Johnson & Johnson to spin off orthopedics unit into DePuy Synthes

Johnson & Johnson will spin off its $9.2 billion orthopedics unit into a new company, DePuy Synthes, within 18–24 months, while raising its 2025 sales forecast to $93.5–$93.9 billion after better-than-expected earnings.

Johnson & Johnson (J&J) announced plans to spin off its orthopedics business into a standalone company called DePuy Synthes within the next 18 to 24 months, marking its second major spinoff in two years after the creation of consumer-health company Kenvue.

The orthopedics division, which makes hip, knee, and shoulder implants as well as surgical tools, generated about $9.2 billion in revenue last year – roughly 10% of J&J’s total sales.

At the same time, J&J raised its 2025 sales forecast to $93.5–$93.9 billion, about $300 million above its previous estimate and ahead of analysts’ expectations. The company said the move aligns with its focus on high-growth, high-margin areas such as oncology, immunology, neuroscience, surgery, and cardiovascular care.

Analysts expect the spinoff to make J&J a leaner and faster-growing company. Shares rose slightly in premarket trading and are up 32% year to date.