Johnson & Johnson (JNJ) — Company Research
Last Updated: 28 Sep 2026
Johnson & Johnson (NYSE: JNJ) is a diversified healthcare company that has operated as two segments, Innovative Medicine and MedTech, since it separated its consumer business (Kenvue) in 2023. FY2025 sales were $94.2bn, and in July 2026 management raised full-year 2026 guidance for the second time, to reported sales of $100.8–101.4bn and adjusted EPS of $11.60–11.75. The company is managing the loss of exclusivity on Stelara, growing Darzalex, Tremfya and Carvykti, and preparing to separate its orthopaedics business (DePuy Synthes). In July 2026 it also proposed a $5.5bn resolution of the remaining ovarian talc claims. This refresh draws on J&J press releases, SEC 10-K/10-Q/8-K filings, SEC XBRL company facts and Form 4 filings, all retrieved on 28 Sep 2026. Follow the price on ChartsView Live Charts.
1. Company Snapshot
| Field | Value |
|---|---|
| Full name | Johnson & Johnson |
| Ticker | JNJ (NYSE) |
| Sector | Healthcare & Pharma |
| Industry | Pharmaceuticals and medical devices |
| Incorporated | New Jersey, 1887 (per FY2025 10-K) |
| CEO / Leadership | Joaquin Duato (Chairman and CEO); Joseph Wolk (EVP, CFO); Tom Cavanaugh succeeded Jennifer Taubert as head of Innovative Medicine from September 2026 |
| Market cap | ~$653.6bn (share price $271.22 at the 25 Sep 2026 close) |
| Revenue (FY2025) | $94,193m (+6.0% YoY), per FY2025 10-K |
| Net income (FY2025) | $26,804m GAAP, lifted by a ~$6.9bn talc reserve reversal in Q1 2025 (see Section 5) |
| Employees | ~140,800 at 28 Dec 2025 (~138,200 full-time equivalents), per FY2025 10-K |
| Dividend | $1.34 per quarter ($5.36 annualised) |
| Fiscal year end | Sunday closest to 31 December (FY2025 ended 28 Dec 2025) |
2. Bull Case vs Bear Case
Distilled from the full report below. Factual only, no ratings.
Bull Case
- Guidance raised twice in 2026: The 2026 reported-sales midpoint has moved from $100.5bn (January) to $101.1bn (July), and the adjusted EPS midpoint from $11.53 to $11.68. Q2 2026 sales rose 6.6% to $25,310m and adjusted EPS rose 4.7% to $2.90.
- Growth brands are outrunning Stelara's decline: In Q2 2026, Darzalex grew 18.9% to $4,207m, Tremfya 72.5% to $2,046m, Carvykti 49.4% to $657m and Caplyta 70.9% to $361m. Innovative Medicine still grew 7.8% despite a 55.2% fall in Stelara.
- Path to closing out talc: On 27 Jul 2026 J&J proposed a $5.5bn resolution of about 76,000 remaining ovarian talc claims. No more than $3bn is payable in 2027 and nothing further before 2028. The company says about 95% of filed mesothelioma suits are already settled.
- Regulatory approvals are coming through: Recent approvals include ICOTYDE (oral icotrokinra, FDA 18 Mar 2026), OTTAVA robotic system (FDA De Novo, 22 Jul 2026) and IMAAVY for wAIHA (FDA, 24 Aug 2026). CAPLYTA's Phase 3 in bipolar mania met its primary endpoint on 21 Sep 2026.
- Cash generation and dividend record: FY2025 operating cash flow was $24,530m against capex of $4,832m. Dividends paid per share have risen every year in the table below, from $4.19 in FY2021 to $5.14 in FY2025.
Bear Case
- Price pressure on mature brands: Stelara sales fell 41.3% in FY2025 to $6,078m. Xarelto, Stelara and Imbruvica are under Medicare negotiated prices from 2026 and Erleada is on the 2028 list. J&J's January 2026 agreement with the US government commits it to most-favoured-nation pricing.
