Johnson & Johnson (JNJ) has taken a significant step by submitting its OTTAVA robotic surgical system to the FDA for De Novo classification. This move marks J&J’s official entry into the growing robotic surgery sector, which is currently led by Intuitive Surgical and its da Vinci platform. This development is particularly important for dividend-focused investors, as J&J has consistently raised its dividend for 63 consecutive years. The introduction of OTTAVA could serve as a crucial growth driver for the company’s MedTech division, potentially supporting future dividend increases.
J&J designed OTTAVA to address a substantial market opportunity, focusing on various procedures in general surgery involving the upper abdomen, including gastric bypass and hiatal hernia repair. The company successfully completed its first clinical trial earlier this year, with initial cases performed by Dr. Erik Wilson, Chief of Minimally Invasive and Elective General Surgery at UT Health Houston.
Hani Abouhalka, Company Group Chair for Surgery at J&J MedTech, highlighted the extensive experience behind OTTAVA. “We have taken learnings from Johnson & Johnson’s 140 years in surgery… to design a soft tissue robotic system built for the future of surgery,” he stated. Additionally, the FDA has approved a second clinical trial for OTTAVA related to inguinal hernia procedures, which are among the most common surgeries in the United States.
One standout feature of OTTAVA is its “unified architecture.” The system integrates surgical instrumentation powered by Ethicon expertise and is designed to facilitate multi-specialty soft-tissue surgeries. This addresses specific challenges that surgeons face with existing robotic platforms, allowing for a more efficient approach to complex surgeries requiring a multi-quadrant strategy.
During a recent earnings call, Tim Schmid, Executive Vice President of MedTech at J&J, emphasized the company’s commitment to innovation. He reported that J&J’s surgical technologies are used in most operating rooms globally, with a notable increase in growth in biosurgery and wound closure driven by the adoption of new innovations.
In a strategic move, J&J announced plans to separate its Orthopaedics business into a standalone entity named DePuy Synthes. This transition is expected to be completed within the next 18 to 24 months and could have a direct impact on OTTAVA’s potential. Joe Wolk, J&J’s Chief Financial Officer, explained that separating Orthopaedics would enhance MedTech’s revenue growth and operating margins, enabling the company to focus resources on higher-growth markets.
The financial implications are noteworthy. J&J generated approximately $14 billion in free cash flow during the first nine months of 2025. Analysts project that the company will achieve a free cash flow of $18.54 billion this year. With an annual dividend expense of about $12.5 billion, the payout ratio stands at a manageable 68%. Forecasts suggest that J&J’s free cash flow could grow to $35.5 billion by 2029, supporting further increases in dividends.
J&J’s pharmaceutical segment has also shown robust performance. Excluding STELARA, which faces biosimilar competition, the Innovative Medicine division reported a growth rate of 16% in the third quarter. Notable products include DARZALEX, which achieved a 20% increase in sales, and CARVYKTI, which surged by 81%.
Looking ahead, J&J’s cardiovascular portfolio demonstrated strong growth, rising approximately 12% operationally in the third quarter. The company’s acquisition of Shockwave in 2024 has proven beneficial, with operational sales growth exceeding 20%. Additionally, Electrophysiology, an area where J&J leads the industry, experienced nearly 10% operational growth.
As J&J prepares for the future, preliminary guidance for 2026 indicates accelerated growth potential. Wolk noted that current revenue estimates appear conservative and that the company is optimistic about exceeding a 5% growth rate.
The FDA’s review process for OTTAVA will be crucial in determining the timing of its commercial launch, with J&J anticipating significant developments by mid-2026. The company aims for OTTAVA to contribute to growth starting in 2028, allowing time for FDA approval and market adoption.
J&J’s commitment to becoming a leading player in the robotics sector is clear. The company is also developing MONARCH, a robotic platform for urology, which targets difficult-to-treat kidney stones. Wolk emphasized that J&J’s growth strategy does not rely on large acquisitions but rather on smaller, strategic deals that leverage its scientific expertise.
In summary, OTTAVA represents a significant opportunity for Johnson & Johnson to expand its MedTech business and enhance its competitive position in high-growth markets. The separation of the Orthopaedics division is expected to sharpen the company’s focus and improve operational margins, allowing for increased investment in innovative platforms like OTTAVA. With a strong pharmaceutical business propelling steady growth, J&J appears well-positioned to maintain its 63-year streak of dividend increases, making it an attractive prospect for dividend-focused investors.
