Company Reports

J&J's revenue grew 6.6% to $25.3 billion in the second quarter, driven by 7.8% growth in Innovative Medicine and 4.5% in MedTech. Management increased the midpoint of 2026 guidance by $300 million on the top line and $0.13 on the bottom line. Shares fell 2% intraday on July 15.

Johnson & Johnson stands alone as a leader across major healthcare industries. It maintains a diverse revenue base, a developing research pipeline, and exceptional cash flow generation that together create a Morningstar Economic Moat Rating of wide.

Johnson & Johnson reported 9.9% sales growth and adjusted earnings per share down 2.5% in the first quarter. Management raised its 2026 growth guidance midpoints by 30 basis points to 7% on the top line and by 20 basis points to 5.7% for adjusted EPS. Shares were up 1% during April 14 trading.

Johnson & Johnson stands alone as a leader across major healthcare industries. It maintains a diverse revenue base, a developing research pipeline, and exceptional cash flow generation that together create a wide economic moat.

Johnson & Johnson stands alone as a leader across major healthcare industries. It maintains a diverse revenue base, a developing research pipeline, and exceptional cash flow generation that together create a wide economic moat.

J&J reported 6% sales growth and 8.1% diluted adjusted EPS growth in 2025, with 2026 growth guidance of 6.7% for sales and 6.9% for diluted adjusted EPS at the midpoint.

Johnson & Johnson reported third-quarter results slightly ahead of consensus, inching up full-year guidance for reported revenue growth by 30 basis points to 5.7% at the midpoint while maintaining earnings growth guidance. Management intends to separate its orthopaedics business within two years.

Johnson & Johnson stands alone as a leader across major healthcare industries. It maintains a diverse revenue base, a developing research pipeline, and exceptional cash flow generation that together create a wide economic moat.

In the second quarter, Johnson & Johnson saw 4.6% constant-currency sales growth and a 1.8% decline in adjusted diluted EPS. Management raised its 2025 guidance for constant-currency revenue growth (to 4.8% at the midpoint from 3.8%) and adjusted diluted EPS growth (to 8.7% from 6.2%).

Johnson & Johnson stands alone as a leader across the major healthcare industries. It maintains a diverse revenue base, a developing research pipeline, and exceptional cash flow generation that together create a wide economic moat.

President Trump released an executive order on May 12 calling for a 30-day negotiation period between the Department of Health and Human Services and the biopharma industry, with the threat of a rule from the Centers for Medicare and Medicaid Services to lower US drug prices if no deal is reached.

President Donald Trump issued an executive order on April 15 listing several potential policy changes aimed at lowering US drug prices.

J&J reported 2.4% first-quarter sales growth (2.3% in innovative medicine, 2.5% in medtech) and 2.2% adjusted EPS growth in the first quarter. Management raised reported sales growth guidance for 2025 to 3.1% at the midpoint but maintained adjusted EPS guidance for 6.2% growth at the midpoint.

President Trump has announced that "major" pharmaceutical product tariffs are likely to be revealed soon, but at the same time, paused broader tariffs for most trade partners for 90 days to allow time for negotiations.

On April 2, President Donald Trump announced a 10% tariff on imports from all countries, effective on April 5. However, pharmaceuticals appear to be among the exemptions listed in the full executive order, as part of Annex II.

Johnson & Johnson's third effort to settle talc claims through the bankruptcy system has failed, as a federal judge did not approve a $9 billion settlement, and the firm has decided to return to the tort system to litigate claims.

J&J reported 4.3% top-line growth in 2024, or 7% growth at constant currencies and excluding covid vaccine sales. Assuming the Intra-Cellular acquisition closes in the second quarter, we think J&J's 2025 guidance implies $90.3 billion in revenue (1.7% growth) and $10.30 adjusted EPS (3.6% growth).

On Jan.13, Johnson & Johnson announced that it plans to acquire Intra-Cellular and its schizophrenia and depression drug Caplyta for $14.6 billion.

Johnson & Johnson stands alone as a leader across the major healthcare industries. It maintains a diverse revenue base, a developing research pipeline, and exceptional cash flow generation that together create a wide economic moat.

Following President-elect Donald Trump’s Nov. 14 announcement of the nomination of Robert F. Kennedy Jr. as secretary of the US Department of Health and Human Services, there have seen several more nominations for leadership in the 13 HHS divisions, including Dr. Mehmet Oz (Centers for Medicare and Medicaid Services) on Nov. 19, Dr. Marty Makary (US Food and Drug Administration) and Dr. Dave Weldon (Centers for Disease Control and Prevention) on Nov. 22, and Dr. Jay Bhattacharya (National Institutes of Health) on Nov. 26. Overall, we think these selections show a consistent theme of introducing potential disruptive forces to US healthcare, although their lack of experience and the power of career staffers in these agencies could serve to blunt any significant proposed changes. We continue to see obesity drugs and vaccines as areas of potential scrutiny, although without any clarity on proposals, we’re not making any changes to our fair value estimates following these announcements.