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Johnson & Johnson (JNJ)
NYSE:JNJ
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Johnson & Johnson (JNJ) AI Stock Analysis

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JNJ

Johnson & Johnson

(NYSE:JNJ)

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Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
$205.00
â–²(16.02% Upside)
Johnson & Johnson's strong financial performance and positive earnings call are the primary drivers of its high score. The company's robust profitability, strategic growth in key segments, and raised guidance highlight its strong market position. Technical analysis supports a positive trend, while valuation remains reasonable. Overall, J&J is well-positioned for continued success, with some caution advised due to near-term technical indicators.
Positive Factors
Strong Financial Health
A low debt-to-equity ratio indicates prudent financial management, ensuring stability and flexibility for future investments and growth.
Raised Guidance
The raised guidance reflects confidence in sustained growth and strategic positioning in key segments, supporting long-term revenue expansion.
Innovative Product Development
Innovative treatments like RYBREVANT plus LAZCLUZE enhance J&J's competitive edge in pharmaceuticals, driving long-term growth in oncology.
Negative Factors
STELARA Decline
The significant decline in STELARA sales due to biosimilar competition could impact revenue and market share in the immunology segment.
Orthopedics Segment Decline
Declining sales in orthopedics highlight competitive challenges, potentially affecting J&J's market position in the medical devices sector.
Earnings Decrease
A decrease in earnings per share, influenced by debt and product erosion, may strain financial performance and shareholder returns.

Johnson & Johnson (JNJ) vs. SPDR S&P 500 ETF (SPY)

Johnson & Johnson Business Overview & Revenue Model

Company DescriptionJohnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment offers baby care products under the JOHNSON'S and AVEENO Baby brands; oral care products under the LISTERINE brand; skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR. CI:LABO, NEUTROGENA, and OGX brands; TYLENOL acetaminophen products; SUDAFED cold, flu, and allergy products; BENADRYL and ZYRTEC allergy products; MOTRIN IB ibuprofen products; NICORETTE smoking cessation products; and PEPCID acid reflux products. It also offers STAYFREE and CAREFREE sanitary pads; o.b. tampons; adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. It serves general public, retail outlets, and distributors. The company's Pharmaceutical segment offers products for rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; HIV/AIDS and COVID-19 infectious diseases; mood disorders, neurodegenerative disorders, and schizophrenia; prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; thrombosis, diabetes and macular degeneration; and pulmonary arterial hypertension. This segment serves retailers, wholesalers, distributors, hospitals, and healthcare professionals directly for prescription use. Its MedTech segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopaedics products in support of hips, knees, trauma, spine, sports, and other; advanced and general surgery solutions that focus on breast aesthetics, ear, nose, and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the ACUVUE brand. This segment serves wholesalers, hospitals, and retailers. The company was founded in 1886 and is based in New Brunswick, New Jersey.
How the Company Makes MoneyJohnson & Johnson generates revenue through multiple streams across its three business segments. The Pharmaceutical division is the largest revenue contributor, driven by sales of prescription drugs, particularly in areas such as immunology and oncology, where the company has key blockbuster drugs. The Medical Devices segment earns revenue through the sale of surgical instruments, orthopedic implants, and cardiovascular devices, often bolstered by partnerships with healthcare providers and institutions. The Consumer Health segment offers a variety of well-known products, which generate consistent sales in both retail and online markets. Additionally, JNJ benefits from strategic collaborations and alliances in research and development, which can lead to new product innovations and expanded market access, further enhancing its revenue potential.