- Talc resolution is not yet done: The $5.5bn proposal needs at least 95% of ovarian claimants to participate. Trials are still producing verdicts, for example a $10m mesothelioma verdict in Louisiana on 24 Aug 2026. J&J's earlier bankruptcy route (Red River Talc) was dismissed on 31 Mar 2025.
- Concentration in one drug: Darzalex was about 15% of FY2025 sales and its US patents expire in 2029. J&J pays Genmab royalties of 12–20% on Darzalex sales (about $2.4bn in 2025).
- Higher debt and separation execution: Long-term debt (noncurrent) rose from $30,651m at FY2024 year-end to $39,438m at FY2025 year-end after the Intra-Cellular and Halda deals. The orthopaedics separation cost $377m pre-tax in H1 2026, and whether it will be a spin-off or a sale is still open.
3. What Does This Company Actually Do?
J&J discovers, develops, makes and sells prescription medicines and medical devices. Innovative Medicine covers oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases and cardiovascular/metabolism. MedTech has four franchises: Cardiovascular (electrophysiology, Abiomed heart pumps, Shockwave intravascular lithotripsy, neurovascular), Orthopaedics (DePuy Synthes), Surgery (including Ethicon and Mentor) and Vision (ACUVUE contact lenses, TECNIS intraocular lenses). Customers are wholesalers, hospitals, health systems, pharmacies and government purchasers. Per the 10-K, about 43% of sales are made outside the US.
| Segment | % of revenue | What it is |
|---|---|---|
| Innovative Medicine | 64.1% ($60,401m FY2025, +6.0%) | Prescription drugs. FY2025 franchise sales: Oncology $25,380m (Darzalex $14,351m, Carvykti $1,887m, Erleada, Rybrevant, Tecvayli, Talvey), Immunology $15,728m (Stelara $6,078m, Tremfya $5,155m), Neuroscience $7,837m (Spravato $1,696m, Caplyta $700m), Pulmonary Hypertension $4,437m |
| MedTech | 35.9% ($33,792m FY2025, +6.1%) | Medical devices in four franchises. In Q2 2026: Cardiovascular $2,404m (electrophysiology $1,533m, Abiomed $440m, Shockwave $335m), Surgery $2,653m, Orthopaedics $2,418m, Vision $1,451m |
Segment figures are from the Q4 2025 earnings release and its sales exhibit (SEC 8-K, January 2026). MedTech franchise figures are for Q2 2026, per the Q2 2026 sales exhibit.
4. The Business Model
How it makes money. In Innovative Medicine, J&J earns revenue from patented medicines, net of rebates, chargebacks and government pricing programmes. These products carry high gross margins while their patents last. In MedTech, revenue comes from devices and consumables used in procedures, so it follows surgical volumes, hospital capital budgets and the installed base of systems such as electrophysiology mapping and Abiomed pumps.
Where the moat sits. In pharma, the moat is patents and regulatory exclusivity, backed by very large late-stage development capacity. R&D expense was $14,665m in FY2025 (15.6% of sales). In MedTech, it is surgeon training and preference, long hospital contracts and a broad catalogue. Scale also matters: the 10-K lists 63 manufacturing plants.
Capital allocation. Management is using acquisitions to replace revenue lost to patent expiries. Recent deals include Intra-Cellular Therapies (closed 2 Apr 2025), Halda Therapeutics ($3.05bn, closed 29 Dec 2025) and Firefly Bio ($1bn, closed 29 Jul 2026). It has also committed more than $55bn to US manufacturing, R&D and technology over the four years to 2029. The quarterly dividend is $1.34 per share.
Policy exposure. The Inflation Reduction Act sets Medicare prices for selected drugs. J&J's January 2026 agreement with the US administration traded most-favoured-nation pricing and TrumpRx participation for tariff relief. Both affect how much revenue each prescription generates in the US.
