Johnson & Johnson (JNJ)
Market Price (10/24/2026): $263.85 | Market Cap: $635.2 BilInvestor Relations Sector: Health Care | Industry: Pharmaceuticals
Johnson & Johnson (JNJ)
Market Price (10/24/2026): $263.85Market Cap: $635.2 BilSector: Health CareIndustry: Pharmaceuticals
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 26% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 20%, CFO LTM is 26 Bil, FCF LTM is 20 Bil Attractive yieldDividend Yield is 2.0% Stock buyback supportStock Buyback 3Y Total is 15 Bil Low stock price volatilityVol 12M is 21% Megatrend and thematic driversMegatrends include Biotechnology & Genomics, Precision Medicine, Aging Population & Chronic Disease, and Digital Health & Telemedicine. Show more. | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 34x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 24x, P/EPrice/Earnings or Price/(Net Income) is 39x Key risksJNJ key risks include [1] massive financial and reputational damage from tens of thousands of unresolved talcum powder lawsuits, Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 26% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 20%, CFO LTM is 26 Bil, FCF LTM is 20 Bil |
| Attractive yieldDividend Yield is 2.0% |
| Stock buyback supportStock Buyback 3Y Total is 15 Bil |
| Low stock price volatilityVol 12M is 21% |
| Megatrend and thematic driversMegatrends include Biotechnology & Genomics, Precision Medicine, Aging Population & Chronic Disease, and Digital Health & Telemedicine. Show more. |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 34x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 24x, P/EPrice/Earnings or Price/(Net Income) is 39x |
| 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 5% since 6/30/2026 because of the following key factors:
1. Strong Fiscal Q3 2026 Financial Performance and Upgraded Full-Year Guidance.
Johnson & Johnson reported robust results for fiscal Q3 2026, which ended September 30, 2026. The company announced adjusted earnings per share (EPS) of $2.59 on October 13, 2026, surpassing the consensus estimate of $2.53. Additionally, reported sales increased by 5.9% year-over-year to $25.4 billion, exceeding analyst expectations. This strong performance prompted management to raise its full-year 2026 guidance, increasing the midpoint for estimated reported sales to $101.2 billion and raising adjusted EPS guidance by $0.06 to $11.10 at the midpoint. This positive outlook and earnings beat significantly contributed to investor confidence.
2. Robust Growth Driven by Innovative Medicine Segment.
The Innovative Medicine segment (Pharmaceutical) was a primary driver of Johnson & Johnson's stock appreciation, with worldwide operational sales growing 7.9% in fiscal Q3 2026. Several key products demonstrated significant sales growth, including TREMFYA, which saw a 68.2% increase, DARZALEX with a 15.6% rise, TECVAYLI growing by 77.3%, SPRAVATO up 36.0%, and CAPLYTA with a 66.1% increase. This strong performance in high-growth therapeutic areas like oncology and immunology underscored the company's strategic focus and pipeline strength.
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Johnson & Johnson (JNJ) stock has gained about 5% since 6/30/2026 because of the following key factors:
1. Strong Fiscal Q3 2026 Financial Performance and Upgraded Full-Year Guidance.
Johnson & Johnson reported robust results for fiscal Q3 2026, which ended September 30, 2026. The company announced adjusted earnings per share (EPS) of $2.59 on October 13, 2026, surpassing the consensus estimate of $2.53. Additionally, reported sales increased by 5.9% year-over-year to $25.4 billion, exceeding analyst expectations. This strong performance prompted management to raise its full-year 2026 guidance, increasing the midpoint for estimated reported sales to $101.2 billion and raising adjusted EPS guidance by $0.06 to $11.10 at the midpoint. This positive outlook and earnings beat significantly contributed to investor confidence.
2. Robust Growth Driven by Innovative Medicine Segment.
The Innovative Medicine segment (Pharmaceutical) was a primary driver of Johnson & Johnson's stock appreciation, with worldwide operational sales growing 7.9% in fiscal Q3 2026. Several key products demonstrated significant sales growth, including TREMFYA, which saw a 68.2% increase, DARZALEX with a 15.6% rise, TECVAYLI growing by 77.3%, SPRAVATO up 36.0%, and CAPLYTA with a 66.1% increase. This strong performance in high-growth therapeutic areas like oncology and immunology underscored the company's strategic focus and pipeline strength.
3. Significant Regulatory Approvals and Pipeline Advancements.
During the period, Johnson & Johnson achieved several important regulatory milestones that enhanced its growth prospects. The U.S. FDA granted market authorization for the OTTAVA robotic surgical system, a notable advancement in the MedTech segment. Additionally, the FDA approved IMAAVY (nipocalimab-aahu) as the first-ever treatment for warm autoimmune hemolytic anemia (wAIHA). The company also received FDA Priority Review for RYBREVANT FASPRO (amivantamab and hyaluronidase-lpuj) for advanced head and neck cancer, and reported positive Phase 3 results in multiple myeloma programs. These developments demonstrate ongoing innovation and de-risk future revenue streams.