Johnson & Johnson Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business units, highlighting which segments are driving growth and profitability, and indicating strategic focus areas.
Chart InsightsJohnson & Johnson's Pharmaceutical segment shows a steady upward trend, with recent quarters reflecting strong growth, likely driven by new product launches or increased demand. Medtech is also experiencing consistent growth, suggesting successful innovation or market expansion. However, Consumer Health revenue has ceased, indicating a strategic shift or divestiture. This reallocation of resources could enhance focus on higher-growth segments, potentially boosting overall profitability. Investors should monitor how these changes impact long-term growth and market positioning.
Data provided by:Main Street Data

Johnson & Johnson Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in several key areas, including oncology and medtech, alongside raised guidance. However, challenges such as the impact of STELARA's loss of exclusivity and a decline in the orthopedics segment were noted. The overall sentiment is cautiously optimistic, with strong growth prospects and some areas needing improvement.
Q2-2025 Updates
Positive Updates
Operational Sales Growth
Johnson & Johnson reported operational sales growth of 4.6% across its business during the second quarter, with Innovative Medicines achieving a 3.8% increase and Medtech achieving 6.1% growth.
Oncology Growth
The company reported operational sales growth of 22.3% in oncology, with a strong performance across multiple key products, including DARZALEX and CARVYKTI.
Medtech Performance
The Medtech segment saw strong performance, particularly in cardiovascular surgery, with 6.1% operational sales growth and over 22% growth in cardiovascular.
Raised Full-Year Guidance
Johnson & Johnson raised its full-year sales guidance by $2 billion and EPS guidance by $0.25, reflecting strong performance and future expectations.
TREMFYA Expansion
TREMFYA expanded into inflammatory bowel disease, seeing 30% growth in the quarter, and is expected to generate at least $10 billion annually at peak.
Strong Neuroscience Growth
SPRAVATO grew 53%, demonstrating sustained double-digit growth, and the acquisition of Intracellular Therapies further strengthened the neuroscience portfolio.
Negative Updates
STELARA Impact
STELARA experienced a decline of 43.2% due to the impact of biosimilar competition, negatively affecting sales performance.
Orthopedics Decline
The orthopedics business saw a decline of 1.6%, driven by competitive pressures, the transformation program, and China VBP.
Earnings Decrease
Adjusted diluted earnings per share decreased by 2.1%, primarily due to interest associated with incremental debt and GP erosion from STELARA.
Company Guidance
During Johnson & Johnson's second quarter 2025 earnings call, the company reported a robust operational sales growth of 4.6%, with worldwide sales reaching $23.7 billion. The innovative medicines segment achieved $15.2 billion in sales, marking a 3.8% increase, despite a 1,170 basis point headwind from STELARA. MedTech reported a 6.1% growth, driven by cardiovascular and surgical vision. The company raised its full-year sales guidance by $2 billion and EPS guidance by $0.25, indicating a strong market position and strategic growth in fields like oncology and medtech. Key highlights included a 22.3% operational sales growth in oncology and 6.1% in medtech, with significant progress across immunology, neuroscience, and cardiovascular sectors. These results reflect J&J's strategic initiatives in innovation and market expansion, projecting confidence in further accelerating growth for the remainder of the year and beyond.

