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Johnson & Johnson (JNJ) reported Q4 results that were in-line with EPS expectations but ahead of revenue estimates, while the company’s initial 2026 guidance for both revenue and EPS came in ahead of consensus at the midpoint of the ranges. Despite the solid performance and robust outlook, the stock has traded lower in the aftermath of the report, likely due to profit-taking as the shares sit near record highs and have surged nearly 40% since last July.

• JNJ reported 4Q25 adjusted EPS of $2.46, meeting analyst expectations, on quarterly revenue of $24.6 bln, which beat the $24.15 bln FactSet consensus. 
• Operational sales grew 7.1% yr/yr in Q4, while adjusted operational sales, which excludes the impact of acquisitions and divestitures, rose 6.1%.
• The Innovative Medicine segment (formerly Pharmaceuticals) posted reported sales growth of 10.0%, driven by the oncology powerhouse Darzalex, which grew 24.1% to $3.08 bln in the quarter.
• Growth in Innovative Medicine was partially offset by Stelara, which remains a point of weakness due to the ongoing impact of biosimilar competition outside the U.S., with sales declining 4.6% in Q4.
• MedTech segment sales increased 7.5% to $8.8 bln, led by the Cardiovascular division, which saw 20.8% growth fueled by strong performances from Abiomed (+18.3%) and Shockwave (+22.8%).
• Regarding the talc litigation, management noted that following the denial of its third bankruptcy attempt, the company has withdrawn its prior $7 bln settlement offer and intends to defend remaining claims in court.
• The 2026 guidance projects adjusted EPS of $11.43-$11.63 and revenue of $100.0-$101.0 bln, both exceeding the Street’s expectations. JNJ highlighted several major 2026 catalysts, including the anticipated U.S. approval of icotrokinra for plaque psoriasis and the de novo FDA submission for the OTTAVA robotic surgical system.

Briefing.com Analyst Insight:

JNJ is entering 2026 from a position of strength, with its guidance signaling that it will be the first healthcare company to eclipse the $100 bln annual revenue threshold. The company’s "catapult year" in 2025 appears to have successfully transitioned its portfolio, with MedTech now consistently delivering high-single-digit growth through strategic acquisitions like Shockwave and Abiomed. While Innovative Medicine faces a significant hurdle as Stelara biosimilars enter the U.S. market later in 2026, the continued hyper-growth of Darzalex and the scaling of new launches like Carvykti provide a formidable offset. The stock's modest pullback on the news should be viewed in the context of its massive run since last summer. Fundamentally, JNJ’s execution in core high-growth markets like electrophysiology and oncology remains top-tier.