Johnson & Johnson (JNJ) AI Stock Analysis

• Market Cap: $450.20B
• Dividend Yield: 2.73%
• Average Volume (3M): 8.49M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.17
• Revenue Growth: 5.08%
• EPS Growth: 71.07%
• Country: US
• Employees: 138,100
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.80
• Shares Outstanding: 2,409,295,200
• 10 Day Avg. Volume: 7,815,480
• 30 Day Avg. Volume: 8,491,545
• PEG Ratio: -0.42
• Price to Book (P/B): 4.83
• Price to Sales (P/S): 3.88
• P/FCF Ratio: 17.39
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 6.66
• Enterprise Value/Gross Profit: 9.79
• Enterprise Value/Ebitda: 13.78
• 1Y Price Target: $206.47
• Price Target Upside: 10.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $217.00 ▲(16.13% Upside)

Johnson & Johnson's strong financial performance and positive earnings call guidance are the most significant factors driving the stock score. The technical analysis supports a bullish outlook, while the valuation reflects a stable but not undervalued position. The company's strategic focus on high-growth areas and successful product launches further enhance its prospects.

Positive Factors

Innovative Medicine Growth

The growth in the Innovative Medicine segment highlights JNJ's ability to drive sales even amidst challenges, showcasing strong product demand and effective market strategies.

MedTech Segment Expansion

The expansion in the MedTech segment underscores JNJ's robust market position and potential for sustained growth through innovation and strategic focus on high-demand areas.

Strong Cash Flow Generation

Strong cash flow generation enhances JNJ's financial flexibility, enabling reinvestment in growth opportunities and providing a buffer against economic uncertainties.

Negative Factors

STELARA Loss of Exclusivity Impact

The significant decline in STELARA sales due to loss of exclusivity poses a challenge to JNJ's revenue streams, necessitating strategic adjustments to mitigate impacts.

Increased Effective Tax Rate

An increased tax rate reduces net earnings, impacting profitability and potentially limiting funds available for investment in growth and innovation.

Macroeconomic and Competitive Pressures

Margin pressures in the MedTech segment highlight challenges in maintaining profitability amid competitive and economic headwinds, affecting long-term financial performance.

Johnson & Johnson Business Overview & Revenue Model

Company Description

Johnson & Johnson (JNJ) is a multinational corporation founded in 1886, known for its diverse range of healthcare products and services. The company operates through three main sectors: Consumer Health, Pharmaceutical, and Medical Devices. Its portfolio includes well-known consumer products such as baby care, skin and hair care, wound care, and over-the-counter pharmaceuticals. In the pharmaceutical sector, JNJ develops innovative treatments across various therapeutic areas, including immunology, oncology, neuroscience, and infectious diseases. The Medical Devices segment offers a wide array of products used in surgical, orthopedic, and interventional procedures, making JNJ a key player in the global healthcare market.

How the Company Makes Money

Johnson & 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 Financial Statement Overview

Summary

Johnson & Johnson exhibits strong financial health with robust profitability, a solid balance sheet, and efficient cash flow management. The company shows consistent revenue growth and effective use of equity, although the increase in debt and slight decline in net profit margin warrant attention.

