2024. Electrophysiology growth was driven by global procedure growth, new product performance and commercial execution. This was partially offset by the impacts of volume-based procurement in China and competitive pressures in Pulsed Field Ablation catheters in the U.S.catheters. Abiomed sales reflect the strengthcontinued of all major commercialized regions driven by the continuedstrong adoption of Impella 5.5 and Impella RP.CP. Shockwave sales growth was driven by Coronary and Peripheral portfolios and new product launches.

The Vision franchise achieved sales of $5.1$5.5 billion in 2024,2025, representing an increase of 1.5%6.3% from 2023.2024. Contact Lenses/Other growth was primarily driven by pricemarket actions,growth, continued strong performance in the ACUVUE OASYS 1-Day family of products (including recent launches), impacts from a one-time change in contract shipping terms in the U.S. and lappingstrategic ofprice prior year impacts of Russian sanctions partially offset by U.S. distributor stocking dynamics.actions. Surgical growth was primarily driven by the continued strength of recent innovationsproduct innovations, robust demand and commercial execution partially offset by China volume-based procurement and competitive pressures in the U.S.execution.

Cost of products sold decreasedincreased as a percent to sales driven by:

•PriorTariffs, yearunfavorable restructuringtransactional relatedcurrency excessand inventorymacroeconomic costsfactors in the MedTech business

•TheNon-recurring, acquisition related fair value Inventory step-up of $0.1 billion in 2025 versus $0.4 billion in 2024 related to the business combination accounting associated with the Shockwave acquisition in the MedTech business

The intangible asset amortization expense included in cost of products sold was $4.6 billion in fiscal 2025 and $4.5 billion for bothin fiscal years 2024 and 2023.2024.

Selling, Marketing and Administrative Expenses increaseddecreased as a percent to sales driven by:

•IncreasedPlanned commercial investmentleverage in the Innovative Medicine business

Research and Development increaseddecreased as a percent to sales primarily driven by:

•Acquired in-process research & development expense of $1.25 billion to secure the global rights to the NM26 bispecific antibody (Yellow Jersey acquisition) and pipeline advancement in the Innovative Medicine business in 2024

•Acquired in-process research & development expense of $0.5 billion from the V-Wave acquisition and a Laminar milestone of $0.3 billion in the MedTech business in 2024

In-Process Research and Development Impairments (IPR&D): In the fiscal year 2025, the Company recorded a charge of approximately $0.1 billion primarily related to a non-strategic asset acquired with Abiomed in 2022. In the fiscal year 2024, the Company recorded a charge of approximately $0.2 billion primarily associated with the M710 (biosimilar) asset acquired as part of the acquisition of Momenta Pharmaceuticals in 2020. There was also a partial impairment of this asset for $0.2 billion in the fiscal 2023. This asset is now fully impaired.

Other (income) expense, net for the fiscal year 20242025 reflected lessan expenseincrease in income of $1.9$11.9 billion as compared to the prior year primarily due to the following:

For the fiscal firstsix quartermonths of 2026, worldwide sales were $24.1$49.4 billion, a total increase of 9.9%,8.2%, whichincluding includedan operational* growthincrease of 6.4% and a positive currency impact of 3.5%6.0% as compared to 2025 fiscal firstsix quartermonths sales of $21.9$45.6 billion. Currency fluctuations had a positive impact of 2.2% for the fiscal six months of 2026. In the fiscal firstsix quartermonths of 2026, the net impact of acquisitions and divestitures had net positive impact of 0.5%, on worldwide operational sales growth was a positive 1.1%,growth, primarily related to CAPLYTA. In the fiscal firstsix quartermonths of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition, on worldwide operational sales was approximately 5.4%.5.0%.

Sales by U.S. companies were $13.3$27.9 billion in the fiscal firstsix quartermonths of 2026, which represented an increase of 8.3%7.8% as compared to the prior year. In the fiscal firstsix quartermonths of 2026, the net impact of acquisitions and divestitures had net positive impact of 0.9% on U.S. operational sales growthgrowth, wasprimarily arelated positiveto 2.1%.CAPLYTA. In the fiscal firstsix quartermonths of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition on U.S. operational sales was approximately 7.5%.7.0%. Sales by international companies were $10.7$21.5 billion, awhich totalrepresented an increase of 11.9%,8.7%, whichincluding includedan operational growthincrease of 3.9%3.6%, and a positive currency impact of 8.0%.5.1% as compared to the fiscal six months sales of 2025. In the fiscal firstsix quartermonths of 2026, the net impact of acquisitions and divestitures on international operational sales growth was a negative 0.1%. In the fiscal firstsix quartermonths of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition, on international operational sales was approximately 3.0%.2.5%.