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Stock Movement Drivers
Fundamental Drivers
The 4.4% change in JNJ stock from 6/30/2026 to 10/23/2026 was primarily driven by a 36.5% change in the company's P/E Multiple.| (LTM values as of) | 6302026 | 10232026 | Change |
|---|---|---|---|
| Stock Price ($) | 252.72 | 263.81 | 4.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 96,362 | 99,335 | 3.1% |
| Net Income Margin (%) | 21.8% | 16.2% | -25.8% |
| P/E Multiple | 28.9 | 39.5 | 36.5% |
| Shares Outstanding (Mil) | 2,409 | 2,410 | 0.0% |
| Cumulative Contribution | 4.4% |
Market Drivers
6/30/2026 to 10/23/2026| Return | Correlation | |
|---|---|---|
| JNJ | 4.4% | |
| Market (SPY) | 1.8% | -22.7% |
| Sector (XLV) | 13.0% | 71.3% |
Fundamental Drivers
The 9.1% change in JNJ stock from 3/31/2026 to 10/23/2026 was primarily driven by a 81.8% change in the company's P/E Multiple.| (LTM values as of) | 3312026 | 10232026 | Change |
|---|---|---|---|
| Stock Price ($) | 241.85 | 263.81 | 9.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 94,193 | 99,335 | 5.5% |
| Net Income Margin (%) | 28.5% | 16.2% | -43.1% |
| P/E Multiple | 21.7 | 39.5 | 81.8% |
| Shares Outstanding (Mil) | 2,408 | 2,410 | -0.1% |
| Cumulative Contribution | 9.1% |
Market Drivers
3/31/2026 to 10/23/2026| Return | Correlation | |
|---|---|---|
| JNJ | 9.1% | |
| Market (SPY) | 17.2% | -21.2% |
| Sector (XLV) | 22.8% | 72.5% |
Fundamental Drivers
The 45.5% change in JNJ stock from 9/30/2025 to 10/23/2026 was primarily driven by a 105.1% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 10232026 | Change |
|---|---|---|---|
| Stock Price ($) | 181.33 | 263.81 | 45.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 90,627 | 99,335 | 9.6% |
| Net Income Margin (%) | 25.0% | 16.2% | -35.2% |
| P/E Multiple | 19.3 | 39.5 | 105.1% |
| Shares Outstanding (Mil) | 2,406 | 2,410 | -0.1% |
| Cumulative Contribution | 45.5% |
Market Drivers
9/30/2025 to 10/23/2026| Return | Correlation | |
|---|---|---|
| JNJ | 45.5% | |
| Market (SPY) | 15.0% | -13.0% |
| Sector (XLV) | 30.5% | 62.7% |
Fundamental Drivers
The 84.5% change in JNJ stock from 9/30/2023 to 10/23/2026 was primarily driven by a 38.7% change in the company's P/E Multiple.| (LTM values as of) | 9302023 | 10232026 | Change |
|---|---|---|---|
| Stock Price ($) | 143.02 | 263.81 | 84.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 82,348 | 99,335 | 20.6% |
| Net Income Margin (%) | 15.9% | 16.2% | 2.2% |
| P/E Multiple | 28.5 | 39.5 | 38.7% |
| Shares Outstanding (Mil) | 2,598 | 2,410 | 7.8% |
| Cumulative Contribution | 84.5% |
Market Drivers
9/30/2023 to 10/23/2026| Return | Correlation | |
|---|---|---|
| JNJ | 84.5% | |
| Market (SPY) | 83.9% | -0.5% |
| Sector (XLV) | 45.8% | 58.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| JNJ Return | 11% | 6% | -9% | -5% | 47% | 31% | 99% |
| Peers Return | 31% | 15% | 6% | 9% | 22% | 25% | 165% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 104% |
Monthly Win Rates [3] | |||||||
| JNJ Win Rate | 58% | 58% | 50% | 42% | 83% | 60% | |
| Peers Win Rate | 58% | 58% | 42% | 48% | 55% | 66% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
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 10/23/2026 (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.
