Johnson & Johnson Reports Q2 2025 Results; Raises 2025 Outlook
Overall financial results
1
Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2
Excludes the impact of translational currency
3
Excludes the net impact of acquisitions and divestitures and translational currency
4
Excludes intangible amortization expense and special items
5
Excludes COVID-19 Vaccine
6
Non-GAAP measure; defined as cash flow from operating activities, less additions to property, plant and equipment. Cash flow from operations, the most directly comparable GAAP financial measure, will be included in subsequent SEC filings.
7
Second-quarter YTD 2025 is estimated as of July 16, 2025
Note: values may have been rounded
Expand
Regional sales results
1
Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2
Excludes the impact of translational currency
3
Excludes the net impact of acquisitions and divestitures and translational currency
Note: values may have been rounded
Expand
Segment sales results
1
Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2
Excludes the impact of translational currency
3
Excludes the net impact of acquisitions and divestitures and translational currency
Note: values may have been rounded
Expand
Second-Quarter 2025 segment commentary:
Operational sales* reflected below excludes the impact of translational currency.
Innovative Medicine
Innovative Medicine worldwide operational sales grew 3.8%*, with net acquisitions and divestitures positively impacting growth by 1.4%. Growth was primarily driven by DARZALEX, CARVYKTI, ERLEADA and RYBREVANT/LAZCLUZE in Oncology, TREMFYA and SIMPONI/SIMPONI ARIA in Immunology, and SPRAVATO in Neuroscience. Growth was partially offset by an approximate (1,170) basis points impact from STELARA in Immunology, and an approximate (130) basis points impact from COVID-19 in Infectious Diseases.
MedTech
MedTech worldwide operational sales grew 6.1%*, with net acquisitions and divestitures positively impacting growth by 2.0%. Growth was primarily driven by electrophysiology products and Abiomed in Cardiovascular, as well as wound closure products in General Surgery.
Full-year 2025 guidance:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses, and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.
1
Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures
2
Non-GAAP financial measure; excludes the impact of translational currency
3
Calculated using Euro Average Rate: July 2025 = $1.13 and April 2025 = $1.10 (Illustrative purposes only)
4
Non-GAAP financial measure; excludes intangible amortization expense and special items
5
Excludes COVID-19 Vaccine
Note: percentages may have been rounded
Expand
Other modeling considerations will be provided on the webcast
Notable announcements in the quarter:
The information contained in this section should be read together with Johnson & Johnson's other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investor Relations section of the company's website at News Releases, as well as Innovative Medicine News Center, MedTech News & Events, and www.factsabouttalc.com.
Webcast information:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investor Relations section of the company's website at events-and-presentations.
About Johnson & Johnson:
At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at www.jnj.com.
Non-GAAP financial measures:
* 'Operational sales growth' excluding the impact of translational currency, 'adjusted operational sales growth' excluding the net impact of acquisitions and divestitures and translational currency, as well as 'adjusted net earnings', 'adjusted diluted earnings per share' and 'adjusted operational diluted earnings per share' excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at quarterly results.
Copies of the financial schedules accompanying this earnings release are available on the company's website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, an Innovative Medicine pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can also be found in the Investor Relations section of the company's website at quarterly results.
Note to investors concerning forward-looking statements:
This press release contains 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations or changes to applicable laws and regulations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; and increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's most recent Annual Report on Form 10-K, including in the sections captioned 'Cautionary Note Regarding Forward-Looking Statements' and 'Item 1A. Risk Factors,' and in Johnson & Johnson's subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com, investor.jnj.com, or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) SECOND QUARTER
Sales to customers by
geographic area
U.S.
$
13,544
12,569
7.8
%
7.8
-
$
25,849
24,189
6.9
%
6.9
-
Europe
5,387
5,214
3.3
(1.9
)
5.2
10,497
10,377
1.1
0.2
0.9
Western Hemisphere excluding U.S.
1,206
1,212
(0.5
)
6.2
(6.7
)
2,373
2,406
(1.3
)
7.7
(9.0
)
Asia-Pacific, Africa
3,606
3,452
4.4
2.4
2.0
6,917
6,858
0.9
0.9
0.0
International
10,199
9,878
3.2
0.6
2.6
19,787
19,641
0.7
1.4
(0.7
)
Worldwide
$
23,743
22,447
5.8
%
4.6
1.2
$
45,636
43,830
4.1
%
4.4
(0.3
)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
Expand
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures) SIX MONTHS
2025
2024
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$
45,636
100.0
$
43,830
100.0
4.1
Cost of products sold
14,985
32.8
13,380
30.5
12.0
Gross Profit
30,651
67.2
30,450
69.5
0.7
Selling, marketing and administrative expenses
11,001
24.1
10,938
25.0
0.6
Research and development expense
6,741
14.8
6,982
16.0
(3.5
)
In-process research and development impairments
-
-
194
0.4
Interest (income) expense, net
(80
)
(0.2
)
(334
)
(0.8
)
Other (income) expense, net
(7,214
)
(15.8
)
3,057
7.0
Restructuring
81
0.2
151
0.3
Earnings before provision for taxes on income
20,122
44.1
9,462
21.6
112.7
Provision for taxes on income
3,586
7.9
1,521
3.5
135.8
Net earnings
$
16,536
36.2
$
7,941
18.1
108.2
Net earnings per share (Diluted)
$
6.82
$
3.27
108.6
Average shares outstanding (Diluted)
2,423.3
2,428.5
Effective tax rate
17.8
%
16.1
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$
16,199
35.5
$
16,281
37.1
(0.5
)
Net earnings
$
13,405
29.4
$
13,420
30.6
(0.1
)
Net earnings per share (Diluted)
$
5.53
$
5.53
0.0
Effective tax rate
17.2
%
17.6
%
(1) See Reconciliation of Non-GAAP Financial Measures.
