⚠ Pulsed Field AblationHigh threat

Johnson & Johnson (JNJ) — threat to the moat

A new way of ablating heart tissue is the moment J&J's installed base of mapping systems protects it least.

The threat to J&J's electrophysiology business is a change in how ablation is done. The 2025 filing says electrophysiology growth was partially offset by competitive pressures in Pulsed Field Ablation catheters1. Pulsed field ablation is a newer way of treating rhythm disorders, and a technology shift is when an installed base protects least.

Electrophysiology sales growth (%)12.320247.020254.4Q2 2026J&J Form 10-K FY2025; Q2 2026 financial schedules
Growth has almost halved each year.

The slowdown shows in the numbers. Growth went from 12.3% in 2024 to 7.0% in 20252 and 4.4% in the second quarter of 20263. International electrophysiology grew only 0.4% operationally in the quarter4.

A mapping system is sticky, but a physician adopting a new ablation method may adopt a new vendor's system with it. That is the moment the switching cost resets.

The electrophysiology business is also J&J's clearest example of how device moats are contested in court as well as in the market. The Innovative Health injunction of August 2025 concerns Biosense Webster's business practices in mapping and ultrasound catheters5, the same products whose link to J&J's mapping systems gives the installed base its value. Losing some contract protection just as the technology shifts is the worst combination.

The regional split shows where the pressure is. In the second quarter of 2026 electrophysiology grew 5.8% in the United States but only 2.9% reported, and 0.4% operationally, internationally6. J&J's first-quarter approval of Varipulse Pro in Europe7 is aimed at exactly that weaker half.

Electrophysiology's operational growth for 2026 as a whole will confirm it or not. Below 5% for the full year would confirm J&J is losing ground in the transition to pulsed field ablation.

References
  1. ReportedThe 2025 filing says electrophysiology growth was partially offset by competitive pressures in Pulsed Field Ablation catheters.
    Johnson & Johnson Form 10-K for fiscal 2025 (year ended 28 December 2025) - Item 7 MD&A: MedTech segment and franchise sales analysis. — FY2025 · publ. 11 February 2026 · source ↗
  2. ReportedGrowth went from 12.3% in 2024 to 7.0% in 2025 and 4.4% in the second quarter of 2026.
    Johnson & Johnson Form 10-K for fiscal 2025 (year ended 28 December 2025) - Item 7 MD&A: consolidated sales, volume and price, geography, the three wholesalers, rebate accruals, costs, R&D and liquidity. — FY2025 · publ. 11 February 2026 · source ↗
  3. ReportedGrowth went from 12.3% in 2024 to 7.0% in 2025 and 4.4% in the second quarter of 2026.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - Innovative Medicine and total sales by product, segment and region. — Q2 2026 · publ. 15 July 2026 · source ↗
  4. ReportedInternational electrophysiology grew only 0.4% operationally in the quarter.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - MedTech segment and franchise sales by region. — Q2 2026 · publ. 15 July 2026 · source ↗
  5. ReportedThe Innovative Health injunction of August 2025 concerns Biosense Webster's business practices in mapping and ultrasound catheters, the same products whose link to J&J's mapping systems gives the installed base its value.
    Johnson & Johnson Form 10-K for fiscal 2025 (year ended 28 December 2025) - Item 1A risk factors, Note 19 legal proceedings (talc, Innovative Health, Auris, Tracleer) and the Inflation Reduction Act. — FY2025 · publ. 11 February 2026 · source ↗
  6. ReportedIn the second quarter of 2026 electrophysiology grew 5.8% in the United States but only 2.9% reported, and 0.4% operationally, internationally.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - MedTech segment and franchise sales by region. — Q2 2026 · publ. 15 July 2026 · source ↗
  7. ReportedJ&J's first-quarter approval of Varipulse Pro in Europe is aimed at exactly that weaker half.
    Johnson & Johnson first-quarter 2026 results release, Form 8-K exhibit 99.1. — Q1 2026 · publ. 14 April 2026 · source ↗
Sources
Generated September 24, 2026