JOHNSON & JOHNSON

Previous wording

For the fiscal third quarter of 2025, worldwide sales were $24.0 billion, a total increase of 6.8%, which included operational growth of 5.4% and a positive currency impact of 1.4% as compared to 2024 fiscal third quarter sales of $22.5 billion. In the fiscal third quarter of 2025, the net impact of acquisitions and divestitures on worldwide operational sales growth was a positive 1.0%, related to CAPLYTA. In the fiscal third quarter of 2025, the negative impact of the STELARA sales decline, due to biosimilar competition, on worldwide operational sales was approximately 6.4%.

Current wording

For the fiscal first quarter of 2026, worldwide sales were $24.1 billion, a total increase of 9.9%, which included operational* growth of 6.4% and a positive currency impact of 3.5% as compared to 2025 fiscal first quarter sales of $21.9 billion. In the fiscal first quarter of 2026, the net impact of acquisitions and divestitures on worldwide operational sales growth was a positive 1.1%, primarily related to CAPLYTA. In the fiscal first quarter of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition, on worldwide operational sales was approximately 5.4%.

Previous wording

Sales by U.S. companies were $13.7 billion in the fiscal third quarter of 2025, which represented an increase of 6.2% as compared to the prior year. In the fiscal third quarter of 2025, the net impact of acquisitions and divestitures on U.S. operational sales growth was a positive 1.8%. In the fiscal third quarter of 2025, the negative impact of the STELARA sales decline, due to biosimilar competition on U.S. operational sales was approximately 7.7%. Sales by international companies were $10.3 billion, a total increase of 7.6%, which included operational growth of 4.4% and a positive currency impact of 3.2%. In the fiscal third quarter of 2025, there was no net impact of acquisitions and divestitures on international operational sales growth. In the fiscal third quarter of 2025, the negative impact of the STELARA sales decline, due to biosimilar competition, on international operational sales was approximately 4.8%.

Current wording

Sales by U.S. companies were $13.3 billion in the fiscal first quarter of 2026, which represented an increase of 8.3% as compared to the prior year. In the fiscal first quarter of 2026, the net impact of acquisitions and divestitures on U.S. operational sales growth was a positive 2.1%. In the fiscal first quarter of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition on U.S. operational sales was approximately 7.5%. Sales by international companies were $10.7 billion, a total increase of 11.9%, which included operational growth of 3.9% and a positive currency impact of 8.0%. In the fiscal first quarter of 2026, the net impact of acquisitions and divestitures on international operational sales growth was a negative 0.1%. In the fiscal first quarter of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition, on international operational sales was approximately 3.0%.

Previous wording

In the fiscal third quarter of 2025, sales by companies in Europe achieved growth of 10.7%, which included operational growth of 4.4% and a positive currency impact of 6.3%. Sales by companies in the Western Hemisphere, excluding the U.S., achieved growth of 4.9%, which included operational growth of 7.3% partially offset by a negative currency impact of 2.4%. Sales by companies in the Asia-Pacific, Africa region achieved growth of 4.0%, which included operational growth of 3.4% and a positive currency impact of 0.6%.

Current wording

In the fiscal first quarter of 2026, sales by companies in Europe achieved growth of 14.5%, which included operational growth of 2.7% and a positive currency impact of 11.8%. Sales by companies in the Western Hemisphere, excluding the U.S., achieved growth of 10.8%, which included operational growth of 2.5% and a positive currency impact of 8.3%. Sales by companies in the Asia-Pacific, Africa region achieved growth of 8.5%, which included operational growth of 6.1% and a positive currency impact of 2.4%.

Previous wording

*operational growth excludes the effect of translational currency

Current wording

*operational excludes the effect of translational currency

Previous wording

Innovative Medicine segment sales in the fiscal third quarter of 2025 were $15.6 billion, an increase of 6.8% as compared to the same period a year ago, including an operational increase of 5.3% and a positive currency impact of 1.5%. U.S. Innovative Medicine sales increased 6.0% as compared to the same period a year ago. International Innovative Medicine sales increased by 7.9%, including an operational increase of 4.3% and a positive currency impact of 3.6%. In the fiscal third quarter of 2025, the net impact of acquisitions and divestitures on the worldwide Innovative Medicine segment operational sales growth was a positive 1.6%, related to CAPLYTA. In the fiscal third quarter of 2025, the negative impact of the STELARA sales decline, due to biosimilar competition, was an approximate 10.7%, 12.0% and 8.6% on worldwide, U.S. and international Innovative Medicine segment operational sales, respectively.