Johnson & Johnson Financial Statement Overview

Summary
Johnson & Johnson demonstrates strong financial performance with robust margins and steady revenue growth. The balance sheet reflects financial stability, and cash flow analysis shows solid cash generation supporting investments and shareholder returns. Overall, the company exhibits strong financial health across all statements.
Income Statement
85
Very Positive
Johnson & Johnson demonstrates strong financial performance with a notable gross profit margin of 67.9% and an impressive net profit margin of 25.0% in the TTM. Revenue growth is steady, with a 2.0% increase in the TTM compared to the previous annual period. EBIT and EBITDA margins remain robust at 24.4% and 36.8%, respectively, indicating efficient operations and profitability.
Balance Sheet
78
Positive
The balance sheet highlights a solid equity base with a debt-to-equity ratio of 0.15, reflecting prudent financial management. The company maintains a strong equity ratio of 40.6%, showcasing financial stability. Return on equity stands at 28.9%, indicating efficient use of shareholder capital. The balance sheet is well-positioned, but there is room for improvement in asset utilization.
Cash Flow
82
Very Positive
Cash flow analysis reveals robust operating cash flow of $23 billion, with a healthy free cash flow of $16.77 billion in the TTM. The operating cash flow to net income ratio is 1.02, showing solid cash generation relative to earnings. While free cash flow has declined slightly compared to previous periods, the cash flow metrics remain strong, supporting ongoing investments and shareholder returns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue88.82B85.16B79.99B78.74B82.58B
Gross Profit61.35B58.61B55.39B55.34B54.16B
EBITDA24.78B23.32B26.61B26.75B23.93B
Net Income14.07B35.15B17.94B20.88B14.71B
Balance Sheet
Total Assets180.10B167.56B187.38B182.02B174.89B
Cash, Cash Equivalents and Short-Term Investments24.52B22.93B22.28B31.61B25.18B
Total Debt36.63B29.33B39.64B33.75B35.27B
Total Liabilities108.61B98.78B110.57B108.00B111.62B
Stockholders Equity71.49B68.77B76.80B74.02B63.28B
Cash Flow
Free Cash Flow19.84B18.25B17.18B19.76B20.19B
Operating Cash Flow24.27B22.79B21.19B23.41B23.54B
Investing Cash Flow-18.60B878.00M-12.37B-8.68B-20.82B
Financing Cash Flow-3.13B-15.82B-8.87B-14.05B-6.12B

Johnson & Johnson Technical Analysis

Technical Analysis Sentiment
Positive
Last Price176.69
Price Trends
50DMA
172.86
Positive
100DMA
162.63
Positive
200DMA
156.89
Positive
Market Momentum
MACD
0.87
Positive
RSI
54.04
Neutral
STOCH
44.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JNJ, the sentiment is Positive. The current price of 176.69 is below the 20-day moving average (MA) of 176.95, above the 50-day MA of 172.86, and above the 200-day MA of 156.89, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JNJ.

Johnson & Johnson Risk Analysis

Johnson & Johnson disclosed 20 risk factors in its most recent earnings report. Johnson & Johnson reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Johnson & Johnson Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$419.56B18.8430.21%2.88%4.69%34.88%
79
Outperform
233.82B28.3017.25%2.08%15.08%29.15%
78
Outperform
234.24B17.6722.91%3.25%12.38%-12.67%
75
Outperform
199.00B12.3333.49%4.07%2.00%20.01%
72
Outperform
113.85B11.667.17%4.77%-9.32%120.62%
68
Neutral
388.63B105.94-2059.56%2.94%6.05%-29.75%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JNJ
Johnson & Johnson
176.69
20.35
13.02%
AZN
AstraZeneca
75.36
-1.22
-1.59%
MRK
Merck & Company
79.67
-29.38
-26.94%
NVS
Novartis
123.00
10.79
9.62%
SNY
Sanofi
46.40
-8.84
-16.00%
ABBV
AbbVie
219.99
34.72
18.74%

Johnson & Johnson Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Johnson & Johnson Elects John Morikis to Board
Positive
Sep 9, 2025

On September 8, 2025, Johnson & Johnson announced the election of John Morikis, former Executive Chairman, President, and CEO of The Sherwin-Williams Company, to its Board of Directors. Morikis, recognized for his leadership in global markets and supply chains, will contribute to Johnson & Johnson’s long-term strategy of healthcare innovation and shareholder value creation.

Executive/Board Changes
Johnson & Johnson Elects Daniel Pinto to Board
Neutral
Jun 10, 2025

On June 10, 2025, Johnson & Johnson announced the election of Daniel Pinto to its Board of Directors, effective July 1, 2025. Pinto, who is the President of JPMorganChase, will also serve on the Audit and Compensation & Benefits Committees. His appointment is significant as JPMorganChase has been a major banking service provider to Johnson & Johnson, with the company paying approximately $39.2 million for various services in fiscal year 2024.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 09, 2025