In the fiscal firstsix quartermonths of 2026, sales by companies in Europe achieved growth of 14.5%,10.3%, which included an operational growthincrease of 2.7%3.0% and a positive currency impact of 11.8%.7.3%. Sales by companies in the Western Hemisphere, excluding the U.S., achieved growth of 10.8%,9.6%, which included an operational growthincrease of 2.5%2.6% and a positive currency impact of 8.3%.7.0%. Sales by companies in the Asia-Pacific, Africa region achieved growth of 8.5%,6.0%, which includedincluding operational growth of 6.1%4.9% and a positive currency impact of 2.4%.1.1%.

Innovative Medicine segment sales in the fiscal firstsix quartermonths of 2026 were $15.4$31.8 billion, an increase of 11.2%9.4% as compared to the same period a year ago, includingwith an operational increase of 7.4%7.1% and a positive currency impact of 3.8%.2.3%. U.S. Innovative Medicine sales increased 9.6%9.3% as compared to the same period a year ago. International Innovative Medicine sales increased by 13.4%,9.6%, including an operational increase of 4.3%3.9% and a positive currency impact of 9.1%.5.7%. In the fiscal firstsix quartermonths of 2026, the net impact of acquisitions and divestitures on the worldwide Innovative Medicine segment operational sales growth was a positive 1.8%,0.9%, primarily related to CAPLYTA. In the fiscal firstsix quartermonths of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition, was an approximate 9.2%,8.4%, 12.0%11.1% and 5.3%4.5% on worldwide, U.S. and international Innovative Medicine segment operational sales, respectively.

Major Innovative Medicine therapeutic area sales — Fiscal FirstSix QuarterMonths Ended

Oncology products achieved operational sales growth of 17.8%16.1% as compared to the same period a year ago. Contributors to the growth were: DARZALEX (daratumumab) driven by strong share gains and market growth partially offset by inventory dynamics,growth, CARVYKTI (ciltacabtagene autoleucel) driven by continued share gains and site expansion, TECVAYLI (teclistamab-cqyv) driven by launch uptake and share gains from expansion in the community setting and recent U.S. TECVAYLI + DARZALEX FASPRO approval,approval and expansion in the community setting, TALVEY (talquetamab-tgvs) driven by share gains from expansion in the community setting, RYBREVANT (amivantamab)/LAZCLUZE (lazertinib) driven by launch uptake and share gains and ERLEADA (apalutamide) due to continued share gains and market growth.growth partially offset by unfavorable patient mix and inventory dynamics. Growth was partially offset by a decline in IMBRUVICA (ibrutinib) sales due to share loss due tofrom competitive pressures and unfavorable patient mix.

Immunology products experienced an operational decline of 11.8%4.6% as compared to the same period a year ago due to the sales decline of STELARA (ustekinumab) driven by the impact of biosimilar competition, increasing adoption of novel classes and unfavorable patient mix as well as declines of SIMPONI/SIMPONI ARIA (golimumab) and REMICADE (infliximab) driven by share loss, biosimilar competition, and unfavorable patient mix partially offset by market growth. The decline was partially offset by growth of TREMFYA (guselkumab) due to share gains across all indications with significant IBD launch momentum and market growth.growth as well as growth in Other Immunology driven by sales of IMAAVY (nipocalimab) and ICOTYDE (icotrokinra) in the U.S.

Neuroscience products, which include sales of CAPLYTA (lumateperone) acquired with the Intra-Cellular Therapies (Intra-Cellular) acquisition on April 2, 2025,products achieved operational growth of 29.3%13.4% as compared to the same period a year ago. GrowthThe sales growth of SPRAVATO (esketamine) was driven by continued increased physician and patient demand. Growth of CAPLYTA (lumateperone) was driven by strong continued momentum in the adjunctive treatment of Major Depressive Disorder (aMDD) launch. Growth of INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA was primarily driven by favorable patient mix.mix partially offset by share loss and inventory dynamics.

Pulmonary Hypertension products achieved operational sales growth of 8.7%2.2% as compared to the same period a year ago. The sales growth of UPTRAVI (selexipag) was driven by market and share growth partially offset by inventoryunfavorable dynamics.patient mix. The sales growth of OPSUMIT (macitentan)/OPSYNVI (macitentan/tadalafil) was driven by share gains,gains and market growth andpartially favorableoffset patientby mix.the TheU.S. Companyinventory expectsburn related to expected generic competition. Generic competition for OPSUMIT inentered the U.S. market late in the second halfquarter of 2026, which wouldwill likely result in a reduction in future sales.