Current wording

Innovative Medicine segment sales in the fiscal first quarter of 2026 were $15.4 billion, an increase of 11.2% as compared to the same period a year ago, including an operational increase of 7.4% and a positive currency impact of 3.8%. U.S. Innovative Medicine sales increased 9.6% as compared to the same period a year ago. International Innovative Medicine sales increased by 13.4%, including an operational increase of 4.3% and a positive currency impact of 9.1%. In the fiscal first quarter of 2026, the net impact of acquisitions and divestitures on the worldwide Innovative Medicine segment operational sales growth was a positive 1.8%, primarily related to CAPLYTA. In the fiscal first quarter of 2026, the negative impact of the STELARA sales decline, due to biosimilar competition, was an approximate 9.2%, 12.0% and 5.3% on worldwide, U.S. and international Innovative Medicine segment operational sales, respectively.

Previous wording

Major Innovative Medicine therapeutic area sales — Fiscal Third Quarter Ended

Current wording

Major Innovative Medicine therapeutic area sales — Fiscal First Quarter Ended

Previous wording

(2) Acquired with Intra-Cellular Therapies on April 2, 2025

Current wording

(2)Acquired with Intra-Cellular Therapies on April 2, 2025

Previous wording

Oncology products achieved operational sales growth of 19.2% as compared to the same period a year ago. Strong sales of DARZALEX (daratumumab) were driven by continued share gains and market growth. Growth of ERLEADA (apalutamide) was due to market growth and continued share gains partially offset by the impact of Medicare Part D redesign. Increased sales of CARVYKTI (ciltacabtagene autoleucel) were driven by continued share gains and site expansion. Additionally, sales from the ongoing launches and share gains of TECVAYLI (teclistamab-cqyv), TALVEY (talquetamab-tgvs) and RYBREVANT (amivantamab)/LAZCLUZE (lazertinib) contributed to the growth. Growth was partially offset by ZYTIGA (abiraterone acetate) due to loss of exclusivity and IMBRUVICA (ibrutinib) declines due to competitive pressures and the impact of Medicare Part D redesign.

Current wording

Oncology products achieved operational sales growth of 17.8% as compared to the same period a year ago. Contributors to the growth were: DARZALEX (daratumumab) driven by strong share gains and market growth partially offset by inventory dynamics, CARVYKTI (ciltacabtagene autoleucel) driven by continued share gains and site expansion, TECVAYLI (teclistamab-cqyv) driven by launch uptake and share gains from expansion in the community setting and recent U.S. TECVAYLI + DARZALEX FASPRO approval, TALVEY (talquetamab-tgvs) driven by share gains from expansion in the community setting, RYBREVANT (amivantamab)/LAZCLUZE (lazertinib) driven by launch uptake and share gains and ERLEADA (apalutamide) due to continued share gains and market growth. Growth was partially offset by IMBRUVICA (ibrutinib) share loss due to competitive pressures and unfavorable patient mix.

Previous wording

Sales of STELARA in the United States were approximately $6.7 billion in fiscal 2024. Third parties have filed abbreviated Biologics License Applications with the FDA seeking approval to market biosimilar versions of STELARA. The Company has settled certain litigation under the Biosimilar Price Competition and Innovation Act of 2009. According to patent settlement and license agreements, the Company expects continued launches of biosimilar versions of STELARA in Europe and the United States which will impact the Company’s sales of STELARA.

Current wording

Third parties have filed biologics license applications with the U.S. FDA, the European Medicines Agency, and other government authorities seeking approval to market biosimilar versions of STELARA around the globe. The Company expects continued launches of biosimilar versions of STELARA globally which will continue to negatively impact the Company’s sales of STELARA.

