Johnson & Johnson (NYSE:JNJ) Announces Earnings Results, Beats Expectations By $0.06 EPS

Johnson & Johnson (NYSE:JNJ - Get Free Report) issued its earnings results on Tuesday. The company reported $2.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.53 by $0.06, FiscalAI reports. The firm had revenue of $25.40 billion during the quarter, compared to analysts' expectations of $25.38 billion. Johnson & Johnson had a net margin of 16.20% and a return on equity of 31.54%. The firm's revenue was up 5.9% compared to the same quarter last year. During the same quarter last year, the company posted $2.80 earnings per share. 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 Trading Up 0.9%

NYSE JNJ opened at $255.54 on Friday. The company's fifty day moving average price is $265.66 and its two-hundred day moving average price is $249.61. Johnson & Johnson has a 12 month low of $184.66 and a 12 month high of $281.07. The company has a market capitalization of $615.82 billion, a price-to-earnings ratio of 24.00, a price-to-earnings-growth ratio of 2.53 and a beta of 0.21. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81.

Johnson & Johnson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be given a $1.34 dividend. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Tuesday, November 24th. Johnson & Johnson's dividend payout ratio is presently 81.21%.

Key Johnson & Johnson News

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

• Positive Sentiment: Raised 2026 outlook: Third-quarter operational sales grew 6%, reaching $25.4 billion, and management increased full-year operational sales guidance to approximately $100.7 billion at the midpoint. Adjusted EPS also exceeded analysts’ expectations. Johnson & Johnson: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Pharmaceutical momentum and pipeline potential: Strong demand for TREMFYA, early momentum for ICOTYDE and oncology investments helped offset weakness elsewhere. Investors are also watching J&J’s newly approved surgical robot as a potential long-term MedTech growth driver. Does Raised 2026 Outlook Change the Bull Case for Johnson & Johnson?
• Positive Sentiment: Defensive appeal and income support: Investors rotating away from technology stocks amid inflation and interest-rate concerns are favoring dividend-paying healthcare companies. J&J also affirmed its $1.34-per-share fourth-quarter dividend, payable in December 2026. Morgan Stanley maintained an “overweight” rating with a $292 price target.
• Neutral Sentiment: Institutional demand: ETFs recorded approximately $107.4 million of net buying in JNJ, suggesting some portfolio managers continue to view the company as a defensive holding. However, this flow is not necessarily evidence of a change in operating fundamentals. Johnson & Johnson Sees $107.4 Million in Net ETF Buying
• Negative Sentiment: MedTech weakness remains the main overhang: Medical-device sales missed Wall Street forecasts, while international pricing pressure and acquisition-related costs weighed on results. Analysts described the quarter as setting a negative tone for the broader pharmaceutical sector. Johnson & Johnson Stock Falls on MedTech Miss
• Negative Sentiment: Valuation and analyst caution: JNJ trades at a premium earnings multiple, increasing the risk of further pressure if growth disappoints. Erste Group expressed a negative view on fiscal 2027 earnings, while RBC lowered its price expectations.

Analyst Upgrades and Downgrades

Several research firms recently commented on JNJ. JPMorgan Chase & Co. raised their price target on Johnson & Johnson from $270.00 to $285.00 and gave the company a "neutral" rating in a research note on Tuesday, September 29th. Leerink Partners dropped their price target on shares of Johnson & Johnson from $276.00 to $272.00 and set an "outperform" rating on the stock in a research note on Wednesday. Guggenheim reissued a "buy" rating and set a $287.00 price objective on shares of Johnson & Johnson in a report on Wednesday, October 7th. Scotiabank reaffirmed an "outperform" rating and set a $305.00 price objective on shares of Johnson & Johnson in a report on Thursday, July 16th. Finally, Weiss Ratings raised Johnson & Johnson from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Johnson & Johnson currently has a consensus rating of "Moderate Buy" and an average price target of $274.87.

Insiders Place Their Bets

In other Johnson & Johnson news, EVP Jennifer Taubert sold 15,000 shares of Johnson & Johnson stock in a transaction on Monday, August 17th. The shares were sold at an average price of $263.36, for a total transaction 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 $51,210,615.36. This trade represents a 7.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Timothy Schmid sold 33,597 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $274.74, for a total transaction of $9,230,439.78. Following the transaction, the executive vice president directly owned 25,447 shares of the company's stock, valued at approximately $6,991,308.78. This represents a 56.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 87,569 shares of company stock valued at $23,064,544 over the last ninety days. Corporate insiders own 0.16% of the company's stock.

About Johnson & Johnson

Johnson & Johnson NYSE: JNJ is a global healthcare company headquartered in New Brunswick, New Jersey. Founded in 1886, the company develops and markets products and services for patients, healthcare professionals and institutions worldwide.

Johnson & Johnson operates through two principal segments: Innovative Medicine and MedTech. Innovative Medicine focuses on pharmaceuticals for areas such as immunology, oncology, neuroscience, infectious diseases and cardiovascular conditions.