Income Statement

Johnson & Johnson's income statement shows strong profitability with a high gross profit margin of 68.08% and a net profit margin of 27.26% for the TTM. The company has maintained steady revenue growth, with a 2.24% increase in the TTM. EBIT and EBITDA margins are robust at 34.91% and 40.00%, respectively, indicating efficient operations. However, the net profit margin has decreased from previous years, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.65. The return on equity is impressive at 33.69%, showcasing effective use of shareholder funds. The equity ratio stands at 41.11%, indicating a stable capital structure. However, the increase in total debt over the years requires monitoring to ensure it does not impact financial flexibility.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 23.07% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.43, and the free cash flow to net income ratio is 0.71, indicating efficient cash conversion. Despite the positive cash flow metrics, the decline in operating cash flow coverage ratio compared to previous years suggests potential areas for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	69.63B	88.82B	85.16B	82.06B	81.58B	76.45B
Gross Profit	47.34B	61.35B	58.61B	54.50B	54.49B	51.01B
EBITDA	33.64B	24.78B	23.32B	24.66B	25.93B	24.25B
Net Income	21.69B	14.07B	35.15B	15.12B	15.30B	1.30B
Balance Sheet
Total Assets	192.82B	180.10B	167.56B	157.73B	152.95B	157.30B
Cash, Cash Equivalents and Short-Term Investments	18.56B	24.52B	22.93B	19.29B	19.69B	18.30B
Total Debt	6.39B	37.83B	29.33B	27.70B	30.48B	34.58B
Total Liabilities	113.54B	108.61B	98.78B	98.26B	93.20B	97.14B
Stockholders Equity	79.28B	71.49B	68.77B	59.47B	59.75B	60.16B
Cash Flow
Free Cash Flow	14.23B	19.84B	18.25B	19.92B	18.53B	17.78B
Operating Cash Flow	17.22B	24.27B	22.79B	23.42B	22.20B	21.06B
Investing Cash Flow	-19.10B	-18.60B	878.00M	-6.19B	-3.17B	-14.87B
Financing Cash Flow	-4.17B	-3.13B	-15.82B	-18.02B	-18.51B	-7.67B

Johnson & Johnson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 186.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 186.86 is below the 20-day moving average (MA) of 190.12, above the 50-day MA of 183.86, and above the 200-day MA of 163.83, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JNJ.

Johnson & Johnson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	79 Outperform	$209.46B	11.09	―	3.84%	1.74%	―
JNJ	78 Outperform	$450.20B	18.03	33.62%	2.73%	5.08%	71.07%
AZN	77 Outperform	$252.83B	30.56	19.76%	1.93%	15.08%	29.15%
SNY	76 Outperform	$120.93B	12.21	8.39%	4.51%	-9.32%	120.62%
NVS	73 Outperform	$238.75B	16.93	32.93%	3.19%	11.53%	-15.21%
ABBV	62 Neutral	$381.38B	162.20	138.53%	3.01%	7.40%	-53.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Johnson & Johnson Corporate Events

Johnson & Johnson Reports Strong Q3 2025 Performance

Johnson & Johnson is a global healthcare leader known for its comprehensive portfolio in pharmaceuticals, medical devices, and consumer health products, with a strong focus on innovation and improving human health.

Johnson & Johnson’s Earnings Call Highlights Growth and Strategy

Johnson & Johnson’s recent earnings call painted a picture of robust performance and strategic foresight, despite some challenges. The sentiment expressed during the call was largely positive, highlighting significant growth across key segments and successful new product launches. The company acknowledged hurdles such as STELARA’s loss of exclusivity and increased tax rates but remained optimistic about its strategic focus and operational achievements, suggesting a promising outlook.

Johnson & Johnson Reports Strong Q3 2025 Financial Results

On October 14, 2025, Johnson & Johnson announced its third-quarter 2025 financial results, reporting a 6.8% increase in sales to $24 billion and a significant rise in net earnings by 91.2%. The company also raised its full-year sales outlook to $93.7 billion, driven by strong performance in its Innovative Medicine and MedTech segments. Key developments included approvals for new treatments and significant progress in its product pipeline, indicating a strategic focus on innovation and growth in priority areas. The announcement highlights the company’s robust financial health and its strategic initiatives aimed at maintaining its leadership position in the healthcare sector.

The most recent analyst rating on (JNJ) stock is a Hold with a $178.00 price target. To see the full list of analyst forecasts on Johnson & Johnson stock, see the JNJ Stock Forecast page.

Johnson & Johnson Elects John Morikis to Board

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.

The most recent analyst rating on (JNJ) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Johnson & Johnson stock, see the JNJ Stock Forecast page.