Previous wording

Neuroscience products, which include sales of CAPLYTA (lumateperone) acquired with the Intra-Cellular Therapies (Intra-Cellular) acquisition on April 2, 2025, achieved operational growth of 14.6% as compared to the same period a year ago. Growth of SPRAVATO (esketamine) was driven by continued increased physician and patient demand. Growth was partially offset by the sales decline of INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA primarily due to the impact of Medicare Part D redesign.

Current wording

Neuroscience products, which include sales of CAPLYTA (lumateperone) acquired with the Intra-Cellular Therapies (Intra-Cellular) acquisition on April 2, 2025, achieved operational growth of 29.3% as compared to the same period a year ago. Growth of SPRAVATO (esketamine) was driven by continued increased physician and patient demand. Growth of INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA was primarily driven by favorable patient mix.

Previous wording

Pulmonary Hypertension products achieved operational sales growth of 0.4% as compared to the same period a year ago. The sales growth of UPTRAVI (selexipag) was driven by market growth and inventory dynamics partially offset by the impact of Medicare Part D redesign. The sales decline of OPSUMIT (macitentan)/ OPSYNVI (macitentan/tadalafil) was driven by the impact of Part D redesign and unfavorable patient mix, partially offset by share gains and market growth.

Current wording

Pulmonary Hypertension products achieved operational sales growth of 8.7% as compared to the same period a year ago. The sales growth of UPTRAVI (selexipag) was driven by market and share growth partially offset by inventory dynamics. The sales growth of OPSUMIT (macitentan)/OPSYNVI (macitentan/tadalafil) was driven by share gains, market growth and favorable patient mix. The Company expects generic competition for OPSUMIT in the U.S. in the second half of 2026, which would likely result in a reduction in future sales.

Previous wording

Cardiovascular / Metabolism / Other products achieved operational growth of 1.2% as compared to the same period a year ago. The growth of XARELTO (rivaroxaban) sales was primarily driven by the impact of Medicare Part D redesign partially offset by continued share loss.

Current wording

Cardiovascular / Metabolism / Other products experienced a sales decline of 14.7% as compared to the same period a year ago. The sales decline of XARELTO (rivaroxaban) was primarily driven by continued share erosion.

Previous wording

MedTech segment sales in the fiscal third quarter of 2025 were $8.4 billion, an increase of 6.8% as compared to the same period a year ago, which included operational growth of 5.6% and a positive currency impact of 1.2%. U.S. MedTech sales increased by 6.6%. International MedTech sales increased by 7.0%, including operational growth of 4.5% and a positive currency impact of 2.5%. In the fiscal third quarter of 2025, the net impact of acquisitions and divestitures on the MedTech segment operational sales growth was a negative 0.1%.

Current wording

MedTech segment sales in the fiscal first quarter of 2026 were $8.6 billion, an increase of 7.7% as compared to the same period a year ago, which included operational growth of 4.6% and a positive currency impact of 3.1%. U.S. MedTech sales increased by 5.9%. International MedTech sales increased by 9.7%, including operational growth of 3.2% and a positive currency impact of 6.5%. In the fiscal first quarter of 2026, the impact of divestitures on the MedTech segment operational sales growth was a negative 0.1%.

Previous wording

Major MedTech franchise sales — Fiscal Third Quarter Ended

Current wording

Major MedTech franchise sales — Fiscal First Quarter Ended

Previous wording

The Cardiovascular franchise achieved operational sales growth of 11.6% as compared to the prior year fiscal third quarter. Abiomed sales growth was driven by the continued strong adoption of Impella 5.5 and Impella CP. Shockwave sales growth was driven by Coronary and Peripheral portfolios. Electrophysiology sales growth was driven by procedure growth, commercial execution, new product performance (VARIPULSE, TRUPULSE), strength in competitive mapping, and one-time impacts of installation and inventory, partially offset by competitive pressures in Pulsed Field Ablation catheters.

Current wording

The Cardiovascular franchise achieved operational sales growth of 10.5% as compared to the prior year fiscal first quarter. Electrophysiology sales growth was driven by procedure growth, commercial execution, new product performance (VARIPULSE, TRUPULSE, NUVISION and CRYSTAL) and inventory dynamics outside the U.S. partially offset by competitive pressures in Pulsed Field Ablation catheters. Abiomed sales growth was driven by the continued strong adoption of Impella 5.5 and Impella CP. Shockwave sales growth was driven by strong adoption of Coronary and Peripheral portfolios and new product launches.

