Johnson & Johnson (JNJ)
NYSE:JNJ
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Johnson & Johnson
(NYSE:JNJ)
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Rating:73Outperform
Price Target:
$266.00
▲(11.19% Upside)
Action:ReiteratedDate:02/12/26
The score is driven primarily by strong, durable cash generation and solid operating performance, reinforced by constructive 2026 guidance and portfolio/pipeline momentum. The rating is tempered by stretched technical conditions, moderate-to-premium valuation, and ongoing headwinds (tariffs, litigation/one-time charges, and residual biosimilar/competitive pressures).
Positive Factors
Free cash flow generation
Consistently strong free cash flow (≈$20B in 2025; guidance ≈$21B for 2026) underpins durable capital allocation flexibility. This cash enables sustained R&D and M&A, supports the dividend and planned orthopedics separation, and cushions operational headwinds over the medium term.
Negative Factors
STELARA biosimilar erosion
A near-50% sales decline for STELARA represents a material, structural revenue loss for the pharma portfolio. Replacement depends on timely launches and uptake of pipeline assets; until new products scale, STELARA erosion remains a durable drag on growth and segment profit margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistently strong free cash flow (≈$20B in 2025; guidance ≈$21B for 2026) underpins durable capital allocation flexibility. This cash enables sustained R&D and M&A, supports the dividend and planned orthopedics separation, and cushions operational headwinds over the medium term.
Read all positive factors
Johnson & Johnson (JNJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$576.54B
Dividend Yield2.5%
Average Volume (3M)8.55M
Price to Earnings (P/E)18.8
Beta (1Y)0.13
Revenue Growth6.05%
EPS GrowthN/A
CountryUS
Employees138,100
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.46
Shares Outstanding2,409,899,000
10 Day Avg. Volume8,354,971
30 Day Avg. Volume8,553,040
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 Cap1.05
Enterprise Value/Revenue6.45
Enterprise Value/Gross Profit8.86
Enterprise Value/Ebitda15.25
Forecast
1Y Price Target
$253.87Price Target Upside6.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)11.56
Revenue Forecast (FY)$100.60B
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 generates revenue through a diversified business model that encompasses three primary segments: Pharmaceuticals, Medical Devices, and Consumer Health. The Pharmaceutical segment, which contributes a substantial portion of revenue...
Johnson & Johnson Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyJohnson & Johnson Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 14, 2026
Earnings Call Sentiment Positive
The call highlights a dominant message of accelerating, portfolio-driven growth: robust revenue and adjusted EPS growth, strong free cash flow, numerous approvals and late-stage programs, and notable commercial momentum across oncology, immunology, neuroscience, and MedTech. Management provided constructive 2026 guidance, reiterated long-term ambition (double-digit growth by the end of the decade), and outlined capital deployment and the orthopedics separation. Offsetting risks include material STELARA biosimilar erosion (a substantial multi-hundred-basis-point headwind), elevated litigation and one-time charges, tariff pressures, competitive dynamics in select MedTech areas, and modest share-count dilution. On balance, the positives — broad-based commercial strength, pipeline and approval milestones, robust cash generation, and clear guidance — materially outweigh the near-term headwinds.Positive Updates
Strong Full-Year and Q4 Revenue
Full-year 2025 worldwide sales of $94.2 billion, up 5.3% operationally; Q4 2025 sales of $24.6 billion, up 7.1% operationally despite a ~650 basis point headwind from STELARA.
Negative Updates
STELARA Biosimilar Impact
STELARA declined ~48.6% in the period and created a significant headwind (~620 to 1,110 basis points referenced across results), cited as a major drag though management says it is now largely in the rearview mirror.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year and Q4 Revenue
Full-year 2025 worldwide sales of $94.2 billion, up 5.3% operationally; Q4 2025 sales of $24.6 billion, up 7.1% operationally despite a ~650 basis point headwind from STELARA.
Read all positive updates
Company Guidance
Management guided 2026 operational sales growth of 5.7%–6.7% (midpoint 6.2%, ~$100.0B) with acquisitions/divestitures adding ~30 bps (adjusted operational midpoint 5.9%) and a fifty‑third week worth ~100 bps; reported sales growth is expected 6.2%–7.2% (midpoint $100.5B, 6.7%). They forecast free cash flow of ≈$21B, an adjusted pretax operating margin improvement of at least 50 bps, net interest expense of $300M–$400M, net other income of $1.0–$1.2B, and an effective tax rate of 17.5%–18.5%. Adjusted operational EPS guidance is $11.28–$11.48 (≈5.5% growth at the midpoint) and reported adjusted EPS midpoint is $11.53 after a $0.15 FX benefit; diluted share count is expected to be ~2.44B (incremental dilution a little over $0.05 headwind). Management also called out ~$500M of full‑year medtech tariffs, plans to invest operating efficiencies into the business, and said sales growth should be fairly consistent through the year with a stronger Q4 and higher EPS growth in H2 versus H1.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 | 39.90B | 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
Positive
239.24
Price Trends
235.81
Positive
218.48
Positive
194.39
Positive
Market Momentum
0.10
Positive
51.29
Neutral
44.99
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 239.24 is below the 20-day moving average (MA) of 241.17, above the 50-day MA of 235.81, and above the 200-day MA of 194.39, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.99 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $274.50B | 19.02 | 32.80% | 2.87% | 11.53% | -15.21% | |
73 Outperform | $576.54B | 18.81 | 33.78% | 2.50% | 6.05% | ― | |
73 Outperform | £214.48B | 28.13 | 23.00% | 1.53% | 10.20% | 40.57% | |
69 Neutral | $112.76B | -31.42 | 14.71% | 4.58% | -9.32% | 120.62% | |
68 Neutral | $294.04B | 14.46 | 36.19% | 3.12% | 1.59% | 58.02% | |
63 Neutral | $373.30B | 96.82 | -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
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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.