Overview
U.S. healthcare conglomerate's Q2 sales rose 6.6%, beating analyst expectations
Adjusted EPS for Q2 increased 4.7% to $2.90, beating analyst expectations
Company raised 2026 sales and adjusted EPS guidance after strong operational performance
Outlook
Johnson & Johnson raises 2026 reported sales guidance to $101.1 bln at midpoint
Company increases 2026 adjusted EPS guidance by $0.13 to $11.68 at midpoint
Johnson & Johnson expects continued momentum from innovation and pipeline approvals
Result Drivers
ONCOLOGY AND NEUROSCIENCE GROWTH - Co said operational sales growth was driven by oncology products such as DARZALEX, CARVYKTI, TECVAYLI, RYBREVANT/LAZCLUZE, and neuroscience drugs SPRAVATO and CAPLYTA
IMMUNOLOGY DECLINES OFFSET GAINS - Co said growth was partially offset by lower sales of STELARA and REMICADE in Immunology, as well as IMBRUVICA and ZYTIGA in Oncology
MEDTECH EXPANSION - Co said 3.6% operational growth in MedTech sales was driven by wound closure and biosurgery products in Surgery, electrophysiology products and Shockwave in Cardiovascular, contact lenses in Vision, and trauma in Orthopaedics
Company press release: (Full Story)
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $25.31 bln | $25.05 bln (15 Analysts) |
Q2 Adjusted EPS | Beat | $2.90 | $2.85 (16 Analysts) |
Q2 EPS | $2.27 | ||
Q2 Net Income | $5.53 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Johnson & Johnson is $264.00, about 4% above its July 14 closing price of $253.85
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)