Johnson & Johnson Raises Outlook as Sales Accelerate

Companies

• JNJ

Article body

Johnson & Johnson (JNJ), the diversified health-care company, raised its 2026 outlook after reported sales rose 9.9% to $24.1 billion, extending an acceleration from the year-earlier quarter even as profit narrowed.[1][2][3]

The quarter showed stronger top-line momentum with a more mixed operating profile. Reported sales growth improved from 2.4% a year earlier and 9.1% in the fourth quarter, though sales slipped sequentially from $24.6 billion. Operational sales growth slowed to 6.4% from 7.1% in the prior quarter, and adjusted operational growth eased to 5.3% from 6.1%.[1][2][4][3]

Adjusted earnings fell to $2.70 a share, reversing from 20.6% growth in the fourth quarter and 2.2% growth in the year-earlier period. GAAP earnings dropped 52.9% to $2.14 a share against a prior-year quarter that included a reversal of special charges.[1][2][3]

Margin pressure came from operating costs rather than gross margin. Gross margin was essentially flat from a year earlier at 66.3% of sales, though it was down from 67.6% in the fourth quarter and 69.6% in the third quarter. Selling, marketing and administrative expense rose to 25.1% of sales from 23.3%, while research and development stayed flat at 14.7% of sales.[5][6][7][8]

Innovative Medicine led the quarter, with sales up 11.2% reported and 7.4% operational, outpacing MedTech's 7.7% reported and 4.6% operational growth. Oncology was a major driver, with worldwide sales up 22.8% reported and DARZALEX sales up 22.5% reported; CARVYKTI U.S. sales rose 36.2%.[9][10][11]

The STELARA drag eased to about 920 basis points on Innovative Medicine growth, compared with about 1,040 basis points for full-year 2025. MedTech had less acquisition help than it did last year, with deal activity reducing growth 0.1% after adding 1.1 percentage points to full-year 2025 growth, primarily from Shockwave.[9][12][13][14][15]

Regional growth added another layer to the split. U.S. sales rose 8.3%, up from 7.5% in the fourth quarter and 5.9% a year earlier, while international reported sales rose 11.9% as foreign exchange helped reported results. Europe reported sales growth accelerated to 14.5%, aided by an 11.8-point currency benefit.[9][5][11][16][15][8]

Johnson & Johnson raised its 2026 guidance from January, lifting the reported sales midpoint to $100.8 billion from $100.5 billion and the adjusted EPS midpoint to $11.55 from $11.53. The sales outlook implies 7.0% reported growth, above 2025's 6.0% growth, while the adjusted EPS outlook implies 7.1% growth, below 2025's 8.1% gain.[17][2][12]

The company also disclosed a new $119 million adjustment tied to the planned separation of its Orthopaedics business, following the fourth-quarter announcement of that plan. It raised its quarterly dividend 3.1% to $1.34, a slower increase than last year's 4.8% lift.[18][19][20][21][22]

Citations

citations[22]{marker,ticker,item,date,accession,source}:
  1,JNJ,ex_99_1,2026-04-14,0000200406-26-000076,null
  2,JNJ,ex_99_1,2026-01-21,0000200406-26-000002,null
  3,JNJ,ex_99_1,2025-04-15,0000200406-25-000110,null
  4,JNJ,ex_99_1,2025-10-14,0000200406-25-000201,null
  5,JNJ,ex_99_2,2026-04-14,0000200406-26-000076,null
  6,JNJ,ex_99_2,2026-01-21,0000200406-26-000002,null
  7,JNJ,ex_99_2,2025-10-14,0000200406-25-000201,null
  8,JNJ,ex_99_2,2025-04-15,0000200406-25-000110,null
  9,JNJ,ex_99_1,2026-04-14,0000200406-26-000076,null
  10,JNJ,ex_99_2,2026-04-14,0000200406-26-000076,null
  11,JNJ,ex_99_1,2026-01-21,0000200406-26-000002,null
  12,JNJ,ex_99_1,2026-01-21,0000200406-26-000002,null
  13,JNJ,ex_99_1,2025-10-14,0000200406-25-000201,null
  14,JNJ,ex_99_1,2025-07-16,0000200406-25-000170,null
  15,JNJ,ex_99_1,2025-04-15,0000200406-25-000110,null
  16,JNJ,ex_99_2,2026-01-21,0000200406-26-000002,null
  17,JNJ,ex_99_1,2026-04-14,0000200406-26-000076,null
  18,JNJ,ex_99_2,2026-04-14,0000200406-26-000076,null
  19,JNJ,ex_99_3,2026-04-14,0000200406-26-000076,null
  20,JNJ,ex_99_1,2026-01-21,0000200406-26-000002,null
  21,JNJ,ex_99_2,2026-01-21,0000200406-26-000002,null
  22,JNJ,ex_99_3,2025-04-15,0000200406-25-000110,null