Peer Outperformance in Pharmaceuticals
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| JNJ | Johnson & Johnson | 5.9% | 39.5x | 40.2% | 90.0% | 85.3% | — |
| MRK | Merck | 4.5% | 113.1x | 71.5% | 54.5% | 108.6% | +23pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Health Care Distributors | 6 | 14.1% | 52.9% | 94.7% | CAH 457% · MCK 390% · COR 183% |
| Health Care Services | 20 | 18.6% | 43.6% | 17.1% | HIMS 265% · RDNT 123% · DGX 82% |
| Health Care Facilities | 24 | 0.3% | 16.4% | 6.5% | THC 280% · NHC 278% · ENSG 146% |
| Managed Health Care | 8 | 36.8% | 1.4% | 1.6% | OSCR 82% · HQY 54% · ELV 9% |
| Health Care Equipment | 50 | -2.9% | 5.1% | -13.6% | UFPT 372% · GKOS 298% · TMDX 158% |
| Pharmaceuticals ← | 61 | -18.0% | 1.8% | -33.6% | LQDA 1088% · KNSA 616% · LLY 447% |
| Health Care Supplies | 11 | 16.7% | -5.9% | -39.6% | LNTH 339% · HAE 65% · MMSI 29% |
| Life Sciences Tools & Services | 109 | -8.1% | -8.1% | -72.7% | MEDP 258% · NTRA 251% · AXGN 168% |
| Biotechnology | 364 | -24.2% | -24.5% | -81.5% | DNTH 1076% · ELVN 1063% · ADMA 734% |
| Health Care Technology | 22 | -29.1% | -62.9% | -82.5% | VEEV 1% · DOCS -48% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 204.60 |
| Mkt Cap | 431.9 |
| Rev LTM | 65,478 |
| Op Inc LTM | 19,434 |
| FCF LTM | 14,812 |
| FCF 3Y Avg | 12,028 |
| CFO LTM | 19,737 |
| CFO 3Y Avg | 16,454 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.8% |
| Rev Chg 3Y Avg | 5.4% |
| Rev Chg Q | 8.0% |
| QoQ Delta Rev Chg LTM | 2.0% |
| Op Inc Chg LTM | 7.7% |
| Op Inc Chg 3Y Avg | 23.9% |
| Op Mgn LTM | 26.2% |
| Op Mgn 3Y Avg | 23.9% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 28.2% |
| CFO/Rev 3Y Avg | 24.8% |
| FCF/Rev LTM | 18.5% |
| FCF/Rev 3Y Avg | 18.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 431.9 |
| P/S | 5.9 |
| P/Op Inc | 24.0 |
| P/EBIT | 30.8 |
| P/E | 41.1 |
| P/CFO | 21.1 |
| Total Yield | 4.1% |
| Dividend Yield | 2.3% |
| FCF Yield 3Y Avg | 4.9% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 7.3% |
| 3M Rtn | 11.1% |
| 6M Rtn | 24.4% |
| 12M Rtn | 35.2% |
| 3Y Rtn | 72.3% |
| 1M Excs Rtn | 7.9% |
| 3M Excs Rtn | 8.9% |
| 6M Excs Rtn | 18.0% |
| 12M Excs Rtn | 21.1% |
| 3Y Excs Rtn | -4.6% |
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% | 80.4% |
| Post-Approval Fwd Returns | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FDA BLA # | Brand Name | Generic Name | License Type | First Approval | Latest Approval | 3M Rtn | 6M Rtn | 1Y Rtn | 2Y Rtn | Total Rtn |
| 125746 | Carvykti | ciltacabtagene autoleucel | 351(a) | 2/28/2022 | 2/28/2022 | 10.7% | 0.4% | -4.4% | 3.9% | 82.0% |
| 125392 | Evarrest | fibrin sealant patch | 351(a) | 12/5/2012 | 5/27/2014 | 11.5% | 21.5% | 36.9% | 64.2% | 451.0% |
| 125247 | Evithrom | thrombin, topical (human) | 351(a) | 8/27/2007 | 9/17/2009 | 10.0% | 3.9% | 17.8% | 4.5% | 645.1% |
| 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% | 80.4% |
| Post-Approval Fwd Returns | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FDA BLA # | Brand Name | Generic Name | License Type | First Approval | Latest Approval | 3M Rtn | 6M Rtn | 1Y Rtn | 2Y Rtn | Total Rtn |
| 125746 | Carvykti | ciltacabtagene autoleucel | 351(a) | 2/28/2022 | 2/28/2022 | 10.7% | 0.4% | -4.4% | 3.9% | 82.0% |
| 125392 | Evarrest | fibrin sealant patch | 351(a) | 12/5/2012 | 5/27/2014 | 11.5% | 21.5% | 36.9% | 64.2% | 451.0% |
| 125247 | Evithrom | thrombin, topical (human) | 351(a) | 8/27/2007 | 9/17/2009 | 10.0% | 3.9% | 17.8% | 4.5% | 645.1% |
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 | $263.81 | |