Expand
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Second Quarter Six Months Ended
(Dollars in Millions Except Per Share Data)
2025
2024
2025
2024
Net Earnings, after tax- as reported
$5,537
$4,686
$16,536
$7,941
Pre-tax Adjustments
Litigation related
57
352
(6,909)
3,078
Intangible Asset Amortization expense
1,267
1,106
2,387
2,184
COVID-19 Vaccine related costs
-
64
-
73
Restructuring related 1
79
(11)
134
160
Medical Device Regulation
-
68
-
119
Acquisition, integration and divestiture related
246
452
378
600
(Gains)/losses on securities
21
431
60
411
IPR&D impairments
-
194
-
194
Other
27
-
27
-
Tax Adjustments
Tax impact on special item adjustments 2
(321)
(437)
994
(1,293)
Tax legislation and other tax related
(214)
(65)
(202)
(47)
Adjusted Net Earnings , after tax
$6,699
$6,840
$13,405
$13,420
Average shares outstanding (Diluted)
2,419.1
2,422.0
2,423.3
2,428.5
Adjusted net earnings per share (Diluted)
$2.77
$2.82
$5.53
$5.53
Operational adjusted net earnings per share (Diluted)
$2.71
$5.52
Notes:
1
In fiscal 2023, the company completed a prioritization of its research and development (R&D) investment within the Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits were primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring income of $63 million in the fiscal second quarter of 2024 ($81 million expense Q2 2024 YTD) included asset divestments and the termination of partnered and non-partnered program costs and asset impairments. This program was completed in Q4 2024.
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 restructuring expenses of $50 million in the fiscal second quarter of 2025 ($105 million Q2 2025 YTD) and $52 million in the fiscal second quarter of 2024 ($79 million Q2 2024 YTD) includes costs related to market and product exits.
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. Restructuring expenses of $29 million were recorded in the fiscal second quarter of 2025.
2
The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.
Expand
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
% Change
% Change
ONCOLOGY
US
$
3,385
2,636
28.4
%
28.4
%
-
$
6,398
5,019
27.5
%
27.5
%
-
Intl
2,928
2,455
19.3
%
15.7
%
3.6
%
5,592
4,885
14.5
%
15.1
%
-0.6
%
WW
6,312
5,090
24.0
%
22.3
%
1.7
%
11,990
9,904
21.1
%
21.3
%
-0.2
%
CARVYKTI
US
358
167
*
*
-
676
307
*
*
-
Intl
81
20
*
*
*
132
36
*
*
*
WW
439
186
*
*
*
808
343
*
*
*
DARZALEX
US
2,017
1,641
23.0
%
23.0
%
-
3,846
3,105
23.9
%
23.9
%
-
Intl
1,521
1,237
23.0
%
19.6
%
3.4
%
2,930
2,465
18.9
%
19.7
%
-0.8
%
WW
3,539
2,878
23.0
%
21.5
%
1.5
%
6,776
5,570
21.7
%
22.0
%
-0.3
%
ERLEADA
US
378
318
18.6
%
18.6
%
-
670
603
11.0
%
11.0
%
-
Intl
530
418
27.0
%
22.8
%
4.2
%
1,009
822
22.9
%
23.0
%
-0.1
%
WW
908
736
23.4
%
21.0
%
2.4
%
1,679
1,425
17.8
%
17.9
%
-0.1
%
IMBRUVICA
US
239
246
-2.7
%
-2.7
%
-
474
511
-7.3
%
-7.3
%
-
Intl
496
525
-5.4
%
-8.4
%
3.0
%
970
1,043
-6.9
%
-6.3
%
-0.6
%
WW
735
770
-4.5
%
-6.6
%
2.1
%
1,444
1,554
-7.0
%
-6.6
%
-0.4
%
RYBREVANT / LAZCLUZE (3)
US
139
52
*
*
-
252
88
*
*
-
Intl
41
17
*
*
*
69
28
*
*
*
WW
179
69
*
*
*
320
116
*
*
*
TALVEY
US
82
59
38.0
%
38.0
%
-
150
109
36.7
%
36.7
%
-
Intl
24
9
*
*
*
42
17
*
*
*
WW
106
69
55.0
%
54.3
%
0.7
%
192
127
52.0
%
52.4
%
-0.4
%
TECVAYLI
US
114
104
8.2
%
8.2
%
-
219
205
6.6
%
6.6
%
-
Intl
52
30
74.8
%
72.0
%
2.8
%
98
63
56.0
%
58.4
%
-2.4
%
WW
166
135
23.1
%
22.4
%
0.7
%
317
268
18.2
%
18.7
%
-0.5
%
ZYTIGA / abiraterone acetate
US
6
11
-38.9
%
-38.9
%
-
13
20
-31.9
%
-31.9
%
-
Intl
139
154
-9.8
%
-13.3
%
3.5
%
257
326
-21.1
%
-21.3
%
0.2
%
WW
145
165
-11.6
%
-14.9
%
3.3
%
270
346
-21.7
%
-21.9
%
0.2
%
OTHER ONCOLOGY
US
50
37
36.9
%
36.9
%
-
97
70
39.8
%
39.8
%
-
Intl
42
45
-8.7
%
-12.3
%
3.6
%
84
86
-2.5
%
-1.8
%
-0.7
%
WW
93
83
11.7
%
9.7
%
2.0
%
182
156
16.4
%
16.8
%
-0.4
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
SECOND QUARTER
SIX MONTHS
% Change
% Change
IMMUNOLOGY
US
$
2,505
2,978
-15.9
%
-15.9
%
-
$
4,701
5,431
-13.4
%
-13.4
%
-
Intl
1,489
1,744
-14.6
%
-16.2
%
1.6
%
2,999
3,538
-15.2
%
-13.8
%
-1.4
%
WW
3,993
4,722
-15.4
%
-16.0
%
0.6
%
7,700
8,969
-14.1
%
-13.6
%
-0.5
%
REMICADE
US
283
231
22.5
%
22.5
%
-
597
497
20.1
%
20.1
%
-
US Exports (4)
34
35
-2.6
%
-2.6
%
-
44
62
-28.7
%
-28.7
%
-
Intl
138
127
8.6
%
8.8
%
-0.2
%
281
268
4.8
%
7.7
%
-2.9
%
WW
455
393
15.9
%
15.9
%
0.0
%
922
827
11.5
%
12.4
%
-0.9
%
SIMPONI / SIMPONI ARIA
US
305
267
14.0
%
14.0
%
-
597
521
14.4
%
14.4
%
-
Intl
387
270
43.1
%
40.8
%
2.3
%
753
569
32.2
%
35.0
%
-2.8
%
WW
690
537
28.6
%
27.5
%
1.1
%
1,349
1,091
23.7
%
25.1
%
-1.4
%
STELARA
US
1,078
1,855
-41.9
%
-41.9
%
-
2,059
3,251
-36.7
%
-36.7
%
-
Intl
575
1,030
-44.2
%
-45.6
%
1.4
%
1,219
2,085
-41.5
%
-40.6
%
-0.9
%
WW
1,653
2,885
-42.7
%
-43.2
%
0.5
%
3,278
5,336
-38.6
%
-38.2
%
-0.4
%
TREMFYA
US
796
589
35.2
%
35.2
%
-
1,395
1,098
27.1
%
27.1
%
-
Intl
391
317
23.2
%
20.5
%
2.7
%
747
616
21.2
%
22.4
%
-1.2
%
WW
1,186
906
31.0
%
30.1
%
0.9
%
2,142
1,714
25.0
%
25.4
%
-0.4
%
OTHER IMMUNOLOGY
US
8
2
*
*
-
9
2
*
*
-
Intl
0
0
-
-
-
0
0
-
-
-
WW
8
2
*
*
-
9
2
*
*
-
NEUROSCIENCE
US
1,377
1,102
24.9
%
24.9
%
-
2,345
2,156
8.7
%
8.7
%
-
Intl
674
679
-0.8
%
-2.6
%
1.8
%
1,353
1,428
-5.2
%
-4.1
%
-1.1
%
WW
2,051
1,782
15.1
%
14.4
%
0.7
%
3,698
3,585
3.2
%
3.6
%
-0.4
%
CAPLYTA (5)
US
211
-
*
*
-
211
-
*
*
-
Intl
-
-
-
-
-
-
-
-
-
-
WW
211
-
*
*
-
211
-
*
*
-
CONCERTA / Methylphenidate
US
24
34
-27.7
%
-27.7
%
-
62
75
-16.6
%
-16.6
%
-
Intl
139
129
7.5
%
7.0
%
0.5
%
249
265
-6.0
%
-4.4
%
-1.6
%
WW
164
163
0.2
%
-0.2
%
0.4
%
312
340
-8.3
%
-7.1
%
-1.2
%
INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA / TREVICTA
US
732
784
-6.7
%
-6.7
%
-
1,357
1,549
-12.4
%
-12.4
%
-
Intl
260
269
-3.5
%
-5.1
%
1.6
%
537
561
-4.2
%
-3.1
%
-1.1
%
WW
992
1,054
-5.9
%
-6.3
%
0.4
%
1,895
2,110
-10.2
%
-9.9
%
-0.3
%
SPRAVATO
US
366
226
61.1
%
61.1
%
-
642
417
53.7
%
53.7
%
-
Intl
50
44
12.8
%
11.0
%
1.8
%
93
78
18.1
%
20.1
%
-2.0
%
WW
414
271
53.3
%
53.0
%
0.3
%
734
496
48.1
%
48.4
%
-0.3
%
OTHER NEUROSCIENCE
US
45
57
-23.5
%
-23.5
