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In terms of revenue performance, Johnson & Johnson reported revenue of $21.9 billion in the first quarter, exceeding Wall Street's expectations by 1.4%. Adjusted earnings per share were $2.69, surpassing Wall Street's expectations by 6.7%.

Amid mixed sentiments, Johnson & Johnson's stock fell less than 1% on the day.

Johnson & Johnson CFO Joseph Wolk said that based on the tariffs on goods and raw materials formally announced by the Trump administration so far and the retaliatory measures taken by the international community, the company's medical technology sector will bear the brunt of the burden.

"I don't want to be cavalier about the $400 million," Wolk said on the investor call. "It's a program that phases in, and as that comes in, most of that will be capitalized into the cost of the goods," he added. "So that will come onto the balance sheet as inventory and come through the P&L over future periods."

Wolk stated that this estimated figure takes into account the impact of import tariffs on products manufactured in Canada and Mexico that are not covered by the North American trade agreement, as well as the impact of international steel and aluminum tariffs— the latter having "a very small degree of influence."

He said, "This includes tariffs on China and China's retaliatory tariffs. In terms of that $400 million, it might be the highest amount among all the tariffs. Therefore, what needs to be clarified to everyone is that this refers to American-origin products shipped to China - this could be the most severe punitive factor."

CEO Joaquin Duato said that if the Trump administration's goal is to increase domestic production, imposing tariffs on medical products is not the right approach, and warned that these tariffs could "cause supply chain disruptions, leading to shortages."

Duato stated, "If you want to establish manufacturing capabilities in the medical technology and pharmaceutical sectors in the United States, the most effective answer is not tariffs, but tax policies."

"In fact, since President Trump's tax reform in 2017, investment in medical technology and pharmaceuticals has increased significantly," he added, citing Johnson & Johnson’s plan announced last month to increase its U.S. investment by 25%, equivalent to over $55 billion in investments over four years, including building a new biologics factory in North Carolina. "

As for the future development direction, Wolk said that due to the fact that the contract for the transportation of medical equipment has been signed, the company's ability to mitigate the impact of tariffs by adjusting prices and passing on costs is "very limited".

"We know that these tariffs are very unstable," said Wolk. "Our responsible action now is to quantify the impact we anticipate for 2026, and then see if it aids in negotiations with other countries, as well as what actual changes will occur by the second half of 2025."

Following its recent financial guidance, the company's acquisition of Intra-Cellular Therapies and its Caplyta therapy for treating schizophrenia and bipolar disorder for $14.6 billion slightly raised its projected operational sales from $913 billion to $920 billion in January.

In the first quarter of this year, Johnson & Johnson's total sales reached $21.9 billion, reflecting a 4.2% growth compared to the beginning of 2024 after accounting for international currency fluctuations. This includes $8 billion in global medical technology revenue, with an adjusted growth rate of 4.1%.

Duato attributed part of these gains to its acquisitions of Abiomed and Shockwave in the cardiovascular disease field, as well as its surgical vision and wound closure businesses.

Moreover, after Johnson & Johnson paused the launch of its Varipulse pulsed field ablation system in the U.S., the company has now completed 5,500 procedures globally as cases resumed in February, he said.

However, this performance was somewhat offset by one-time costs in its orthopedic division, which is nearing the end of a two-year restructuring plan aimed at exiting lower-margin areas.

Meanwhile, Wolk stated that the company is implementing a similar plan to narrow the focus of its surgical business.

"We are focusing on portfolio refresh, with plans to exit certain non-strategic product lines on a global basis and optimize selected sites across our network," Wolk said.

"We anticipate minor short-term fluctuations in surgical revenue over the next two years, totaling approximately $250 million, but these initiatives will strengthen our ability to accelerate growth and enhance profitability. The project is expected to be completed by 2027, with an estimated cost of approximately $900 million."