Johnson & Johnson (NYSE:JNJ) beat profit estimates and raised its full-year forecast on Tuesday. The stock is still heading for its worst day in more than 18 months.
Shares fell about 6% to around $248 in early afternoon trading.
That would be the steepest one-day drop since April 1, 2025, when the stock lost 7.6% after a judge rejected its talc settlement.
The weak spot was MedTech, the medical-device unit. Sales rose 2.5% to $8.64 billion, short of the $8.71 billion analysts expected.
“While disappointing, the underlying fundamentals of the MedTech business remain strong,” Chief Financial Officer Joe Wolk said. He added that two new drug deals, Firefly Bio and Sail Biomedicines, will cut 2027 adjusted earnings by a combined $1.36 per share.
J&J is the second-largest holding in the State Street Health Care Select Sector SPDR ETF (NYSE:XLV), which fell 1.1%.
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