| Market Cap ($ Bil) | 635.7 | |
| First Trading Date | 01/02/1970 | |
| Distance from 52W High | -5.3% | |
| 50 Days | 200 Days | |
| DMA Price | $265.02 | $243.74 |
| DMA Trend | up | up |
| Distance from DMA | -0.5% | 8.2% |
| 3M | 1YR | |
| Volatility | 23.8% | 20.7% |
| Downside Capture | 7.44 | -44.26 |
| Upside Capture | 9.70 | 2.40 |
| Correlation (S&P 500) | -15.5% | -12.7% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.40 | 0.14 | -0.39 | -0.35 | -0.17 | 0.00 |
| Up Beta | -0.64 | -0.15 | -0.72 | -0.13 | -0.01 | 0.08 |
| Down Beta | -1.01 | -0.15 | -0.19 | -0.48 | -0.19 | -0.01 |
| Up Capture | 62% | 35% | -18% | -16% | 3% | 2% |
| Bmk +ve Days | 6 | 16 | 27 | 66 | 132 | 424 |
| Stock +ve Days | 10 | 23 | 36 | 64 | 136 | 413 |
| Down Capture | 74% | 7% | -58% | -81% | -84% | -49% |
| Bmk -ve Days | 16 | 26 | 37 | 60 | 120 | 328 |
| Stock -ve Days | 12 | 19 | 28 | 62 | 116 | 339 |
[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 | 40.0% | 20.7% | 1.51 | - |
| Sector ETF (XLV) | 24.5% | 16.3% | 1.15 | 63.9% |
| Equity (SPY) | 14.8% | 12.7% | 0.80 | -13.8% |
| Gold (GLD) | -2.8% | 28.5% | -0.11 | 2.4% |
| Commodities (DBC) | 52.1% | 20.7% | 1.91 | -10.3% |
| Real Estate (VNQ) | 4.3% | 13.9% | 0.06 | 33.4% |
| Bitcoin (BTCUSD) | -24.8% | 43.5% | -0.54 | -15.2% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with JNJ | |
|---|---|---|---|---|
| JNJ | 13.5% | 18.0% | 0.58 | - |
| Sector ETF (XLV) | 8.7% | 15.3% | 0.37 | 60.1% |
| Equity (SPY) | 12.7% | 17.1% | 0.56 | 14.4% |
| Gold (GLD) | 17.3% | 18.9% | 0.73 | 4.3% |
| Commodities (DBC) | 9.5% | 19.5% | 0.37 | -4.8% |
| Real Estate (VNQ) | 1.1% | 18.9% | -0.05 | 34.0% |
| Bitcoin (BTCUSD) | 5.7% | 51.7% | 0.29 | -0.3% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with JNJ | |
|---|---|---|---|---|
| JNJ | 11.3% | 19.0% | 0.51 | - |
| Sector ETF (XLV) | 11.7% | 16.8% | 0.57 | 68.8% |
| Equity (SPY) | 15.3% | 17.9% | 0.72 | 40.7% |
| Gold (GLD) | 11.8% | 16.4% | 0.59 | 4.6% |
| Commodities (DBC) | 8.4% | 18.1% | 0.38 | 6.8% |
| Real Estate (VNQ) | 5.2% | 20.7% | 0.21 | 41.9% |
| Bitcoin (BTCUSD) | 62.4% | 66.2% | 1.02 | 4.8% |
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Returns Analyses
Earnings Returns History
Updated 10/22/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/13/2026 | 2.1% | 4.3% | |
| 7/15/2026 | -2.7% | -1.3% | 2.8% |
| 4/14/2026 | 0.9% | -3.1% | -5.8% |
| 1/21/2026 | 0.2% | 4.5% | 11.2% |
| 10/14/2025 | -0.0% | 1.5% | 1.5% |
| 7/16/2025 | -1.1% | 2.6% | 6.0% |
| 4/15/2025 | 0.2% | 1.1% | -2.6% |
| 1/22/2025 | 0.9% | 4.0% | 12.6% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 13 | 12 |
| # Negative | 13 | 12 | 12 |
| Median Positive | 0.8% | 2.6% | 2.5% |
| Median Negative | -0.9% | -2.4% | -4.2% |
| Max Positive | 4.6% | 4.7% | 12.6% |
| Max Negative | -2.8% | -5.4% | -6.3% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/13/2026 | 2.1% | 4.3% | |
| 7/15/2026 | -2.7% | -1.3% | 2.8% |
| 4/14/2026 | 0.9% | -3.1% | -5.8% |
| 1/21/2026 | 0.2% | 4.5% | 11.2% |
| 10/14/2025 | -0.0% | 1.5% | 1.5% |
| 7/16/2025 | -1.1% | 2.6% | 6.0% |
| 4/15/2025 | 0.2% | 1.1% | -2.6% |
| 1/22/2025 | 0.9% | 4.0% | 12.6% |
| 10/15/2024 | 1.5% | 0.8% | -5.5% |
| 7/17/2024 | -0.7% | -0.2% | 1.6% |
| 5/1/2024 | 4.6% | 2.9% | 1.3% |
| 1/23/2024 | -0.5% | -0.7% | 1.2% |
| 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 | 0.7% | -2.9% | -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 | 0.4% | 1.9% | -5.1% |
| 10/19/2021 | -0.1% | 1.1% | -0.4% |
| 7/21/2021 | 0.3% | 1.6% | 5.4% |
