Stock Analysis on Net
Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Common-Size Income Statement 
Quarterly Data

Johnson & Johnson, common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 28, 2025 Jun 29, 2025 Mar 30, 2025 Dec 29, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Sales to customers 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold -30.44 -32.13 -33.60 -31.65 -30.99 -30.60 -30.45 -31.77 -30.94 -30.03 -32.00 -32.76 -32.81 -32.97 -32.43 -32.07 -31.07 -32.55 -31.64 -34.77 -33.07 -35.88 -34.13
Gross profit 69.56% 67.87% 66.40% 68.35% 69.01% 69.40% 69.55% 68.23% 69.06% 69.97% 68.00% 67.24% 67.19% 67.03% 67.57% 67.93% 68.93% 67.45% 68.36% 65.23% 66.93% 64.12% 65.87%
Selling, marketing and administrative expenses -24.68 -24.80 -23.35 -28.65 -24.38 -25.31 -24.58 -27.16 -25.29 -25.08 -23.48 -27.47 -25.59 -25.92 -25.35 -28.84 -25.71 -26.05 -24.34 -28.73 -25.76 -27.23 -25.15
Research and development expense -15.30 -14.81 -14.73 -23.53 -22.04 -15.32 -16.56 -20.94 -16.14 -17.21 -16.54 -16.20 -15.12 -15.42 -14.78 -19.03 -14.66 -14.56 -14.24 -17.94 -13.47 -14.76 -12.47
In-process research and development impairments 0.00 0.00 0.00 -0.08 0.00 -0.86 0.00 -0.27 -0.96 0.00 -0.23 -0.73 0.00 0.00 -2.60 0.00 -3.86 0.00 0.00 -0.16 -0.65 -0.03 0.00
Restructuring -0.26 -0.27 -0.08 -0.19 -0.18 0.06 -0.77 -0.26 -0.74 -0.67 -0.62 -0.35 -0.34 -0.35 -0.30 -0.33 -0.26 -0.24 -0.24 -0.27 -0.32 -0.33 -0.28
Operating earnings 29.31% 27.99% 28.24% 15.91% 22.42% 27.96% 27.63% 19.60% 25.92% 27.01% 27.12% 22.49% 26.13% 25.34% 24.54% 19.72% 24.45% 26.60% 29.55% 18.13% 26.72% 21.76% 27.97%
Interest income 0.95 1.10 1.52 1.25 1.30 1.76 1.70 1.70 1.75 1.51 0.95 1.07 0.63 0.27 0.09 0.05 0.06 0.05 0.07 0.06 0.06 0.10 0.32
Interest expense, net of portion capitalized -1.02 -1.30 -0.93 -0.61 -0.86 -1.20 -0.72 -0.71 -0.90 -1.01 -1.01 -0.75 -0.21 -0.16 -0.04 -0.24 -0.09 -0.17 -0.28 -0.39 -0.21 -0.25 -0.12
Other income (expense), net 1.99 -0.45 33.44 0.71 -8.00 -2.91 -11.24 1.97 -2.34 1.78 -33.22 -5.09 -2.07 -1.14 0.44 -0.04 -7.93 2.09 3.95 -10.47 -5.69 -0.13 3.28
Earnings (loss) before (provision for) benefit from taxes on income 31.23% 27.34% 62.26% 17.26% 14.85% 25.61% 17.37% 22.56% 24.43% 29.30% -6.16% 17.72% 24.47% 24.31% 25.02% 19.50% 16.49% 28.58% 33.28% 7.33% 20.88% 21.49% 31.46%
(Provision for) benefit from taxes on income -9.76 -4.02 -12.02 -2.02 -2.87 -4.73 -2.15 -3.24 -4.25 -4.32 3.81 -2.87 -5.73 -4.27 -3.04 -0.40 -0.78 -1.65 -5.52 0.40 -4.02 -1.71 -3.45
Net earnings (loss) from continuing operations 21.47% 23.32% 50.24% 15.24% 11.99% 20.88% 15.22% 19.31% 20.18% 24.98% -2.35% 14.85% 18.74% 20.04% 21.98% 19.09% 15.71% 26.93% 27.76% 7.73% 16.86% 19.78% 28.01%
Net earnings (loss) from discontinued operations, net of tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.39 101.72 -1.08 2.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net earnings (loss) 21.47% 23.32% 50.24% 15.24% 11.99% 20.88% 15.22% 18.92% 121.91% 23.90% -0.33% 14.85% 18.74% 20.04% 21.98% 19.09% 15.71% 26.93% 27.76% 7.73% 16.86% 19.78% 28.01%