Previous wording

The Surgery franchise achieved operational sales growth of 3.3% as compared to the prior year fiscal third quarter. The operational growth in Advanced Surgery was primarily due to the strength of the portfolio and commercial execution in Biosurgery and Endocutters. The growth was partially offset by competitive pressures in Energy and Endocutters and by the negative impact of China volume-based procurement. The operational growth in General Surgery was primarily driven by technology penetration and upgrades within the differentiated Wound Closure portfolio coupled with commercial execution, partially offset by softness in aesthetics outside the U.S.

Current wording

The Surgery franchise achieved operational sales growth of 1.2% as compared to the prior year fiscal first quarter. The operational growth in Advanced Surgery was primarily due to the strength of the portfolio and commercial execution in Biosurgery and new product launches in Energy. This was partially offset by China volume-based procurement across all platforms and competitive pressures in Endocutters. The operational growth in General Surgery was primarily driven by technology penetration and upgrades within the differentiated Wound Closure portfolio coupled with market expansion partially offset by timing of tenders outside the U.S.

Previous wording

The Vision franchise achieved operational sales growth of 6.1% as compared to the prior year fiscal third quarter. The Contact Lenses/Other operational growth was driven by market growth, continued strong performance in the ACUVUE OASYS 1-Day family of products and continued strategic price actions. The Surgical operational growth was primarily driven by the continued strength of recent product innovations, robust demand and commercial execution.

Current wording

The Vision franchise achieved operational sales growth of 3.6% as compared to the prior year fiscal first quarter. The Contact Lenses/Other operational growth was driven by strong performance in the ACUVUE OASYS 1-Day family of products and strategic price actions partially offset by inventory dynamics outside the U.S. The Surgical operational growth was primarily driven by the strength of recent product innovations, robust demand and strong commercial execution partially offset by competitive pressures in the U.S.

Previous wording

The Orthopaedics franchise achieved operational sales growth of 2.4% as compared to the prior year fiscal third quarter. The operational growth in Hips was due to new product launches. The operational growth in Knees was driven by the strength of the ATTUNE portfolio and pull through related to the VELYS Robotic assisted solutions partially offset by trade inventory dynamics and the negative impact of China volume-based procurement. The operational growth in Trauma was primarily driven by recently launched products partially offset by trade inventory dynamics and the negative impact of China volume-based procurement. The operational sales decline in Spine, Sports & Other reflects competitive pressures and price pressures in the U.S. Early Interventional segment partially offset by U.S. spine new product innovations (TriAltis). All platforms were negatively impacted by revenue disruption from the previously announced Orthopaedics restructuring.

Current wording

The Orthopaedics franchise achieved operational sales growth of 3.2% as compared to the prior year fiscal first quarter. The operational growth in Hips was due to new product launches. The operational growth in Knees was driven by the strength of the ATTUNE portfolio and pull through related to the VELYS Robotic assisted solutions. The operational growth in Trauma was primarily driven by recently launched products. The operational growth in Spine, Sports & Other was driven by new product innovations and growth in shoulders partially offset by competitive pressures and inventory dynamics.

Previous wording

Subsequent to the quarter, on October 14, 2025, the Company announced its intention to separate its Orthopaedics business. The Company intends to explore multiple paths to effect the planned separation with a targeted completion within 18 to 24 months after the initial announcement.

Current wording

In October 2025, the Company announced its intention to separate its Orthopaedics business. The Company continues to explore multiple paths to effect the planned separation with a targeted completion within 18 to 24 months after the initial announcement.

Previous wording

Consolidated earnings before provision for taxes on income for the fiscal third quarter of 2025 was $7.5 billion representing 31.2% of sales as compared to $3.3 billion in the fiscal third quarter of 2024, representing 14.9% of sales. The fiscal third quarter of 2024 includes charges for talc matters of approximately $2.0 billion.