| 4/20/2021 | 0.1% | -2.0% | 2.2% |
| 1/26/2021 | -1.5% | -5.4% | -3.9% |
| 10/13/2020 | -2.3% | -5.0% | -2.3% |
| SUMMARY STATS | |||
| # Positive | 12 | 13 | 12 |
| # Negative | 13 | 12 | 12 |
| Median Positive | 0.8% | 2.6% | 2.5% |
| Median Negative | -0.9% | -2.4% | -4.2% |
| Max Positive | 4.6% | 4.7% | 12.6% |
| Max Negative | -2.8% | -5.4% | -6.3% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/21/2026 | 10-Q |
| 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 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/21/2026 | 10-Q |
| 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 |
Recent Forward Guidance
Updated 10/14/2026Latest: Q3 2026 Earnings Reported 10/13/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Operational Sales Growth | Reported | 6.4% | 6.6% | 6.8% | 0.1% | Raised | Guidance: 6.5% for 2026 | |
| 2026 Operational Sales | Reported | 100.50 Bil | 100.70 Bil | 100.90 Bil | 0.1% | Raised | Guidance: 100.60 Bil for 2026 | |
| 2026 Operational Sales Growth | Reported | 6.7% | 6.9% | 7.1% | ||||
| 2026 Estimated Reported Sales | Reported | 101.00 Bil | 101.20 Bil | 101.40 Bil | 0.1% | Raised | Guidance: 101.10 Bil for 2026 | |
| 2026 Estimated Reported Sales Growth | Reported | 7.2% | 7.4% | 7.6% | ||||
| 2026 Adjusted Operational EPS (Diluted) | Reported | 10.95 | 11 | 11.05 | -5.0% | Lowered | Guidance: 11.58 for 2026 | |
| 2026 Adjusted Operational EPS Growth | Reported | 1.5% | 2.0% | 2.4% | ||||
| 2026 Adjusted EPS (Diluted) | Reported | 11.05 | 11.1 | 11.15 | -5.0% | Lowered | Guidance: 11.68 for 2026 | |
| 2026 Adjusted EPS Growth | Reported | 2.4% | 2.9% | 3.3% | ||||
Prior: Q2 2026 Earnings Reported 7/15/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Operational Sales Growth | Reported | 6.2% | 6.5% | 6.8% | 0.4% | Raised | Guidance: 6.1% for 2026 | |
| 2026 Operational Sales | Reported | 100.30 Bil | 100.60 Bil | 100.90 Bil | 0.4% | Raised | Guidance: 100.20 Bil for 2026 | |
| 2026 Estimated Reported Sales | Reported | 100.80 Bil | 101.10 Bil | 101.40 Bil | 0.3% | Raised | Guidance: 100.80 Bil for 2026 | |
| 2026 Adjusted Operational EPS | Reported | 11.5 | 11.58 | 11.65 | 1.6% | Raised | Guidance: 11.4 for 2026 | |
| 2026 Adjusted EPS | Reported | 11.6 | 11.68 | 11.75 | 1.1% | Raised | Guidance: 11.55 for 2026 | |
Q1 2026 Earnings Reported 4/14/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Operational Sales | Reported | 0.06 | 0.06 | 0.07 | 0.2% | Raised | Guidance: 0.06 for 2026 | |
| 2026 Operational Sales | Reported | 99.70 Bil | 100.20 Bil | 100.70 Bil | 0.2% | Raised | Guidance: 100.00 Bil for 2026 | |
| 2026 Estimated Reported Sales | Reported | 100.30 Bil | 100.80 Bil | 101.30 Bil | 0.3% | Raised | Guidance: 100.50 Bil for 2026 | |
| 2026 Adjusted Operational EPS (Diluted) | Reported | 11.3 | 11.4 | 11.5 | 0.2% | Raised | Guidance: 11.38 for 2026 | |
| 2026 Adjusted EPS (Diluted) | Reported | 11.45 | 11.55 | 11.65 | 0.2% | Raised | Guidance: 11.53 for 2026 | |
Q4 2025 Earnings Reported 1/21/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Operational Sales | Reported | 0.05 | 0.06 | 0.06 | 2.1% | Higher New | Guidance: 0.04 for 2025 | |
| 2026 Operational Sales | Reported | 99.50 Bil | 100.00 Bil | 100.50 Bil | 7.3% | Higher New | Guidance: 93.20 Bil for 2025 | |
| 2026 Estimated Reported Sales | Reported | 100.00 Bil | 100.50 Bil | 101.00 Bil | 7.3% | Higher New | Guidance: 93.70 Bil for 2025 | |
| 2026 Adjusted Operational EPS | Reported | 11.28 | 11.38 | 11.48 | 6.6% | Higher New | Guidance: 10.68 for 2025 | |
