Johnson & Johnson (JNJ)
Market Price (7/25/2026): $263.45 | Market Cap: $634.2 BilInvestor Relations Sector: Health Care | Industry: Pharmaceuticals
Johnson & Johnson (JNJ)
Market Price (7/25/2026): $263.45Market Cap: $634.2 BilSector: Health CareIndustry: Pharmaceuticals
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.3% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 27% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 28%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 23%, CFO LTM is 28 Bil, FCF LTM is 22 Bil Stock buyback supportStock Buyback 3Y Total is 14 Bil Low stock price volatilityVol 12M is 18% Megatrend and thematic driversMegatrends include Biotechnology & Genomics, Precision Medicine, Aging Population & Chronic Disease, and Digital Health & Telemedicine. Show more. | Trading close to highsDist 52W High is -1.4%, Dist 3Y High is -1.4% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 24x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 23x, P/EPrice/Earnings or Price/(Net Income) is 30x Key risksJNJ key risks include [1] massive financial and reputational damage from tens of thousands of unresolved talcum powder lawsuits, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.3% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 27% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 28%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 23%, CFO LTM is 28 Bil, FCF LTM is 22 Bil |
| Stock buyback supportStock Buyback 3Y Total is 14 Bil |
| Low stock price volatilityVol 12M is 18% |
| Megatrend and thematic driversMegatrends include Biotechnology & Genomics, Precision Medicine, Aging Population & Chronic Disease, and Digital Health & Telemedicine. Show more. |
| Trading close to highsDist 52W High is -1.4%, Dist 3Y High is -1.4% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 24x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 23x, P/EPrice/Earnings or Price/(Net Income) is 30x |
| Key risksJNJ key risks include [1] massive financial and reputational damage from tens of thousands of unresolved talcum powder lawsuits, Show more. |
Qualitative Assessment
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Johnson & Johnson (JNJ) stock has gained about 10% since 3/31/2026 because of the following key factors:
1. Strong Fiscal Q2 2026 Earnings Beat and Raised Full-Year Guidance.
Johnson & Johnson reported robust second-quarter 2026 financial results on July 15, 2026, with adjusted earnings per share (EPS) of $2.90, surpassing consensus estimates of $2.84 to $2.85. Quarterly revenue increased 6.6% year-over-year to $25.31 billion, exceeding analyst expectations of $25.02 billion to $25.06 billion. Following this strong performance, the company raised its full-year 2026 guidance for both sales and adjusted EPS, signaling confidence in its future operational strength.
2. Positive Clinical Trial Results and Regulatory Approvals in Innovative Medicine and MedTech.
The company announced several significant advancements, including positive Phase 3 results for its TECVAYLI + TALVEY multiple myeloma regimen, which demonstrated an 89% reduction in disease progression or death risk. Additionally, the FDA granted De Novo authorization for J&J's OTTAVA robotic surgical system, providing a new entry point into the soft-tissue surgical robotics market. Regulatory approvals also included the expansion of TREMFYA's label for psoriatic arthritis and the FDA approval for the Dual Energy THERMOCOOL SMARTTOUCH SF Platform.
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Johnson & Johnson (JNJ) stock has gained about 10% since 3/31/2026 because of the following key factors:
1. Strong Fiscal Q2 2026 Earnings Beat and Raised Full-Year Guidance.
Johnson & Johnson reported robust second-quarter 2026 financial results on July 15, 2026, with adjusted earnings per share (EPS) of $2.90, surpassing consensus estimates of $2.84 to $2.85. Quarterly revenue increased 6.6% year-over-year to $25.31 billion, exceeding analyst expectations of $25.02 billion to $25.06 billion. Following this strong performance, the company raised its full-year 2026 guidance for both sales and adjusted EPS, signaling confidence in its future operational strength.
2. Positive Clinical Trial Results and Regulatory Approvals in Innovative Medicine and MedTech.
The company announced several significant advancements, including positive Phase 3 results for its TECVAYLI + TALVEY multiple myeloma regimen, which demonstrated an 89% reduction in disease progression or death risk. Additionally, the FDA granted De Novo authorization for J&J's OTTAVA robotic surgical system, providing a new entry point into the soft-tissue surgical robotics market. Regulatory approvals also included the expansion of TREMFYA's label for psoriatic arthritis and the FDA approval for the Dual Energy THERMOCOOL SMARTTOUCH SF Platform.
3. Favorable Developments in Talc Litigation.
A federal judge expressed skepticism regarding approximately 69,000 talc-related cancer claims against Johnson & Johnson, suggesting that plaintiffs would need more specific evidence or face dismissal. This legal development could potentially reduce the number of outstanding claims and alleviate some of the significant legal overhang associated with the company's long-running talc litigation.
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Stock Movement Drivers
Fundamental Drivers
The 8.4% change in JNJ stock from 3/31/2026 to 7/24/2026 was primarily driven by a 38.1% change in the company's P/E Multiple.| (LTM values as of) | 3312026 | 7242026 | Change |
|---|---|---|---|
| Stock Price ($) | 243.04 | 263.40 | 8.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 94,193 | 97,929 | 4.0% |
| Net Income Margin (%) | 28.5% | 21.5% | -24.5% |
| P/E Multiple | 21.8 | 30.1 | 38.1% |
| Shares Outstanding (Mil) | 2,408 | 2,407 | 0.0% |
| Cumulative Contribution | 8.4% |
Market Drivers
3/31/2026 to 7/24/2026| Return | Correlation | |
|---|---|---|
| JNJ | 8.4% | |
| Market (SPY) | 13.6% | -25.2% |
| Sector (XLV) | 10.9% | 73.8% |
Fundamental Drivers
The 28.7% change in JNJ stock from 12/31/2025 to 7/24/2026 was primarily driven by a 53.6% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 7242026 | Change |
|---|---|---|---|
| Stock Price ($) | 204.68 | 263.40 | 28.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 92,149 | 97,929 | 6.3% |
| Net Income Margin (%) | 27.3% | 21.5% | -21.2% |
| P/E Multiple | 19.6 | 30.1 | 53.6% |
| Shares Outstanding (Mil) | 2,408 | 2,407 | 0.0% |
| Cumulative Contribution | 28.7% |
Market Drivers
12/31/2025 to 7/24/2026| Return | Correlation | |
|---|---|---|
| JNJ | 28.7% | |
| Market (SPY) | 8.7% | -15.5% |
| Sector (XLV) | 5.5% | 61.4% |
Fundamental Drivers
The 76.7% change in JNJ stock from 6/30/2025 to 7/24/2026 was primarily driven by a 83.3% change in the company's P/E Multiple.| (LTM values as of) | 6302025 | 7242026 | Change |
|---|---|---|---|
| Stock Price ($) | 149.03 | 263.40 | 76.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 89,331 | 97,929 | 9.6% |
| Net Income Margin (%) | 24.4% | 21.5% | -12.0% |
| P/E Multiple | 16.4 | 30.1 | 83.3% |
| Shares Outstanding (Mil) | 2,407 | 2,407 | 0.0% |
| Cumulative Contribution | 76.7% |
Market Drivers
6/30/2025 to 7/24/2026| Return | Correlation | |
|---|---|---|
| JNJ | 76.7% | |
| Market (SPY) | 20.6% | -9.3% |
| Sector (XLV) | 22.2% | 59.2% |
Fundamental Drivers
The 73.7% change in JNJ stock from 6/30/2023 to 7/24/2026 was primarily driven by a 43.3% change in the company's Net Income Margin (%).| (LTM values as of) | 6302023 | 7242026 | Change |
