Why is Johnson & Johnson stock sliding today?

Johnson & Johnson's stock fell 2.5% in early trading on Tuesday after geopolitical concerns impacted its medical devices segment, despite a strong third-quarter earnings report. The company's adjusted earnings per share (EPS) of $2.59 exceeded expectations, while revenue hit $25.4 billion, just above forecasts. However, GAAP EPS fell to $0.09 due to a one-time charge related to talc litigation and recent acquisitions.

Pharmaceutical sales grew 7.7% year-over-year to $16.76 billion, while medical technology sales rose 2.5% to $8.6 billion, with flat outside U.S. sales. GAAP net earnings plunged 95.9% to $210 million, unsettling income-focused investors. Management attributed the decline to a one-time item. The company raised its full-year 2026 earnings guidance, projecting adjusted EPS of $11.05–$11.15, slightly beating analyst consensus.

The broader market also declined, with the S&P 500 marginally lower at 7,801.9 and the Nasdaq slipping 0.7% to 30,447.2. J&J's stock had been below its 20-day and 50-day simple moving averages, forming a "death cross" signal that signaled the recent weakness had overtaken the prior trend. The stock had seen no positive EPS revisions and 12 negative ones in the past 90 days, indicating analysts had already lowered expectations before the earnings report.