Healthcare juggernaut Johnson & Johnson (JNJ) will report its third-quarter results on Oct. 13, before the market opens. Ahead of that, Wall Street analysts expect a marginal increase in Q3 EPS to $2.82. The company has also surpassed EPS estimates in each of the trailing four quarters. We take a closer look at J&J at this juncture.
About Johnson & Johnson Stock
Johnson & Johnson is a global healthcare company headquartered in New Brunswick, New Jersey. After spinning off its consumer-health business as Kenvue (KVUE) in 2023, it now focuses on two segments: Innovative Medicine, which develops prescription drugs in oncology, immunology, neuroscience, and infectious diseases, and MedTech, which provides surgical, orthopedic, cardiovascular, and vision-care technologies.
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The company has pursued growth through acquisitions and has invested in digital surgery and next-generation therapies. With operations spanning research, manufacturing, and commercialization worldwide, J&J remains a major force in pharmaceuticals and medical technology. The company has a market capitalization of $622.84 billion.
J&J’s stock has gained 36.8% over the past 52 weeks as patent cliff concerns have been sidelined alongside strong growth in new products and defensive healthcare demand. Investors are likely reassessing the valuation after a strong rally, which has led the stock to drop 3.3% over the past three months. The company’s shares reached a 52-week high of $281.07 on Sept. 2, but are down 8.1% from that level.
On a forward-adjusted basis, J&J’s price-to-earnings (non-GAAP) ratio of 23.34x is higher than the industry average of 18.73x.
www.barchart.com Johnson & Johnson’s Recent Developments
After separating its consumer health division, J&J is focusing on innovative medicines and robotic surgery to support future growth. The company’s pipeline remains diversified, which has somewhat dispersed fears of a patent cliff. For instance, J&J received U.S. Food and Drug Administration (FDA) approval for Imaavy to treat warm autoimmune hemolytic anemia, a rare blood disease. The approval is for use in patients who are currently or were previously treated with corticosteroids.
The pharma giant entered the U.S. robotic surgery market this year, with the FDA granting marketing authorization to its Ottava robotic surgery offering for use in multiple general surgery procedures in the upper abdomen. While the robotic surgery space is dominated by a few prominent names, Ottava has interesting selling points, such as occupying 30%-50% less space than traditional boom-and-cart-mounted systems.
J&J also offered to pay as much as $5.5 billion to resolve tens of thousands of lawsuits that alleged that its baby powder and other products containing talc cause ovarian cancer, which potentially ends a longstanding legal battle.
Strong Q2 Pharma Sales, Raised 2026 Outlook
J&J reported 6.6% year-over-year (YOY) growth in reported sales to $25.31 billion, with growth across its innovative medicine and medtech segments in the second quarter. The company’s adjusted operational sales increased 5.7%, while adjusted EPS climbed 4.7% from the prior-year period to $2.90.
For fiscal 2026, J&J adjusted operational sales growth estimate from 6.1% to 6.5%. Adjusted EPS estimate was raised from $11.55 to $11.68 (indicating an 8.2% YOY growth). The company is on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its 140-year history. For fiscal 2026, Wall Street analysts expect its EPS to grow 4.7% YOY to $11.30, followed by a 10.8% improvement to $12.52 in fiscal 2027.
What Do Analysts Think About Johnson & Johnson’s Stock?
Ahead of the Q3 results, Wall Street analysts have reiterated their bullish stance on the stock. Guggenheim analysts reiterated a “Buy” rating and a $287 price target. The firm expects J&J to report revenue of $25.49 billion and EPS of $2.49 for the quarter.
Analysts at RBC Capital maintained an “Outperform” rating and raised the price target from $287 to $290. RBC Capital’s medical-technology forecasts are broadly in line with consensus, but the firm highlights intensifying competition and ongoing geopolitical challenges, with the greatest pressure seen in electrophysiology.
Citigroup analysts raised J&J’s price target from $298 to $303, while keeping a “Buy” rating, as part of adjustments in the medical technology group ahead of the Q3 earnings. Citi analysts expect a subdued third quarter but identify areas of growth and anticipate a recovery heading into 2027.
J&J has been a stalwart on Wall Street, with analysts awarding it a consensus “Moderate Buy” rating. Of the 25 analysts rating the stock, 14 have rated it a “Strong Buy,” three suggest a “Moderate Buy,” and eight are playing it safe with a “Hold” rating. The consensus price target of $282.60 represents a 9.3% upside from current levels. The Street-high price target of $320 indicates 23.8% potential upside.
www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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