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Johnson & Johnson
(NYSE:JNJ)
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Rating:71Outperform
Price Target:
$291.00
▲(24.26% Upside)
Action:Upgraded
Date:04/28/26
The score is driven by strong underlying financial quality (solid revenue growth, high margins, and robust absolute free cash flow) and a generally positive earnings outlook with raised guidance. These strengths are tempered by weak current technical momentum (below key moving averages with negative MACD), a relatively high P/E, and near-term execution risks highlighted on the call (STELARA erosion, margin pressure, and soft early-year free cash flow).
Positive Factors
Durable revenue growth
Johnson & Johnson has demonstrated steady top-line expansion over multiple years, reflecting broad-based demand across Pharmaceuticals and MedTech. This multi-year revenue trend indicates a resilient commercial footprint and diversified product mix that supports durable growth absent short-term market moves.
Negative Factors
Material STELARA erosion
A very large, rapid decline in a legacy blockbuster due to biosimilars and new-class adoption highlights structural vulnerability: loss of entrenched revenue can meaningfully depress growth and forces reliance on launches to replace material cash flows over multiple years.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable revenue growth
Johnson & Johnson has demonstrated steady top-line expansion over multiple years, reflecting broad-based demand across Pharmaceuticals and MedTech. This multi-year revenue trend indicates a resilient commercial footprint and diversified product mix that supports durable growth absent short-term market moves.
Read all positive factors
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 (JNJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$634.06B
Dividend Yield2.5%
Average Volume (3M)8.41M
Price to Earnings (P/E)29.9
Beta (1Y)-0.03
Revenue Growth7.87%
EPS Growth-3.56%
CountryUS
Employees141,700
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)8.67
Shares Outstanding2,407,217,000
10 Day Avg. Volume8,055,058
30 Day Avg. Volume8,406,335
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 Cap0.94
Enterprise Value/Revenue6.20
Enterprise Value/Gross Profit8.96
Enterprise Value/Ebitda17.83
Forecast
1Y Price Target
$268.07Price Target Upside14.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)11.59
Revenue Forecast (FY)$101.04B
Johnson & Johnson Business Overview & Revenue Model
Company Description
Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuse...
How the Company Makes Money
Johnson & Johnson makes money by generating revenue from the sale of healthcare products in two main segments: Pharmaceuticals and MedTech. In Pharmaceuticals, the company earns revenue primarily from prescription drug sales, typically through a c...
Johnson & Johnson Earnings Call Summary
Earnings Call Date:Apr 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 15, 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
84
Very Positive
Balance Sheet
80
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 96.36B | 94.19B | 88.82B | 85.16B | 79.99B | 78.74B |
| Gross Profit | 66.60B | 68.56B | 61.35B | 58.61B | 55.39B | 55.34B |
| EBITDA | 33.49B | 41.05B | 24.78B | 23.32B | 26.61B | 26.75B |
| Net Income | 21.04B | 26.80B | 14.07B | 35.15B | 17.94B | 20.88B |
Balance Sheet | ||||||
| Total Assets | 200.89B | 199.21B | 180.10B | 167.56B | 187.38B | 182.02B |
| Cash, Cash Equivalents and Short-Term Investments | 22.05B | 20.10B | 24.52B | 22.93B | 22.28B | 31.61B |
| Total Debt | 54.99B | 47.93B | 36.63B | 29.33B | 39.64B | 33.75B |
| Total Liabilities | 119.71B | 117.67B | 108.61B | 98.78B | 110.57B | 108.00B |
| Stockholders Equity | 81.19B | 81.54B | 71.49B | 68.77B | 76.80B | 74.02B |
Cash Flow | ||||||
| Free Cash Flow | 17.80B | 19.70B | 19.84B | 18.25B | 17.18B | 19.76B |
| Operating Cash Flow | 22.87B | 24.53B | 24.27B | 22.79B | 21.19B | 23.41B |
| Investing Cash Flow | -24.33B | -23.59B | -18.60B | 878.00M | -12.37B | -8.68B |
| Financing Cash Flow | -15.43B | -5.54B | -3.13B | -15.82B | -8.87B | -14.05B |
Johnson & Johnson Technical Analysis
Positive
234.18
Price Trends
235.52
Positive
237.61
Positive
219.81
Positive
Market Momentum
8.18
Negative
62.21
Neutral
74.61
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 234.18 is below the 20-day moving average (MA) of 247.03, below the 50-day MA of 235.52, and above the 200-day MA of 219.81, indicating a bullish trend. The MACD of 8.18 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 74.61 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 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $311.17B | 35.13 | 17.93% | 3.12% | 2.70% | -48.28% | |
71 Outperform | $634.06B | 29.88 | 26.26% | 2.50% | 7.87% | -3.56% | |
71 Outperform | $285.81B | 22.07 | 31.54% | 2.87% | 5.60% | 9.68% | |
71 Outperform | £220.84B | 26.57 | 22.41% | 1.53% | 4.64% | 26.75% | |
69 Neutral | $104.04B | 19.17 | 14.41% | 4.58% | 11.19% | -0.23% | |
61 Neutral | $446.54B | 122.53 | 68.01% | 2.87% | 9.50% | -13.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JNJ
Johnson & Johnson
259.10
105.15
68.30%
MRK
Merck & Company
125.07
44.41
55.05%
NVS
Novartis
154.62
35.92
30.27%
SNY
Sanofi
43.90
-2.85
-6.09%
ABBV
AbbVie
249.91
63.53
34.09%
GB:AZN
AstraZeneca
13,354.00
3,083.01
30.02%
Johnson & Johnson Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Johnson & Johnson Shareholders Back Board, Pay at 2026 Meeting
Positive
Apr 28, 2026
At its 2026 Annual Meeting of Shareholders held on April 23, 2026, Johnson Johnson investors elected all 12 director nominees to the board and approved, on an advisory basis, the company’s executive compensation framework and named executiv...
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.