SuperworthJohnson & Johnson JNJ
- Market cap
- $635.8B
- PE
- 40.0×
- 10y median 24.3×
- Forward PE
- 23.4×
- 10y median 17.1×
- Price to sales
- 6.4×
- EV/EBIT
- n/m
- a quarter missing
- Revenue, 12 months
- $99.3B
- +8% on a year ago
- Net margin
- n/m
- Q3 FY26 missing
- Free cash flow yield
- n/m
- Q3 FY26 missing
A Superworth story
J&J's drugs outran Stelara's fall, and the price ran further
Tremfya carries the growth, but devices missed again and two deals dent next year's earnings
Dearer per dollar of sales than almost any time in ten years
Even after slipping from its September peak, J&J costs about 6 times its last four quarters of sales. That is dearer than about 95% of the last ten years, a rich price for a company long owned as the steady, safe choice in healthcare.
The price nearly doubled, then a device miss took some back
From its low in January 2025 to its high in early September 2026, the share price nearly doubled, as J&J raised its outlook and offered to settle ovarian talc claims. It fell almost 6% the day it reported the September quarter, when device sales missed estimates for a second straight quarter. It now sits about 8% below the high.
Sales grew straight through Stelara's collapse
Sales keep climbing, and J&J expects to pass 100 billion dollars this year for the first time. Stelara, its old best seller, is losing sales fast to cheaper copies called biosimilars. Tremfya, the drug taking its place, drove most of the drug business's growth and beat forecasts.
A talc charge and two research deals wiped out the quarter's reported profit
A charge for the proposed talc settlement and the cost of two research deals, Firefly Bio and Sail, cut reported earnings for the September quarter to 9 cents a share. That made the reported PE jump while sales kept growing. Adjusted earnings leave those costs out, and on them J&J costs about 24 times the last four quarters.
A year of cash covers the talc offer about four times over
Free cash flow over the four quarters to June was 22.24 billion dollars, about four times the 5.5 billion dollar ovarian talc offer, and the first payment is not due until 2027. The deal needs holders of nearly all the claims to sign on, and J&J says it is trending to get there.
On expected earnings, it still costs well above its habit
At today's price, consensus adjusted earnings for the next twelve months put J&J at about 22 times, against about 17 for both its own ten-year median and its peers. Those earnings sit only a little above the last four quarters. This history is rebuilt with today's estimates before late September.
December's first look at 2027 tests whether earnings catch up
The premium leans on the year after next, when consensus adjusted earnings would put J&J at about 19 times today's price. Only one or two analysts forecast that far out. The catch is the 1.36 a share J&J says the two research deals take out of 2027, more than the whole rise analysts expect next year. December's business review shows whether that growth survives the hit.
What has happened lately
- SEC, Johnson & Johnson reports Q3 2026 results, raises 2026 guidanceSales rose 5.9% to 25.4 billion dollars, with 2026 sales guided to about 101.2 billion. A one-time talc charge and two research deals cut reported EPS to 0.09. Adjusted EPS was 2.59, with the 2026 midpoint raised to 11.10.
- Reuters via BNN Bloomberg, J&J posts weak medical device sales, shares fallShares fell as MedTech sales rose 2.5% to 8.6 billion dollars, short of estimates for a second straight quarter. Tremfya beat forecasts, Darzalex fell short.
- Johnson & Johnson, Johnson & Johnson Q3 2026 earnings: CEO and CFO prepared remarksThe Firefly Bio and Sail deals cut 2027 adjusted EPS by 1.36. Talc consent is trending past 95%. Tremfya can top 10 billion dollars, and 2027 detail comes at a December 8 review.
- Johnson & Johnson, Johnson & Johnson announces a proposed resolution of ovarian talc litigationA 5.5 billion dollar offer for about 76,000 ovarian talc claims, if 95% of them sign on. The first payment, at most 3 billion, is due in 2027, with nothing more before 2028.
Headlines link to the original source.