|---|---|---|---|
| Stock Price ($) | 151.64 | 263.40 | 73.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 84,849 | 97,929 | 15.4% |
| Net Income Margin (%) | 15.0% | 21.5% | 43.3% |
| P/E Multiple | 31.1 | 30.1 | -2.9% |
| Shares Outstanding (Mil) | 2,606 | 2,407 | 8.2% |
| Cumulative Contribution | 73.7% |
Market Drivers
6/30/2023 to 7/24/2026| Return | Correlation | |
|---|---|---|
| JNJ | 73.7% | |
| Market (SPY) | 72.6% | 0.8% |
| Sector (XLV) | 28.2% | 56.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| JNJ Return | 11% | 6% | -9% | -5% | 47% | 27% | 92% |
| Peers Return | 31% | 15% | 6% | 9% | 22% | 8% | 130% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 97% |
Monthly Win Rates [3] | |||||||
| JNJ Win Rate | 58% | 58% | 50% | 42% | 83% | 57% | |
| Peers Win Rate | 58% | 58% | 42% | 48% | 55% | 57% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| JNJ Max Drawdown | -12% | -13% | -17% | -14% | -13% | -11% | |
| Peers Max Drawdown | -19% | -21% | -24% | -21% | -23% | -19% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: PFE, MRK, LLY, ABBV, MDT. See JNJ Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/24/2026 (YTD)
How Low Can It Go
| Event | JNJ | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -14.9% | -9.5% |
| % Gain to Breakeven | 17.5% | 10.5% |
| Time to Breakeven | 312 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -24.9% | -33.7% |
| % Gain to Breakeven | 33.2% | 50.9% |
| Time to Breakeven | 24 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -11.1% | -19.2% |
| % Gain to Breakeven | 12.5% | 23.8% |
| Time to Breakeven | 67 days | 105 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -10.0% | -6.8% |
| % Gain to Breakeven | 11.1% | 7.3% |
| Time to Breakeven | 65 days | 15 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -11.1% | -15.4% |
| % Gain to Breakeven | 12.5% | 18.2% |
| Time to Breakeven | 83 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -28.4% | -53.4% |
| % Gain to Breakeven | 39.8% | 114.4% |
| Time to Breakeven | 268 days | 1085 days |
In The Past
Johnson & Johnson's stock fell -7.3% during the 2025 US Tariff Shock. Such a loss loss requires a 7.9% gain to breakeven.
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| Event | JNJ | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -24.9% | -33.7% |
| % Gain to Breakeven | 33.2% | 50.9% |
| Time to Breakeven | 24 days | 140 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -28.4% | -53.4% |
| % Gain to Breakeven | 39.8% | 114.4% |
| Time to Breakeven | 268 days | 1085 days |
In The Past
Johnson & Johnson's stock fell -7.3% during the 2025 US Tariff Shock. Such a loss loss requires a 7.9% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Johnson & Johnson (JNJ)
Johnson & Johnson (JNJ) is a global healthcare company that researches, develops, manufactures, and sells a diverse range of products across three key segments: Consumer Health, Pharmaceutical, and MedTech. This comprehensive approach allows the company to address various health needs, from daily personal care to specialized medical interventions and treatments worldwide.
The company's Consumer Health segment provides a wide array of household brands, including TYLENOL for pain relief, NEUTROGENA for skin care, LISTERINE for oral hygiene, and BAND-AID for first aid. This segment primarily serves the general public through retail outlets and distributors. In contrast, the Pharmaceutical segment focuses on prescription medications for serious conditions such as rheumatoid arthritis, HIV/AIDS, cancer, and mood disorders, with its products distributed to hospitals, wholesalers, and healthcare professionals for clinical use.
JNJ's MedTech segment offers advanced medical devices and technology solutions. This includes orthopaedic products for hips, knees, and spine, electrophysiology devices for cardiovascular diseases, neurovascular care products for stroke, and advanced surgical tools. Additionally, it manufactures ACUVUE contact lenses and other ophthalmic products. These MedTech offerings are supplied to wholesalers, hospitals, and retailers, supporting medical professionals in various specialized fields.
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Here are 1-3 brief analogies for Johnson & Johnson:
The Amazon of healthcare.
Procter & Gamble meets Pfizer meets Medtronic.
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- Consumer Health Products: Includes popular over-the-counter brands for baby care, oral hygiene, skin health, pain relief, cold/allergy treatment, smoking cessation, acid reflux, feminine hygiene, and first aid.
- Pharmaceutical Medications: Prescription drugs addressing a broad spectrum of conditions such as immunology, infectious diseases (HIV/AIDS, COVID-19), neurological disorders, various cancers, cardiovascular issues, and pulmonary hypertension.
- Medical Technology Products: Advanced devices and solutions for areas including electrophysiology, neurovascular care, orthopaedic surgery, general surgery, and ophthalmic health like contact lenses and cataract surgery products.
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Johnson & Johnson (JNJ) primarily sells to other companies (B2B) across its three segments: Consumer Health, Pharmaceutical, and MedTech. While its products ultimately reach the general public and patients, JNJ's major direct customers are primarily the following categories of businesses:
- Retail Outlets and Retailers: These encompass pharmacies, supermarkets, and general merchandise stores that purchase and stock JNJ's Consumer Health products (such as TYLENOL, BAND-AID, NEUTROGENA, and LISTERINE) and certain MedTech products (like ACUVUE contact lenses) for sale to the general public.
- Wholesalers and Distributors: These companies facilitate the large-scale distribution of JNJ's Consumer Health, Pharmaceutical, and MedTech products to various points of sale, pharmacies, and healthcare providers.
- Hospitals and Healthcare Professionals: These entities directly procure JNJ's Pharmaceutical products (e.g., prescription medications for various conditions) and MedTech devices and solutions (e.g., orthopaedics products, electrophysiology products, advanced surgery solutions) for use in patient treatment and care within their facilities or practices.
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Joaquin Duato, Chairman and Chief Executive Officer
Joaquin Duato joined Johnson & Johnson in 1989 at Janssen Pharmaceuticals in Spain. He served as Vice Chairman of the Executive Committee, leading the company's pharmaceutical and consumer health businesses, and overseeing supply-chain and technology operations before being appointed CEO in January 2022 and Chairman in January 2023. Mr. Duato oversaw the separation of Johnson & Johnson's consumer health segment, now an independent publicly traded company known as Kenvue. He holds a Master of Business Administration from ESADE Business School in Barcelona, Spain, and a Master of International Management from Thunderbird School of Global Management in Phoenix, Arizona. His family background, including a mother who was a nurse, a grandfather who was a pediatrician, and a grandmother who was a pharmacist, influenced his career in healthcare. He has served on the boards of the United States-Spain Council, UNICEF USA, Tsinghua University School of Pharmaceutical Sciences, and Hess Corporation. Mr. Duato was also the Chairman of Pharmaceutical Research and Manufacturers of America (PhRMA) from 2017 to 2018.