Based on: 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

Gross Profit Margin
The gross profit margin exhibited some volatility over the analyzed periods but generally maintained a favorable level between approximately 64% and 70%. Notably, there was an overall improvement beginning in early 2021, peaking around mid-2023 and continuing at elevated levels through 2024 and into early 2025. This suggests increasing efficiency or improved pricing power relative to the cost of products sold, which remained relatively stable as a percentage of sales, trending slightly lower over time.
Cost of Products Sold
The cost of products sold fluctuated mildly but showed a gradual decline in its ratio to sales, moving from a higher 34%-35% range in early 2020 to roughly 30%-31% in later periods. This reduction contributed positively to gross profitability.
Selling, Marketing, and Administrative Expenses
These expenses as a percentage of sales displayed moderate fluctuations, generally oscillating between 23% and 28%. Periods of increase often aligned with declines in operating earnings, indicating sensitivity of operating income to these expense categories. Costs appeared controlled with occasional spikes, especially during some quarters of 2020 and a resurgence near the end of 2024.
Research and Development Expense
Research and development costs showed variability, generally within the 12% to 23% range of sales. A notable peak occurred towards the end of 2024, with a significant increase to over 22%, suggesting intensified investment or one-off charges in that timeframe. Earlier quarters saw some upward pressure on R&D expenses, which could impact short-term profitability.
In-Process R&D Impairments
Impairments related to in-process research and development were irregular, with periodic small charges evident in multiple quarters. The largest identified impairment occurred in late 2021, reflecting occasional write-downs that negatively affected expense ratios.
Restructuring Costs
Restructuring expenses remained low but persistent, fluctuating mostly between -0.1% and -0.7% of sales. These modest charges likely represent ongoing operational adjustments without significantly impacting overall profitability.
Operating Earnings
Operating earnings as a percentage of sales showed significant variability, ranging roughly from 15% to 30%. Early 2020 saw moderate earnings around 20%-28%, but some quarters, especially during the pandemic’s onset and end of 2024, reflected lower operating income. Most periods after early 2021 showed recovery and stabilization, suggesting improved operational efficiency or favorable sales mix impacts.
Interest Income and Expense
Interest income increased steadily over the periods, growing from near zero to around 1.5% of sales by mid-2023 onward, indicating increased investment returns or cash management efficiency. Conversely, net interest expense showed some volatility but generally increased marginally in later periods, reflecting borrowing costs or financing structure impacts.
Other Income (Expense) Net
Other income and expense items exhibited extreme volatility. Several quarters showed substantial negative impacts, particularly late 2022 and early 2023 with significant negative spikes. Conversely, there were unusual positive spikes near early to mid-2025, including a very large gain not consistent with prior trends, indicating episodic gains or losses possibly associated with asset sales, investment gains, or extraordinary items.
Earnings Before Taxes
This figure tracked similarly to operating earnings but with added volatility due to other income or expense and interest elements. Sharp declines occurred in late 2022 with negative returns, but a remarkable rebound appeared in early 2025 with earnings surging beyond typical ranges. This suggests that non-operating factors heavily influenced pre-tax profitability in these periods.
Provision for Taxes on Income
The tax provision generally ranged between -1% and -5%, with some quarters showing positive values indicating tax benefits. Spikes in tax expense especially in early 2025 correlate with elevated pre-tax earnings, reflecting higher nominal tax charges during those periods.
Net Earnings
Net earnings from continuing operations followed the trends in operating and pre-tax earnings, with some quarters showing reduced profitability, particularly in late 2022 to early 2023 where negative net earnings emerged. The subsequent recovery culminated in an exceptional spike in mid-2023 and first quarter 2025, demonstrating overall resilience in earnings with periodic volatility. The inclusion of discontinued operations showed a one-time large positive contribution in 2023, adding distortion to some quarterly comparisons.