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Charts
Financials
| Income statement | Q4 FY23 | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $21.4B+7% | $21.4B+2% | $22.4B+4% | $22.5B+5% | $22.5B+5% | $21.9B+2% | $23.7B+6% | $24B+7% | $24.6B+9% | $24.1B+10% | $25.3B+7% | $25.4B+6% | |
| Cost of revenue | $6.8B−13% | $6.5B−3% | $6.9B+6% | $7B+5% | $7.1B+5% | $7.4B+13% | $7.6B+11% | $7.3B+5% | $8B+12% | $8.1B+10% | $8.1B+6% | $8.1B+11% |
| Gross profit | $14.6B+5% | $14.9B+5% | $15.6B+4% | $15.5B+5% | $15.4B+5% | $14.5B−2% | $16.1B+3% | $16.7B+8% | $16.6B+8% | $16B+10% | $17.3B+7% | $17.3B+4% |
| R&D | $4.5B+17% | $3.5B+3% | $3.4B−7% | $5B+44% | $5.3B+18% | $3.2B−9% | $3.5B+2% | $3.7B−26% | $4.3B−20% | $3.5B+9% | $3.7B+4% | $4.7B+27% |
| SG&A | $5.8B−11% | $5.3B+7% | $5.7B+5% | $5.5B+1% | $6.5B+11% | $5.1B−3% | $5.9B+4% | $5.9B+8% | $6.8B+5% | $6B+18% | $6.4B+9% | $6.3B+6% |
| $4.2B+9% | $5.9B+4% | $6.3B+8% | $5B−9% | $3.6B−15% | $6.2B+5% | $6.6B+6% | $7B+40% | $5.4B+52% | $6.3B+2% | $7.1B+7% | n/a | |
| Interest expense | $151M−15% | $155M−27% | $270M+24% | $193M+1% | $137M−9% | $204M+32% | $308M+14% | $245M+27% | $214M+56% | $272M+33% | $281M−9% | n/a |
| Pre-tax income | $4.8B+26% | $3.7B | $5.7B−9% | $3.3B−36% | $3.9B−20% | $13.6B+267% | $6.5B+13% | $7.5B+125% | $5B+28% | $6B−56% | $6.7B+4% | n/a |
| $694M+2% | $459M | $1.1B+14% | $644M−29% | $456M−34% | $2.6B+473% | $954M−10% | $2.3B+264% | −$150M | $755M−71% | $1.2B+27% | n/a | |
| Net income | $4B+15% | $3.3B | $4.7B−9% | $2.7B−90% | $3.4B−15% | $11B+238% | $5.5B+18% | $5.2B+91% | $5.1B+49% | $5.2B−52% | $5.5B−0% | n/a |
| $1.67+26% | $1.34 | $1.93−2% | $1.11−89% | $1.41−16% | $4.54+239% | $2.29+19% | $2.12+91% | $2.10+49% | $2.14−53% | $2.27−1% | $0.09−96% | |
| 2.4B−8% | 2.4B−7% | 2.4B−8% | 2.4B−5% | 2.4B−0% | 2.4B−0% | 2.4B−0% | 2.4B+0% | 2.4B+1% | 2.4B+1% | 2.4B+1% | 2.4B+1% |
Operating income: 73 periods, Q2 FY08 to Q2 FY26: not printed by the filing, worked out from its own lines.
Net income: 6 periods, Q4 FY09 to Q4 FY25: printed in the fourth-quarter results release.
EPS, diluted: 4 periods, Q4 FY08 to Q1 FY16: quarter's net income to common over its shares, to the cent. 6 periods, Q4 FY09 to Q4 FY25: printed in the fourth-quarter results release.
Diluted shares: 11 periods, Q4 FY08 to Q4 FY23: share-days: the 12-month average less the 9-month, weighted by days. 6 periods, Q4 FY09 to Q4 FY25: printed in the fourth-quarter results release. Q4 FY17: a loss quarter: its basic count, share-days: the 12-month average less the 9-month, weighted by days.
