Johnson & Johnson (JNJ) is set to report its second-quarter earnings on July 16, and analysts are expecting the healthcare giant to post steady results. Indeed, Wall Street is forecasting earnings of $2.68 per share on revenue of $22.87 billion, which would represent modest growth of around 1.9% compared to last year. The company’s full-year earnings estimates have also been slightly raised by analysts to a range of $10.62 to $11.00 per share. JNJ’s Pharmaceutical segment remains its primary growth driver, as pictured below.
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In fact, this unit grew by about 4.2% in Q1 and continues to benefit from strong sales of cancer treatment Darzalex as well as Tremfya, which grew by 20%. In addition, new filings with the FDA, including pediatric use for Stelara and additional CNS therapies, indicate that the firm has a healthy pipeline going forward. Meanwhile, the MedTech division, which includes devices and surgical technology, grew by 4.1%. It is worth noting that this unit has faced pricing pressure in China, but recent acquisitions like Abiomed and Shockwave could help revive sales in 2025.
As investors look ahead to the report, key things to watch include the company’s full-year guidance to see whether J&J will reaffirm its revenue outlook of around $91–91.8 billion and EPS range of $10.50–$10.70. Investors should also focus on how the company is managing costs, especially with MedTech facing about $400 million in tariff exposure and the upcoming biosimilar competition for top drugs like Stelara. Lastly, any updates on drug approvals, product launches, or how J&J plans to integrate new biotech acquisitions could offer insights into long-term growth.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 2.6% move in either direction.
Is JNJ Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on JNJ stock based on seven Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average JNJ price target of $173.47 per share implies 10.6% upside potential.
