JNJ AI Stock Analysis – Buy, Hold, or Avoid?
Johnson & Johnson (JNJ)
Fundamentals
Johnson & Johnson demonstrates solid financial health with consistent revenue growth and improving profitability supported by operational efficiencies. The company maintains a strong market position within the healthcare sector, underpinned by its diversified portfolio and robust R&D pipeline, which supports sustainable long-term growth.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
6.60% YoY
Q2 2026
Net Income
-0.05% YoY
Q2 2026
Net Margin
Q2 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q2 2026
Net Income Growth YoY
Latest Quarter: Q2 2026
Revenue Per Share Growth YoY
Latest Quarter: Q2 2026
EPS Growth YoY
Latest Quarter: Q2 2026
Book Value Per Share Growth YoY
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 25.3B | 24.1B | 24.6B | 24.0B | 23.7B | 21.9B | 22.5B | 22.5B |
| Revenue Growth YoY | +6.60% | +9.91% | +9.08% | +6.77% | +5.77% | +2.39% | +5.26% | +5.25% |
| Net Income | 5.5B | 5.2B | 5.1B | 5.2B | 5.5B | 11.0B | 3.4B | 2.7B |
| Net Income Growth YoY | -0.05% | -52.40% | +49.11% | +91.24% | +18.16% | +237.91% | -15.26% | -89.65% |
| EPS | $2.27 | $2.14 | $2.10 | $2.14 | $2.29 | $4.57 | $1.43 | $1.12 |
| EPS Growth YoY | -0.87% | -53.17% | +46.85% | +91.07% | +17.44% | +238.52% | -14.88% | -89.15% |
Profitability Metrics
Technical Analysis
JNJ is currently in a strong uptrend characterized by a golden cross and price trading well above its key moving averages, signaling bullish momentum. The moderate ADX supports a developing trend, while the RSI remains neutral, suggesting balanced momentum without overextension. The stock is in an advancing phase, favored by institutional accumulation, making it attractive for buying opportunities.
No extreme reading
Price in uptrend
Trend developing
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Johnson & Johnson demonstrates solid financial health with consistent revenue growth and improving profitability supported by operational efficiencies. The company maintains a strong market position within the healthcare sector, underpinned by its diversified portfolio and robust R&D pipeline, which supports sustainable long-term growth.
Latest Earnings
Q2 2026 Earnings (Jun 30, 2026)
Earnings Per Share (EPS)
Actual
$2.90
Estimated
$2.84
Surprise
+$0.06
Surprise %
+2.11%
Revenue
Actual
$25.31B
Estimated
$25.06B
Surprise
+$247.68M
Surprise %
+0.99%
Historical Earnings
| Q2 2026 | Q2 2026 | Q1 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $2.90 | $2.90 | $2.70 | $2.70 | $2.46 | $2.80 | $2.77 | $2.77 |
| EPS (Estimated) | $2.84 | $2.84 | $2.68 | $2.68 | $2.46 | $2.76 | $2.68 | $2.58 |
| EPS Surprise | +$0.06 | +$0.06 | +$0.02 | +$0.02 | +$0.00 | +$0.04 | +$0.09 | +$0.19 |
| % Diff | +2.1% | +2.1% | +0.7% | +0.7% | +0.0% | +1.4% | +3.4% | +7.4% |
| Revenue | ||||||||
| Revenue (Actual) | $25.31B | $25.31B | $24.06B | $24.06B | $24.56B | $23.99B | $23.74B | $21.89B |
| Revenue (Estimated) | $25.06B | $25.06B | $23.61B | $23.61B | $24.15B | $23.76B | $22.85B | $21.56B |
| Revenue Surprise | +$247.68M | +$247.68M | +$447.33M | +$447.33M | +$416.01M | +$237.64M | +$889.03M | +$334.38M |
| % Diff | +1.0% | +1.0% | +1.9% | +1.9% | +1.7% | +1.0% | +3.9% | +1.6% |
Valuation
