Johnson & Johnson (JNJ) the world’s largest healthcare conglomerate. It develops and sells prescription medicines and medical technology products used in surgeries, cardiovascular care, and vision correction. The company generates revenue by providing treatments for complex diseases and advanced tools for hospital procedures, primarily serving healthcare professionals and retailers worldwide. The company has more than 275 subsidiaries.
J&J has one of the largest R&D budgets among pharma companies. In August 2023, J&J separated its Consumer Health business into a newly listed company called Kenvue. J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields. J&J is based in New Brunswick, NJ.
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| Share Price | $250 | 07/21/2026 | Sector | Healthcare | |
| Market Cap | $603B | Large Cap | Industry | Pharma | |
| P/E Ratio | 28.83 | Op. Margin | Dividend | 2.12% | |
| Year | 2023 | 2024 | 2026 | Historical | Volatilty |
| Annual EPS | $14.64 | $5.84 | $11.83 | Beta | 0.23 |
| Revenue | $85.1 | $88.8 | $94.1 | Category | Conservative |
Historical Volatility categories (Conservative, Moderate, and Aggressive) are based on beta, which measures a stock’s historical price volatility relative to the overall market. Company metrics are current as of the publication date. Historical Revenue and Annual EPS reflect reported fiscal-year results. All information is provided for educational purposes only and should not be considered investment advice or recommendations.
Keys for Success
J&J has 28 platforms or products with more than $1 billion in annual sales. J&J’s Innovative Medicines/Pharma segment is the company’s primary growth engine. The segment recorded five consecutive quarters of sales above $15 billion despite the loss of exclusivity (LOE) of Stelara.
Innovative Medicines segment sales rose 6.8% in 2022, 9% in 2023, 5.8% in 2024, 4.1% in 2025, and 6.2% on an organic basis in the first half of 2026. Growth was driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.
J&J’s 2Q2026 earnings & sales beat estimates. Second-quarter sales in the domestic market rose 7.3% to $14.53 billion. Earnings rose 4.7%. Gross margin expanded 30 basis points to 68.2%. The MedTech segment is also showing improved operational growth, minus the recent weakness in Abiomed. J&J has also rapidly advanced its pipeline in the past year that will help drive growth through the back half of the decade.
Research & Development (R&D) and Mergers & Acquisitions continue to drive growth. In 2025, J&J invested more than $32 billion in R&D and M&A, including the acquisitions of Intra-Cellular Therapies and Halda Therapeutics. In May 2024, J&J acquired Shockwave Medical, which strengthened its position in the highest-growth, innovation-oriented segments of cardiovascular intervention.
The company has sufficient funds to pursue additional acquisitions and deals. The company is backed by an AAA-tier balance sheet, which allows management to fund the research and acquisitions necessary to keep earnings climbing.
Keys for Concern
Sales in J&J’s Abiomed business declined 2% in the second quarter. The decline marks a notable shift for Abiomed after several years of consistent mid-teens growth. A biosimilar version of J&J’s multi-billion-dollar product, Stelara, was launched in the US in 2025 as the drug lost patent exclusivity.
Sales in J&J’s MedTech business are facing headwinds in China, where volume-based procurement (VBP) is a government-driven cost-containment effort. In 2022, the US made significant changes to how drugs are covered and paid for under Medicare. J&J faces a slew of lawsuits, which allege personal injuries to patients caused by the use of its medicines, mainly its talc and opioid products.
Mark Notes
J&J’s biggest strength is its diversified business model, which reduces dependence on any single product or market. It has more than 275 subsidiaries and boasts 28 platforms or products with more than $1 billion in annual sales, with the aim of adding even more. Its diversification helps it to withstand economic cycles more effectively. It also boasts strong cash flows and has increased its dividends for 64 consecutive years, with a current yield of 2.12%. J&J believes that the depth of its portfolio and pipeline is stronger than ever.
This article is for general informational and educational purposes only. It is not intended as financial advice, investment guidance, or a recommendation to buy or sell any security. The content reflects publicly available information and broad market commentary. Readers should conduct their own research and consult a licensed financial professional before making investment decisions.
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