%
-
73
115
-37.0
%
-37.0
%
-
Intl
226
237
-4.7
%
-7.6
%
2.9
%
474
524
-9.5
%
-8.8
%
-0.7
%
WW
270
294
-8.4
%
-10.7
%
2.3
%
547
639
-14.4
%
-13.9
%
-0.5
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
SECOND QUARTER
SIX MONTHS
% Change
% Change
PULMONARY HYPERTENSION
US
$
799
743
7.6
%
7.6
%
-
$
1,543
1,509
2.3
%
2.3
%
-
Intl
314
296
5.8
%
2.8
%
3.0
%
595
579
2.6
%
3.0
%
-0.4
%
WW
1,113
1,039
7.1
%
6.2
%
0.9
%
2,138
2,088
2.4
%
2.5
%
-0.1
%
OPSUMIT / OPSYNVI
US
403
376
6.9
%
6.9
%
-
766
732
4.6
%
4.6
%
-
Intl
180
171
5.4
%
2.1
%
3.3
%
339
340
-0.3
%
-0.2
%
-0.1
%
WW
582
548
6.4
%
5.4
%
1.0
%
1,104
1,072
3.0
%
3.1
%
-0.1
%
UPTRAVI
US
382
349
9.4
%
9.4
%
-
747
741
0.8
%
0.8
%
-
Intl
94
76
22.4
%
19.8
%
2.6
%
180
152
17.9
%
18.7
%
-0.8
%
WW
476
426
11.7
%
11.3
%
0.4
%
927
894
3.7
%
3.8
%
-0.1
%
OTHER PULMONARY HYPERTENSION
US
16
17
-12.4
%
-12.4
%
-
31
35
-12.6
%
-12.6
%
-
Intl
40
49
-18.5
%
-21.3
%
2.8
%
77
88
-12.4
%
-12.1
%
-0.3
%
WW
55
67
-16.9
%
-19.0
%
2.1
%
107
123
-12.5
%
-12.3
%
-0.2
%
INFECTIOUS DISEASES
US
320
334
-4.3
%
-4.3
%
-
635
658
-3.6
%
-3.6
%
-
Intl
484
631
-23.4
%
-26.8
%
3.4
%
971
1,128
-13.9
%
-14.1
%
0.2
%
WW
803
965
-16.8
%
-19.0
%
2.2
%
1,605
1,786
-10.1
%
-10.2
%
0.1
%
EDURANT / rilpivirine
US
6
8
-25.4
%
-25.4
%
-
14
16
-13.6
%
-13.6
%
-
Intl
354
288
23.0
%
16.7
%
6.3
%
704
603
16.7
%
15.6
%
1.1
%
WW
360
297
21.6
%
15.5
%
6.1
%
718
620
15.9
%
14.9
%
1.0
%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US
312
321
-3.0
%
-3.0
%
-
617
635
-2.9
%
-2.9
%
-
Intl
85
117
-27.0
%
-29.4
%
2.4
%
183
221
-17.2
%
-15.8
%
-1.4
%
WW
396
438
-9.4
%
-10.0
%
0.6
%
799
856
-6.6
%
-6.3
%
-0.3
%
OTHER INFECTIOUS DISEASES
US
2
5
-51.8
%
-51.8
%
-
4
7
-37.4
%
-37.4
%
-
Intl
45
227
-80.5
%
-80.6
%
0.1
%
84
304
-72.5
%
-72.1
%
-0.4
%
WW
47
233
-79.8
%
-79.9
%
0.1
%
88
311
-71.7
%
-71.3
%
-0.4
%
CARDIOVASCULAR / METABOLISM / OTHER
US
776
717
8.2
%
8.2
%
-
1,631
1,348
21.0
%
21.0
%
-
Intl
154
176
-12.3
%
-13.2
%
0.9
%
312
373
-16.2
%
-14.3
%
-1.9
%
WW
930
892
4.2
%
4.0
%
0.2
%
1,943
1,721
12.9
%
13.3
%
-0.4
%
XARELTO
US
621
587
5.6
%
5.6
%
-
1,311
1,105
18.6
%
18.6
%
-
Intl
-
-
-
-
-
-
-
-
-
-
WW
621
587
5.6
%
5.6
%
-
1,311
1,105
18.6
%
18.6
%
-
OTHER
US
155
129
20.0
%
20.0
%
-
320
243
31.6
%
31.6
%
-
Intl
154
176
-12.3
%
-13.2
%
0.9
%
312
373
-16.2
%
-14.3
%
-1.9
%
WW
309
305
1.4
%
0.9
%
0.5
%
632
616
2.7
%
3.9
%
-1.2
%
TOTAL INNOVATIVE MEDICINE
US
9,161
8,510
7.6
%
7.6
%
-
17,253
16,122
7.0
%
7.0
%
-
Intl
6,041
5,980
1.0
%
-1.6
%
2.6
%
11,822
11,930
-0.9
%
-0.1
%
-0.8
%
WW
$
15,202
14,490
4.9
%
3.8
%
1.1
%
$
29,075
28,052
3.6
%
4.0
%
-0.4
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
SECOND QUARTER
SIX MONTHS
% Change
% Change
CARDIOVASCULAR
US
$
1,364
1,119
21.9
%
21.9
%
-
$
2,625
2,144
22.4
%
22.4
%
-
Intl
948
753
25.9
%
22.9
%
3.0
%
1,790
1,534
16.7
%
16.7
%
0.0
%
WW
2,313
1,873
23.5
%
22.3
%
1.2
%
4,416
3,679
20.0
%
20.0
%
0.0
%
ELECTROPHYSIOLOGY
US
741
705
5.1
%
5.1
%
-
1,425
1,397
2.0
%
2.0
%
-
Intl
728
618
17.8
%
15.2
%
2.6
%
1,366
1,270
7.6
%
7.8
%
-0.2
%
WW
1,468
1,323
11.0
%
9.8
%
1.2
%
2,791
2,667
4.7
%
4.7
%
0.0
%
ABIOMED
US
360
309
16.6
%
16.6
%
-
699
612
14.2
%
14.2
%
-
Intl
89
72
25.0
%
18.4
%
6.6
%
170
139
22.4
%
20.9
%
1.5
%
WW
448
379
18.2
%
16.9
%
1.3
%
868
750
15.7
%
15.5
%
0.2
%
SHOCKWAVE (6)
US
233
77
*
*
-
439
77
*
*
-
Intl
58
0
*
*
*
110
0
*
*
*
WW
292
77
*
*
*
550
77
*
*
-
OTHER CARDIOVASCULAR
US
31
29
5.4
%
5.4
%
-
63
59
6.3
%
6.3
%
-
Intl
72
64
13.4
%
11.6
%
1.8
%
144
126
14.2
%
14.5
%
-0.3
%
WW
104
93
10.8
%
9.7
%
1.1
%
207
185
11.7
%
11.8
%
-0.1
%
ORTHOPAEDICS
US
1,420
1,422
-0.2
%
-0.2
%
-
2,804
2,870
-2.3
%
-2.3
%
-
Intl
885
890
-0.5
%
-4.0
%
3.5
%
1,742
1,782
-2.2
%
-2.4
%
0.2
%
WW
2,305
2,312
-0.3
%
-1.6
%
1.3
%
4,546
4,652
-2.3
%
-2.3
%
0.0
%
HIPS
US
271
265
2.1
%
2.1
%
-
534
535
-0.2
%
-0.2
%
-
Intl
150
152
-1.0
%
-4.3
%
3.3
%
296
304
-2.5
%
-2.6
%
0.1
%
WW
421
417
1.0
%
-0.2
%
1.2
%
830
839
-1.1
%
-1.1
%
0.0
%
KNEES
US
226
230
-1.9
%
-1.9
%
-
457
472
-3.1
%
-3.1
%
-
Intl
164
163
0.0
%
-2.9
%
2.9
%
322
323
-0.5
%
-0.4
%
-0.1
%
WW
389
394
-1.1
%
-2.3
%
1.2
%
778
795
-2.0
%
-2.0
%
0.0
%
TRAUMA
US
501
498
0.7
%
0.7
%
-
1,003
1,002
0.1
%
0.1
%
-
Intl
267
260
2.2
%
-1.5
%
3.7
%
537
521
2.9
%
2.8
%
0.1
%
WW
768
759
1.2
%
-0.1
%
1.3
%
1,540
1,524
1.1
%
1.0
%
0.1
%
SPINE, SPORTS & OTHER
US
422
430
-1.7
%
-1.7
%
-
810
862
-6.0
%
-6.0
%
-
Intl
305
314
-2.7
%
-6.4
%
3.7
%
588
634
-7.2
%
-7.7
%
0.5
%
WW
727
743
-2.1
%
-3.7
%
1.6
%
1,398
1,495
-6.5
%
-6.7
%
0.2
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
SECOND QUARTER
SIX MONTHS
% Change
% Change
SURGERY
US
$
1,043
995
4.8
%
4.8
%
-
$
2,045
1,982
3.2
%
3.2
%
-
Intl
1,512
1,493
1.3
%
-0.2
%
1.5
%
2,906
2,922
-0.5
%
0.3
%
-0.8
%
WW
2,555
2,488
2.7
%
1.8
%
0.9
%
4,951
4,904
1.0
%
1.5
%
-0.5
%
ADVANCED
US
477
466
2.2
%
2.2
%
-
934
912
2.4
%
2.4
%
-
Intl
687
675
1.9
%
0.2
%
1.7
%
1,303
1,316
-1.0
%
-0.4
%
-0.6
%
WW
1,164
1,141
2.0
%
1.0
%
1.0
%
2,237
2,228
0.4
%
0.8
%
-0.4
%
GENERAL
US
567
528
7.2
%
7.2
%
-
1,111
1,070
3.8
%
3.8
%
-
Intl
825
818
0.9
%
-0.6
%
1.5
%
1,603
1,606
-0.1
%
0.8
%
-0.9
%
WW
1,391
1,346
3.3
%
2.5
%
0.8
%
2,714
2,676
1.4
%
2.0
%
-0.6
%
VISION
US
557
523
6.5
%
6.5
%
-
1,123
1,070
4.9
%
4.9
%
-
Intl
813
763
6.5
%
3.4
%
3.1
%
1,526
1,473
3.6
%
3.7
%
-0.1
%
WW
1,369
1,285
6.5
%
4.6
%
1.9
%
2,648
2,543
4.1
%
4.2
%
-0.1
%
CONTACT LENSES / OTHER
US
429
409
4.8
%
4.8
%
-
881
847
3.9
%
3.9
%
-
Intl
536
509
5.4
%
1.4
%
4.0
%
1,003
981
2.3
%
1.9
%
0.4
%
WW
965
918
5.1
%
2.9
%
2.2
%
1,884
1,828
3.1
%
2.8
%
0.3
%
SURGICAL
US
128
113
12.6
%
12.6
%
-
242
223
8.5
%
8.5
%
-
Intl
277
254
8.8
%
7.3
%
1.5
%
523
492
6.2
%
7.2
%
-1.0
%
WW
403
367
9.9
%
8.9
%
1.0
%
764
715
6.9
%
7.6
%
-0.7
%
TOTAL MEDTECH
US
4,383
4,059
8.0
%
8.0
%
-
8,596
8,067
6.6
%
6.6
%
-
Intl
4,158
3,898
6.7
%
4.1
%
2.6
%
7,965
7,711
3.3
%
3.6
%
-0.3
%
WW
$
8,541
7,957
7.3
%
6.1
%
1.2
%
$
16,561
15,778
5.0
%
5.1
%
-0.1
%
Expand
Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Includes the sales of RYBREVANT and RYBREVANT + LAZCLUZE