Joseph J. Wolk, Executive Vice President and Chief Financial Officer
Joseph J. Wolk joined Johnson & Johnson in 1998 and has served as the Chief Financial Officer since 2018. Throughout his tenure, he has held various senior financial roles, including Vice President of Investor Relations, Vice President of Finance for J&J Innovative Medicine, Vice President of Finance for J&J MedTech's Global Supply Chain, and Chief Financial Officer of the North America Innovative Medicine Group. Mr. Wolk played a key role in leading the separation of Johnson & Johnson's consumer health business. He holds a Bachelor of Science degree in Finance from St. Joseph's University and a Juris Doctor degree from Temple University School of Law, and is also a Certified Public Accountant (CPA). Mr. Wolk also serves as an independent director on the Board of Directors for Prudential Financial, Inc. Notably, his father, uncle, and aunt also worked at Johnson & Johnson, making it a family business for him.
Jennifer L. Taubert, Executive Vice President, Worldwide Chairman, Innovative Medicine
Jennifer L. Taubert joined Johnson & Johnson in 2005. Prior to joining J&J, she spent 18 years in positions of increasing scope and responsibility at Merck and Allergan. At Johnson & Johnson, she led global commercial strategy for the pharmaceuticals business and, as President, Internal Medicine, built a new franchise in cardiovascular and metabolic disease. Under her leadership as Company Group Chairman, The Americas, the pharmaceuticals business doubled in size, becoming the number one pharmaceutical company in the United States and Canada. Ms. Taubert is a member of the Corporation's Executive Committee and leads the Innovative Medicine Group Operating Committee. She has also served as a member of the Board of Directors of McDonald's Corporation since 2022. She earned a Bachelor's degree in Pharmacology from the University of California, Santa Barbara, and a Master of Business Administration from the Anderson Graduate School of Management at the University of California, Los Angeles.
Tim Schmid, Executive Vice President, Worldwide Chairman, MedTech
Tim Schmid serves as the Executive Vice President and Worldwide Chairman of MedTech at Johnson & Johnson. He leads the company's MedTech organization, which has over 75,000 employees and generates approximately $30 billion in revenue, focusing on developing and delivering innovative medical technologies.
Vanessa Broadhurst, Executive Vice President, Global Corporate Affairs
Vanessa Broadhurst is the Executive Vice President of Global Corporate Affairs and a member of Johnson & Johnson's executive committee. She is responsible for leading strategies across Corporate Marketing, Global Communications, Global Health Equity, and Worldwide Government Affairs & Policy for the company.
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The most significant risk stems from **extensive litigation and legal liabilities**, particularly related to lawsuits concerning its talc-based products. The company has faced numerous lawsuits alleging that its talc products caused ovarian cancer, leading to substantial financial settlements and ongoing legal battles. This includes a reported $6.5 billion settlement plan to resolve nearly all U.S. lawsuits related to talc-based ovarian cancer claims, though new class-action lawsuits continue to emerge. The legal and regulatory risk exposure for Johnson & Johnson is significantly higher than the industry average.
Another prominent risk is **patent expirations and increasing competition from generics and biosimilars**. The pharmaceutical segment, a key driver for Johnson & Johnson, is heavily reliant on patent protection for its products. The loss of patent exclusivity, exemplified by drugs like STELARA, often leads to a substantial reduction in sales as competitors introduce generic or biosimilar versions. This "patent cliff" poses a continuous challenge to the company's profitability and market share.
Finally, **regulatory challenges and scrutiny** represent a significant ongoing risk. The healthcare industry in which Johnson & Johnson operates is subject to extensive and evolving regulations worldwide. Changes in laws, policies, or increased scrutiny can impose significant compliance costs, expose the company to government investigations, and result in legal actions and penalties. Past instances have highlighted regulatory shortfalls and corporate influence over regulatory bodies, underscoring the potential for regulatory issues to impact consumer safety and public trust.
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Johnson & Johnson (JNJ) operates across various healthcare segments, with the following addressable market sizes for its main products or services:
-
Consumer Health:
- Oral Care Products (e.g., LISTERINE): The global oral care market size was estimated at USD 39.94 billion in 2025 and is projected to reach USD 66.37 billion by 2033.
- OTC Pain Relief Products (e.g., TYLENOL, MOTRIN IB): The global over-the-counter (OTC) analgesics market size is calculated at USD 31.89 billion in 2025 and is predicted to increase to approximately USD 45.77 billion by 2035.
- Feminine Hygiene Products (e.g., STAYFREE, CAREFREE, o.b.): The global feminine hygiene products market size was accounted at USD 48.96 billion in 2025 and is predicted to increase to approximately USD 101.80 billion by 2035.
- Wound Care/First Aid Products (e.g., BAND-AID, NEOSPORIN): The global wound care market size was estimated at USD 24.77 billion in 2025 and is expected to reach USD 35.56 billion by 2032.
- Baby Care Products: null
- Skin Health/Beauty Products: null
- Smoking Cessation Products: null
- Acid Reflux Products: null
-
Pharmaceutical:
- Rheumatoid Arthritis Therapeutics: The global rheumatoid arthritis therapeutics market size was valued at USD 35.35 billion in 2025 and is projected to grow to USD 46.66 billion by 2034.
- Psoriasis Therapeutics: The global psoriasis treatment market size was valued at USD 29.15 billion in 2025 and is projected to grow to USD 72.99 billion by 2034.
- Prostate Cancer Therapeutics: The global prostate cancer therapeutics market size was valued at USD 25.12 billion in 2025 and is projected to grow to USD 106.86 billion by 2034.
- Diabetes Therapeutics: The global diabetes drugs market size was valued at USD 101.48 billion in 2025 and is projected to grow to USD 283.36 billion by 2034.
- Inflammatory Bowel Disease Therapeutics: null
- HIV/AIDS Infectious Disease Therapeutics: null
- COVID-19 Infectious Disease Therapeutics: null
- Mood Disorders Therapeutics: null
- Neurodegenerative Disorders Therapeutics: null
- Schizophrenia Therapeutics: null
- Hematologic Malignancies Therapeutics: null
- Lung Cancer Therapeutics: null
- Bladder Cancer Therapeutics: null
- Thrombosis Therapeutics: null
- Macular Degeneration Therapeutics: null
- Pulmonary Arterial Hypertension Therapeutics: null
-
MedTech:
- Electrophysiology Products: The global electrophysiology devices market size accounted for USD 14.55 billion in 2025 and is predicted to reach around USD 55.43 billion by 2035.
- Disposable Contact Lenses (e.g., ACUVUE): The global contact lenses market size was valued at USD 11.75 billion in 2025 and is projected to grow to USD 20.97 billion by 2034.
- Neurovascular Care Products: null
- Orthopaedics Products (Hips, Knees, Trauma, Spine, Sports): null
- Advanced and General Surgery Solutions (Breast Aesthetics, ENT): null
- Ophthalmic Products (Cataract and Laser Refractive Surgery): null
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Johnson & Johnson (JNJ) is anticipated to drive future revenue growth over the next two to three years through several key strategies:
- Innovative Medicine Portfolio and Pipeline Expansion: The company's Innovative Medicine segment is a primary growth engine, particularly in oncology and immunology. Key products like DARZALEX (multiple myeloma) and TREMFYA (Crohn's disease, ulcerative colitis, psoriasis) are expected to continue their strong growth trajectory through new indications and market share gains. Johnson & Johnson anticipates more than 25 assets with significant peak year sales potential by 2030, reinforcing its focus on high-growth therapeutic areas such as oncology, immunology, and neuroscience.
- MedTech Segment Innovation and Market Expansion: The MedTech segment is poised for accelerated growth, driven by continued innovation and expansion into high-growth markets. This includes advancements in interventional cardiovascular products, robotic and digital surgery solutions (such as the OTTAVA robotic surgical system), and ophthalmic products, including new contact lens innovations and surgical vision technologies like TECNIS PureSee. The company expects a substantial portion of its MedTech sales to come from new products.
