Johnson & Johnson’s (JNJ) shares edged lower on Tuesday morning following the U.S. pharma giant’s mildly positive forecast for its sales this year, despite its first-quarter earnings beat.
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During the three-month period that ended on March 30, the New Jersey-based company expanded its sales by 9.9% year-over-year to $24.1 billion, surpassing the Wall Street consensus of $23.61 billion. In addition, the pharma company’s adjusted earnings per share fell by about 3% to $2.70 but came in ahead of analysts’ estimates of $2.68.
Innovative Medicine Fuels JNJ Sales Growth
Innovative medicine was the biggest sales growth contributor, with sales rising by 11.2% to $13.87 billion — or 7.4% minus the impact of foreign exchange. Johnson & Johnson said this growth was fueled by sales of its cancer drugs Darzalex, Carvykti, Erleada, and Rybrevant/Lazcluze; anti-inflammatory drug Tremfya; and nasal spray Spravato.
“Johnson & Johnson had a strong start to 2026 and is delivering on its promise for a year of accelerated growth and impact,” noted Joaquin Duato, Johnson & Johnson chair and CEO.
Johnson & Johnson Eyes Up to 8% Sales Growth
Looking ahead, Johnson & Johnson raised its sales forecast for full-year 2026 to between $100.3 billion and $101.3 billion, with the midpoint of $100.8 billion slightly exceeding the Wall Street consensus of $100.65 billion. This means that the pharma giant, in the best-case scenario, sees its sales rising by about 8% from $94.2 billion in 2025.
The company hopes to achieve double-digit sales growth by the end of the decade. In comparison, key rival Pfizer (PFE) has also projected weaker COVID-19 sales this year and recently warned of pressure on its revenue from upcoming patent expirations.
Is JNJ Stock a Good Buy Now?
On Wall Street, analysts have a Moderate Buy consensus rating on Johnson & Johnson’s shares. This is based on 11 Buys and six Holds issued over the past three months.
In addition, the average JNJ price target of $254.93 only implies about 7% upside. However, it is important to note that analysts’ ratings may change following the latest earnings results.
