Johnson & Johnson raises its 2026 sales and earnings outlook as strong pharmaceutical growth offsets MedTech challenges, while 2027 dilution clouds the outlook.
Johnson and Johnson crushed earnings, raised guidance, and still watched its stock crater nearly 6% in a single session. Understanding what spooked investors reveals whether Tuesday's selloff is a trap or a warning.
Johnson & Johnson delivered resilient sales growth and a beat-and-raise quarter, but profitability softness and regulatory risks warrant caution. Innovative Medicine segment shows promise with positive late-stage trial data, while MedTech's OTTAVA system could drive future growth. Despite operational strength, Johnson & Johnson's forward P/E and PEG ratios are at significant premiums, making current valuation unattractive for new accumulation.
Johnson & Johnson ( JNJ ) Q3 2026 Earnings Call October 13, 2026 8:30 AM EDT Company Participants Ryan Koors - Vice President of Investor Relations Joaquin Duato - CEO & Chairman Joseph Wolk - Executive VP & CFO Tim Schmid - Executive VP & Worldwide Chairman of MedTech Tom Cavanaugh - Executive VP & Worldwide Chairman of Innovative Medicine John Reed - Executive Vice President of Innovative Medicine and R&D Conference Call Participants Asad Haider - Goldman Sachs Group, Inc., Research Division Larry Biegelsen - Wells Fargo Securities, LLC, Research Division Christopher Schott - JPMorgan Chase & Co, Research Division Joanne Wuensch - Citigroup Inc., Research Division Richard Wagner - BofA Securities, Research Division Vamil Divan - Guggenheim Securities, LLC, Research Division Michael Yee - UBS Investment Bank, Research Division Jayson Bedford - Raymond James & Associates, Inc., Research Division Alexandria Hammond - Wolfe Research, LLC Presentation Operator Good morning, and welcome to Johnson & Johnson's Third Quarter 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded.
Johnson & Johnson reported Q3 2026 results with 6% revenue growth to $25.4bn, but EPS declined 7.5% year-on-year, triggering a 5% stock drop. JNJ set aside $5.5bn for talc litigation, aiming for 95% plaintiff participation; uncertainty remains if this will fully resolve the legal overhang. The Innovative Medicines division showed robust growth, offsetting patent expiries, while MedTech underperformed, prompting plans to spin off the orthopedics unit.
Johnson & Johnson's NYSE: JNJ stock price can trend higher and reach fresh highs repeatedly over the coming years because of its robust pipeline, including the recently approved OTTAVA surgical system. It is the first of its kind, a table-top integrated robotic device approved for limited but expanding use in the United States.
Johnson & Johnson NYSE: JNJ reported third-quarter 2026 worldwide sales of $25.4 billion, up 6% operationally from a year earlier, as growth in its Innovative Medicine business offset slower-than-expected performance in parts of MedTech. The company raised its full-year sales outlook and said it remains on track to exceed $100 billion in annual revenue for the first time in its history.
JNJ beats Q3 earnings estimates but misses sales expectations as MedTech lags. It raises its 2026 sales and earnings outlook.
Johnson & Johnson (NYSE:JNJ), the healthcare group, raised its 2026 sales and earnings forecasts after third-quarter sales grew 6% on an operational basis, supported by its medicines business and new products. The company increased its estimated full-year reported sales midpoint to $101.2 billion from $101.1 billion, implying growth of 7.4%, and raised its adjusted earnings per share (EPS) midpoint by $0.06 to $11.10, representing growth of 2.9%.
While the top- and bottom-line numbers for Johnson & Johnson (JNJ) give a sense of how the business performed in the quarter ended September 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Johnson & Johnson (JNJ) came out with quarterly earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.8 per share a year ago.