Johnson & Johnson (JNJ)
NYSE:JNJ
Want to see JNJ full AI Analyst Report?
Top Page
Johnson & Johnson
(NYSE:JNJ)
Select Model
Select Model
Rating:73Outperform
Price Target:
$265.00
▲(13.16% Upside)
Action:ReiteratedDate:04/14/26
The score is primarily supported by strong financial quality (steady growth, strong margins, and durable free cash flow) and a constructive earnings update with raised guidance and reaffirmed full-year cash flow. This is tempered by near-term profitability/headwind risks highlighted on the call (STELARA erosion, margin deleverage, softer Q1 FCF) and only moderate technical momentum, while valuation appears fair with a supportive dividend.
Positive Factors
Strong free cash flow generation
Management’s reaffirmed ~ $21B full‑year free cash flow target, combined with ~$22B of cash & marketable securities, indicates durable cash generation. Sustained FCF supports dividends, R&D/manufacturing investments and buybacks, enabling capital allocation through product cycles.
Negative Factors
Material product erosion (STELARA)
A ~62% YoY STELARA decline shows how rapidly sales can evaporate after biosimilar entry and class shifts. Such abrupt revenue erosion is a structural risk for legacy biologics and pressures company growth unless offset by new product uptake and sustained pricing/payer strategies.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Management’s reaffirmed ~ $21B full‑year free cash flow target, combined with ~$22B of cash & marketable securities, indicates durable cash generation. Sustained FCF supports dividends, R&D/manufacturing investments and buybacks, enabling capital allocation through product cycles.
Read all positive factors
Johnson & Johnson (JNJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$574.86B
Dividend Yield2.5%
Average Volume (3M)7.30M
Price to Earnings (P/E)18.8
Beta (1Y)0.08
Revenue Growth6.05%
EPS GrowthN/A
CountryUS
Employees138,100
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.70
Shares Outstanding2,408,613,300
10 Day Avg. Volume6,613,871
30 Day Avg. Volume7,304,650
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)6.18
Price to Sales (P/S)5.35
P/FCF Ratio25.59
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue6.29
Enterprise Value/Gross Profit9.27
Enterprise Value/Ebitda14.51
Forecast
1Y Price Target
$261.43Price Target Upside11.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)11.58
Revenue Forecast (FY)$100.76B
Johnson & Johnson Business Overview & Revenue Model
Company Description
Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide, but strategically separated its Consumer Health business into Kenvue Inc. in 2023 to focus on i...
How the Company Makes Money
Johnson & Johnson makes money mainly by selling healthcare products in two operating segments:
1) Innovative Medicine (pharmaceuticals): J&J generates revenue from the sale of branded prescription drugs. These medicines are typically protected by...
Johnson & Johnson Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much of the company’s revenue is generated in each part of the world, highlighting whether growth is driven by mature markets or expanding international demand. Helpful for spotting concentration risk, the impact of new product launches abroad, and regions where patent expiries or regulatory changes could dent sales.
Shows how much of the company’s revenue is generated in each part of the world, highlighting whether growth is driven by mature markets or expanding international demand. Helpful for spotting concentration risk, the impact of new product launches abroad, and regions where patent expiries or regulatory changes could dent sales.
Data provided by:
The Fly
The FlyJohnson & Johnson Earnings Call Summary
Earnings Call Date:Apr 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive commercial and pipeline story: strong top-line operational growth, multiple high-growth products (DARZALEX, CARVYKTI, TECVAYLI, TALVEY, RYBREVANT, TREMFYA) and successful new launches (ICOTYDE, INLEXZO) with raised full‑year guidance and clear long‑term targets (line of sight to double‑digit growth by decade end). Offsetting these positives were significant short‑term headwinds—most notably a steep STELARA decline, GAAP EPS volatility driven by prior-year one‑time items, margin deleverage from heavier launch investments and a soft Q1 free cash flow run‑rate. Management emphasized confidence in recovery/acceleration through the year, substantial R&D and manufacturing investments, and multiple upcoming catalysts, leading to an overall constructive outlook despite near‑term profitability and comparability pressures.Positive Updates
Company-wide Operational Sales Growth and Revenue
Q1 2026 worldwide sales of $24.1 billion with operational sales growth of 6.4% (reported midpoint guidance implies $100.8B for 2026). Excluding STELARA headwind (~540 bps), the company grew in double digits in the quarter. U.S. growth was 8.3% and ex-U.S. growth was 3.9%.
Negative Updates
Large STELARA Decline and Material Headwind
STELARA sales declined 61.7% year-over-year due to biosimilar competition, novel class adoption and unfavorable patient mix; STELARA created an approximate 540 bps headwind to company growth (920 bps headwind noted for Innovative Medicine).
