| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 19 | 40.0x | 17.3x | Bottom tier | |
Growth | 23 | 7.8% | 7.1% | Bottom tier | |
Quality | 100 | 19.0% | 4.5% | Top tier | |
Safety | 84 | 0.9x | 2.6x | Top tier | |
Capital Return | 99 | 2.00% | 0.06% | Top tier | |
Momentum | 99 | 40.3% | -1.5% | Top tier | |
Sentiment | 84 | 12 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
63% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.13% as of 2026-10-21. Estimates computed from company data and analyst targets, 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 combines innovative medicines and medical technology, with a focus on oncology, immunology, neuroscience, cardiovascular disease, surgery, and vision care. In quarter 3 of fiscal year 2026 ended 2026-09-30, Innovative Medicine sales totaled 16.8 billion dollars, compared with 8.6 billion dollars for MedTech, out of total revenue of 25.4 billion dollars. The pharmaceutical business relies on products such as DARZALEX, TREMFYA, and SPRAVATO, while medical technology includes the Shockwave, Abiomed, and VARIPULSE platforms and ACUVUE products, linking the company's results to both demand for treatments and the use of devices and medical procedures.
Net income in quarter 3 of fiscal year 2026 was 210.0 million dollars, and diluted earnings per share were 0.0858 dollars, with a gross margin of 73.0% and an operating margin of 25.1%. Pressure on earnings was associated with recording a provision for settling talc litigation, alongside expenses for the acquisition of Firefly Bio and the collaboration with Cell BioMedicines. Sales expansion thus coincides with clear weakness in reported profit, and strong demand for medicines alone is insufficient to explain the bottom-line result.
Revenue for the last 12 months through 2026-09-30 totaled 99.3 billion dollars, and net income was 16.1 billion dollars. On the 2026-10-13 call, management raised its fiscal year 2026 outlook but acknowledged that MedTech performance fell short of its expectations, with pressures at Abiomed and in operations outside the United States. The company's investment case centers on the ability of new medicines to expand the business while addressing medical technology setbacks and legal costs.
Q3 FY2026
Last 12 months to 2026-09-30
When: 2027-01-20
Fiscal year 2026 reported revenue reaches the guidance midpoint of 101.2 billion dollars
Fiscal year 2026 adjusted earnings per share fall within guidance of 11.05 to 11.15 dollars
The indicative value based on the median analyst target is 280 dollars, within a range of 260 to 320 dollars; it reflects growth expectations, but confidence is low because this calculation relies on one analyst, and analyst targets are inherently optimistic. The value based on the industry multiple is 226 dollars, within a range of 135 to 251 dollars, based on next year's earnings and a median multiple of 18.0 across 13 companies, meaning that Johnson & Johnson's earnings are priced on the basis of its peers. The no-growth value is 110 dollars at a discount rate of 8.7%, measuring what remains if current after-tax operating profit stays constant forever. Analyst targets exceed the industry-multiple value, and both methods exceed the no-growth value, illustrating the effect of expansion expectations on the differences between them rather than agreement on a single value. According to data for the period ended 2026-09-30, the company ranks 52 out of 62 within the industry on EL7's valuation pillar, which compares its multiples with those of its peers.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Net income in quarter 3 of fiscal year 2026 ended 2026-09-30 was 210.0 million dollars, and diluted earnings per share were 0.0858 dollars. Results included a provision of 5.5 billion dollars for settling talc litigation, alongside expenses associated with the acquisition of Firefly Bio and the collaboration with Cell BioMedicines. At the same time, the operating margin was 25.1% and revenue was 25.4 billion dollars in quarter 3 of fiscal year 2026, showing that pharmaceutical business growth does not translate fully into bottom-line profit when these charges are incurred.
TREMFYA grew by 68.2% in quarter 3 of fiscal year 2026 ended 2026-09-30 compared with the same quarter of the previous fiscal year on an operational basis, supported by its use in inflammatory bowel disease. In the same period, STELARA declined by 5.4% due to biosimilars and the shift to newer treatment classes. In addition, the number of patients who had started ICOTYDE exceeded 20 thousand as of 2026-10-13, around 60% of whom had not previously used systemic therapy. These indicators support the portfolio's ability to offset the decline, but they do not eliminate the need for continued commercial adoption and successful expansion into additional indications.
Automated analysis for informational purposes only — not investment advice.
MedTech operational growth in quarter 4 of fiscal year 2026 exceeds the 2.5% recorded in quarter 3 of fiscal year 2026 ended 2026-09-30
MedTech sales totaled 8.6 billion dollars in quarter 3 of fiscal year 2026 ended 2026-09-30, with operational growth of 2.5% compared with the same quarter of the previous fiscal year. Weakness was concentrated in operations outside the United States and Abiomed, which declined by 1.5%, alongside competition in pulsed field ablation platforms and procurement pressures in China and the Middle East. Meanwhile, Shockwave grew by 17.2%, showing that the setbacks do not affect all of the segment's platforms to the same degree. Management confirmed on 2026-10-13 that improving execution in the existing business is a priority, while building OTTAVA's contribution gradually.
Johnson & Johnson recorded a provision of 5.5 billion dollars in quarter 3 of fiscal year 2026 results for the period ended 2026-09-30 for an agreement concerning ovarian cancer talc claims. Management explained on the 2026-10-13 call that the agreement requires participation by at least 95% of claimants. Meeting the participation requirement therefore remains a decisive element in implementing the settlement, and including the provision does not mean that all legal proceedings have ended.
Management confirmed on 2026-10-13 that the planned separation of the DePuy Synthes unit targets mid-2027, with a preference for separation through a distribution of the unit's shares to shareholders while continuing to evaluate options. The orthopedics business achieved operational growth of 3.4% in quarter 3 of fiscal year 2026 ended 2026-09-30 compared with the same quarter of the previous fiscal year, supported by products including VOLT and EMPHASYS. The separation would change the scope of the remaining businesses and comparisons of their results, while the call did not provide final financial terms allowing its full impact on shareholders to be determined.