5. Financial Health
Sources: FY2025 and FY2023 Form 10-K income statements (SEC XBRL R5/R9), J&J quarterly earnings releases filed on Form 8-K, and SEC XBRL company facts (data.sec.gov) for debt, cash flow and D&A. All figures are for continuing operations, excluding Kenvue.
| Fiscal Year | Revenue ($m) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| FY2021 | $78,740m | n/a‡ | $6.66 | n/a‡ | $4.19 | $29,985m |
| FY2022 | $79,990m | +1.6% | $6.14 | $8.93 | $4.45 | $26,886m |
| FY2023 | $85,159m | +6.5% | $5.20 | $9.92 | $4.70 | $25,881m |
| FY2024 | $88,821m | +4.3% | $5.79 | $9.98 | $4.91 | $30,651m |
| FY2025 | $94,193m | +6.0% | $11.03† | $10.79 | $5.14 | $39,438m |
† FY2025 GAAP EPS includes other income of $7,209m, mostly a ~$6.9bn talc reserve reversal in Q1 2025. ‡ FY2021 figures are the continuing-operations restatement in the FY2023 10-K. J&J has not restated FY2020 or FY2021 adjusted EPS on that basis, so no YoY figure or adjusted EPS is shown for FY2021; as originally reported including Consumer, FY2021 sales were $93.8bn and adjusted EPS was $9.80. Dividend/share is cash dividends paid per share. Long-term debt is the noncurrent portion at year-end. Short-term borrowings, including the current portion of long-term debt, were a further $8,495m at FY2025 year-end.
Quarterly results (most recent first)
| Quarter / Half | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q2 2026 | $25,310m (+6.6%) | $2.90 | $2.27 |
| Q1 2026 | $24,062m (+9.9%) | $2.70 | $2.14 |
| Q4 2025 | $24,564m (+9.1%) | $2.46 | $2.10 |
| Q3 2025 | $23,993m (+6.8%) | $2.80 | $2.12 |
| Q2 2025 | $23,743m | $2.77 | $2.29 |
| Q1 2025 | $21,893m | $2.77 | $4.54 |
| FY2025 total | $94,193m | $10.79 | $11.03 |
Q4 2025 GAAP and adjusted EPS both include a $0.10 charge for the Halda acquisition.
Cash flow and balance sheet.
- FY2025 operating cash flow was $24,530m and capital expenditure was $4,832m, giving free cash flow of $19,698m.
- FY2025 depreciation and amortisation was $7,503m.
- For H1 2026, operating cash flow was $11,130m and capex $2,370m.
- At 28 Jun 2026, cash and cash equivalents were $20,422m and current marketable securities $336m.
- Against that, short-term borrowings were $11,692m and long-term debt $37,344m.
- Shareholders' equity was $84,971m.
- R&D expense was $14,665m in FY2025 and $7,180m in H1 2026.
6. Valuation & Market Data
Raw metrics, September 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$653.6bn (share price $271.22 at the 25 Sep 2026 close, per stockanalysis.com and companiesmarketcap) |
| Enterprise value | ~$681.9bn. Calculated as market cap ~$653.6bn + total debt ~$49.0bn (short-term borrowings $11.7bn + long-term debt $37.3bn) − cash and current marketable securities ~$20.8bn, per the 28 Jun 2026 10-Q balance sheet |
| Trailing P/E (GAAP) | ~31.5x. Calculated as $271.22 / TTM GAAP diluted EPS of $8.62 (FY2025 $11.03 − H1 2025 $6.82 + H1 2026 $4.41). On TTM adjusted EPS of $10.86 (Q3 2025 to Q2 2026) the multiple is ~25.0x. |
| P/E (forward) | ~23.2x ($271.22 / 2026 adjusted EPS guidance midpoint of $11.68) |
| P/S (TTM) | ~6.7x. Calculated as market cap / TTM revenue of $97.9bn (FY2025 $94.2bn − H1 2025 $45.6bn + H1 2026 $49.4bn) |
| EV/EBITDA (TTM) | ~20.1x (EV ~$681.9bn / EBITDA ~$34.0bn). J&J does not report an operating income line, so EBITDA is calculated as:
|
| P/FCF | ~33.2x. Calculated as market cap ~$653.6bn / FY2025 FCF ~$19.7bn, where FCF = operating CF $24.53bn − capex $4.83bn per the FY2025 cash flow statement. On TTM FCF of ~$22.2bn the multiple is ~29.4x. |
| 52-week high | $281.07 |
| 52-week low | $175.91 (one other source shows $177.32) |
| Short interest (% of float) | 0.88% (21.19m shares, settlement date 15 Sep 2026, per MarketBeat) |
| Days to cover | 3.7 (MarketBeat; stockanalysis.com shows 3.42) |
| Dividend yield | ~2.0% ($5.36 annualised / $271.22) |
Share-price-based metrics use the 25 Sep 2026 close. For live prices see ChartsView Live Charts.
