Johnson & Johnson

JNJ
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$24.1B
Q1 2026 · +9.9% YoY
TTM ROIC
14.7%
FY2025 · NOPAT / Invested Capital (goodwill-inclusive, GuruFocus methodology) · WACC ~6.55% · Moat spread +7.5pp

Financial Snapshot


ticker: JNJ step: 04 generated: 2026-05-11 source: quick-research

Johnson & Johnson (JNJ) — Financial Snapshot

(FY2023 figures reflect "Old J&J" with Kenvue consumer health; FY2024+ are continuing-operations basis after May 2023 Kenvue separation.)

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Sales (continuing ops basis) $85.2B $88.8B $94.2B +6.0%
Innovative Medicine Revenue $54.8B $57.0B $60.4B +6.0%
MedTech Revenue $30.4B $31.9B $33.8B +6.1%
Adjusted Operational Growth n/a n/a +4.2% (constant currency, ex-divestitures)
GAAP EPS $7.81 $5.79 $11.03 +90% (vs. one-time charges in FY24)
Adjusted EPS $10.07 $9.98 $10.79 +8.1%

Segment Detail — Q1 2026 (most recent quarter)

Asset / Segment Q1 2026 YoY
Darzalex (oncology) $3.96B +23%
Tremfya (immunology) $1.61B +68%
Carvykti (CAR-T) $597M +62%
Stelara (legacy) -49% (Q4 2025 commentary) LOE
MedTech segment $8.6B +8%

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$25B
Capital Expenditures ~$4.5B
Free Cash Flow $20.4B
Dividends Paid $12.4B (61% payout ratio of FCF)
Share Repurchases ~$1B–3B (variable)
Cash & Marketable Securities ~$22B
Total Debt ~$45B
Net Cash Position ~-$23B (manageable; AAA-rated)
Q4 2025 Dividend Hike (Apr 2026) $1.30 → $1.34 (+3%, 64th consecutive year)
FY26 FCF Target ~$21B

Key Ratios (approximate)

  • P/E: ~17x (FY25 adjusted) | EV/EBITDA: ~13x | FCF Yield: ~4.9%
  • Revenue Growth (FY25): +6.0% | FCF Margin: ~22%
  • Dividend Yield: ~3.0% | Payout Ratio: ~62% of FCF
  • Credit Rating: AAA (one of only 2 non-financial AAAs in US)
  • Operating Margin: ~26% (consolidated adjusted)

Growth Profile

2026 marks a key inflection: J&J management explicitly framed the Stelara patent cliff as "in the rearview mirror", freeing growth momentum from oncology + immunology + medtech. Initial 2026 guide of $100.5B in revenue was raised to $100.8B (+7%) on Q1 strength. Key growth drivers in 2026:

  • Oncology (Darzalex +23%, Carvykti +62%, Rybrevant/Lazcluze NSCLC ramp)
  • Immunology (Tremfya +68% as Stelara replacement; new Icotrokinra oral psoriasis approval)
  • MedTech (Abiomed Impella, Shockwave IVL, electrophysiology +mid-teens)

Long-term ambition is $100B+ sales by 2026 (largely achieved) and pathway to ~$120B by 2030 driven by oncology + immunology pipeline (TAR-200, milvexian, nipocalimab, TAR-210).

Forward Estimates

2026 Guide (raised in Q1):

  • Reported Sales: $100.8B (+7.0% midpoint)
  • Adjusted EPS: $11.55 (+7.1% midpoint)
  • FCF target: ~$21B

Bull case: Oncology pipeline drives $25B+ → $35B+ over 5 years; MedTech recovery in China; Carvykti supply catches demand → blockbuster scale; talc litigation finally resolved. Bear case: Stelara erosion accelerates further; talc verdicts exceed reserves (one $1.5B verdict in Dec 2025); MedTech China VBP pressure persists; tariff headwinds on imported devices.

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $JNJ.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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