Infectious disease products achievedexperienced an operational sales growthdecline of 4.1%6.3% as compared to the same period a year ago. The sales growthdecrease of PREZISTA/ PREZCOBIX/ REZOLSTA/ SYMTUZA was driven by declines in share and market partially offset by favorable patient mix.

Cardiovascular / Metabolism / Other products experienced aan operational sales decline of 14.7%4.7% as compared to the same period a year ago. The sales decline ofwas partially offset by an increase in XARELTO (rivaroxaban) wassales primarily driven by favorable patient mix partially offset by continued share erosion.

The MedTech segment sales in the fiscal firstsix quartermonths of 2026 were $8.6$17.6 billion, an increase of 7.7%6.0% as compared to the same period a year ago, whichwith includedan operational growthincrease of 4.6%4.1% and a positive currency impact of 3.1%.1.9%. U.S. MedTech sales increased by 5.9%.4.8%. International MedTech sales increased by 9.7%,7.3%, including an operational growthincrease of 3.2% and a positive currency impact of 6.5%.4.1%. In the fiscal firstsix quartermonths of 2026, the net impact of acquisitions and divestitures on the MedTech segment operational sales growth was a negative 0.1%.

Major MedTech franchise sales — Fiscal FirstSix QuarterMonths Ended

The Cardiovascular franchise achieved operational sales growth of 10.5%3.1% as compared to the prior year fiscal firstsecond quarter. Electrophysiology sales growth was driven by procedure growth, commercial execution,execution and new product performance (VARIPULSE, TRUPULSE, NUVISION and CRYSTAL) and inventory dynamics outside the U.S. partially offset by competitive pressures in Pulsed Field Ablation catheters.catheters and China inventory dynamics. Abiomed sales growthdecline was driven by thelower U.S. procedure volumes partially offset by continued stronggrowth outside the U.S. including sustained adoption of Impella 5.5 and Impella CP.5.5. Shockwave sales growth was driven by strong adoption of Coronary and Peripheral portfolios and new product launches.

The Surgery franchise achieved operational sales growth of 1.2%2.3% as compared to the prior year fiscal firstsecond quarter. The operational growth in Advanced Surgery was primarily due to the strength of the portfolio and commercial execution in Biosurgery and new product launches in Energy. This was partially offset by China volume-based procurement across all platformsplatforms, the impact of the surgery transformation program in Biosurgery and Energy and competitive pressures in Endocutters. The operational growth in General Surgery was primarily driven by technology penetration and upgrades within the differentiated Wound Closure portfolio coupled with market expansion partially offset by timingChina ofvolume-based tenders outside the U.S.procurement.

The Vision franchise achieved operational sales growth of 3.6%5.6% as compared to the prior year fiscal firstsecond quarter. The Contact Lenses/Other operational growth was driven by strong performance in the ACUVUE OASYS 1-Day family of products including recent launches and strategic price actions partially offset by inventory dynamics outside the U.S.dynamics. The Surgical operational growth was primarily driven by the strength of recent product innovations, robust demand and strong commercial execution partially offset by competitive pressures in the U.S.

The Orthopaedics franchise achieved operational sales growth of 3.2%4.2% as compared to the prior year fiscal firstsecond quarter. The operational growth in Hips was due to new product launches. The operational growth in Knees was driven by the strength of the ATTUNE portfolio anddriven in part by pull through related to the VELYS Robotic assisted solutions. The operational growth in Trauma was primarily driven by recently launched products. The operational growth in Spine, Sports & Other was driven by new product innovations andas well as growth in shoulders partially offset by competitive pressures and inventory dynamics.

Consolidated earnings before provision for taxes on income for the fiscal firstsix quartermonths of 2026 was $6.0$12.7 billion representing 24.9%25.8% of sales as compared to $13.6$20.1 billion in the fiscal firstsix months of 2025, representing 44.1% of sales. Consolidated earnings before provision for taxes on income for the fiscal second quarter of 2026 was $6.7 billion representing 26.7% of sales as compared to $6.5 billion in the fiscal second quarter of 2025, representing 62.3%27.3% of sales. The fiscal firstsix quartermonths of 2025 includes approximately $7.0 billion related to the talc reserve reversal.

Cost of products sold increaseddecreased slightly as a percent to sales primarily driven by:

•TariffsOperational drivers and otherfavorable operational driverscurrency in the Innovative Medicine and MedTech businessbusinesses

The intangible asset amortization expense included in cost of products sold for the fiscal firstsix quartersmonths of 2026 and 2025 was $1.2$2.5 billion and $1.1$2.4 billion, respectively.