Current wording

Consolidated earnings before provision for taxes on income for the fiscal first quarter of 2026 was $6.0 billion representing 24.9% of sales as compared to $13.6 billion in the fiscal first quarter of 2025, representing 62.3% of sales. The fiscal first quarter of 2025 includes approximately $7.0 billion related to the talc reserve reversal.

Previous wording

•Unfavorable product mix driven by the decline of STELARA sales in the Innovative Medicine business

Current wording

•Unfavorable product mix primarily driven by the decline of STELARA sales in the Innovative Medicine business

Previous wording

The intangible asset amortization expense included in cost of products sold for the fiscal third quarters of 2025 and 2024 was $1.0 billion and $1.2 billion, respectively.

Current wording

The intangible asset amortization expense included in cost of products sold for the fiscal first quarters of 2026 and 2025 was $1.2 billion and $1.1 billion, respectively.

Previous wording

Interest (income) expense in the fiscal nine months of 2025 was net income of $62 million as compared to net income of $433 million in the fiscal nine months of 2024. Interest income in the fiscal nine months of 2025 decreased as compared to the prior year driven by lower interest rates earned on cash balances. Interest expense was higher due to a higher average debt balance at higher interest rates. Interest (income) expense in the fiscal third quarter of 2025 was net expense of $18 million as compared to net income of $99 million in the fiscal third quarter of 2024. Interest income in the fiscal third quarter of 2025 decreased as compared to the prior year driven by a lower average cash balance. Interest expense was higher due to a higher average debt balance. The balance of cash, cash equivalents and current marketable securities was $18.6 billion at the end of the fiscal third quarter of 2025 as compared to $20.3 billion at the end of the fiscal third quarter of 2024. The Company’s debt position was $45.8 billion as of September 28, 2025, as compared to $35.8 billion the same period a year ago.

Current wording

Interest (income) expense in the fiscal first quarter of 2026 was net expense of $43 million as compared to net income of $128 million in the fiscal first quarter of 2025. Interest income in the fiscal first quarter of 2026 decreased as compared to the prior year driven by a lower average cash balance. Interest expense in the fiscal first quarter of 2026 was higher as compared to the prior year due to a higher average debt balance. The balance of cash, cash equivalents and current marketable securities was $22.1 billion at the end of the fiscal first quarter of 2026 as compared to $38.8 billion at the end of the fiscal first quarter of 2025. The Company’s debt position was $55.0 billion as of March 29, 2026, as compared to $52.3 billion the same period a year ago.

Previous wording

Other (income) expense, net for the fiscal third quarter of 2025 reflected an increase in income of $2.3 billion as compared to the prior year primarily due to the following:

Current wording

Other (income) expense, net for the fiscal first quarter of 2026 reflected a decrease in income of $7.6 billion as compared to the prior year primarily due to the following:

Previous wording

(1)The fiscal nine months of 2025 includes the reversal of approximately $7.0 billion, a significant portion of the previously accrued talc reserve. The fiscal nine months of 2024 includes charges of approximately $5.1 billion for talc matters. For additional details related to talc refer to Note 11 to the Consolidated Financial Statements.

Current wording

(1)The fiscal first quarter of 2026 includes charges for talc matters of $0.3 billion. The fiscal first quarter of 2025 includes approximately $7.0 billion related to the talc reserve reversal. For additional details related to talc refer to Note 11 to the Consolidated Financial Statements.

Previous wording

Income before tax by segment of business for the fiscal third quarters were as follows:

Current wording

Income before tax by segment of business for the fiscal first quarters were as follows:

Previous wording

(1)Amounts not allocated to segments include interest (income) expense, certain litigation expenses and general corporate (income) expense. The fiscal third quarter of 2024 includes charges for talc matters of $2.0 billion. For additional details related to talc refer to Note 11 to the Consolidated Financial Statements.

Current wording

(1)Amounts not allocated to segments include interest (income) expense, certain litigation expenses and general corporate (income) expense. The fiscal first quarter of 2026 includes charges of $0.3 billion related to talc matters. The fiscal first quarter of 2025 includes approximately $7.0 billion related to the talc reserve reversal. For additional details related to talc refer to Note 11 to the Consolidated Financial Statements.