- Strategic Acquisitions and Robust R&D Investment: Johnson & Johnson consistently invests significantly in research and development, alongside strategic acquisitions, to enhance its product pipeline and portfolio. Recent acquisitions like Intra-Cellular Therapies and Halda Therapeutics are contributing to innovation and growth within the Innovative Medicine segment. These ongoing investments are critical for developing and launching new therapies and technologies across both its core business segments.
- Market Share Gains and New Product Launches: The company is focused on securing market share gains for its established and recently launched products, alongside the introduction of new therapies and medical devices. Examples include the strong performance of CARVYKTI in multiple myeloma, SPRAVATO and CAPLYTA in neuroscience, and new launches like RYBREVANT plus LAZCLUZE in lung cancer. This consistent pipeline of new approvals and expanded indications is expected to drive sustained revenue growth.
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Capital Allocation Decisions (2021-2025)
Share Repurchases
- Johnson & Johnson authorized a share repurchase program of up to $5 billion in September 2022.
- The company executed significant share repurchases, with annual buybacks totaling $11.089 billion in 2023 and $5.953 billion in 2025.
- Annual share buybacks were $2.432 billion in 2024.
Outbound Investments
- In 2022, Johnson & Johnson acquired Abiomed for $16.6 billion to expand its MedTech portfolio, particularly in cardiovascular care.
- In 2023, the company completed the spin-off of its Consumer Health division, Kenvue, which was valued at $47 billion at its IPO and generated $13.2 billion in cash proceeds for Johnson & Johnson.
- Johnson & Johnson made two significant acquisitions in 2024, acquiring Ambrx Biopharma for approximately $2 billion to bolster its oncology pipeline and Shockwave Medical for $13.1 billion to enhance its cardiovascular intervention leadership.
Capital Expenditures
- Johnson & Johnson's capital expenditures for fiscal years ending January 2022 to 2025 averaged $3.797 billion, with expenditures peaking at $4.243 billion in December 2024. The annual capital expenditures for FY2025 were $4.8 billion.
- The company announced plans in March 2025 to invest more than $55 billion in the United States over the next four years, representing a 25% increase from the prior four-year period.
- This $55 billion investment is focused on manufacturing, research and development (R&D), and technology, including the construction of four new advanced manufacturing facilities, such as a $2 billion+ biologics manufacturing facility in North Carolina, supporting its Innovative Medicine and MedTech businesses.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 195.22 |
| Mkt Cap | 391.5 |
| Rev LTM | 64,541 |
| Op Inc LTM | 18,176 |
| FCF LTM | 12,242 |
| FCF 3Y Avg | 11,334 |
| CFO LTM | 19,185 |
| CFO 3Y Avg | 14,679 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.2% |
| Rev Chg 3Y Avg | 4.8% |
| Rev Chg Q | 8.2% |
| QoQ Delta Rev Chg LTM | 2.1% |
| Op Inc Chg LTM | 12.9% |
| Op Inc Chg 3Y Avg | 39.8% |
| Op Mgn LTM | 25.7% |
| Op Mgn 3Y Avg | 22.8% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 27.7% |
| CFO/Rev 3Y Avg | 24.0% |
| FCF/Rev LTM | 18.2% |
| FCF/Rev 3Y Avg | 18.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 391.5 |
| P/S | 5.7 |
| P/Op Inc | 23.1 |
| P/EBIT | 24.4 |
| P/E | 33.2 |
| P/CFO | 19.9 |
| Total Yield | 5.3% |
| Dividend Yield | 2.6% |
| FCF Yield 3Y Avg | 5.2% |
| D/E | 0.2 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 7.9% |
| 3M Rtn | 17.2% |
| 6M Rtn | 16.4% |
| 12M Rtn | 44.8% |
| 3Y Rtn | 50.2% |
| 1M Excs Rtn | 7.1% |
| 3M Excs Rtn | 10.7% |
| 6M Excs Rtn | 8.3% |
| 12M Excs Rtn | 29.0% |
| 3Y Excs Rtn | -3.9% |
Comparison Analyses
FDA Approved Drugs Data
Expand for More| Post-Approval Fwd Returns | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| FDA App # | Brand Name | Generic Name | Dosage Form | FDA Approval | 3M Rtn | 6M Rtn | 1Y Rtn | 2Y Rtn | Total Rtn |
| NDA022388 | ACUVUE THERAVISION WITH KETOTIFEN | ketotifen fumarate | drug-eluting contact lens | 2252022 | 9.8% | 0.3% | -3.5% | 3.2% | 76.4% |
| Post-Approval Fwd Returns | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| FDA App # | Brand Name | Generic Name | Dosage Form | FDA Approval | 3M Rtn | 6M Rtn | 1Y Rtn | 2Y Rtn | Total Rtn |
| NDA022388 | ACUVUE THERAVISION WITH KETOTIFEN | ketotifen fumarate | drug-eluting contact lens | 2252022 | 9.8% | 0.3% | -3.5% | 3.2% | 76.4% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Innovative Medicine | 60,401 | 56,964 | 52,563 | 52,563 |
| MedTech | 33,792 | 31,857 | 27,427 | 27,427 |
| Consumer Health | 14,953 | |||
| Total | 94,193 | 88,821 | 94,943 | 79,990 |
| $ Mil | 2008 | 2007 | 2006 | 2005 | 2004 |
|---|---|---|---|---|---|
| Innovative Medicine | 7,605 | 6,540 | 6,894 | 6,610 | 7,608 |
| Medical Devices and Diagnostics | 7,223 | ||||
| Consumer | 2,674 | 2,277 | 1,374 | 1,667 | 1,514 |
| Medical Devices & Diagnostics | 4,846 | 6,126 | 5,418 | 4,091 | |
| Total | 17,502 | 13,663 | 14,394 | 13,695 | 13,213 |
| $ Mil | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| MedTech | 86,482 | 84,322 | 70,956 | 53,372 |
| Innovative Medicine | 78,057 | 57,070 | 58,436 | 64,376 |
| General corporate | 34,671 | 38,712 | 33,918 | 39,189 |
| Consumer Health | 24,068 | 25,081 | ||
| Total | 199,210 | 180,104 | 187,378 | 182,018 |
Price Behavior
| Market Price | $263.40 | |
| Market Cap ($ Bil) | 634.5 | |
| First Trading Date | 01/02/1970 | |
| Distance from 52W High | -1.4% | |
| 50 Days | 200 Days | |
| DMA Price | $241.72 | $222.92 |
| DMA Trend | up | up |
| Distance from DMA | 9.0% | 18.2% |
| 3M | 1YR | |
| Volatility | 24.5% | 18.2% |
| Downside Capture | -130.44 | -61.50 |