| 2026 Adjusted EPS | Reported | 11.43 | 11.53 | 11.63 | 6.3% | Higher New | Guidance: 10.85 for 2025 | |
Insider Activity
Updated 9/10/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 9042026 | 274.74 | 33,597 | 9,230,440 | 6,991,309 | Form |
| 2 | Taubert, Jennifer L | EVP, WWC. Innovative Medicine | Direct | Sell | 8182026 | 263.36 | 15,000 | 3,950,400 | 51,210,616 | Form |
| 3 | Duato, Joaquin | CEO and Chairman of the Board | Direct | Sell | 8142026 | 261.17 | 123,291 | 32,199,927 | 72,074,338 | Form |
| 4 | Forminard, Elizabeth | EVP, Chief Legal Officer | Direct | Sell | 8072026 | 257.00 | 15,918 | 4,090,960 | 4,367,494 | Form |
| 5 | Duato, Joaquin | CEO and Chairman of the Board | Direct | Sell | 8072026 | 258.15 | 48,480 | 12,515,010 | 71,240,301 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 9042026 | 274.74 | 33,597 | 9,230,440 | 6,991,309 | Form |
| 2 | Taubert, Jennifer L | EVP, WWC. Innovative Medicine | Direct | Sell | 8182026 | 263.36 | 15,000 | 3,950,400 | 51,210,616 | Form |
| 3 | Duato, Joaquin | CEO and Chairman of the Board | Direct | Sell | 8142026 | 261.17 | 123,291 | 32,199,927 | 72,074,338 | Form |
| 4 | Forminard, Elizabeth | EVP, Chief Legal Officer | Direct | Sell | 8072026 | 257.00 | 15,918 | 4,090,960 | 4,367,494 | Form |
| 5 | Duato, Joaquin | CEO and Chairman of the Board | Direct | Sell | 8072026 | 258.15 | 48,480 | 12,515,010 | 71,240,301 | Form |
| 6 | Broadhurst, Vanessa | EVP, Global Corp Affairs | Direct | Sell | 7212026 | 251.27 | 23,054 | 5,792,686 | 5,779,872 | Form |
| 7 | Wengel, Kathryn E | EVP, Chief TO and Risk Officer | Direct | Sell | 6122026 | 241.15 | 10,000 | 2,411,500 | 27,560,521 | Form |
| 8 | Decker, Robert J | VP Corporate Controller | Direct | Sell | 3032026 | 247.87 | 4,075 | 1,010,070 | 5,870,057 | Form |
| 9 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 2232026 | 245.66 | 1,322 | 324,763 | 6,251,310 | Form |
| 10 | Schmid, Timothy | EVP, WW Chair, MedTech | Direct | Sell | 2182026 | 244.33 | 22,623 | 5,527,506 | 6,540,503 | Form |
| 11 | Swanson, James D | EVP, CIO | Direct | Sell | 2182026 | 242.70 | 20,521 | 4,980,447 | 6,236,936 | Form |
| 12 | Wolk, Joseph J | Exec VP, CFO | Direct | Sell | 2182026 | 242.80 | 89,654 | 21,767,827 | 3,399,174 | Form |
| 13 | Reed, John C | EVP, Innovative Medicine, R&D | Direct | Sell | 2182026 | 243.00 | 53,931 | 13,105,233 | 2,589,894 | Form |
| 14 | Broadhurst, Vanessa | EVP, Global Corp Affairs | Direct | Sell | 2182026 | 243.39 | 6,197 | 1,508,288 | 5,598,700 | Form |
| 15 | Swanson, James D | EVP, CIO | Direct | Sell | 2182026 | 243.73 | 41,559 | 10,129,312 | 6,098,239 | Form |
| 16 | Duato, Joaquin | CEO and Chairman of the Board | spouse | Sell | 1282026 | 221.23 | 100,000 | 22,122,893 | 6,825,355 | Form |
| 17 | Morikis, John G | Direct | Buy | 12012025 | 206.15 | 1,250 | 257,688 | 381,070 | Form | |
| 18 | Reed, John C | EVP, Innovative Medicine, R&D | Direct | Sell | 10202025 | 192.71 | 21,721 | 4,185,793 | 2,053,873 | Form |
| 19 | Taubert, Jennifer L | EVP, WWC. Innovative Medicine | Direct | Sell | 9052025 | 177.81 | 56,471 | 10,040,883 | 31,651,780 | Form |
Investor Activity (13F)
Updated Oct 24, 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
Conviction is constructive, anchored by the Innovative Medicine division's proven ability to outgrow the STELARA patent cliff, with operational growth accelerating to 7.9% in Q3. Management has a clear path to double-digit growth. However, recent underperformance in the MedTech segment and a lowered EPS outlook introduce execution risk that warrants monitoring.
