| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 0 | 31.9x | 18.2x | Bottom tier | |
Growth | 0 | 8.1% | 7.1% | Bottom tier | |
Quality | 100 | 16.8% | 4.5% | Top tier | |
Safety | 100 | 0.8x | 2.6x | Top tier | |
Capital Return | 2 | 1.90% | 2.10% | Bottom tier | |
Momentum | 100 | 43.8% | 2.9% | Top tier | |
Sentiment | 100 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Johnson & Johnson operates in healthcare through two complementary segments. The Innovative Medicine segment generates revenue from oncology, immunology, and neuroscience drugs, most notably DARZALEX, TREMFYA, SPRAVATO, and CAPLYTA, while the MedTech segment sells cardiovascular, surgical, vision, and orthopedic technologies, including VARIPULSE, Shockwave, Impella, and ACUVUE. The portfolio includes 28 products and platforms, each generating more than $1 billion in annual sales, giving the company multiple revenue sources instead of relying on one or two products.
In Q2 FY2026, revenue reached $25.3 billion, up 5.6% operationally despite a negative impact of approximately 460 basis points from STELARA. Gross profit was $17.3 billion, equivalent to a calculated gross margin of approximately 68.4%, while net income was $5.5 billion and diluted earnings per share were $2.27. The calculated net profit margin was approximately 21.7%, while diluted earnings per share declined slightly from $2.29 in Q2 FY2025; on an adjusted basis, net income rose 5.7% to $7.1 billion and earnings per share increased 4.7% to $2.90.
Innovative Medicine accounted for approximately 64.8% of Q2 FY2026 sales, with revenue of $16.4 billion and operational growth of 6.8%, compared with $8.9 billion and 3.6% growth for the MedTech segment. Within pharmaceuticals, DARZALEX sales exceeded $4 billion, and TREMFYA sales reached $2 billion, while products such as CARVYKTI, TECVAYLI, and CAPLYTA delivered strong growth. In MedTech, Shockwave growth of 14.7% partially offset slower cardiovascular growth and a 2% decline in Abiomed.
The average analyst price target is $282.08, within a wide range of $255 to $305, compared with a 52-week share price range of $173.33 to $276.47; the average is slightly above the top of that range, while the lowest target is below it. The consensus is “Buy,” but the wide range of targets reflects significant differences in assessing the impact of new product growth versus STELARA erosion, slowing growth in some MedTech businesses, and talc-related legal exposure. The available information does not include a valid price-to-earnings ratio, so a conclusion based on this multiple cannot be established.
Figures in the text are as of 2026-08-25; the live price is shown at the top of the page.
Revenue reached $25.3 billion and grew 5.6% operationally, despite a negative impact of approximately 460 basis points from STELARA. Innovative Medicine generated sales of $16.4 billion and growth of 6.8%, driven by DARZALEX, TREMFYA, CAPLYTA, and new oncology products. MedTech sales reached approximately $8.9 billion, with growth of 3.6%, while Shockwave growth of 14.7% helped offset weakness in Abiomed. Net income was $5.5 billion and diluted earnings per share were $2.27.
STELARA declined 55.7% in Q2 FY2026 and reduced Innovative Medicine growth by approximately 760 basis points. Nevertheless, the segment grew 6.8%, and the portion excluding STELARA grew by more than 14%, according to management. TREMFYA contributed growth of 71%, alongside CAPLYTA growth of 70.9% and RYBREVANT with LAZCLUZE growth of 61.6%. These figures indicate strong operational offsetting in that quarter, but ongoing biosimilar competition remains a persistent pressure.
On August 24, 2026, the U.S. Food and Drug Administration approved IMAAVY to treat warm autoimmune hemolytic anemia. It is the first approved treatment for this disease and covers adults and children aged 12 years and older who were previously treated with corticosteroids. The decision followed Phase 2 and Phase 3 results showing improved hemoglobin and reduced fatigue. The approval adds a new indication for IMAAVY after the company had marketed it for generalized myasthenia gravis.
Automated analysis for informational purposes only — not investment advice.
DARZALEX sales exceeded $4 billion in Q2 FY2026 and grew 17.6%, keeping it as the company's largest product. CARVYKTI grew 47.7%, TECVAYLI 56.1%, and TALVEY 62.6%, while RYBREVANT with LAZCLUZE grew 61.6%. In bladder cancer, new INLEXZO patient starts increased 75% from the previous quarter, and approximately one in three eligible patients started the treatment regimen. The company plans to close the Firefly Bio acquisition in Q3 FY2026 to add a platform targeting solid tumors driven by KRAS mutations.
Abiomed declined 2% in Q2 FY2026 after a neutral external clinical trial prompted physicians to become more selective in using Impella, particularly in the United States. The cardiovascular segment grew only 3.1%, while inventory reductions in China lowered electrophysiology growth by approximately 400 basis points. Management said Abiomed's improvement will take time and growth will remain more moderate until PROTECT IV data become available in 2027. In contrast, Shockwave grew 14.7%, and adoption of Impella 5.5 continued outside the United States.
The company expects operational sales growth of between 6.5% and 7.1%, with a midpoint of $100.6 billion. It expects reported growth of between 7.0% and 7.6% and midpoint revenue of $101.1 billion, with an approximately 100-basis-point benefit from the 53rd week. The adjusted operational earnings-per-share range is between $11.50 and $11.65, while the reported range is between $11.60 and $11.75. It also expects an approximately 75-basis-point improvement in adjusted pretax operating margin and free cash flow approaching $21 billion.