| Upside Capture | -36.62 | 5.66 |
| Correlation (SPY) | -33.9% | -10.8% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.69 | -0.51 | -0.24 | -0.15 | -0.09 | 0.02 |
| Up Beta | -0.56 | -0.43 | 0.31 | 0.18 | 0.15 | 0.13 |
| Down Beta | -0.27 | -0.37 | -0.57 | -0.15 | -0.23 | -0.01 |
| Up Capture | -18% | -12% | -15% | -0% | 17% | 2% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 12 | 22 | 29 | 64 | 137 | 405 |
| Down Capture | -158% | -116% | -87% | -75% | -82% | -37% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 9 | 19 | 34 | 61 | 115 | 346 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with JNJ | |
|---|---|---|---|---|
| JNJ | 60.0% | 18.1% | 2.44 | - |
| Sector ETF (XLV) | 20.9% | 15.7% | 1.02 | 58.9% |
| Equity (SPY) | 17.6% | 12.7% | 1.00 | -11.2% |
| Gold (GLD) | 19.2% | 28.1% | 0.61 | 7.9% |
| Commodities (DBC) | 34.7% | 19.1% | 1.42 | -10.0% |
| Real Estate (VNQ) | 13.8% | 14.1% | 0.69 | 35.3% |
| Bitcoin (BTCUSD) | -45.4% | 42.9% | -1.29 | -11.6% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with JNJ | |
|---|---|---|---|---|
| JNJ | 12.5% | 17.4% | 0.56 | - |
| Sector ETF (XLV) | 6.4% | 15.0% | 0.25 | 59.8% |
| Equity (SPY) | 12.8% | 17.1% | 0.58 | 16.8% |
| Gold (GLD) | 17.0% | 18.4% | 0.75 | 5.1% |
| Commodities (DBC) | 9.6% | 19.5% | 0.38 | -4.2% |
| Real Estate (VNQ) | 3.0% | 18.9% | 0.06 | 34.9% |
| Bitcoin (BTCUSD) | 15.7% | 53.4% | 0.47 | 0.8% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with JNJ | |
|---|---|---|---|---|
| JNJ | 10.9% | 18.7% | 0.50 | - |
| Sector ETF (XLV) | 10.0% | 16.6% | 0.49 | 68.8% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 42.2% |
| Gold (GLD) | 11.3% | 16.1% | 0.57 | 5.2% |
| Commodities (DBC) | 7.2% | 17.9% | 0.32 | 7.3% |
| Real Estate (VNQ) | 5.2% | 20.7% | 0.21 | 42.4% |
| Bitcoin (BTCUSD) | 58.3% | 66.2% | 0.98 | 5.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/24/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/15/2026 | -2.7% | -1.3% | |
| 4/14/2026 | 0.9% | -3.1% | -5.8% |
| 1/21/2026 | -0.1% | 2.9% | 13.2% |
| 10/14/2025 | -0.0% | 1.5% | 1.5% |
| 7/16/2025 | 6.2% | 8.2% | 12.4% |
| 4/15/2025 | -0.5% | 2.2% | -5.2% |
| 1/22/2025 | -1.9% | 1.5% | 8.6% |
| 10/15/2024 | 1.5% | 0.8% | -5.5% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 15 | 11 |
| # Negative | 12 | 10 | 13 |
| Median Positive | 2.3% | 2.5% | 4.8% |
| Median Negative | -1.2% | -2.5% | -3.8% |
| Max Positive | 6.2% | 8.2% | 13.2% |
| Max Negative | -2.8% | -5.0% | -6.3% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/15/2026 | -2.7% | -1.3% | |
| 4/14/2026 | 0.9% | -3.1% | -5.8% |
| 1/21/2026 | -0.1% | 2.9% | 13.2% |
| 10/14/2025 | -0.0% | 1.5% | 1.5% |
| 7/16/2025 | 6.2% | 8.2% | 12.4% |
| 4/15/2025 | -0.5% | 2.2% | -5.2% |
| 1/22/2025 | -1.9% | 1.5% | 8.6% |
| 10/15/2024 | 1.5% | 0.8% | -5.5% |
| 7/17/2024 | 3.7% | 0.9% | 4.9% |
| 5/1/2024 | 4.6% | 2.9% | 1.3% |
| 1/23/2024 | -1.6% | -1.9% | -1.6% |
| 10/17/2023 | -0.9% | -3.9% | -6.3% |
| 8/30/2023 | -0.4% | -3.8% | -4.5% |
| 4/18/2023 | -2.8% | -1.2% | -3.8% |
| 1/24/2023 | 0.0% | -3.7% | -5.6% |
| 10/18/2022 | -0.3% | 2.6% | 3.5% |
| 7/19/2022 | -1.5% | -1.0% | -3.8% |
| 4/19/2022 | 3.1% | 4.7% | 0.7% |
| 1/25/2022 | 2.9% | 5.7% | -0.4% |
| 10/19/2021 | 2.3% | 2.5% | 1.6% |
| 7/21/2021 | 0.6% | 2.5% | 5.2% |
| 4/20/2021 | 2.3% | 0.9% | 4.8% |
| 1/26/2021 | 2.7% | -2.0% | -1.4% |
| 10/13/2020 | -2.3% | -5.0% | -2.3% |
| 7/16/2020 | 0.7% | 1.2% | -0.2% |
| SUMMARY STATS | |||
| # Positive | 13 | 15 | 11 |
| # Negative | 12 | 10 | 13 |
| Median Positive | 2.3% | 2.5% | 4.8% |
| Median Negative | -1.2% | -2.5% | -3.8% |
| Max Positive | 6.2% | 8.2% | 13.2% |
| Max Negative | -2.8% | -5.0% | -6.3% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/23/2026 | 10-Q |
| 03/31/2026 | 04/22/2026 | 10-Q |
| 12/31/2025 | 02/11/2026 | 10-K |
| 09/30/2025 | 10/22/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 04/23/2025 | 10-Q |
| 12/31/2024 | 02/13/2025 | 10-K |
| 09/30/2024 | 10/23/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 02/16/2024 | 10-K |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 07/31/2023 | 10-Q |
| 03/31/2023 | 04/28/2023 | 10-Q |
| 12/31/2022 | 02/16/2023 | 10-K |
| 09/30/2022 | 10/27/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/23/2026 | 10-Q |
| 03/31/2026 | 04/22/2026 | 10-Q |
| 12/31/2025 | 02/11/2026 | 10-K |
| 09/30/2025 | 10/22/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 04/23/2025 | 10-Q |
| 12/31/2024 | 02/13/2025 | 10-K |
| 09/30/2024 | 10/23/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 02/16/2024 | 10-K |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 07/31/2023 | 10-Q |
| 03/31/2023 | 04/28/2023 | 10-Q |
| 12/31/2022 | 02/16/2023 | 10-K |
| 09/30/2022 | 10/27/2022 | 10-Q |
| 06/30/2022 | 07/29/2022 | 10-Q |
| 03/31/2022 | 04/29/2022 | 10-Q |
| 12/31/2021 | 02/17/2022 | 10-K |
| 09/30/2021 | 10/29/2021 | 10-Q |
| 06/30/2021 | 07/29/2021 | 10-Q |
| 03/31/2021 | 04/30/2021 | 10-Q |
| 12/31/2020 | 02/22/2021 | 10-K |
| 09/30/2020 | 10/23/2020 | 10-Q |
| 06/30/2020 | 07/24/2020 | 10-Q |
| 03/31/2020 | 04/29/2020 | 10-Q |
| 12/31/2019 | 02/18/2020 | 10-K |
| 09/30/2019 | 10/28/2019 | 10-Q |
Recent Forward Guidance
Updated 7/16/2026Latest: Q2 2026 Earnings Reported 7/15/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Operational Sales Growth | 6.2% | 6.5% | 6.8% | 0.4% | Raised | Guidance: 6.1% for 2026 | |
| 2026 Operational Sales | 100.30 Bil | 100.60 Bil | 100.90 Bil | 0.4% | Raised | Guidance: 100.20 Bil for 2026 | |
| 2026 Estimated Reported Sales | 100.80 Bil | 101.10 Bil | 101.40 Bil | 0.3% | Raised | Guidance: 100.80 Bil for 2026 | |
| 2026 Adjusted Operational EPS | 11.5 | 11.6 | 11.7 | 1.6% | Raised | Guidance: 11.4 for 2026 | |
| 2026 Adjusted EPS | 11.6 | 11.7 | 11.8 | 1.1% | Raised | Guidance: 11.6 for 2026 | |