(4) Reported as U.S. sales
(5) Acquired with Intra-Cellular Therapies on April 2, 2025
(6) Acquired on May 31, 2024
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Keysight Technologies Reports Third Quarter 2025 Results
Strong execution drives above guidance results, full-year outlook improved SANTA ROSA, Calif., August 19, 2025--(BUSINESS WIRE)--Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the third fiscal quarter ended July 31, 2025. "Keysight delivered strong results this quarter, exceeding the high end of our guidance for both revenue and earnings per share. We are executing our strategy and capitalizing on the opportunities in our end markets," said Satish Dhanasekaran, Keysight's President and CEO. "We are raising our outlook for the full year once again and continue to see solid demand and strong customer engagements." Third Quarter Financial Summary Revenue was $1.35 billion, compared with $1.22 billion in the third quarter of 2024. GAAP net income was $191 million, or $1.10 per share, compared with $389 million, or $2.22 per share, in the third quarter of 2024. Non-GAAP net income was $297 million, or $1.72 per share, compared with $275 million, or $1.57 per share in the third quarter of 2024. Cash flow from operations was $322 million, compared to $255 million last year. Free cash flow was $291 million, compared to $222 million in the third quarter of 2024. As of July 31, 2025, cash, cash equivalents, and restricted cash totaled $3.40 billion. Reporting Segments Communications Solutions Group (CSG) CSG reported revenue of $940 million in the third quarter, up 11 percent from the prior year, reflecting 13 percent growth in commercial communications and 8 percent growth in aerospace, defense, and government. Electronic Industrial Solutions Group (EISG) EISG reported revenue of $412 million in the third quarter, up 11 percent from the prior year, reflecting growth across semiconductor, general electronics and automotive and energy. Outlook Keysight's fourth fiscal quarter of 2025 revenue is expected to be in the range of $1.370 billion to $1.390 billion. Non-GAAP earnings per share for the fourth fiscal quarter of 2025 are expected to be in the range of $1.79 to $1.85, based on a weighted diluted share count of approximately 173 million shares. Fiscal year 2025 revenue growth is expected to be approximately 7 percent. At the midpoint of fourth quarter guidance, non-GAAP earnings per share growth for fiscal year 2025 is expected to be approximately 13 percent. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP has been provided. Further information is discussed in the section titled "Use of Non-GAAP Financial Measures" below. Webcast Keysight's management will present more details about its third quarter FY2025 financial results and its fourth quarter FY2025 outlook on a conference call with investors today at 1:30 p.m. PT. This event will be webcast in listen-only mode. Listeners may log on to the call at under the "Upcoming Events" section and select "Q3 FY25 Keysight Technologies Inc. Earnings Conference Call" to participate. The call can also be accessed by dialing 1-404-975-4839 or 1-833-470-1428 toll-free (access code 819411). The webcast will remain on the company site for 90 days. Forward-Looking Statements This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The words "assume," "expect," "intend," "will," "should," "outlook" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight's management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, predictions, future guidance, projections, beliefs, and expectations about the company's goals, revenues, financial condition, earnings, and operations that involve risks and uncertainties that could cause Keysight's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, impacts of global economic conditions such as inflation or recession, slowing demand for products or services, volatility in financial markets, reduced access to credit, increased interest rates, impacts of geopolitical tension and conflict outside of the U.S., export control regulations and compliance, net zero emissions commitments, customer purchasing decisions and timing, tariff and trade policy impacts and order cancellations. In addition to the risks above, other risks that Keysight faces include those detailed in Keysight's filings with the Securities and Exchange Commission on Keysight's annual report on Form 10-K for the period ended October 31, 2024 and Keysight's quarterly report on Form 10-Q for the period ended April 30, 2025. Segment Data Segment data reflect the results of our reportable segments under our management reporting system. Segment data are provided on page 5 of the attached tables. Use of Non-GAAP Financial Measures In addition to financial information prepared in accordance with U.S. GAAP ("GAAP"), this document also contains certain non-GAAP financial measures based on management's view of performance, including: Non-GAAP Net Income/Earnings Non-GAAP Net Income per share/Earnings per share Free Cash Flow Net Income per share is based on weighted average diluted share count. See the attached supplemental schedules for reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure for the three and nine months ended July 31, 2025. Following the reconciliations is a discussion of the items adjusted from our non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. About Keysight Technologies At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product lifecycle. We're a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and Source: IR-KEYS KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2025 2024 2025 2024 Orders $ 1,340 $ 1,249 $ 3,919 $ 3,688 Revenue $ 1,352 $ 1,217 $ 3,956 $ 3,692 Costs and expenses: Cost of products and services 518 462 1,488 1,361 Research and development 250 226 749 686 Selling, general and administrative 354 329 1,075 1,052 Other operating expense (income), net (4 ) (5 ) (15 ) (10 ) Total costs