STOCK ARCHETYPE
Patent-Protected Franchise & Diversified IndustrialsVolume of key products sold x Net Price (after rebates/discounts) The mix of sales towards high-margin, patent-protected products within the Innovative Medicine segment.
INVESTMENT THESIS
Evidence suggests yes, as the core Innovative Medicine segment is successfully transitioning to its next wave of growth drivers.
- Innovative Medicine operational sales growth accelerated to 7.9% in Q3 2026.
- Management raised full-year 2026 operational sales growth guidance to a 6.7% to 7.1% range.
- The company has 29 products or platforms that generate at least $1 billion in annual sales.
- Management projects its oncology business to exceed $50 billion in sales by 2030.
- New products from the last five years accounted for approximately 25% of 2025 sales.
PRIMARY RISK
Decelerating growth in the MedTech segment and unfavorable product mix shifts are eroding profitability, as reflected in the recent cut to full-year adjusted EPS guidance.
- MedTech operational sales growth decelerated from the first quarter, reaching 2.5% in Q3 2026.
- Management stated the MedTech segment 'fell short of our expectations' in Q3.
- Full-year 2026 Adjusted Operational EPS guidance was lowered to a new midpoint of 11.
- Gross margin is pressured by an unfavorable mix from declining STELARA sales.
- Latest-quarter inventory grew 8.7% year-over-year, outpacing revenue growth of 5.9%.
| KPI | Status | Rationale |
|---|---|---|
| Innovative Medicine Operational Sales Growth | 7.9% operational growth in Q3 2026 - Accelerating | Growth accelerated in the latest quarter after a slight dip in Q2. Performance was driven by strong results from key brands in Oncology and Immunology, which more than offset the significant sales decline from STELARA due to biosimilar competition. Management noted that eight brands in the segment grew by double digits. |
| MedTech Operational Sales Growth | 2.5% operational growth in Q3 2026 - Decelerating | The segment has seen a consistent deceleration in year-over-year growth over the past three quarters. Management stated the segment fell short of expectations, attributing the Q3 weakness to headwinds in cardiovascular and surgery outside the U.S., including China's volume-based procurement and disruptions in the Middle East. |
| Billion-Dollar Products/Platforms | 29 (Q3 2026) | Indicates the breadth and scale of the company's portfolio of successful commercialized products, highlighting its diversification beyond any single product. |
| New Product Contribution to Sales | approx. 25% (FY 2025) | Measures the vitality of the R&D engine and its ability to generate revenue from recent innovations (products introduced in the past five years), which is critical for offsetting patent expiries. |
Pharma Engine vs. MedTech Friction
BULL VIEW
Bulls focus on the accelerating 7.9% growth in the high-margin Innovative Medicine segment, which is successfully navigating a major patent cliff and proves the core R&D engine is working.
CORE TENSION
Can accelerating 7.9% growth in Innovative Medicine overcome the drag from MedTech's 2.5% growth, which prompted a recent -4.0% negative stock reaction?
PREVAILING SENTIMENT
The latest evidence favors the bull view on revenue but the bear view on earnings. The company raised 2026 sales guidance but lowered its EPS forecast.
BEAR VIEW
Bears focus on the decelerating 2.5% growth in MedTech and the lowered EPS guidance, arguing that operational issues and negative mix-shift are offsetting the pharma strength.
