Forecasts predict higher sales
Johnson & Johnson said it expects operational sales in 2026 between $99.5 billion and $100.5 billion, higher than analyst estimates of $98.9 billion. Full-year earnings are forecast at $11.43 to $11.63 per share, slightly above the market expectation of $11.45. The company’s forecast includes a financial impact from a drug pricing deal with the Trump administration. The deal, signed with 15 other major pharmaceutical companies, requires Johnson & Johnson to lower certain US drug prices. The company will receive tariff exemptions in return. CFO Joseph Wolk said the deal could cost “hundreds of millions of dollars,” but noted that the company still exceeded analyst expectations for 2026.
Legal challenges
Johnson & Johnson faces ongoing legal challenges over its talc products. A court-appointed special master recently suggested allowing expert testimony linking talc to ovarian cancer. The company has always maintained that its talc products are safe. Analysts say these legal concerns are likely causing some of the stock’s recent decline. RBC Capital Markets analyst Shagun Singh said the talc litigation “may be driving the stock down slightly.” However, some investors, believe the company’s overall growth story is moving beyond talc issues.
Q4 results
In Q4 of 2025, Johnson & Johnson posted adjusted earnings of $2.46 per share, above analysts’ estimate of $2.44. Quarterly revenue rose to $24.56 billion, beating forecasts of $24.16 billion. Growth came from strong sales of the cancer drug Darzalex, psoriasis treatment Tremfya, and steady performance in medical devices. The Innovative Medicine division, Johnson & Johnson’s largest segment, grew 10% to $15.76 billion. Medical devices sales rose 7.5% to $8.80 billion, both above market expectations.
Catapult year
CEO Joaquin Duato called 2025 a “catapult year” for the company, pointing to its strong portfolio and pipeline. Cancer therapy Carvykti exceeded $1 billion in annual sales for the first time. Stelara, the psoriasis drug, saw declining sales due to biosimilar competition, but the rest of the portfolio grew 14–15%, showing strong long-term potential.
