OTTAVA Approval Fails to Boost Johnson & Johnson's MedTech Growth

Johnson & Johnson's MedTech segment experienced growth deceleration in the June 2026 quarter, just as its newly approved soft tissue surgical robot, OTTAVA, received FDA approval.

The segment grew from $7.89 billion to $8.93 billion over two years, but slowed to 4.57% year-over-year in the June 2026 quarter, down from above 7% in the prior two quarters.

Management has stated that OTTAVA will not be a material financial contributor until well into the next decade, and analysts' price targets have tracked the stock's rally in a tight band for over a year, with only a modest bump after OTTAVA's approval from 101.1% to 103.2% of price.

The company's Innovative Medicine segment, on the other hand, continued to accelerate, growing from $15.20 billion to $16.38 billion over the same period, up 7.76%, driven by strong sales of ICOTYDE and TREMFYA.