# Johnson & Johnson (JNJ) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/JNJ/thesis · /stocks/JNJ/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/JNJ/fundamental

## Navigation

- Overview: /stocks/JNJ
- Financials (this page): /stocks/JNJ/financials
- Thesis: /stocks/JNJ/thesis
- Investment Memo: /stocks/JNJ/memo
- Coverage universe: /stocks