Prior: Q1 2026 Earnings Reported 4/14/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Operational Sales | 0.06 | 0.06 | 0.07 | 0.2% | Raised | Guidance: 0.06 for 2026 | |
| 2026 Operational Sales | 99.70 Bil | 100.20 Bil | 100.70 Bil | 0.2% | Raised | Guidance: 100.00 Bil for 2026 | |
| 2026 Estimated Reported Sales | 100.30 Bil | 100.80 Bil | 101.30 Bil | 0.3% | Raised | Guidance: 100.50 Bil for 2026 | |
| 2026 Adjusted Operational EPS (Diluted) | 11.3 | 11.4 | 11.5 | 0.2% | Raised | Guidance: 11.4 for 2026 | |
| 2026 Adjusted EPS (Diluted) | 11.4 | 11.6 | 11.7 | 0.2% | Raised | Guidance: 11.5 for 2026 | |
Q4 2025 Earnings Reported 1/21/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Operational Sales | 0.05 | 0.06 | 0.06 | 2.1% | Higher New | Guidance: 0.04 for 2025 | |
| 2026 Operational Sales | 99.50 Bil | 100.00 Bil | 100.50 Bil | 7.3% | Higher New | Guidance: 93.20 Bil for 2025 | |
| 2026 Estimated Reported Sales | 100.00 Bil | 100.50 Bil | 101.00 Bil | 7.3% | Higher New | Guidance: 93.70 Bil for 2025 | |
| 2026 Adjusted Operational EPS | 11.3 | 11.4 | 11.5 | 6.6% | Higher New | Guidance: 10.7 for 2025 | |
| 2026 Adjusted EPS | 11.4 | 11.5 | 11.6 | 6.3% | Higher New | Guidance: 10.8 for 2025 | |
Q3 2025 Earnings Reported 10/14/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Adjusted Operational Sales Growth | 3.5% | 3.8% | 4.0% | 0.3% | Raised | Guidance: 3.5% for 2025 | |
| 2025 Operational Sales | 93.00 Bil | 93.20 Bil | 93.40 Bil | 0.3% | Raised | Guidance: 92.90 Bil for 2025 | |
| 2025 Operational Sales Growth | 4.8% | 5.1% | 5.3% | ||||
| 2025 Reported Sales | 93.50 Bil | 93.70 Bil | 93.90 Bil | 0.3% | Raised | Guidance: 93.40 Bil for 2025 | |
| 2025 Reported Sales Growth | 5.4% | 5.7% | 5.9% | ||||
| 2025 Adjusted Operational EPS | 10.6 | 10.7 | 10.7 | 0.0% | Affirmed | Guidance: 10.7 for 2025 | |
| 2025 Adjusted EPS | 10.8 | 10.8 | 10.9 | 0.0% | Affirmed | Guidance: 10.8 for 2025 | |
Insider Activity
Updated 7/21/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Broadhurst, Vanessa | EVP, Global Corp Affairs | Direct | Sell | 7212026 | 251.27 | 23,054 | 5,792,686 | 5,779,872 | Form |
| 2 | Wengel, Kathryn E | EVP, Chief TO and Risk Officer | Direct | Sell | 6122026 | 241.15 | 10,000 | 2,411,500 | 27,560,521 | Form |
| 3 | Decker, Robert J | VP Corporate Controller | Direct | Sell | 3032026 | 247.87 | 4,075 | 1,010,070 | 5,870,057 | Form |
| 4 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 2232026 | 245.66 | 1,322 | 324,763 | 6,251,310 | Form |
| 5 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 2182026 | 244.33 | 22,623 | 5,527,506 | 6,540,503 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Broadhurst, Vanessa | EVP, Global Corp Affairs | Direct | Sell | 7212026 | 251.27 | 23,054 | 5,792,686 | 5,779,872 | Form |
| 2 | Wengel, Kathryn E | EVP, Chief TO and Risk Officer | Direct | Sell | 6122026 | 241.15 | 10,000 | 2,411,500 | 27,560,521 | Form |
| 3 | Decker, Robert J | VP Corporate Controller | Direct | Sell | 3032026 | 247.87 | 4,075 | 1,010,070 | 5,870,057 | Form |
| 4 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 2232026 | 245.66 | 1,322 | 324,763 | 6,251,310 | Form |
| 5 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 2182026 | 244.33 | 22,623 | 5,527,506 | 6,540,503 | Form |
| 6 | Swanson, James D | EVP, CIO | Direct | Sell | 2182026 | 242.70 | 20,521 | 4,980,447 | 6,236,936 | Form |
| 7 | Wolk, Joseph J | Exec VP, CFO | Direct | Sell | 2182026 | 242.80 | 89,654 | 21,767,827 | 3,399,174 | Form |
| 8 | Reed, John C | EVP, Innovative Medicine, R&D | Direct | Sell | 2182026 | 243.00 | 53,931 | 13,105,233 | 2,589,894 | Form |
| 9 | Broadhurst, Vanessa | EVP, Global Corp Affairs | Direct | Sell | 2182026 | 243.39 | 6,197 | 1,508,288 | 5,598,700 | Form |
| 10 | Swanson, James D | EVP, CIO | Direct | Sell | 2182026 | 243.73 | 41,559 | 10,129,312 | 6,098,239 | Form |
| 11 | Duato, Joaquin | CEO and Chairman of the Board | spouse | Sell | 1282026 | 221.23 | 100,000 | 22,122,893 | 6,825,355 | Form |
| 12 | Morikis, John G | Direct | Buy | 12012025 | 206.15 | 1,250 | 257,688 | 381,070 | Form | |
| 13 | Reed, John C | EVP, Innovative Medicine, R&D | Direct | Sell | 10202025 | 192.71 | 21,721 | 4,185,793 | 2,053,873 | Form |
| 14 | Taubert, Jennifer L | EVP, WWC. Innovative Medicine | Direct | Sell | 9052025 | 177.81 | 56,471 | 10,040,883 | 31,651,780 | Form |
| 15 | Duato, Joaquin | CEO and Chairman of the Board | Direct | Sell | 8252025 | 179.21 | 125,824 | 22,548,655 | 49,455,467 | Form |
| 16 | Wolk, Joseph J | Exec VP, CFO | Direct | Sell | 8182025 | 176.91 | 16,820 | 2,975,571 | 2,476,694 | Form |
| 17 | Reed, John C | EVP, Innovative Medicine, R&D | Direct | Sell | 7182025 | 163.55 | 19,137 | 3,129,830 | 1,743,101 | Form |
Investor Activity (13F)
Updated Jul 25, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Journey Strategic Wealth LLC | $1.7 Bil | 42.5% | 3980 | Hold | 13F |
| Tri Locum Partners LP | $101.3 Mil | 14.2% | 17 | TRIM -31.3% | 13F |
| Focused Investors LLC | $228.8 Mil | 7.4% | 22 | Hold | 13F |
| Coerente Capital Management | $38.5 Mil | 7.2% | 47 | Hold | 13F |
| America First Investment Advisors, LLC | $34.3 Mil | 6.4% | 41 | Hold | 13F |
| Independent Franchise Partners LLP | $726.3 Mil | 5.1% | 26 | TRIM -18.7% | 13F |
| WELLCOME TRUST LTD (THE) as trustee of the WELLCOME TRUST | $391.1 Mil | 4.8% | 21 | Hold | 13F |
| Saratoga Research & Investment Management | $83.0 Mil | 4.7% | 46 | TRIM -26.2% | 13F |
| Hamlin Capital Management, LLC | $180.0 Mil | 4.3% | 30 | TRIM -11.9% | 13F |
| Mar Vista Investment Partners LLC | $40.6 Mil | 4.1% | 35 | Hold | 13F |
| Atle Fund Management AB | $11.9 Mil | 3.9% | 39 | New | 13F |
| Haverford Financial Services, Inc. | $12.3 Mil | 3.7% | 46 | Hold | 13F |
| Weybosset Research & Management LLC | $12.5 Mil | 3.6% | 33 | Hold | 13F |