7. What Are They Building
Immunology after Stelara.
- TREMFYA is growing quickly, with Q2 2026 sales of $2,046m. It gained a structural-damage label in psoriatic arthritis in Q2 2026 and met its primary endpoint in an axial PsA study on 25 Sep 2026.
- ICOTYDE (icotrokinra), an oral IL-23 receptor peptide, was FDA-approved for plaque psoriasis on 18 Mar 2026 and approved in China on 27 Aug 2026. It is also in ulcerative colitis trials.
- IMAAVY (nipocalimab) is approved in generalised myasthenia gravis and, since 24 Aug 2026, in warm autoimmune hemolytic anemia. Phase 2 work continues in lupus and Sjögren's.
Oncology.
- Multiple myeloma: DARZALEX, CARVYKTI, TECVAYLI and TALVEY. TECVAYLI plus DARZALEX FASPRO was approved in Q1 2026 for patients as early as second line. On 25 Sep 2026 J&J reported that half of early-line CARVYKTI patients were in treatment-free remission at five years.
- Lung cancer: RYBREVANT FASPRO (subcutaneous amivantamab) with LAZCLUZE. At WCLC on 14 Sep 2026, RYBREVANT plus chemotherapy showed the longest median overall survival reported in EGFR exon 20 lung cancer.
- Bladder cancer: INLEXZO (TAR-200) was approved in Q3 2025.
- Newer platforms: Halda's HLD-0915 and Firefly Bio's degrader-antibody conjugates.
Neuroscience. SPRAVATO sales grew 40.8% in Q2 2026. CAPLYTA gained an MDD adjunctive approval in Q4 2025 and a schizophrenia relapse-prevention approval in Q2 2026. Its bipolar mania Phase 3 was positive on 21 Sep 2026.
MedTech. The OTTAVA soft-tissue surgical robot received FDA De Novo authorisation for upper-abdominal general surgery on 22 Jul 2026. The Cardiovascular franchise (electrophysiology, Abiomed, Shockwave) is MedTech's largest growth engine. Management plans to separate Orthopaedics (DePuy Synthes, about $9.3bn of sales) and says a mid-2027 timeline is intact. On 11 Sep 2026, Bloomberg reported talks with Apollo about a sale for close to $20bn.
Manufacturing. The more-than-$55bn US commitment includes a $2bn+ biologics plant in Wilson, North Carolina and a $1bn+ cell therapy site in Pennsylvania. A new supply-chain restructuring programme costing $650–750m runs to 2029.
8. Competitive Landscape
| Peer | Market cap (Sep 2026) | Key 2025 metric |
|---|---|---|
| Eli Lilly (LLY) | ~$1.06tn | FY2025 revenue $65.2bn, +45% (Lilly Q4 2025 release) |
| AbbVie (ABBV) | ~$467bn | FY2025 net revenue $61.16bn, +8.6% (AbbVie FY2025 release) |
| Merck & Co. (MRK) | ~$367bn | FY2025 sales $65.0bn, +1%; Keytruda $31.7bn (Merck FY2025 release) |
| Roche (ROG) | ~$360bn | FY2025 group sales CHF 61.5bn, +7% at constant exchange rates (Roche FY2025 release) |
| Novartis (NVS) | ~$276bn | FY2025 net sales $54.5bn, +8% (Novartis FY2025 release) |
| Pfizer (PFE) | ~$163bn | FY2025 revenue $62.6bn, −2% (Pfizer FY2025 release) |
| Medtronic (MDT) | ~$113bn | FY ended 24 Apr 2026 revenue $36.4bn, +8.4% (Medtronic FY2026 release) |
Market caps are from companiesmarketcap.com, about 25–26 Sep 2026.
