Johnson & Johnson (NYSE:JNJ) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

by · The Cerbat Gem

Johnson & Johnson (NYSE:JNJ – Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $2.59 earnings per share for the quarter, topping the consensus estimate of $2.53 by $0.06, FiscalAI reports. Johnson & Johnson had a return on equity of 31.54% and a net margin of 16.20%. The company had revenue of $25.40 billion during the quarter, compared to the consensus estimate of $25.38 billion. During the same quarter in the prior year, the company earned $2.80 EPS. The firm’s quarterly revenue was up 5.9% compared to the same quarter last year. Johnson & Johnson updated its FY 2026 guidance to 11.050-11.150 EPS.

Here are the key takeaways from Johnson & Johnson’s conference call:

  • Q3 sales rose 6% to $25.4 billion, ahead of consensus, led by 7.9% growth in Innovative Medicine. Johnson & Johnson raised its full-year 2026 outlook to 6.7%–7.1% operational sales growth, with reported adjusted EPS guidance of $11.05–$11.15.
  • Growth remained strong across key medicines, including TREMFYA (+68%), CAPLYTA (+66%), TECVAYLI (+77%), RYBREVANT (+64%), and SPRAVATO (+36%). Newer products such as Icotyde and Inlexzo are gaining rapid adoption, supporting management’s long-term goal of double-digit growth.
  • MedTech grew only 2.5%, below expectations, with weakness concentrated outside the U.S. and in Abiomed, which declined 1.5%, while surgery fell 1%; management cited competitive pressure, China’s procurement changes, Middle East disruption, and lower patient volumes.
  • Reported net earnings fell sharply to $210 million, or $0.09 per diluted share, due largely to approximately $7 billion in talc litigation, acquisition, and collaboration-related costs. Adjusted EPS still declined 7.5% to $2.59, and Firefly Bio and Sail Biomedicines are expected to dilute 2027 adjusted EPS by $1.36 per share.

Johnson & Johnson Price Performance

Shares of NYSE:JNJ opened at $253.49 on Thursday. The company has a quick ratio of 0.81, a current ratio of 1.09 and a debt-to-equity ratio of 0.44. The stock has a market cap of $610.89 billion, a PE ratio of 38.41, a PEG ratio of 2.54 and a beta of 0.21. The company’s fifty day moving average is $265.80 and its 200 day moving average is $249.47. Johnson & Johnson has a 52 week low of $184.66 and a 52 week high of $281.07.

Johnson & Johnson Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be paid a dividend of $1.34 per share. The ex-dividend date of this dividend is Tuesday, November 24th. This represents a $5.36 annualized dividend and a dividend yield of 2.1%. Johnson & Johnson’s dividend payout ratio (DPR) is 62.11%.

Insider Buying and Selling

In other news, EVP Jennifer Taubert sold 15,000 shares of the business’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $263.36, for a total value of $3,950,400.00. Following the completion of the sale, the executive vice president owned 194,451 shares of the company’s stock, valued at approximately $51,210,615.36. The trade was a 7.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Elizabeth Forminard sold 15,918 shares of the stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $257.00, for a total value of $4,090,926.00. Following the sale, the executive vice president owned 16,994 shares of the company’s stock, valued at $4,367,458. This represents a 48.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 87,569 shares of company stock valued at $23,064,544 over the last three months. 0.16% of the stock is owned by corporate insiders.

Analyst Ratings Changes

JNJ has been the topic of a number of recent research reports. Wall Street Zen cut Johnson & Johnson from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. UBS Group set a $270.00 target price on Johnson & Johnson in a report on Wednesday. Stifel Nicolaus set a $260.00 price target on Johnson & Johnson in a research report on Wednesday, July 15th. The Goldman Sachs Group reiterated a “buy” rating and set a $282.00 price target on shares of Johnson & Johnson in a research report on Thursday, July 16th. Finally, Bank of America reissued a “neutral” rating and issued a $278.00 price target on shares of Johnson & Johnson in a report on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Johnson & Johnson presently has an average rating of “Moderate Buy” and an average price target of $273.61.

View Our Latest Analysis on Johnson & Johnson

Key Johnson & Johnson News

Here are the key news stories impacting Johnson & Johnson this week:

  • Positive Sentiment: Johnson & Johnson reported adjusted third-quarter EPS of $2.59, above the $2.53 consensus estimate, while revenue increased 5.9% year over year to approximately $25.4 billion. Innovative Medicine was the main growth driver, with pharmaceutical sales benefiting from oncology products, TREMFYA and newer medicines. Johnson & Johnson Q3 Earnings Surpass Estimates
  • Positive Sentiment: Management raised its full-year 2026 outlook to $101.0 billion-$101.4 billion in revenue and adjusted EPS of $11.05-$11.15. The company also declared a quarterly dividend of $1.34 per share, supporting JNJ’s income-investment appeal. Johnson & Johnson raises 2026 guidance as quarterly sales climb
  • Positive Sentiment: Royal Bank of Canada maintained an “outperform” rating, although it lowered its price target from $290 to $280. Management is also considering a mid-2027 spinoff of its DePuy Synthes orthopedics business, which could sharpen the focus of the remaining MedTech operations. Johnson & Johnson MedTech sets mid-2027 target for ortho spinoff
  • Neutral Sentiment: Analysts expect JNJ’s December 8 enterprise review to provide more detail on portfolio strategy, MedTech investments and the potential orthopedics separation. The review could clarify the company’s longer-term growth plan. Johnson & Johnson’s Enterprise Review Expected to Sharpen Outlook
  • Negative Sentiment: MedTech sales missed Wall Street expectations, with weakness in cardiovascular and surgery businesses, particularly outside the United States. China pricing pressure, European budget reductions and Middle East-related disruptions added to concerns about the segment’s near-term growth.
  • Negative Sentiment: Reported profit was sharply reduced by special charges tied to the proposed talc litigation resolution, the Firefly Bio acquisition and the Sail Biomedicines collaboration. Analysts subsequently trimmed several earnings estimates and price targets, while management warned that new drug deals could dilute 2027 earnings. Johnson & Johnson falls after quarterly report despite higher 2026 outlook

Johnson & Johnson Company Profile

(Get Free Report)

Johnson & Johnson (NYSE: JNJ) is a global healthcare company that develops, manufactures and markets products through two primary business segments: Innovative Medicine and MedTech. Its operations serve patients, healthcare professionals and consumers in markets around the world.

The Innovative Medicine segment focuses on prescription medicines in areas including immunology, oncology, neuroscience, cardiovascular and metabolic disease, infectious diseases, and pulmonary hypertension.

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