Johnson & Johnson develops prescription medicines and makes medical devices for hospitals, and unlike most big drugmakers, it runs both businesses under one roof. In 2015, its Darzalex became the first antibody drug approved for multiple myeloma, a blood cancer. Its medicines treat cancer, immune diseases such as psoriasis, and mental illnesses such as depression, and patented drugs bring in most of its sales. Its MedTech unit makes heart pumps, catheters that treat irregular heartbeats, surgical sutures, and Acuvue contact lenses. It was founded in 1886 to make sterile surgical dressings, is based in New Brunswick, New Jersey, and spun off its consumer brands, such as Tylenol and Band-Aid, as Kenvue in 2023.
Company Size
10,001+
Company Stage
IPO
Headquarters
New Brunswick, New Jersey
Founded
1886
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Johnson & Johnson's medtech sales rose 2.5% year over year to $8.64 billion in the third quarter, missing internal expectations. Growth has slowed for two quarters in a row, after rising more than 7% in the first quarter and last year's fourth quarter. The cardiovascular unit grew 4.3% to $2.31 billion. Its Abiomed business, bought in 2022 for $16.6 billion, fell 2.3% to $412 million. Tim Schmid, worldwide chairman of medtech, blamed lower patient volume after an unfavourable UK study of the Impella heart device. He called the setback temporary and said pressure also came from sales outside the US. J&J expects results from its PROTECT IV study of nearly 1,300 patients next year.
US stock futures were mixed on Tuesday as investors weighed a wave of earnings reports. Dow futures rose 0.9%, S&P 500 futures slipped 0.1%, and Nasdaq futures fell 0.7%. Memory stocks fell for a second day after a Chinese chipmaker, CXMT, said it had made a breakthrough in memory chip production. Roundhill Memory ETF fell more than 5% in premarket trading. UnitedHealth rose more than 2% after it earned an adjusted $4.69 per share on $112.69 billion in revenue, beating estimates. It raised its full-year earnings outlook to at least $20.50 per share. Goldman Sachs gained more than 3% on strong results. JPMorgan Chase, Wells Fargo, and Citigroup fell short in parts of their reports. Johnson & Johnson fell 2% after $25.40 billion in sales narrowly missed estimates, though it raised its full-year forecasts.
Johnson & Johnson (J&J) beat earnings estimates, but the Middle East conflict hurt its medical-device sales in the region. Chief financial officer Joe Wolk said Gulf states such as Kuwait, the UAE, and Saudi Arabia are shifting budgets towards defence. The conflict has not yet raised J&J's costs. Tremfya sales rose 68% to $2.4 billion, beating estimates of about $2.19 billion. Stelara sales, which face generic competition, fell 54% to $716 million, above expectations of $591 million. Darzalex sales rose about 16% to $4.24 billion, short of the $4.4 billion expected. J&J raised its full-year sales forecast to about $101.2 billion at the midpoint, from $101.1 billion. Its adjusted earnings midpoint rose to $11.10 per share from $11.04. Shares closed at $263.73 on Monday, up 27% this year.
Johnson & Johnson will report third-quarter results on October 13, before the market opens. Analysts expect earnings per share (EPS) to edge up to $2.82, and the company has beaten EPS estimates in each of the past four quarters. The healthcare group, valued at $622.84 billion, has seen its stock rise 36.8% over 52 weeks. Shares are down 8.1% from their September 2 high of $281.07. In the second quarter, sales rose 6.6% to $25.31 billion, and adjusted EPS climbed 4.7% to $2.90. J&J raised its 2026 adjusted EPS estimate from $11.55 to $11.68. Of 25 analysts, 14 rate the stock "Strong Buy." The consensus price target of $282.60 implies 9.3% upside.
Johnson & Johnson stock has surged 57% over the past year, outpacing the S&P 500's 17% return. Trading at approximately $270 per share, the stock appears expensive at 28.3 times trailing earnings. However, those trailing figures include STELARA, which lost market share to biosimilar competition and reduced operational sales growth by 460 basis points in Q2 2026. Excluding STELARA, the company achieved double-digit growth. The forward outlook looks more attractive, with the stock trading at 24.1 times fiscal 2026 earnings and 20.9 times 2027 estimates. Johnson & Johnson's portfolio includes 28 products generating over $1 billion annually each, with trailing twelve-month revenue near $98 billion. Meanwhile, TREMFYA grew 71% in Q2 2026, becoming the fastest-growing advanced therapy in Crohn's disease and ulcerative colitis. Operating margins improved to 26.8% from a three-year average of 25.7%, supporting expectations for continued margin expansion.