J&J competes with a different set of companies in each business:
- Multiple myeloma: Bristol Myers Squibb, Pfizer and others.
- Immunology: AbbVie (Skyrizi, Rinvoq) and Lilly, plus biosimilar makers taking Stelara volume.
- MedTech: Medtronic, Boston Scientific (electrophysiology), Stryker and Zimmer Biomet (orthopaedics), and Intuitive Surgical (robotics).
9. Leadership and Ownership
Joaquin Duato is Chairman and CEO. Joseph Wolk is CFO. Jennifer Taubert, EVP and head of Innovative Medicine, is retiring and was succeeded by Tom Cavanaugh from September 2026 (announced 4 Aug 2026; Cavanaugh filed a Form 3 on 1 Sep 2026). Recent Form 4 filings show option exercises and sales by senior executives. No open-market insider purchases were found in 2026.
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| T. Schmid (EVP, MedTech) | 02 Sep 2026 | Option exercise and sale | 33,597 | $274.74 | ~$9.23m | Not marked 10b5-1 on Form 4 |
| Jennifer Taubert (EVP, Innovative Medicine) | 17 Aug 2026 | Option exercise and sale | 15,000 | $263.36 | ~$3.95m | Not marked 10b5-1 on Form 4 |
| Joaquin Duato (Chairman and CEO) | 13 Aug 2026 | Option exercise and sale | 123,291 | ~$261–262 | ~$32.2m | Not marked 10b5-1 on Form 4 |
| E. Forminard (EVP, Chief Legal Officer) | 06 Aug 2026 | Option exercise and sale | 15,918 | ~$256–258 | ~$4.09m | Not marked 10b5-1 on Form 4 |
| Joaquin Duato (Chairman and CEO) | 05 Aug 2026 | Sale | 48,480 | ~$258.1–258.7 | ~$12.5m | Not marked 10b5-1 on Form 4 |
| Joseph Wolk (EVP, CFO) | 17 Feb 2026 | Sale | 84,654 | ~$242.7–243.0 | ~$21.7m | Not verified on EDGAR (reported by Investing.com) |
The August–September 2026 rows were checked against Form 4 XML filings on SEC EDGAR, and none has the 10b5-1 box ticked.
10. Risks and Challenges
- Talc litigation (Legal): The $5.5bn ovarian proposal depends on at least 95% participation. J&J carries no third-party product-liability insurance and uses a captive insurer. Individual verdicts are still being handed down.
- Loss of exclusivity (Competitive): Stelara is losing sales to biosimilars. Darzalex, about 15% of FY2025 sales, has US patents expiring in 2029, and J&J pays Genmab royalties on it.
- US drug pricing (Regulatory): Medicare negotiated prices apply to Xarelto, Stelara and Imbruvica from 2026, with Erleada from 2028. There are also Part D redesign costs, 340B exposure and the most-favoured-nation pricing agreement.
- Orthopaedics separation (Execution): The spin-off or sale of DePuy Synthes may slip, cost more than planned ($377m pre-tax already in H1 2026) or deliver fewer benefits than expected.
- Tariffs and geopolitics (Macro): Trade measures and US–China tensions are risks, and about 43% of sales are outside the US, which brings currency exposure.
- Manufacturing and supply (Operational): J&J runs 63 plants, and complex cell therapies such as CARVYKTI need specialised capacity. Disruption would constrain sales.
- Pipeline setbacks (R&D): Not every programme succeeds. A partnered Phase 2 depression drug (with Contineum) missed its goal on 14 Sep 2026.