and expenses 1,118 1,012 3,297 3,089 Income from operations 234 205 659 603 Interest income 31 19 71 60 Interest expense (28 ) (21 ) (68 ) (61 ) Other income (expense), net 4 10 98 15 Income before taxes 241 213 760 617 Provision (benefit) for income taxes 50 (176 ) 143 (70 ) Net income $ 191 $ 389 $ 617 $ 687 Net income per share: Basic $ 1.11 $ 2.23 $ 3.58 $ 3.94 Diluted $ 1.10 $ 2.22 $ 3.56 $ 3.92 Weighted average shares used in computing net income per share: Basic 172 174 172 174 Diluted 173 175 173 175 Page 1 KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In millions, except par value and share data) (Unaudited) PRELIMINARY July 31, 2025 October 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 2,636 $ 1,796 Accounts receivable, net 692 857 Inventory 1,021 1,022 Other current assets 1,255 582 Total current assets 5,604 4,257 Property, plant and equipment, net 766 774 Operating lease right-of-use assets 224 234 Goodwill 2,429 2,388 Other intangible assets, net 524 607 Long-term investments 157 110 Long-term deferred tax assets 392 378 Other assets 555 521 Total assets $ 10,651 $ 9,269 LIABILITIES AND EQUITY Current liabilities: Accounts payable 342 313 Employee compensation and benefits 290 295 Deferred revenue 557 561 Income and other taxes payable 144 90 Operating lease liabilities 48 43 Other accrued liabilities 179 125 Total current liabilities 1,560 1,427 Long-term debt 2,533 1,790 Retirement and post-retirement benefits 84 81 Long-term deferred revenue 208 206 Long-term operating lease liabilities 183 197 Other long-term liabilities 413 463 Total liabilities 4,981 4,164 Stockholders' equity: Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding — — Common stock; $0.01 par value; 1 billion shares authorized; 202 million and 201 million shares issued, respectively 2 2 Treasury stock, at cost; 30.2 million shares and 28.4 million shares, respectively (3,698 ) (3,422 ) Additional paid-in-capital 2,819 2,664 Retained earnings 6,842 6,225 Accumulated other comprehensive loss (295 ) (364 ) Total stockholders' equity 5,670 5,105 Total liabilities and equity $ 10,651 $ 9,269 Page 2 KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Nine months ended July 31, 2025 2024 Cash flows from operating activities: Net income $ 617 $ 687 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 97 94 Amortization 104 108 Share-based compensation 129 111 Deferred tax expense (benefit) (58 ) (21 ) Excess and obsolete inventory-related charges 30 26 Unrealized loss (gain) on equity and other investments (39 ) (7 ) Other non-cash expenses (income), net 5 2 Changes in assets and liabilities, net of effects of businesses acquired: Accounts receivable 173 130 Inventory (21 ) (51 ) Accounts payable 29 (4 ) Employee compensation and benefits (8 ) (69 ) Deferred revenue (12 ) (35 ) Income taxes payable 42 (24 ) Income taxes receivable 78 (161 ) Other assets and liabilities 18 (93 ) Net cash provided by operating activities(a) 1,184 693 Cash flows from investing activities: Investments in property, plant and equipment (90 ) (116 ) Acquisitions of businesses and intangible assets, net of cash acquired (3 ) (673 ) Other investing activities (4 ) 8 Net cash used in investing activities (97 ) (781 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 63 65 Payment of taxes related to net share settlement of equity awards (38 ) (31 ) Proceeds from issuance of long-term debt 748 — Acquisition of non-controlling interests — (458 ) Treasury stock repurchases, including excise tax payments (278 ) (289 ) Debt issuance costs (8 ) (7 ) Repayment of debt — (24 ) Other financing activities — (9 ) Net cash provided by (used in) financing activities 487 (753 ) Effect of exchange rate movements 9 2 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,583 (839 ) Cash, cash equivalents, and restricted cash at beginning of period 1,814 2,488 Cash, cash equivalents, and restricted cash at end of period $ 3,397 $ 1,649 (a) Cash payments included in operating activities: Interest payments $ 39 $ 38 Income tax paid, net $ 74 $ 130 Page 3 KEYSIGHT TECHNOLOGIES, INC. NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2025 2024 2025 2024 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP Net income $ 191 $ 1.10 $ 389 $ 2.22 $ 617 $ 3.56 $ 687 $ 3.92 Non-GAAP adjustments: Amortization of acquisition-related balances 33 0.19 31 0.18 100 0.58 106 0.60 Share-based compensation 32 0.18 32 0.18 131 0.75 118 0.68 Acquisition and integration costs 46 0.27 16 0.09 70 0.40 56 0.32 Restructuring and others (6 ) (0.04 ) 6 0.03 (4 ) (0.02 ) 44 0.25 Adjustment for taxes(a) 1 0.02 (199 ) (1.13 ) (5 ) (0.03 ) (203 ) (1.16 ) Non-GAAP Net income $ 297 $ 1.72 $ 275 $ 1.57 $ 909 $ 5.24 $ 808 $ 4.61 Weighted average shares outstanding - diluted 173 175 173 175 (a) For the three and nine months ended July 31, 2025, management uses a non-GAAP effective tax rate of 14%. For the three and nine months ended July 31, 2024, management uses a non-GAAP effective tax rate of 8% and 14%, respectively. Please refer to the last page for details on the use of non-GAAP financial measures. Page 4 KEYSIGHT TECHNOLOGIES, INC. SEGMENT RESULTS INFORMATION (In millions, except where noted) (Unaudited) PRELIMINARY Communications Solutions Group Percent Q3'25 Q3'24 Inc/(Dec) Revenue $ 940 $ 847 11% Gross margin, % 67 % 67 % Income from operations $ 246 $ 223 Operating margin, % 26 % 26 % Electronic Industrial Solutions Group Percent Q3'25 Q3'24 Inc/(Dec) Revenue $ 412 $ 370 11% Gross margin, % 57 % 58 % Income from operations $ 92 $ 74 Operating margin, % 22 % 20 % Segment revenue and income from operations are consistent with the respective non-GAAP financial measures as discussed on last page. Page 5 KEYSIGHT TECHNOLOGIES, INC. FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2025 2024 2025 2024 Net cash provided by operating activities $ 322 $ 255 $ 1,184 $ 693 Less: Investments in property, plant and equipment (31 ) (33 ) (90 ) (116 ) Free cash flow $ 291 $ 222 $ 1,094 $ 577 Please refer to the last page for details on the use of non-GAAP financial measures. Page 6 KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q3'25 Q3'24 Inc/(Dec) Aerospace, Defense and Government $ 296 $ 275 8% Commercial Communications 644 572 13% Electronic Industrial 412 370 11% Total Revenue $ 1,352 $ 1,217 11% Page 7 Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results "through the eyes of management" in addition to seeing our GAAP results. This information enhances investors' understanding of the continuing performance of our business and facilitates comparison of performance to our historical and future periods. Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, including industry peer companies, limiting the usefulness of these measures for comparative purposes. These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The discussion below presents information about each of the non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. In future periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, adjustments for these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. Core Revenue/Margin excludes the impact of foreign currency changes and revenue/expenses associated with acquisitions or divestitures completed within the last twelve months. We exclude from the current period, the impact of foreign currency changes as currency rates can fluctuate based on factors that are not within our control and can obscure growth trends. As the nature, size and number of acquisitions can vary significantly from period to period and as compared to our peers, we also exclude revenue/expenses associated with recently acquired businesses to facilitate comparisons of growth and analysis of underlying business trends. Free cash flow includes cash provided by operating activities adjusted for net investments in property, plant & equipment. Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Diluted EPS may include the following types of adjustments: Acquisition-related Items: We exclude the impact of certain items recorded in connection with business combinations from our non-GAAP financial measures that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts and lack of predictability as to occurrence or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets and amortization of items associated with fair value purchase accounting adjustments. We also exclude other acquisition and integration costs associated with business acquisitions that are not normal recurring operating expenses, including gain/loss on foreign exchange contracts and legal, accounting and due diligence costs. We exclude these charges to facilitate a more meaningful evaluation of our current operating performance and comparisons to our past operating performance. Share-based Compensation Expense: We exclude share-based compensation expense from our non-GAAP financial measures because share-based compensation expense can vary significantly from period to period based on the company's share price, as well as the timing, size and nature of equity awards granted. Management believes the exclusion of this expense facilitates the ability of investors to compare the company's operating results with those of other companies, many of which also exclude share-based compensation expense in determining their non-GAAP financial measures. Restructuring and others: We exclude incremental expenses associated with restructuring initiatives including those of acquired entities, usually aimed at material changes in the business or cost structure. Such costs may include employee separation costs, asset impairments, facility-related costs, contract termination fees, and costs to move operations from one location to another. These activities can vary significantly from period to period based on the timing, size and nature of restructuring plans; therefore, we do not consider such costs to be normal, recurring operating also exclude "others," not normal, recurring, cash operating income/expenses from our non-GAAP financial measures. Such items are evaluated on an individual basis, based on both quantitative and qualitative factors and generally represent items that we do not anticipate occurring as part of our normal business. While not all-inclusive, examples of such items would include net unrealized gains on equity investments still held, significant non-recurring events like realized gains or losses associated with our employee benefit plans, costs and recoveries related to unusual events, gain on sale of assets/divestitures, adjustment attributable to non-controlling interest, etc. We believe that these costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to our operating performance in other periods. Estimated Tax Rate: We utilize a consistent methodology for long-term projected non-GAAP tax rate. When projecting this long-term rate, we exclude any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Additionally, we evaluate our current long-term projections, current tax structure and other factors, such as existing tax positions in various jurisdictions and key tax holidays in major jurisdictions where Keysight operates. This tax rate could change in the future for a variety of reasons, including but not limited to significant changes in geographic earnings mix including acquisition activity, or fundamental tax law changes in major jurisdictions where Keysight operates. The above reasons also limit our ability to reasonably estimate the future GAAP tax rate and provide a reconciliation of the expected non-GAAP earnings per share for the fourth quarter of fiscal 2025 to the GAAP equivalent. Management recognizes these items can have a material impact on our cash flows and/or our net income. Our GAAP financial statements, including our Condensed Consolidated Statement of Cash Flows, portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded costs are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the Condensed Consolidated Statement of Operations prepared in accordance with GAAP. The non-GAAP measures focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance. Page 8 View source version on Contacts INVESTOR CONTACT:Investor Relations+1 MEDIA CONTACT:Andrea Mueller+ 1 Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