Read all updates
Q1-2026 Updates
Positive
Negative
Company-wide Operational Sales Growth and Revenue
Q1 2026 worldwide sales of $24.1 billion with operational sales growth of 6.4% (reported midpoint guidance implies $100.8B for 2026). Excluding STELARA headwind (~540 bps), the company grew in double digits in the quarter. U.S. growth was 8.3% and ex-U.S. growth was 3.9%.
Read all positive updates
Company Guidance
Johnson & Johnson raised its 2026 operational sales guidance to 5.9%–6.9% (midpoint $100.2B, ~6.4%) and now expects reported sales growth of 6.5%–7.5% (midpoint $100.8B, ~7.0%), noting a ~100‑basis‑point benefit from a 53rd week; adjusted operational EPS guidance was nudged up $0.02 to $11.30–$11.50 (midpoint +5.7%), with reported adjusted EPS at the midpoint of $11.55 (+7.1%); management is maintaining guidance for net interest expense, net other income and the effective tax rate, expects adjusted pretax operating margin to improve by at least 50 basis points (guidance reflects 53rd‑week and voluntary U.S. pricing agreement costs), and reiterates full‑year free cash flow of ~ $21B (Q1 FCF ≈ $1.5B); balance sheet and capital priorities include ~$22B cash & marketable securities, $55B debt (net debt ≈ $33B), a $55B U.S. manufacturing/R&D investment plan through early‑2029 (≈$12B invested through 2025), and a Board‑approved 3.1% dividend increase to $5.36/year.Johnson & Johnson Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 94.19B | 88.82B | 85.16B | 79.99B | 78.74B |
| Gross Profit | 68.56B | 61.35B | 58.61B | 55.39B | 55.34B |
| EBITDA | 41.05B | 24.78B | 23.32B | 26.61B | 26.75B |
| Net Income | 26.80B | 14.07B | 35.15B | 17.94B | 20.88B |
Balance Sheet | |||||
| Total Assets | 199.21B | 180.10B | 167.56B | 187.38B | 182.02B |
| Cash, Cash Equivalents and Short-Term Investments | 20.10B | 24.52B | 22.93B | 22.28B | 31.61B |
| Total Debt | 47.93B | 36.63B | 29.33B | 39.64B | 33.75B |
| Total Liabilities | 117.67B | 108.61B | 98.78B | 110.57B | 108.00B |
| Stockholders Equity | 81.54B | 71.49B | 68.77B | 76.80B | 74.02B |
Cash Flow | |||||
| Free Cash Flow | 19.70B | 19.84B | 18.25B | 17.18B | 19.76B |
| Operating Cash Flow | 24.53B | 24.27B | 22.79B | 21.19B | 23.41B |
| Investing Cash Flow | -23.59B | -18.60B | 878.00M | -12.37B | -8.68B |
| Financing Cash Flow | -5.54B | -3.13B | -15.82B | -8.87B | -14.05B |
Johnson & Johnson Technical Analysis
Neutral
234.18
Price Trends
241.01
Negative
225.87
Positive
201.10
Positive
Market Momentum
-0.74
Positive
39.24
Neutral
25.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JNJ, the sentiment is Neutral. The current price of 234.18 is below the 20-day moving average (MA) of 239.28, below the 50-day MA of 241.01, and above the 200-day MA of 201.10, indicating a neutral trend. The MACD of -0.74 indicates Positive momentum. The RSI at 39.24 is Neutral, neither overbought nor oversold. The STOCH value of 25.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JNJ.
Johnson & Johnson Risk Analysis
Johnson & Johnson disclosed 23 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $276.52B | 19.02 | 32.80% | 2.87% | 11.53% | -15.21% | |
73 Outperform | $574.86B | 18.81 | 26.52% | 2.50% | 6.05% | ― | |
73 Outperform | £229.00B | 28.13 | 23.00% | 1.53% | 10.20% | 40.57% | |
69 Neutral | $115.27B | -31.42 | 14.71% | 4.58% | -9.32% | 120.62% | |
68 Neutral | $291.50B | 14.46 | 36.19% | 3.12% | 1.49% | 7.89% | |
63 Neutral | $368.65B | 56.00 | -361.58% | 2.87% | 7.40% | -53.78% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JNJ
Johnson & Johnson
234.18
81.51
53.39%
MRK
Merck & Company
119.07
43.95
58.50%
NVS
Novartis
151.97
43.55
40.17%
SNY
Sanofi
48.06
-1.30
-2.63%
ABBV
AbbVie
208.38
43.59
26.45%
GB:AZN
AstraZeneca
15,118.00
5,167.42
51.93%
Johnson & Johnson Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Johnson & Johnson boosts outlook and raises dividend
Positive
Apr 14, 2026
On April 14, 2026, Johnson Johnson reported first-quarter 2026 sales of $24.1 billion, up 9.9% year on year, with operational growth of 6.4% and adjusted EPS of $2.70, while GAAP EPS fell 52.9% to $2.14 due to special items. Innovative Medicine a...
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.