11. Recent Developments
- 25 Sep 2026 — TREMFYA and CARVYKTI data. TREMFYA met its primary endpoint in axial psoriatic arthritis. CARVYKTI data showed 50% of early-line patients in treatment-free remission at five years.
- 21 Sep 2026 — CAPLYTA bipolar mania Phase 3 positive. The study met its primary endpoint, supporting a further indication.
- 14 Sep 2026 — RYBREVANT survival data; partnered depression miss. At WCLC, RYBREVANT plus chemotherapy showed the longest reported median overall survival in EGFR exon 20 lung cancer. On the same day, Contineum's depression drug developed with J&J missed its Phase 2 goal.
- 11 Sep 2026 — DePuy Synthes sale talks reported. Bloomberg reported that Apollo is in talks to buy the orthopaedics business for close to $20bn. No agreement had been announced by 28 Sep 2026, and a spin-off remains possible.
- 24 Aug 2026 — IMAAVY approved for wAIHA. The FDA approved nipocalimab as the first treatment for warm autoimmune hemolytic anemia. The same day, a Louisiana jury returned a $10m talc mesothelioma verdict.
- 04 Aug 2026 — Innovative Medicine leadership change. Jennifer Taubert is to retire, with Tom Cavanaugh taking over from September.
- 29 Jul 2026 — Firefly Bio acquisition closed. The $1bn cash deal adds a degrader-antibody conjugate oncology platform.
- 27 Jul 2026 — $5.5bn ovarian talc resolution proposed. The proposal covers about 76,000 claims and needs at least 95% participation. No more than $3bn is payable in 2027.
- 22 Jul 2026 — OTTAVA authorised. The FDA granted De Novo authorisation for the OTTAVA robotic surgical system in upper-abdominal general surgery.
- 15 Jul 2026 — Q2 2026 results and guidance raised. Sales were $25,310m (+6.6%), GAAP EPS $2.27 and adjusted EPS $2.90. The 2026 guidance midpoints moved to $101.1bn sales and $11.68 adjusted EPS.
12. Key Dates Coming Up
- 13 Oct 2026 — Q3 2026 results, with the conference call at 8:30am ET.
- 08 Dec 2026 — Enterprise Business Review investor event, per the Q1 2026 release.
- TBC — Next quarterly dividend declaration. The last was $1.34 per share, paid 08 Sep 2026.
- Expected 2027 — First payment under the proposed ovarian talc resolution (no more than $3bn), if the participation threshold is met.
- Expected mid-2027 — Target timing for separating the Orthopaedics business (DePuy Synthes), per CFO comments in July 2026.
Macro events are on the ChartsView Economic Calendar, and you can discuss J&J on the ChartsView Forum.
Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. Johnson & Johnson sells patented prescription medicines (Innovative Medicine, 64% of FY2025 sales) and medical devices (MedTech, 36%), earning high margins while exclusivity lasts and recurring device and consumable revenue from procedures. FY2025 sales rose 6.0% to $94.2bn with adjusted EPS of $10.79, and in July 2026 management raised 2026 guidance for the second time to $100.8–101.4bn of sales and $11.60–11.75 of adjusted EPS. Growth from Darzalex, Tremfya, Carvykti and Caplyta is outpacing the Stelara decline, and the Q3 2026 results on 13 Oct 2026 are the next checkpoint.
What would confirm or break it. Confirmation would come from continued double-digit growth in the new immunology, oncology and neuroscience brands, the ovarian talc proposal reaching its 95% participation threshold, and an orderly DePuy Synthes separation by mid-2027. The thesis would weaken if the talc resolution fails and litigation costs escalate, if US pricing measures (IRA negotiation, MFN) cut deeper than expected, or if Darzalex dependence ahead of its 2029 US patent expiry is not offset by the pipeline.
Watchpoints
- ConfirmsQ3 2026 earnings (15 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Guidance raised twice in 2026:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Talc litigation (Legal):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 28 Sep 2026.