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18 minutes ago
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Why Medtronic Stock Dropped Today
Key Points Medtronic beat on sales and earnings this morning. Management also upped its guidance for fiscal 2026 earnings. Sales and earnings are both growing by only single digits, and the stock costs 25 times earnings. 10 stocks we like better than Medtronic › Medtronic (NYSE: MDT) stock had declined 3.6% through 2:45 p.m. ET Tuesday despite beating forecasts for fiscal 2026 first-quarter earnings this morning. Heading into the report, analysts predicted Medtronic would earn $1.23 per share on under $8.4 billion in first-quarter revenue. In fact, earnings were $1.26 per share, and sales approached $8.6 billion. Medtronic Q1 earnings Sales at the Ireland-based maker of medical equipment grew 8% year over year, of which almost 5% was organic growth. Earnings, however, didn't. Medtronic's $0.81 per-share profit under generally accepted accounting principles (GAAP) was weaker than its adjusted number (its $1.26 headline figure). Earnings also increased only 1% year over year, far slower than sales growth. Is the stock a buy? The good news is that CEO Geoff Martha says revenue growth will probably accelerate in the second half of fiscal 2026. The bad news is that it also might not accelerate at all. Turning to guidance, the company forecasts 5% organic sales growth for the full year, a bit better than in the first quarter, but total revenue growth for the year of only 6.5% to 6.8%. And that's less than the 8% growth seen in the first quarter. Management says earnings will increase, and it's raising guidance to predict per-share profits between $5.60 and $5.66 this year. But these are only adjusted figures and represent only 4.5% earnings growth year over year -- which would be slower than sales growth and imply narrowing profit margins. The worst news of all for investors, though, is that Medtronic stock costs a rich 25 times trailing earnings today, and that's probably too much to pay for single-digit growth in both sales and earnings. Should you buy stock in Medtronic right now? Before you buy stock in Medtronic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Medtronic wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,633!* Now, it's worth noting Stock Advisor's total average return is 1,076% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy. Why Medtronic Stock Dropped Today was originally published by The Motley Fool
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Auna Announces 2Q25 Financial Results
Adjusted EBITDA increases 5% FXN YoY with all segments contributing positively to quarterly results in their local currency LUXEMBOURG, August 19, 2025--(BUSINESS WIRE)--Auna (NYSE: AUNA) ("Auna" or the "Company"), a leading healthcare platform in Latin America with operations in Mexico, Peru, and Colombia, today announced financial results for the second quarter ended June 30, 2025 ("second quarter 2025" or "2Q25"). Financial results are expressed in Peruvian Soles ("S/" or PEN") and are presented in accordance with International Financial Reporting Standards ("IFRS"), unless otherwise noted. 2Q25 Consolidated Highlights Consolidated Revenue increased 4% FXN while decreasing 2% YoY on reported basis to S/1,094 million Adjusted EBITDA increased 5% FXN, and decreased 3% YoY to S/241 million Adjusted EBITDA Margin remained flat at 22.1% Adjusted Net Income was S/89 million, up from S/13 million in 2Q24 and S/55 million in 1Q25 Leverage Ratio was 3.6x, in line with 3.6x in 1Q25 Oncology MLR reached a record low level of 49.8% Message from Auna's Executive Chairman and President Auna grew its year-over-year ("YoY") FX-neutral Adjusted EBITDA by 5%, with all three country segments contributing positively to our performance recovery in local currency terms. Despite significant foreign exchange headwinds—particularly the depreciation of the Mexican and Colombian currencies versus the Peruvian Sol— each operation demonstrated resilience to execute its strategy with utmost discipline with the goal of delivering clinical and operational excellence, showcasing the power of our diversified geographic footprint. We continue to build a stronger, more efficient organization, while positioning Auna to effectively seize the near to long-term growth opportunities in Mexico's massive private healthcare market. In Mexico, we have contained and stabilized the adverse effects related to physician/supplier relationships that temper the implementation of the AunaWay, in particular with respect to patient/physician alignment and cost containment for payors. Improvements in pricing and service mix, coupled with continued cost discipline, enabled us to grow EBITDA despite lower surgical volumes. This quarter also marked significant progress on key strategic initiatives in Mexico, including recruitment and integration of lead medical directors and physicians, productivity programs, expansion of the Oncosalud network outside of Monterrey, and selective capital deployment. In Peru, revenue growth across both Oncosalud and our healthcare network was supported by plan membership expansion, further price adjustments, and service volume increases, even as we expanded healthcare capacity. In Colombia, the risk-sharing models we have been implementing since last year are gaining additional traction, while collections commitments from intervened payors have been received on time as of the end of the quarter, reducing the need for impairment provisions as well as improvement in margins and cash flow. Looking ahead, we continue to work on the optimization