Johnson & Johnson is predicting tariffs will cost it $400 million this year, largely affecting its medtech business.
Joseph J. Wolk, executive vice president and chief financial officer, said during the company’s earnings call Tuesday the financial hit could change due to the fluid nature of the tariffs.
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The company’s products are mostly affected by the China tariffs, but those not exempt under the United States-Mexico-Canada Agreement also will face import tariffs from Mexico and Canada, Wolk said. Tariffs on steel and aluminum tariffs will impact some products.
Wolk declined to answer a financial analyst’s question regarding the full-year impact, saying it would be too speculative to do so. He said existing contracts limit its ability to pass along the tariffs to customers in the form of higher prices.
"As we know, these tariffs are very fluid, and the responsible action for us now is to quantify what we see the impact in 2026 and then see what happens," Wolk told analysts.
Johnson & Johnson reported first-quarter net earnings of about $11 billion, or $2.77 per share, compared with $3.3 billion, or $2.71 in the year-ago quarter.
Its medtech business reported first-quarter sales of about $8 billion, compared with $7.8 billion in the year-ago quarter. The company reported $21.9 billion in overall sales in the first quarter, compared with $21.4 billion in the year-ago quarter.