From each company's 10-Q and 10-K filings, the newest version of each figure. Quarters are as filed (a fourth quarter is the year less its first nine months), fiscal years as the 10-K prints them, restated where a later 10-K restated them, and balance sheet lines as of the period's end. A quarter whose 10-Q isn't filed yet is from the company's results release. Growth is on the same period a year earlier. A dash is a period with no figure for the line: the filing doesn't print it, or it hasn't been read yet. Figures from older filings without data tags, and from a results release before its 10-Q, are read from the document's text and checked against it.
Estimates
Next earnings report: .
| Quarter | Revenue | Range | EPS | Range | Analysts |
|---|---|---|---|---|---|
| Q4 FY26 | $26.4B | $26B to $26.7B | $2.90 | $2.85 to $2.94 | 12 |
| Q1 FY27 | $25.6B | $25.3B to $25.8B | $2.70 | $2.55 to $2.86 | 5 |
| Q2 FY27 | $26.8B | $26.5B to $27.2B | $2.82 | $2.78 to $2.87 | 1 |
| Q3 FY27 | $27.1B | $26.9B to $27.5B | $2.86 | $2.82 to $2.91 | 1 |
| Q4 FY27 | $28.2B | $27.9B to $28.5B | $3.06 | $3.01 to $3.11 | 1 |
| Q1 FY28 | $27B | $26.7B to $27.4B | $3.13 | $3.09 to $3.18 | 2 |
| Q2 FY28 | $28.5B | $28.2B to $28.9B | $3.46 | $3.41 to $3.52 | 2 |
| Q3 FY28 | $28.8B | $28.5B to $29.2B | $3.47 | $3.42 to $3.53 | 2 |
Peers
Companies in Drug Manufacturers - General nearest Johnson & Johnson's size, closest first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| JNJJohnson & Johnson | $635.8B | 40.0× | 24.3× | 23.4× | 6.4× | +8% | n/m |
| ABBVAbbVie | $504.8B | 80.7× | 27.9× | 19.0× | 7.8× | +10% | 9.8% |
| MRKMerck | $358.4B | 116× | 24.9× | 17.5× | 5.4× | +5% | 4.8% |
| LLYEli Lilly and | $1.2T | 42.7× | 41.4× | 33.9× | 15.0× | +50% | 33.5% |
| AMGNAmgen | $237.5B | 27.3× | 21.1× | 18.6× | 6.2× | +9% | 23.0% |
| GILDGilead Sciences | $193.5B | n/m | 18.8× | 17.2× | 6.4× | +6% | −10.6% |
| PFEPfizer | $171.2B | 39.5× | 15.8× | 10.9× | 2.7× | −0% | 6.8% |
| BMYBristol-Myers Squibb | $125.6B | 13.5× | 19.9× | 10.4× | 2.6× | +3% | 18.9% |
| Peer median | $237.5B | 41.1× | 21.1× | 17.5× | 6.2× | +6% | 9.8% |
Investors who own it
Investors we follow who held Johnson & Johnson at the end of Jun 30, 2026, from their 13F filings.
- Tom GaynerMarkel Group1.2% of portfolio
- Chris BloomstranSemper Augustus0.0% of portfolionew
- Ron BaronBaron Capital0.0% of portfolioadded
- Tom RussoGardner Russo & Quinn0.0% of portfoliotrimmed
More on Johnson & Johnson
Each number over time
- PE ratio
- Forward PE
- Price to sales ratio
- EV/EBIT
- Price to free cash flow
- Price to book ratio
- Dividend yield
- Market cap
- Revenue
- EPS
- Free cash flow
- Profit margin
- Shares outstanding
Its groups
About
- Chief executive
- Joaquin Duato, since 2022Joined 1989, CEO since 2022. Source
- Industry
- Drug Manufacturers - General
- Sector
- Healthcare
Valuation data, not investment advice. Prices as of .