January 21, 2026
Finance

Johnson & Johnson Projects Near $100 Billion in Revenue for Fiscal 2026

Strong Q4 2025 Earnings and Diverse Portfolio Drive Upward Sales Outlook

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Summary

Johnson & Johnson reported robust adjusted earnings per share and revenue growth in the fourth quarter of 2025, exceeding Wall Street estimates. The company’s innovative medicines and medical technology units contributed significantly to operational growth. Looking forward to 2026, J&J estimates its sales will approach $100 billion fueled by multiple billion-dollar platforms.

Key Points

Johnson & Johnson reported a 20.6% year-over-year increase in adjusted EPS to $2.46 in Q4 2025, exceeding consensus estimates.
Total company sales rose 9.1% year-over-year to $24.56 billion, driven by growth in Innovative Medicine and MedTech divisions.
Cancer drug sales surged 24.8% to $6.86 billion, while Immunology revenues declined by 8.9%.
The company forecasts 2026 sales nearing $100 billion with adjusted EPS guidance slightly above market expectations.

Johnson & Johnson (NYSE: JNJ) announced its financial results for the fourth quarter of 2025, revealing adjusted earnings per share (EPS) of $2.46. This figure represents a 20.6% increase from the same period in the previous year and slightly surpasses the consensus estimate of $2.44. The healthcare conglomerate posted total sales of $24.56 billion during the quarter, marking year-over-year growth of 9.1% and higher than the anticipated $24.16 billion.

Underlying operations expanded by 7.1%, with adjusted operational growth measuring 6.1%. The company’s Innovative Medicine segment delivered 10% nominal sales growth to $15.76 billion, equating to 7.9% on an operational basis. Full-year 2025 revenue for Johnson & Johnson reached $60.40 billion, a 6% increase from the prior fiscal year. Operational sales for the year grew by 5.3%, bolstered by effects from acquisitions and divestitures, which contributed a positive 1.2%, primarily owing to Caplyta.

Key drivers of revenue growth included oncology treatments such as Darzalex (daratumumab), Carvykti (ciltacabtagene autoleucel), Erleada (apalutamide), and Rybrevant/Lazcluze, alongside immunology products like Tremfya (guselkumab) and Simponi/Simponi Aria, and neuroscience therapy Spravato (esketamine). However, growth was partially offset by a significant impact from Stelara within the Immunology segment, estimated to have reduced sales by approximately 1,040 basis points.

Cancer drug sales soared to $6.86 billion, reflecting an increase of 24.8% in reported terms and 21.9% operationally. Conversely, Immunology revenues decreased by 8.9% to $3.86 billion, or 10.3% on an operational basis. The MedTech segment reported a 7.5% rise in revenue to $8.80 billion, with operational growth of 5.4% aided by acquisitions and divestitures contributing about 1.1%, mainly through Shockwave.

Growth in MedTech was largely fueled by cardiovascular offerings, such as electrophysiology products and Abiomed, along with wound closure solutions in the General Surgery category. Johnson & Johnson’s earnings presentation noted that both its cellular cancer therapy Carvykti and Shockwave medical devices had crossed the $1 billion annual sales threshold. Moreover, the company pointed out that it currently operates 28 individual platforms generating at least $1 billion in yearly revenue.


Fiscal 2026 Guidance

Looking ahead, Johnson & Johnson provided guidance for the fiscal year 2026. The company projects adjusted earnings per share to range between $11.43 and $11.63, aligning closely with the consensus estimate of $11.45. For total sales, management anticipates revenues in the range of $99.50 billion to $100.5 billion, modestly above the consensus forecast of $98.89 billion.

Stock Market Reaction

In premarket trading on Wednesday, shares of Johnson & Johnson were down 0.90%, trading at $216.24. The stock price remains near its 52-week high of $220.11, according to market data.

Risks
  • Immunology segment sales experienced a significant decline, negatively impacting overall revenue growth.
  • Operational growth results are influenced by net acquisitions and divestitures, which may pose integration and performance risks.
  • Market reaction shows some investor caution as share prices dipped slightly despite strong earnings, highlighting potential market sensitivity.
Disclosure
Education only / not financial advice
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