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J&J MedTech reported 1Q25 orthopedic sales of $2.2 billion, down -4.2% compared to the first quarter of 2024.
Three one-time items impacted orthopedic results in the first quarter: a revenue recognition timing change, fewer selling days and impacts from orthopedic restructuring that the company initiated in 2023.
Accounting for those changes, operational growth for J&J MedTech’s worldwide orthopedics was closer to 2% growth.
Even when excluding those items, however, the company’s orthopedic performance came in below market averages for the first quarter.
“To be perfectly frank, Q1 clearly wasn’t our strongest quarter,” said Tim Schmid, J&J EVP of MedTech. “We have seen competitive pressures. As you know, these are highly attractive categories within ortho; it’s where the fight is, and frankly, we need to do better. With the addition of our portfolio of both implants as well as enabling technologies across hips and knees, we’re confident that we will see an improvement through the remaining quarters.”
In hips, the company plans to continue its focus on the anterior approach, featuring ACTIS, VELYS and Kincise 2.0. The VELYS robotic system is now in 30 countries and has performed 110,000 procedures, and will support uni knees in coming quarters.
Trauma has seen encouraging uptake of the VOLT plating system, while help is on the way for spine in the form of the TriALTIS Spine System and VELYS spine.
J&J said medtech volumes and seasonality have normalized. The company expects a $400 million impact from tariffs in 2025, but obviously the situation is very fluid.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 1Q25 | 1Q24 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $919.4 | $946.4 | ($27.0) | (2.9%) |
| Knees | $389.4 | $401.4 | ($12.0) | (3%) |
| Hips | $409.2 | $422.4 | ($13.2) | (3.1%) |
| Extremities | $120.7 | $122.6 | ($1.8) | (1.5%) |
| Spine | $217.2 | $249.7 | ($32.5) | (13%) |
| Trauma | $685.3 | $680.5 | $4.8 | 0.7% |
| Sports Medicine | $164.3 | $186.1 | ($21.8) | (11.7%) |
| Orthobiologics | $77.1 | $84.2 | ($7.1) | (8.4%) |
| Enabling Technology | $16.1 | $15.8 | $0.3 | 1.9% |
| Other | $161.7 | $177.7 | ($16.0) | (9%) |
| Total | $2,241.2 | $2,340.4 | ($99.3) | (4.2%) |
Orthopedic Sales by Geography
| Region | 1Q25 | 1Q24 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,384.1 | $1,448.2 | ($64.1) | (4.4%) |
| OUS | $857.0 | $892.2 | ($35.2) | (3.9%) |
| EMEA | $411.4 | $421.6 | ($10.2) | (2.4%) |
| APAC | $295.7 | $312.3 | ($16.6) | (5.3%) |
| ROW | $150.0 | $158.4 | ($8.4) | (5.3%) |
| Total | $2,241.2 | $2,340.4 | ($99.3) | (4.2%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $21,893.0 | |
| Cost of Sales | $7,357.0 | 33.6% |
| Selling and Admin | $5,112.0 | 23.3% |
| R & D | $3,225.0 | 14.7% |
| R & D | $3,225.0 | 14.7% |
| Other | ($4,800.0) | (21.9%) |
| Net Earnings | $10,999.0 | 50.2% |
J&J MedTech reported 1Q25 orthopedic sales of $2.2 billion, down -4.2% compared to the first quarter of 2024.
Three one-time items impacted orthopedic results in the first quarter: a revenue recognition timing change, fewer selling days and impacts from orthopedic restructuring that the company initiated in 2023.
Accounting for...
J&J MedTech reported 1Q25 orthopedic sales of $2.2 billion, down -4.2% compared to the first quarter of 2024.
Three one-time items impacted orthopedic results in the first quarter: a revenue recognition timing change, fewer selling days and impacts from orthopedic restructuring that the company initiated in 2023.
Accounting for those changes, operational growth for J&J MedTech’s worldwide orthopedics was closer to 2% growth.
Even when excluding those items, however, the company’s orthopedic performance came in below market averages for the first quarter.
“To be perfectly frank, Q1 clearly wasn’t our strongest quarter,” said Tim Schmid, J&J EVP of MedTech. “We have seen competitive pressures. As you know, these are highly attractive categories within ortho; it’s where the fight is, and frankly, we need to do better. With the addition of our portfolio of both implants as well as enabling technologies across hips and knees, we’re confident that we will see an improvement through the remaining quarters.”
In hips, the company plans to continue its focus on the anterior approach, featuring ACTIS, VELYS and Kincise 2.0. The VELYS robotic system is now in 30 countries and has performed 110,000 procedures, and will support uni knees in coming quarters.
Trauma has seen encouraging uptake of the VOLT plating system, while help is on the way for spine in the form of the TriALTIS Spine System and VELYS spine.
J&J said medtech volumes and seasonality have normalized. The company expects a $400 million impact from tariffs in 2025, but obviously the situation is very fluid.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 1Q25 | 1Q24 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $919.4 | $946.4 | ($27.0) | (2.9%) |
| Knees | $389.4 | $401.4 | ($12.0) | (3%) |
| Hips | $409.2 | $422.4 | ($13.2) | (3.1%) |
| Extremities | $120.7 | $122.6 | ($1.8) | (1.5%) |
| Spine | $217.2 | $249.7 | ($32.5) | (13%) |
| Trauma | $685.3 | $680.5 | $4.8 | 0.7% |
| Sports Medicine | $164.3 | $186.1 | ($21.8) | (11.7%) |
| Orthobiologics | $77.1 | $84.2 | ($7.1) | (8.4%) |
| Enabling Technology | $16.1 | $15.8 | $0.3 | 1.9% |
| Other | $161.7 | $177.7 | ($16.0) | (9%) |
| Total | $2,241.2 | $2,340.4 | ($99.3) | (4.2%) |
Orthopedic Sales by Geography
| Region | 1Q25 | 1Q24 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,384.1 | $1,448.2 | ($64.1) | (4.4%) |
| OUS | $857.0 | $892.2 | ($35.2) | (3.9%) |
| EMEA | $411.4 | $421.6 | ($10.2) | (2.4%) |
| APAC | $295.7 | $312.3 | ($16.6) | (5.3%) |
| ROW | $150.0 | $158.4 | ($8.4) | (5.3%) |
| Total | $2,241.2 | $2,340.4 | ($99.3) | (4.2%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $21,893.0 | |
| Cost of Sales | $7,357.0 | 33.6% |
| Selling and Admin | $5,112.0 | 23.3% |
| R & D | $3,225.0 | 14.7% |
| R & D | $3,225.0 | 14.7% |
| Other | ($4,800.0) | (21.9%) |
| Net Earnings | $10,999.0 | 50.2% |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
