Story perspectives

Johnson & Johnson Eyes Orthopedics Spin-Off After Weak Quarter

By Drooid · Oct 13, 2026, 10:27 PM UTC · How we work

Summary

Story summary

Johnson & Johnson is leaning toward spinning off its orthopedics unit after a weak medical-technology quarter.
Medical-technology sales rose 2.5% to $8.6 billion, missing the $8.71 billion analyst estimate.
Johnson & Johnson shares slipped about 4% in early trading following the earnings release.
The company raised its full-year sales target to $101.2 billion and earnings outlook to $11.10 per share.

History

Historical Context

Abbott’s pattern of carving out businesses began with the 2004 Hospira spin-off and culminated in the 2013 creation of AbbVie, valued at $30.5 billion. This precedent encouraged Johnson & Johnson to separate its orthopedics unit in 2024, aiming to sharpen focus and lift earnings margin by up to 3 percent, echoing earlier moves such as Abbott’s 2001 $6.9 billion Knoll acquisition.

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Story summary

Johnson & Johnson is leaning toward spinning off its orthopedics unit after a weak medical-technology quarter.
Medical-technology sales rose 2.5% to $8.6 billion, missing the $8.71 billion analyst estimate.
Johnson & Johnson shares slipped about 4% in early trading following the earnings release.
The company raised its full-year sales target to $101.2 billion and earnings outlook to $11.10 per share.

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