| PineStone Asset Management Inc. | $437.2 Mil | 3.1% | 44 | TRIM -13.5% | 13F |
| Kinsale Capital Group, Inc. | $18.8 Mil | 3.0% | 41 | Hold | 13F |
| Westchester Capital Management, Inc. | $14.8 Mil | 3.0% | 45 | Hold | 13F |
| Lone Peak Global Investors LLC | $17.9 Mil | 3.0% | 42 | TRIM -24.1% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | As Of | Filing |
|---|---|---|---|---|---|---|
| Talaria Asset Management Pty Ltd | $76.8 Mil | 14.7% | 11 | Exited | Dec 31, 2025 | 13F |
| Catalio Capital Management, LP | $25.0 Mil | 4.4% | 45 | Exited | Dec 31, 2025 | 13F |
| Central Securities Corp | $16.6 Mil | 1.3% | 29 | Exited | Dec 31, 2025 | 13F |
| Tri Locum Partners LP | $101.3 Mil | 14.2% | 17 | TRIM -31.3% | Mar 31, 2026 | 13F |
| Saratoga Research & Investment Management | $83.0 Mil | 4.7% | 46 | TRIM -26.2% | Mar 31, 2026 | 13F |
| Lone Peak Global Investors LLC | $17.9 Mil | 3.0% | 42 | TRIM -24.1% | Mar 31, 2026 | 13F |
| Independent Franchise Partners LLP | $726.3 Mil | 5.1% | 26 | TRIM -18.7% | Mar 31, 2026 | 13F |
| PineStone Asset Management Inc. | $437.2 Mil | 3.1% | 44 | TRIM -13.5% | Mar 31, 2026 | 13F |
| Hamlin Capital Management, LLC | $180.0 Mil | 4.3% | 30 | TRIM -11.9% | Mar 31, 2026 | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Journey Strategic Wealth LLC | $1.7 Bil | 42.5% | 3980 | Hold | 13F |
| Independent Franchise Partners LLP | $726.3 Mil | 5.1% | 26 | TRIM -18.7% | 13F |
| PineStone Asset Management Inc. | $437.2 Mil | 3.1% | 44 | TRIM -13.5% | 13F |
| WELLCOME TRUST LTD (THE) as trustee of the WELLCOME TRUST | $391.1 Mil | 4.8% | 21 | Hold | 13F |
| Focused Investors LLC | $228.8 Mil | 7.4% | 22 | Hold | 13F |
| Hamlin Capital Management, LLC | $180.0 Mil | 4.3% | 30 | TRIM -11.9% | 13F |
| Tri Locum Partners LP | $101.3 Mil | 14.2% | 17 | TRIM -31.3% | 13F |
| Saratoga Research & Investment Management | $83.0 Mil | 4.7% | 46 | TRIM -26.2% | 13F |
| Mar Vista Investment Partners LLC | $40.6 Mil | 4.1% | 35 | Hold | 13F |
| Coerente Capital Management | $38.5 Mil | 7.2% | 47 | Hold | 13F |
| America First Investment Advisors, LLC | $34.3 Mil | 6.4% | 41 | Hold | 13F |
| Kinsale Capital Group, Inc. | $18.8 Mil | 3.0% | 41 | Hold | 13F |
| Lone Peak Global Investors LLC | $17.9 Mil | 3.0% | 42 | TRIM -24.1% | 13F |
| Westchester Capital Management, Inc. | $14.8 Mil | 3.0% | 45 | Hold | 13F |
| Weybosset Research & Management LLC | $12.5 Mil | 3.6% | 33 | Hold | 13F |
| Haverford Financial Services, Inc. | $12.3 Mil | 3.7% | 46 | Hold | 13F |
| Atle Fund Management AB | $11.9 Mil | 3.9% | 39 | New | 13F |
JNJ Trade Sentinel
Constructive
CONVICTION RATIONALE
The core pharmaceutical business is successfully navigating a major patent expiration, with underlying growth exceeding 14%. This strength supports raised full-year guidance. However, a recent slowdown in the Abiomed medical device business and weakening working capital metrics introduce new risks that require monitoring.
STOCK ARCHETYPE
Patent-Protected Branded ProductsVolume of units sold x Net Price per unit, across a diversified portfolio of patented products. Launching new, high-margin, patent-protected drugs in areas of high unmet medical need to replace revenue from older products that lose exclusivity.
INVESTMENT THESIS
Evidence suggests yes; underlying growth is strong, driven by multiple billion-dollar brands.
- The company has 28 products and platforms with over $1 billion in annual sales.
- New launch ICOTYDE has over 10,000 patients initiated on therapy since launch.
- New launch INLEXZO has nearly one in three eligible patients starting on a regimen.
- Full-year adjusted operational EPS guidance was raised to $11.50-$11.65.
- Management expects a 75 basis point improvement in adjusted pre-tax operating margin in 2026.
PRIMARY RISK
A recent 2% sales decline in the Abiomed heart recovery business and a 40.7% surge in accounts receivable suggest potential execution stumbles.
- The Abiomed business saw a 2% sales decline due to pressures on U.S. procedures.
- Accounts receivable grew 40.7% year-over-year, far outpacing revenue growth.
- Net debt increased to $32.9 billion from $13.5 billion a year earlier.
- The company's payout funding ratio is 0.85, not fully covered by free cash flow.
| KPI | Status | Rationale |
|---|---|---|
| Total Company Operational Sales Growth | 5.6% in Q2 2026 - Accelerating | The headline deceleration is driven by the STELARA loss of exclusivity, which created an approximate 460 basis point headwind in the latest quarter. Management states that excluding this known impact, the company grew at a double-digit rate, indicating strong underlying acceleration in the core business. |
| Innovative Medicine Operational Sales Growth | 6.8% in Q2 2026 - Accelerating | The deceleration is misleading; it is caused by an approximate 760 basis point headwind from STELARA biosimilar competition. Management noted that the remaining 96% of the Innovative Medicine business grew over 14%, driven by key products like TREMFYA (+71%) and DARZALEX (+17.6%). |
| Number of Billion-Dollar Products/Platforms | 28 (Q2 2026) | Indicates the breadth and diversification of the company's revenue base, reducing reliance on any single product. |
| New Product Launch Uptake (ICOTYDE) | Over 10,000 patients initiated therapy (Since launch (as of Q2 2026 call)) | Measures the early commercial success and market adoption of a key new drug intended to offset STELARA revenue loss. |
| New Product Launch Uptake (INLEXZO) | Nearly one in three eligible patients started on a regimen (Q2 2026) | Tracks the adoption of a novel bladder cancer treatment, another key growth driver in the oncology portfolio. |
New Pharma Growth vs. STELARA's Drag
BULL VIEW
TREMFYA's 71% growth and strong new launches are creating a new growth engine powerful enough to drive the company forward despite the headwind.