Johnson & Johnson (JNJ) presents a generally stable fundamental profile supported by solid profitability, steady revenue growth, and robust cash flow metrics. While trading at a premium valuation relative to the broad pharmaceutical sector, its multiples align closely with key peers, reflecting confidence in its diversified business and innovation pipeline. Recent analyst sentiment is moderately bullish with modest price upside potential and a fairly valued range suggested by various metrics.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q2 2026 | Q2 2026 | Q1 2026 | Q1 2026 | Q4 2025 | Q4 2025 | Q3 2025 | Q2 2025 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 27.97 | 28.47 | 28.54 | 28.33 | 24.56 | 24.71 | 21.22 | 16.68 |
| Price to Sales | 24.49 | 24.92 | 24.84 | 24.64 | 20.46 | 20.52 | 18.38 | 15.56 |
| Price to Book | 0.00 | 7.42 | 0.00 | 7.30 | 0.00 | 6.18 | 5.56 | 4.71 |
| Enterprise Value to EBITDA | 0.00 | 91.92 | 0.00 | 75.76 | 0.00 | 74.02 | 50.46 | 45.95 |
| Enterprise Value to Revenue | 0.00 | 26.05 | 0.00 | 26.03 | 0.00 | 21.67 | 19.53 | 16.92 |
Sentiment & Analyst Ratings
Johnson & Johnson's market sentiment is currently mixed, impacted by a major $5.5 billion talc litigation settlement and strategic acquisitions that increase near-term costs but aim to strengthen future growth. Analysts remain largely positive, focusing on solid underlying sales growth and raised earnings estimates, while investors weigh legal risks and operational restructuring.
Analyst Recommendations
Risk Assessment
Johnson & Johnson demonstrates solid financial fundamentals with stable earnings growth and a robust operational outlook despite ongoing legal and competitive headwinds. While liquidity and solvency metrics reflect a well-managed balance sheet, key risks include substantial litigation settlements, patent cliffs affecting blockbuster drugs, and regulatory pressures. Market sentiment remains cautiously optimistic, supported by positive analyst ratings and strategic acquisitions, underpinning moderate upside potential tempered by execution and legal risks.
Liquidity & Solvency
Frequently Asked Questions about JNJ
AI Answers: Common Questions About JNJ
Get AI-powered answers to the questions investors ask most about Johnson & Johnson
JNJ is a good buy for long-term investors due to steady revenue growth (~5-8% YoY), improving margins (gross margin ~70-73%), and a strong R&D pipeline. However, near-term legal and restructuring costs suggest buying on dips near support levels around $245 is prudent.
Selling is not recommended currently as fundamentals remain strong and technicals bullish. Hold or accumulate selectively unless legal settlements or patent expirations materially worsen earnings beyond current expectations.
Key risks include the $5.5 billion talc litigation settlement, patent expirations impacting blockbuster drugs, regulatory pricing pressures, and competitive threats from biosimilars and medtech rivals.
Technical upside target is near the 52-week high of $274.90 (~6.75% above current price). Analyst price targets generally support modest upside from current levels given fair valuation.
JNJ trades at a P/E near 30x and EV/EBITDA around 20x, reflecting a premium justified by quality, diversification, and innovation. Valuation is fairly valued relative to peers but tempered by legal and competitive risks.
Strong fundamentals include consistent revenue growth from $88.8B in 2024 to $94.2B in 2025, EPS growth from $5.84 to $11.03, stable gross margins near 70-73%, and improving operating margins around 28%.
Bullish technicals with a golden cross, price above 50- and 200-day SMAs, neutral RSI (~52), and moderate ADX (~22) indicate a stable uptrend with room for further gains.
Catalysts include new drug launches, pipeline progress, resolution of litigation risks, and strategic acquisitions such as Firefly Bio and Sail Biomedicines collaborations.
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