Johnson & Johnson Targets Accelerated Growth Across Segments in 2026

On its third-quarter earnings conference call on Oct. 14, Johnson & Johnson JNJ discussed its preliminary outlook for 2026. J&J said that the consensus estimates for 2026, for both the top and the bottom lines, are too low.

In 2026, J&J expects top-line growth of more than 5% while the consensus estimate is around 4.6%. EPS growth is expected to be similar to revenue growth. J&J expects adjusted EPS to be around 5 cents more than the consensus of $11.39 per share. The Zacks Consensus Estimate for 2026 revenue growth is 4.8% while the same for EPS is pegged at $11.46 per share.

J&J expects growth in both the Innovative Medicine and MedTech segments to accelerate in 2026.

In 2026, J&J expects accelerated growth in the Innovative Medicine segment despite the loss of exclusivity (“LOE”) of blockbuster drug, Stelara. Several biosimilar versions of J&J’s multi-billion-dollar immunology drug, Stelara, have been launched in the United States in 2025.

According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies have already launched Stelara biosimilars this year. Stelara’s LOE negatively impacted the Innovative Medicines segment growth by 1070 basis points in the second quarter.

In the first nine months of 2025, Innovative Medicine Unit’s sales rose 4.5% on an operational basis to $44.64 billion.

Innovative Medicine Unit’s growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey. Recently launched products, including Tremfya in inflammatory bowel disease (IBD), Rybrevant plus Lazcluze in non-small cell lung cancer and the newly approved drug, Inlexzo in bladder cancer, are also expected to contribute.

In the MedTech segment, J&J expects better growth than 2025 levels, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets.  J&J expects to launch products like Shockwave C2 Aero catheter and Tecnis intraocular lens in the United States, as well as make a regulatory submission for the OTTAVA robotic surgical system in 2026. These new products may also contribute to growth in 2026.

In the first nine months of 2025, MedTech’s sales rose 5.3% on an operational basis to $25.0 billion.

J&J’s 2026 guidance signals more than optimism—it highlights a deliberate pivot toward innovation-led growth in both segments. With a strong pipeline and robust product launches, J&J seems prepared to deliver beyond the Street’s current expectations.

JNJ’s Price Performance, Valuation and Estimates

J&J’s shares have outperformed the industry year to date. The stock has risen 34.0% in the year-to-date period compared with a 5.1% increase in the industry.

From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 17.08 forward earnings, higher than 15.52 for the industry. The stock is also trading above its five-year mean of 15.64.

The Zacks Consensus Estimate for 2025 earnings has remained unchanged at $10.86 per share, while that for 2026 has risen from $11.38 to $11.46 over the past seven days.

J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research