| Timeline | Event & Metric To Watch |
|---|---|
later in 2026 | SIMPONI Biosimilar Entry Watch: Confirmation of a U.S. biosimilar launch for SIMPONI and any initial management commentary on market impact. |
in the fourth quarter | Multiple Pipeline Data Readouts Watch: Data readouts are expected for a recently discussed product in advanced prostate cancer, JNJ-6.11 thousand in metastatic castration resistant prostate cancer, INLEXZO in bladder cancer, and ICOTYDE in psoriatic arthritis. |
in the fourth quarter | VARIPULSE Pro US Approval Watch: US approval is expected for the VARIPULSE Pro pulsed field ablation platform. |
by the end of the year | RYBREVANT Faspro Approval Watch: US FDA approval is expected for RYBREVANT Faspro in advanced head and neck cancer. |
December 8, 2026 | Quarterly Dividend Payment Watch: |
1/26/2027 | MedTech Execution Scrutiny Watch: Q4 MedTech growth rate and management commentary on corrective actions in cardiovascular and international surgery. |
1/26/2027 | STELARA Erosion Acceleration Watch: Q4 STELARA sales decline rate and its stated impact on full-year 2027 guidance. |
in the fourth quarter | Pipeline Readout Disappointment Watch: Top-line results from Phase 3 trials for ICOTYDE, a recently discussed product, JNJ-6.11, and INLEXZO. |
December 8th | Enterprise Business Review Watch: The company will host its enterprise business review, providing perspective on its 2027 outlook and key growth drivers. |
| Date | Event | Stock Impact |
|---|---|---|
2026-10-13 | Q3 Earnings and Guidance Cut Details: The company reported Q3 2026 results and lowered guidance for 2026 Adjusted EPS by -5.0% to a new midpoint of $11.1. The stock had a two-day reaction of -4.0%. | -3.7% $263.73 -> $253.91 |
2026-09-25 | CARVYKTI Long-Term Data Details: A single infusion of CARVYKTI delivered five-year treatment-free remissions in 50% of patients in early line relapsed/refractory multiple myeloma. | +0.5% $270.68 -> $271.95 |
2026-08-24 | IMAAVY FDA Approval Details: The FDA approved IMAAVY (nipocalimab-aahu) as the first-ever treatment for warm autoimmune hemolytic anemia (wAIHA), a rare, life-threatening disease. | +1.6% $268.91 -> $273.14 |
2026-07-15 | Q2 Earnings Report Details: The company reported Q2 2026 results, after which the stock had a two-day reaction of -2.0%. | -1.5% $252.60 -> $248.74 |
2026-05-29 | TECVAYLI Phase 3 Data Details: New data for TECVAYLI demonstrated superior progression-free and overall survival as early as first relapse in multiple myeloma. | -3.2% $229.67 -> $222.41 |
2026-04-27 | IMAAVY Priority Review Details: The FDA granted Priority Review for IMAAVY (nipocalimab-aahu) as a potential first approved treatment for warm autoimmune hemolytic anemia (wAIHA). | +0.1% $225.09 -> $225.38 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: JNJ trades at roughly 23% annualized realized (three-month) volatility versus about 11% for the S&P 500 (2.1x the market). A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
LLY - Eli Lilly
Pure-Play InnovationABBV - AbbVie
Margin-Focused PharmaA high-margin pharmaceutical powerhouse successfully managing a major patent cliff with a deep pipeline of new growth drivers, complemented by a large but lower-margin medical device business.
Johnson & Johnson is navigating the significant loss of exclusivity for its major drug, STELARA, by driving strong, double-digit growth in other key Innovative Medicine franchises like TREMFYA and DARZALEX. The company is banking on a wave of new product launches, including ICOTYDE and INLEXZO, to accelerate growth into 2027 and beyond. While the MedTech segment provides diversification, it faces its own performance headwinds and is undergoing strategic changes, including the planned separation of the Orthopaedics business.
Stronger-than-expected sales from new launches (ICOTYDE, INLEXZO, RYBREVANT), continued double-digit growth in TREMFYA, and stabilization or re-acceleration of growth in the MedTech segment.
New product launches failing to meet expectations, faster-than-anticipated erosion of STELARA sales, or a persistent slowdown in the MedTech business, particularly in Cardiovascular and Surgery.
Short-term stock price fluctuations around earnings that are not related to the fundamental performance of new launches or the trajectory of key growth franchises.
Repricing Catalyst
Management's guidance for accelerating growth in 2027 and a clear path to double-digit growth by the end of the decade, contingent on the successful commercial execution of its new product portfolio.
Innovative Medicine
$64.3B TTM (65% of Total)What It Is
Sells prescription medicines to retailers, wholesalers, distributors, hospitals, and healthcare professionals. Key therapeutic areas include Oncology (e.g., DARZALEX, CARVYKTI), Immunology (e.g., STELARA, TREMFYA), Neuroscience (e.g., SPRAVATO, CAPLYTA), Pulmonary Hypertension, Infectious Diseases, and Cardiovascular/Metabolism.
Who Pays & How
Wholesalers, distributors, and healthcare providers purchase these medicines for prescription use. They are chosen for their clinical efficacy in treating complex diseases, backed by significant R&D and patent protection.
Competition
MedTech
$35.0B TTM (35% of Total)What It Is
Sells a broad portfolio of products in cardiovascular (e.g., electrophysiology, Abiomed, Shockwave), orthopaedics, surgery, and vision (e.g., ACUVUE contact lenses, TECNIS intraocular lenses) to wholesalers, hospitals, retailers, physicians, and eye care professionals.
Who Pays & How
Hospitals, surgical centers, and retailers purchase these products for use in a wide range of acute and elective procedures. They are chosen based on 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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