Previous wording

•Unfavorable product mix driven by the decline of STELARA sales in the Innovative Medicine business

Current wording

•Unfavorable product mix in Cost of products sold, primarily driven by the decline of STELARA sales

Previous wording

•Increased investment related to the acquisition of Intra-Cellular (CAPLYTA)

Current wording

•Phasing of advertising expense and investment related to TREMFYA and to the acquisition of Intra-Cellular (CAPLYTA)

Previous wording

The intangible asset amortization expense included in cost of products sold for the fiscal nine months of 2025 and 2024 was $3.4 billion in both periods.

Current wording

•Tariffs included in Cost of products sold

Previous wording

In fiscal 2025, the company initiated a restructuring program of its Surgery franchise within the MedTech segment to simplify and focus operations by exiting certain non-strategic product lines and optimize select sites across the network. The pre-tax restructuring expense was $128 million in the fiscal third quarter of 2025, of which $35 million was recorded in Restructuring and $93 million in Other income and expense on the Consolidated Statement of Earnings. The pre-tax restructuring expense was $157 million in the fiscal nine months of 2025, of which $64 million was recorded in Restructuring and $93 million in Other income and expense on the Consolidated Statement of Earnings. The pre-tax restructuring expense in the fiscal third quarter and fiscal nine months of 2025 primarily included costs related to asset impairments as well as market and product exits. The estimated costs of the total program are between $0.9 billion - $1.0 billion and is expected to be substantially completed by the end of fiscal year 2026.

Current wording

In fiscal 2025, the company initiated a restructuring program of its Surgery franchise within the MedTech segment to simplify and focus operations by exiting certain non-strategic product lines and optimize select sites across the network. The pre-tax restructuring expense was $55 million in the fiscal first quarter of 2026, of which $30 million was recorded in Restructuring, $20 million in Cost of products sold and $5 million in Other income and expense on the Consolidated Statement of Earnings. The pre-tax restructuring expense in the fiscal first quarter of 2026 primarily included costs related to product exits. Total project costs of approximately $0.3 billion have been recorded since the restructuring was announced. The estimated costs of the total program are between $0.9 billion - $1.0 billion and is expected to be substantially completed by the end of fiscal year 2026.

Previous wording

In fiscal 2023, the Company initiated a restructuring program of its Orthopaedics franchise within its MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The pre-tax restructuring expense was $40 million in the fiscal third quarter of 2025, of which $28 million was recorded in Restructuring and $12 million in Cost of products sold on the Consolidated Statement of Earnings primarily for costs related to market and product exits. The pre-tax restructuring expense was $145 million in the fiscal nine months of 2025, of which $80 million was recorded in Restructuring, $35 million in Cost of products sold and $30 million in Other (Income)/Expense on the Consolidated Statement of Earnings primarily for costs related to asset impairments as well as market and product exits. The pre-tax restructuring expense was immaterial in the fiscal third quarter of 2024 and $107 million in the fiscal nine months of 2024, and primarily included costs related to market and product exits. Total project costs of approximately $0.6 billion have been recorded since the restructuring was announced. The estimated costs of the total program are between $0.7 billion - $0.8 billion and will be substantially completed by the end of fiscal year 2025.

Current wording

In fiscal 2023, the Company initiated a restructuring program of its Orthopaedics franchise within its MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The pre-tax restructuring expense was $55 million in the fiscal first quarter of 2025, of which $17 million was recorded in Restructuring, $30 million in Other (Income)/Expense and $8 million in Cost of products sold on the Consolidated Statement of Earnings primarily for costs related to asset impairments as well as market and product exits. Total project costs of approximately $0.8 billion have been recorded since the restructuring was announced and the program was substantially completed in the fiscal year 2025.

Previous wording

The worldwide effective income tax rate for the fiscal nine months was 21.5% in 2025 and 16.9% in 2024.

Current wording

The worldwide effective income tax rate for the fiscal three months was 12.6% in 2026 and 19.3% in 2025.

