JNJ vs. AZN: Which Drug Stock Comes Out on Top for Investors?

By Kinjel Shah | January 06, 2026, 11:51 AM

Johnson & Johnson JNJ and AstraZeneca AZN rank among the world’s largest pharmaceutical companies, each with a broad and diversified healthcare portfolio. Both companies have a strong presence in oncology. Other than that, J&J also has drugs for immunology, neuroscience, cardiovascular and metabolic diseases, pulmonary hypertension and infectious diseases, along with a strong presence in the medical devices segment.

For AstraZeneca, oncology sales now comprise around 43% of total revenues and rose 16% in the first nine months of 2025. AstraZeneca also has a solid presence in immunology, rare diseases, vaccines, as well as cardiovascular and respiratory.

Both firms face looming patent expirations and headwinds from Medicare Part D redesign. But which one is a better investment option today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.

The Case for J&J

J&J’s biggest strength is its diversified business model, as it has not just pharmaceuticals, but also medical devices, which help it to withstand economic cycles more effectively. It operates through more than 275 subsidiaries and is less reliant on a single blockbuster drug.

The company recorded a strong operational performance in 2025, backed by double-digit growth in revenues from key brands and contributions from new launches.

J&J’s Innovative Medicine unit is showing a growth trend. Sales of the Innovative Medicine unit rose 3.4% in the first nine months of 2025 on an organic basis despite the loss of exclusivity (LOE) of its multi-billion-dollar product, Stelara, and the negative impact of the Part D redesign. Growth is being driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.

J&J’s MedTech business has improved in the past two quarters, driven by the acquired cardiovascular businesses, Abiomed and Shockwave, as well as Surgical Vision and wound closure in Surgery. Improvements in J&J’s electrophysiology business also drove growth.

Moreover, the potential separation of its Orthopaedics franchise into a standalone orthopedics-focused company, called DePuy Synthes, should improve its MedTech unit’s growth and margins. The Orthopaedics franchise has been a slow-growth business for J&J.

However, the company continues to face headwinds in MedTech China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program. VBP policy is an initiative by the Chinese government to lower the prices of pharmaceuticals and medical devices by awarding large contracts to the lowest bidder. J&J expects continued impacts from VBP issues in China as the program continues to expand across provinces and products.

In 2026, J&J expects accelerated growth in both the Innovative Medicine and MedTech segments.

J&J has rapidly advanced its pipeline this year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. This year, it gained approval for new products like Inlexzoh/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for treating generalized myasthenia gravis. J&J believes that nipocalimab has a pipeline-in-a-product potential. Regulatory applications were recently filed for another key candidate, icotrokinra, for moderate-to-severe plaque psoriasis. J&J believes that icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-a-day pill.

J&J believes 10 of its new products/pipeline candidates in the Innovative Medicine segment have the potential to deliver peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, Caplyta, Inlexzo, Rybrevant, plus Lazcluze and icotrokinra.

However, the Stelara patent cliff, the impact of Part D redesign, slowing sales in China in the MedTech segment and the pending talc lawsuits are significant headwinds.

The Case for AstraZeneca

AstraZeneca has several blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza, Calquence and Ultomiris. These drugs are driving the company’s top line, backed by increasing demand trends. Almost every new product that has been launched in recent years has done well.

Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap contributed to top-line growth in 2025, more than offsetting the loss of exclusivity of some mature brands like Brilinta, Pulmicort and Soliris. The rare disease business is also showing some improving trends.

Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate $80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.

AstraZeneca faces its share of challenges, like the impact of Part D redesign on U.S. oncology sales and ongoing investigations at its China subsidiary. Generic/biosimilar competition in the United States and Europe is hurting sales of key drugs like Brilinta, Soliris and Farxiga. Generic versions of Brilinta were launched in the United States in 2025. Biosimilar versions of Soliris were launched in the United States in March 2025.

AstraZeneca expects fourth-quarter revenues of Farxiga and Lynparza to be affected by VBP-associated stock compensation costs and year-end hospital budget capping in China. Tender order variability in emerging markets is also expected to hurt fourth-quarter revenues.

How Do Estimates Compare for JNJ & AZN?

The Zacks Consensus Estimate for J&J’s 2026 sales and EPS implies a year-over-year increase of 4.97% and 5.74%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $11.47 per share to $11.49 over the past 60 days.