Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Johnson & Johnson, consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-28), 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance presented demonstrates a period of fluctuation between 2021 and 2025. Sales to customers initially exhibited modest growth from 2021 to 2022, followed by a significant decline in 2023, before recovering and continuing to grow through 2025. Operating earnings mirrored this pattern, experiencing a peak in 2021 and 2022, a decline in 2023 and 2024, and a substantial increase in 2025. Net earnings were significantly impacted by a large contribution from discontinued operations in 2023, creating a notable outlier in that year.
- Revenue and Profitability
- Sales to customers decreased from US$94,943 million in 2022 to US$85,159 million in 2023, representing a decline of approximately 10.3%. This decrease was partially offset by a recovery to US$88,821 million in 2024 and further growth to US$94,193 million in 2025, exceeding the 2022 level. Gross profit followed a similar trend, decreasing in 2023 and recovering in subsequent years. The gross margin remained relatively stable, fluctuating between approximately 68% and 71% throughout the period. Selling, marketing and administrative expenses demonstrated a consistent downward trend from 2021 to 2023, followed by increases in 2024 and 2025, but remained below 2021 levels.
- Research and Development & Restructuring
- Research and development expense increased from US$14,603 million in 2022 to US$17,232 million in 2024, before decreasing to US$14,665 million in 2025. In-process research and development impairments consistently decreased over the period, suggesting a potential improvement in the success rate of research projects or a change in accounting practices. Restructuring costs were relatively consistent, with minor fluctuations throughout the period.
- Interest & Other Income
- Interest income increased significantly from US$53 million in 2021 to US$1,332 million in 2024, before decreasing slightly to US$1,056 million in 2025. Interest expense also increased over the period, reflecting potentially higher borrowing costs. Other income (expense), net, experienced substantial volatility, with a significant expense in 2022 and 2023, followed by a large income in 2025, indicating potentially significant gains or losses from non-operating activities.
- Net Earnings & Taxes
- Net earnings from continuing operations decreased from US$20,878 million in 2021 to US$13,326 million in 2023, mirroring the decline in sales. However, net earnings increased substantially in 2025 to US$26,804 million. The provision for taxes on income generally followed the trend of earnings, increasing with higher earnings and decreasing with lower earnings. The inclusion of net earnings from discontinued operations in 2023 resulted in a significantly higher overall net earnings figure for that year (US$35,153 million), which is not representative of the core business performance.
Overall, the period examined demonstrates a challenging period in 2023, followed by a recovery and strong performance in 2025. The significant impact of discontinued operations in 2023 warrants further investigation to understand the underlying reasons for the disposal and its effect on the overall financial position. The increase in research and development expense, coupled with decreasing impairments, suggests a continued investment in innovation.