Johnson & Johnson (J&J) reported better-than-expected adjusted earnings and revenue for the third quarter, showcasing strong performance in its pharmaceutical and medical devices businesses. The results marked J&J’s first quarterly report since completing the separation from its consumer health spinoff, Kenvue, in August—the largest shake-up in the company’s 137-year history.

J&J’s quarterly sales grew by 6.8% compared to the same period last year. The pharmaceutical giant reported a net income of $4.31 billion, or $1.69 per share, which was flat compared to the same period a year ago. Adjusted earnings per share were $2.66 for the quarter, surpassing Wall Street expectations of $2.52.

Sales in the pharmaceutical segment reached $13.89 billion, with notable contributions from drugs like Darzalex (for multiple myeloma), Erleada (prostate cancer treatment), and Stelara (used for various immune-mediated inflammatory diseases). However, the decline in sales of prostate cancer drug Zytiga and blood cancer drug Imbruvica offset some of the growth.

The separation from Kenvue resulted in a one-time, non-cash gain of $21 billion for J&J. The company raised its full-year outlook, anticipating 2023 sales between $83.6 billion and $84 billion, up from the previous guidance of $83.2 billion to $84 billion in August. Adjusted earnings per share are now expected to be between $10.07 and $10.13, compared to the earlier forecast of $10.00 to $10.10.

J&J’s stock closed nearly 1% higher on the news, but for the year, shares have declined more than 12%, bringing the company’s market value to approximately $376 billion. The financial results of J&J are closely watched as an indicator for the broader health sector.

J&J’s CFO, Joseph Wolk, emphasized that the company’s success was not dependent on its Covid vaccine, and the results underscored the resilience of its diverse pharmaceutical portfolio.

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