Previous wording

On December 15, 2022, the European Union (EU) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework that was supported by over 130 countries worldwide. Several EU and non-EU countries have enacted Pillar Two legislation with an initial effective date of January 1, 2024, with other aspects of the law effective in 2025 or later. While countries continue to enact new provisions or issue new regulations this could have an impact to the Company’s effective tax rate. The Company will continue to monitor further developments to determine any potential impact in the countries in which we operate, such as the recently announced understanding between the U.S. and the G7 of a side-by-side system that would fully exclude U.S. parented groups from certain provisions of the Pillar Two Framework.

Current wording

On December 15, 2022, the European Union (EU) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework that was supported by over 130 countries worldwide. Several EU and non-EU countries have enacted Pillar Two legislation with an initial effective date of January 1, 2024, with other aspects of the law effective in 2026 or later. While countries continue to enact new provisions or issue new regulations this could have an impact to the Company’s effective tax rate. The Company will continue to monitor further developments to determine any potential impact in the countries in which we operate, such as the recently issued administrative guidance on the side-by-side system that will fully exclude U.S. parented groups from certain provisions of the Pillar Two Framework.

Previous wording

Cash and cash equivalents were $18.2 billion at the end of the fiscal third quarter of 2025 as compared with $24.1 billion at the end of fiscal year 2024. The primary sources and uses of cash that contributed to the $5.9 billion decrease were:

Current wording

Cash and cash equivalents were $21.7 billion at the end of the fiscal first quarter of 2026 as compared with $19.7 billion at the end of fiscal year 2025. The primary sources and uses of cash that contributed to the $2.0 billion increase were:

Previous wording

In addition, the Company had $0.3 billion in marketable securities at the end of the fiscal third quarter of 2025 and $0.4 billion at the end of fiscal year 2024.

Current wording

In addition, the Company had $0.4 billion in marketable securities at the end of the fiscal first quarter of 2026 and $0.4 billion at the end of fiscal year 2025.

Previous wording

Cash flow from operations of $17.2 billion was the result of:

Current wording

Cash flow from operations of $2.5 billion was the result of:

Previous wording

Cash flow used for investing activities of $19.1 billion was primarily from:

Current wording

Cash flow used for investing activities of $1.0 billion was primarily from:

Previous wording

Cash flow used for financing activities of $4.2 billion was primarily from:

Current wording

Cash flow from financing activities of $0.5 billion was primarily from:

Previous wording

As of September 28, 2025, the Company had cash, cash equivalents and marketable securities of approximately $18.6 billion and had approximately $45.8 billion of notes payable and long-term debt for a net debt position of $27.2 billion as compared to the prior year fiscal third quarter net debt position of $15.5 billion. In the fiscal first quarter of 2025, the Company issued senior unsecured notes for approximately $9.2 billion. The net proceeds from this offering were used to fund the Intra-Cellular Therapies, Inc. acquisition for approximately $14.5 billion which closed on April 2, 2025, and for general corporate purposes. For additional details on borrowings, see Note 4 to the Consolidated Financial Statements. The Company anticipates that operating cash flows, the ability to raise funds from external sources, borrowing capacity from existing committed credit facilities and access to the commercial paper markets will continue to provide sufficient resources to fund operating needs, including the Company’s remaining balance of approximately $3.8 billion related to talc matters, $2.0 billion related to the current portion of Corporate bonds due and the remaining approximately $1.1 billion to settle opioid litigation (See Note 11 to the Consolidated Financial Statements for additional details). In addition, the Company monitors the global capital markets on an ongoing basis and from time to time may raise capital when market conditions are favorable.

Current wording

As of March 29, 2026, the Company had cash, cash equivalents and marketable securities of approximately $22.1 billion and had approximately $55.0 billion of notes payable and long-term debt for a net debt position of $32.9 billion as compared to the prior year fiscal first quarter net debt position of $13.5 billion. The Company anticipates that operating cash flows, the ability to raise funds from external sources, borrowing capacity from existing committed credit facilities and access to the commercial paper markets will continue to provide sufficient resources to fund operating needs, including the Company’s remaining balance of approximately $3.4 billion related to talc matters, $1.8 billion related to the current portion of Corporate bonds due and the remaining approximately $1.1 billion related to opioid settlements. In addition, the Company monitors the global capital markets on an ongoing basis and from time to time may raise capital when market conditions are favorable.