of our capital structure. We improved our maturity profile and maintained our Leverage Ratio at 3.6x, while continuing to target a medium-term goal of below 3.0x. We are confident that the regional healthcare platform we are building—focused on high-complexity care, integrated care delivery, and disciplined capital allocation—positions Auna for further growth and long-term value for all stakeholders. Overview of 2Q25 Consolidated Results Revenues decreased 2% YoY to S/1,094 million, increasing 4% FXN, with revenues in local currency ("L.C.") increasing 5% in Mexico and 8% in Peru while remaining flat versus 2Q24 in Colombia. In Mexico, healthcare network revenue increased, supported by higher tickets associated with high complexity services and an improved pricing mix in other non-core services. The Peruvian healthcare network benefited from higher demand for surgeries, membership growth, as well as price adjustments. In Colombia, the YoY growth in risk-sharing models supported the top line amidst a reduced service offering for intervened EPSs, the local insurance companies. Adjusted EBITDA decreased 3% YoY, increasing 5% FXN, to S/241 million, with the margin flat at 22.1%. In L.C. terms, Adjusted EBITDA increased 2% in Mexico, 8% in Peru and 9% in Colombia. The increase in FXN Adjusted EBITDA reflects revenue growth in Mexico and Peru, as well as expenses that support growth, including investments in medical talent in Mexico and Peru, and sales commissions at Oncosalud. In Colombia, Adjusted EBITDA, included lower impairment provisions. Additionally, the results in Auna's reporting currency were impacted by a 16% depreciation of MXN versus PEN and 9% depreciation of COP versus PEN. Net finance costs were S/46 million in 2Q25 versus S/182 million in 2Q24. Net finance costs, excluding FX effects, would have been S/115 million in 2Q25 and S/133 million in 2Q24, a decrease of S/18 million or 13%. The FX impact in 2Q25 includes a positive non-cash amount of S/68 million versus a negative S/49 million non-cash FX impact from 2Q24, mainly due to the effect of the appreciation of the Peruvian Sol against the US Dollar outside the range of Auna's call-spread hedge. Net Income was S/84 million in 2Q25 compared to S/8 million in 2Q24. On a per-share basis, Auna reported Net Income of S/1.10, based on a weighted average number of basic and diluted shares of 74,217,754. Adjusted Net Income was S/89 million in 2Q25, versus S/13 million in 2Q24. On a per-share basis, Auna reported Adjusted Net Income of S/1.17, based on a weighted average number of basic and diluted shares of 74,217,754. For a full version of AUNA's Second Quarter 2025 Earnings Release, please visit: Conference Call Details When: 8:00 a.m. Eastern time, August 20, 2025 Who: Mr. Suso Zamora, Executive Chairman of the Board and President; Mrs. Gisele Remy, Chief Financial Officer and Executive Vice President; Mr. Lorenzo Massart, Executive Vice President of Strategy and Equity Capital Markets. Dial-in: +1 888 596 4144 (U.S. domestic), +1 646 968 2525 (International)Passcode: 3884034 To access Auna′s financial results call via telephone, callers need to press # to be connected to an operator. Webcast: click here About AUNA Auna is a leading healthcare platform in Latin America with operations in Mexico, Peru, and Colombia, prioritizing prevention and concentrating on high-complexity diseases that contribute the most to healthcare expenditures. Our mission is to transform healthcare by providing access to a highly integrated healthcare offering in the underpenetrated markets of Spanish-Speaking Americas. Founded in 1989, Auna has built one of Latin America′s largest modern healthcare platforms that consists of a horizontally integrated network of healthcare facilities and a vertically integrated portfolio of oncological plans and selected general healthcare plans. As of June 30, 2025, Auna's network included 31 healthcare network facilities, consisting of hospitals, outpatient, prevention and wellness facilities with a total of 2,333 beds, and 1.4 million healthcare plans. For more information visit Safe Harbor Statement This press release contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from the forward-looking statements that we make. Forward-looking statements typically are identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "project," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, our target Leverage Ratio, the near to long-term growth opportunities in Mexico and the creation of further growth and long-term value. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. Our actual results could differ materially from those contained in forward-looking statements due to a number of factors. The forward-looking statements in this press release represent our expectations and forecasts as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see our Form 20-F filing with the U.S. Securities and Exchange Commission (the "SEC"). Financial Guidance Disclaimer Auna′s guidance is based on management's current performance outlook and expected macroeconomic and regulatory conditions in the three countries where the Company operates. Any changes in these conditions could have an impact on the guidance provided. Auna's financial guidance reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's Form 20-F filed with the SEC. Reconciliations of forward-looking non-IFRS measures, specifically Leverage Ratio guidance, to the relevant forward-looking IFRS measures are not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such guidance and reconciliations. Due to this uncertainty, the Company cannot reconcile projected Leverage Ratio to projected net income without unreasonable effort. The financial guidance constitutes forward-looking statements. For more information, see the "Forward-Looking Statements" section in this release. View source version on Contacts IR Contact Email: contact@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