CORE TENSION
Can the >14% growth in the core pharma business truly offset the ~760 basis point headwind from STELARA's decline, which the market punished despite a guidance raise?
PREVAILING SENTIMENT
The latest evidence favors the bulls, as the company raised full-year guidance, signaling confidence that the new growth is winning.
BEAR VIEW
STELARA's 55.7% Q2 decline is a massive hole to fill, and any slowdown in the new portfolio or weakness elsewhere could derail the recovery.
| Timeline | Event & Metric To Watch |
|---|---|
September 8, 2026 | Quarterly Dividend Payment Watch: A cash dividend is payable to shareholders. |
10/13/2026 | STELARA Sales Decline Watch: Q3 STELARA sales figures and management commentary on the erosion curve versus the company's internal model. |
10/13/2026 | Cardiovascular Slowdown Persists Watch: Q3 sales for Abiomed and management commentary on whether physician selectivity and procedural volumes have recovered. |
10/13/2026 | Third Quarter Earnings Report Watch: The company is scheduled to report its next quarterly earnings. |
10/29/2026 | Peer AbbVie Earnings Watch: Peer AbbVie (ABBV) is scheduled to report earnings. |
10/29/2026 | Peers Merck and Lilly Earnings Watch: Peers Merck (MRK) and Eli Lilly (LLY) are scheduled to report earnings. |
second half of the year | OTTAVA Robotic System Approval Watch: The company anticipates FDA approval for the OTTAVA robotic surgical system. |
second half of the year | Key Drug Data Readouts Watch: The company expects data readouts for INLEXZO, ICOTYDE, and CAPLYTA. |
second half of the year | Cardiovascular Product Launches Watch: The company expects to launch the Dual Energy THERMOCOOL SMARTTOUCH SF platform and Shockwave catheters. |
in the second half of 2026 | New Generic Competition Watch: Announcements of FDA approvals and commercial launches for generic versions of macitentan (OPSUMIT). |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-15 | Q2 Results and Guidance Raise Details: The company reported Q2 2026 results and raised its full-year 2026 outlook. Guidance for Adjusted Operational EPS was raised, with a new midpoint of 11.6, a change of 1.6%. | -1.5% $253.85 -> $249.97 |
2026-06-15 | Major Vision Manufacturing Investment Details: The company announced an investment of more than $1 billion in Jacksonville, Florida to strengthen its Vision operations by scaling U.S.-based manufacturing, packaging, and distribution capabilities. | -2.4% $240.87 -> $235.18 |
2026-04-27 | IMAAVY Granted Priority Review Details: The FDA granted Priority Review for IMAAVY as a potential first-approved treatment for warm autoimmune hemolytic anemia (wAIHA), a life-threatening disease with no currently approved therapies. | +0.1% $226.20 -> $226.49 |
2026-03-05 | TECVAYLI Combination Approved Details: The U.S. FDA approved the combination of TECVAYLI plus DARZALEX FASPRO for relapsed/refractory multiple myeloma, offering a potential new standard of care as early as the second line. | -2.0% $243.90 -> $239.03 |
2026-02-18 | RYBREVANT FASPRO Breakthrough Designation Details: The FDA granted Breakthrough Therapy Designation for RYBREVANT FASPRO for patients with advanced head and neck cancer, expanding its potential beyond lung cancer. | +1.5% $240.66 -> $244.20 |
2026-01-27 | DARZALEX FASPRO Regimen Approved Details: A DARZALEX FASPRO-based quadruplet regimen was approved in the U.S. for newly diagnosed, transplant-ineligible multiple myeloma patients, marking the drug's twelfth indication. | +2.8% $219.06 -> $225.22 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: JNJ trades at roughly 24% annualized options-implied volatility versus about 15% for the S&P 500 (1.7x the market), around the 94th percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
LLY - Eli Lilly
Higher-Growth PharmaEli Lilly offers significantly higher revenue growth (47.4% TTM) and operating margins (47.3%), representing a more concentrated bet on breakthrough therapies.
MDT - Medtronic
Pure-Play Medical DevicesMedtronic provides focused exposure to the medical technology market without the pharmaceutical patent cliff dynamics inherent in Johnson & Johnson's business.
A diversified healthcare giant managing a major patent cliff by leveraging its deep pipeline of next-generation blockbusters in both pharma and medtech.
JNJ is navigating the significant revenue loss from its blockbuster drug STELARA facing biosimilar competition. The investment thesis hinges on the successful commercial execution of its new wave of products, particularly TREMFYA in IBD, ICOTYDE in psoriasis, and INLEXZO in bladder cancer, to more than offset this decline. The planned spin-off of the lower-growth Orthopaedics business further sharpens its focus on higher-growth MedTech segments like cardiovascular and robotics, aiming to accelerate overall growth.
Stronger-than-expected launch uptake for ICOTYDE and INLEXZO; TREMFYA continuing to gain significant share in IBD; positive data readouts for key pipeline assets like pasritamig.
Faster-than-expected STELARA erosion; launch stumbles for new products; negative clinical trial data or regulatory setbacks for the late-stage pipeline.
Quarterly fluctuations in MedTech procedure volumes unless a clear, persistent trend emerges; individual talc lawsuit verdicts given the scale of the litigation.
Repricing Catalyst
Clear evidence from quarterly results that the new launch portfolio's growth trajectory is definitively outpacing STELARA's decline, confirming the 'growth through the LOE' narrative and de-risking future earnings.
Innovative Medicine
$63.1B TTM (64% of Total)What It Is
Sells prescription medicines focused on oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular/metabolism. Key products include DARZALEX, CARVYKTI, STELARA, and TREMFYA. These are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
Who Pays & How
Wholesalers, retailers, and hospitals purchase the products, but reimbursement from government programs and private insurers is critical. These payors cover the medicines to provide patients with treatments for serious conditions like multiple myeloma, psoriasis, and various cancers.
Competition
MedTech
$34.8B TTM (36% of Total)What It Is
Sells a broad portfolio of products used in cardiovascular (electrophysiology, heart recovery), orthopaedics, surgery (staplers, energy devices), and vision (ACUVUE contact lenses, intraocular lenses). Products are distributed to wholesalers, hospitals, and retailers for use by physicians, nurses, and eye care professionals.
Who Pays & How
Hospitals, surgical centers, and eye care professionals purchase these products to perform medical procedures. They choose JNJ for its technological innovation, product quality, and reputation.
Competition
Johnson & Johnson — Investor Video Playlist
Industry Resources
| Health Care Resources |
| U.S. National Library of Medicine |
| ClinicalTrials.gov |
| Modern Healthcare |
| Healthcare Dive |
| Fierce Healthcare |
| Health Affairs |
| Health Data Management |
| FDA Tracker |
| Pharmaceuticals Resources |
| Fierce Pharma |
| Pharm Exec |
| Endpoints News |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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