Jefferies analysts said the continued commercial momentum of Johnson & Johnson (NYSE:JNJ)'s Spravato (esketamine nasal spray) could provide a meaningful tailwind for the broader psychedelics sector, with AtaiBeckley NV (NASDAQ:ATAI, XETRA:9VC) a direct beneficiary. As reported by J&J on Wednesday, Spravato's fourth quarter 2025 sales in treatment-resistant depression (TRD) rose 10% sequentially to $503 million worldwide.
JNJ beat Q4 earnings and sales estimates as strong oncology drug growth, led by Darzalex, offset biosimilar pressure on Stelara.
Johnson & Johnson (NYSE:JNJ) reported fourth quarter and full-year 2025 results that came in above market expectations and issued 2026 guidance that was modestly ahead forecasts. For Q4, Johnson & Johnson reported sales of $24.6 billion, representing reported growth of 9.1% year-over-year and operational growth of 7.1%.
Stock futures are slightly lower this morning after sinking on Tuesday owing to new tariff threats from President Donald Trump; investors are awaiting Trump's speech today at the World Economic Forum in Davos, amid ongoing tensions related to the president's efforts to acquire Greenland; Netflix stock is tumbling after the streaming giant released earnings and said it would pause stock buybacks to help finance the Warner Bros. Discovery acquisition; Johnson & Johnson shares are moving lower after the company's fourth-quarter profits fell short of Wall Street estimates; and United Airlines shares are rising after its results topped expectations.
Johnson & Johnson sees revenue grow 9% in the fourth quarter, amid strength in its cancer drugs.
Johnson & Johnson on Wednesday forecast 2026 sales and profit ahead of Wall Street estimates, even when including a hit of "hundreds of millions of dollars" from the drug pricing deal it signed with the Trump administration earlier this month.
The healthcare company's forecast for 2026 tops Wall Street's expectations.
JNJ heads into Q4 earnings with strong pharma and MedTech momentum, offset by Stelara biosimilar pressure and China-related headwinds.
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Healthcare may be entering early mean reversion, but much of Johnson & Johnson's valuation recovery has already occurred. Post-Kenvue, JNJ is a higher-growth, less dividend-centric business, changing how income investors should evaluate the stock. Free cash flow momentum has improved, supporting reinvestment and potential multiple expansion if execution continues.
Johnson & Johnson is downgraded to Hold, as valuation is now stretched after a 50% 12-month rally. JNJ trades above 21x forward EPS, exceeding its long-term average and offering a limited margin of safety despite strong fundamentals. Q3 results were robust, with $24B in revenue and a 69.6% gross margin; management raised FY25 sales guidance and maintains an operational EPS outlook.
Evaluate the expected performance of Johnson & Johnson (JNJ) for the quarter ended December 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.