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

Key Points

• Johnson & Johnson beat quarterly expectations: The company reported adjusted EPS of $2.59, $0.06 above consensus, while revenue rose 5.9% year over year to $25.40 billion. Net margin was 21.48% and return on equity was 32.42%.
• Analysts remain broadly positive: JNJ has a consensus “Moderate Buy” rating and an average price target of $276.22, with several firms recently raising their targets. Shares traded around $264.01, up 1.0%.
• Income remains a key attraction, but risks persist: The company paid a quarterly dividend of $1.34 per share, implying a 2.0% yield, while surgery weakness in MedTech, potential restructuring, legal exposure and insider selling remain concerns.

Johnson & Johnson (NYSE:JNJ - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $2.59 earnings per share for the quarter, beating analysts' consensus estimates of $2.53 by $0.06, FiscalAI reports. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The company had revenue of $25.40 billion for the quarter, compared to the consensus estimate of $25.38 billion. During the same quarter in the prior year, the firm earned $2.80 earnings per share. The firm's revenue for the quarter was up 5.9% compared to the same quarter last year.

Johnson & Johnson Trading Up 1.0%

Shares of JNJ stock opened at $264.01 on Tuesday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81. The company has a market cap of $636.23 billion, a price-to-earnings ratio of 30.59, a PEG ratio of 2.65 and a beta of 0.21. Johnson & Johnson has a 1 year low of $184.66 and a 1 year high of $281.07. The firm has a fifty day moving average price of $266.01 and a 200-day moving average price of $249.31.

Johnson & Johnson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 25th were given a dividend of $1.34 per share. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.0%. Johnson & Johnson's payout ratio is presently 62.11%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. Wells Fargo & Company boosted their target price on shares of Johnson & Johnson from $272.00 to $282.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Freedom Capital upgraded Johnson & Johnson from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. Bank of America reissued a "neutral" rating and issued a $278.00 target price on shares of Johnson & Johnson in a report on Tuesday, September 29th. Royal Bank Of Canada raised their target price on Johnson & Johnson from $287.00 to $290.00 and gave the stock an "outperform" rating in a research report on Tuesday, October 6th. Finally, Argus set a $300.00 price target on Johnson & Johnson in a research note on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $276.22.

More Johnson & Johnson News

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

• Positive Sentiment: Q3 earnings beat and higher guidance: Johnson & Johnson topped analysts’ expectations for the third quarter and increased its 2026 adjusted EPS outlook, signaling stronger operating momentum across its focused portfolio. Earnings Snapshot: Johnson & Johnson tops Q3 expectations, lifts full-year adjusted EPS guidance
• Positive Sentiment: Dividend reaffirmed: The board declared a quarterly cash dividend of $1.34 per share, payable December 8 to shareholders of record November 24. The payment reinforces JNJ’s income appeal and marks another distribution in the company’s long record of dividend increases. Johnson & Johnson Announces Quarterly Dividend for Fourth Quarter 2026
• Positive Sentiment: TREMFYA data supports pharmaceutical growth: New Phase 3 Crohn’s disease data showed sustained clinical and endoscopic remission through three years, with additional analyses demonstrating consistent fistula-remission results across difficult-to-treat patient groups. The findings could strengthen confidence in TREMFYA as JNJ manages Stelara-related biosimilar pressure. TREMFYA demonstrated sustained remission through three years
• Neutral Sentiment: Potential MedTech restructuring: CFO Joseph Wolk said JNJ is leaning toward spinning out its hips-and-knees business. A separation could sharpen management focus and unlock value, but execution risks and the impact on the remaining MedTech portfolio are not yet clear. J&J Is Leaning Toward Spinning Out Its Hips-And-Knees Business
• Negative Sentiment: MedTech weakness: Surgery revenue declined in the latest quarter, prompting the company to work on improving performance in its medical-device business. This offsets some of the strength from pharmaceuticals and could limit near-term upside.
• Negative Sentiment: Legal risk: Boston Scientific sued JNJ subsidiary Atraverse Medical over alleged patent infringement involving a cardiology device. An adverse outcome could restrict sales of the contested product, though the financial impact is currently uncertain. Is Johnson & Johnson Facing New MedTech Risk After a Patent Lawsuit?

Insider Buying and Selling

In other Johnson & Johnson news, EVP Timothy Schmid sold 33,597 shares of the company's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $274.74, for a total value of $9,230,439.78. Following the completion of the sale, the executive vice president owned 25,447 shares in the company, valued at $6,991,308.78. This represents a 56.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Jennifer L. Taubert sold 15,000 shares of the firm'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 transaction, the executive vice president directly owned 194,451 shares in the company, valued at $51,210,615.36. This trade represents a 7.16% 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 in the last 90 days. 0.16% of the stock is owned by company insiders.

About Johnson & Johnson

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.