Johnson & Johnson reported its first-quarter earnings for 2025, with adjusted earnings per share (EPS) reaching $2.77, surpassing the consensus estimate of $2.60. The company's sales for the quarter totaled $21.89 billion, a 2.4% increase year-over-year and above the expected $21.58 billion. Despite these strong results, Johnson & Johnson anticipates about $400 million in tariff-related costs this year, primarily affecting its medical technology unit due to tariffs against China and retaliatory measures. CFO Joe Wolk noted that the company is taking a cautious approach to the U.S. government's trade policies. The company's pharmaceutical division also performed well, with revenue of approximately $13.9 billion, exceeding expectations. Johnson & Johnson highlighted several key drugs and experimental therapies during its earnings call, expressing confidence that sales of the cancer drug combination Rybrevant and Lazcluze could reach about twice the current Wall Street estimates by 2027. CEO Joaquin Duato emphasized the importance of tax policy over tariffs to encourage U.S. manufacturing, as the company plans to invest $55 billion over the next four years to produce advanced medicines in the U.S. Despite the tariff concerns, the company maintained its full-year earnings guidance at $10.60 per share and raised its sales outlook for 2025.