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

Johnson & Johnson (NYSE:JNJ) released its earnings results on Tuesday. The company reported $2.59 earnings per share for the quarter, topping the consensus estimate of $2.53 by $0.06, FiscalAI reports. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%. The firm had revenue of $25.40 billion for the quarter, compared to the consensus estimate of $25.38 billion. During the same period in the prior year, the business posted $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 updated its FY 2026 guidance to 11.050-11.150 EPS.

Here are the key takeaways from Johnson & Johnson’s conference call:

• Q3 sales rose 6% to $25.4 billion, ahead of consensus, led by 7.9% growth in Innovative Medicine. Johnson & Johnson raised its full-year 2026 outlook to 6.7%–7.1% operational sales growth, with reported adjusted EPS guidance of $11.05–$11.15.
• Growth remained strong across key medicines, including TREMFYA (+68%), CAPLYTA (+66%), TECVAYLI (+77%), RYBREVANT (+64%), and SPRAVATO (+36%). Newer products such as Icotyde and Inlexzo are gaining rapid adoption, supporting management’s long-term goal of double-digit growth.
• MedTech grew only 2.5%, below expectations, with weakness concentrated outside the U.S. and in Abiomed, which declined 1.5%, while surgery fell 1%; management cited competitive pressure, China’s procurement changes, Middle East disruption, and lower patient volumes.
• Reported net earnings fell sharply to $210 million, or $0.09 per diluted share, due largely to approximately $7 billion in talc litigation, acquisition, and collaboration-related costs. Adjusted EPS still declined 7.5% to $2.59, and Firefly Bio and Sail Biomedicines are expected to dilute 2027 adjusted EPS by $1.36 per share.

Johnson & Johnson Stock Performance

NYSE JNJ opened at $248.90 on Wednesday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81. Johnson & Johnson has a 1-year low of $184.66 and a 1-year high of $281.07. The firm has a market capitalization of $599.83 billion, a P/E ratio of 28.84, a P/E/G ratio of 2.70 and a beta of 0.21. The business’s 50-day simple moving average is $265.89 and its 200-day simple moving average is $249.37.

Johnson & Johnson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Tuesday, November 24th will be paid a $1.34 dividend. This represents a $5.36 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, November 24th. Johnson & Johnson’s payout ratio is currently 62.11%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on JNJ shares. Weiss Ratings raised shares of Johnson & Johnson from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Guggenheim reissued a “buy” rating and issued a $287.00 target price on shares of Johnson & Johnson in a research report on Wednesday, October 7th. 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 report on Monday, August 3rd. Stifel Nicolaus set a $260.00 price target on shares of Johnson & Johnson in a research report on Wednesday, July 15th. Finally, Johnson Rice reaffirmed a “buy” rating on shares of Johnson & Johnson in a research note on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $276.22.

Insider Buying and Selling at Johnson & Johnson

In other news, EVP Vanessa Broadhurst sold 23,054 shares of the firm’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $251.27, for a total value of $5,792,778.58. Following the transaction, the executive vice president owned 23,003 shares of the company’s stock, valued at approximately $5,779,963.81. This trade represents a 50.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Elizabeth Forminard sold 15,918 shares of Johnson & Johnson stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $257.00, for a total transaction of $4,090,926.00. Following the transaction, the executive vice president owned 16,994 shares in the company, valued at $4,367,458. The trade was a 48.37% 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 worth $23,064,544 in the last quarter. Company insiders own 0.16% of the company’s stock.

Key Johnson & Johnson News

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

• Positive Sentiment: Johnson & Johnson reported adjusted third-quarter EPS of $2.59, above the $2.53 analyst consensus, while revenue rose 5.9% year over year to $25.4 billion. Innovative Medicine led growth, including strong oncology demand and a 68% increase in TREMFYA sales to approximately $2.4 billion. Johnson & Johnson reports Q3 2026 results and raises guidance
• Positive Sentiment: Management raised its 2026 outlook to adjusted EPS of $11.05–$11.15 and revenue of $101.0–$101.4 billion. The guidance midpoint is broadly in line with current analyst expectations and signals continued confidence in pharmaceutical growth. Johnson & Johnson raises 2026 guidance as quarterly sales climb
• Positive Sentiment: The board declared a quarterly dividend of $1.34 per share, or $5.36 annualized, supporting JNJ’s income-investment appeal. Johnson & Johnson announces quarterly dividend
• Neutral Sentiment: Johnson & Johnson is leaning toward spinning off its hips-and-knees orthopedics business. The move could sharpen the company’s focus and unlock value, but execution details and timing remain uncertain. J&J is leaning toward spinning out its hips-and-knees business
• Negative Sentiment: MedTech grew operationally by only about 2.5% and missed expectations, with weakness in Surgery and Cardiovascular markets outside the United States. Middle East-related budget pressure also weighed on medical-device sales, raising concerns about the segment’s near-term growth.
• Negative Sentiment: Reported net income fell sharply to $210 million, or $0.09 per share, because of special charges tied primarily to the proposed talc litigation resolution, the Firefly Bio acquisition and the Sail Biomedicines collaboration. These charges overshadowed the adjusted earnings beat. Johnson & Johnson falls after quarterly report despite higher outlook
• Negative Sentiment: Erste Group Bank lowered its FY2027 EPS estimate to $12.65 from $12.83, reflecting concerns about future costs from business-development activity and ongoing operational headwinds. Johnson & Johnson analyst estimate update

Johnson & Johnson Company Profile

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.