Johnson & Johnson (NYSE:JNJ) reported stronger-than-expected second-quarter results and raised its full-year earnings outlook, although the healthcare company’s shares slipped around 1 percent in premarket trading on Wednesday.
Earnings and revenue beat expectations
The company posted adjusted earnings per share of 2.90 dollars, exceeding the analyst consensus forecast of 2.86 dollars.
Revenue rose to 25.31 billion dollars, ahead of expectations of 25.02 billion dollars and up 6.6 percent from 23.74 billion dollars in the same period last year.
Johnson & Johnson also increased its full-year 2026 adjusted earnings guidance to between 11.60 dollars and 11.75 dollars per share. The midpoint of 11.68 dollars is above analysts’ consensus estimate of 11.58 dollars.
The company expects full-year revenue of between 100.8 billion dollars and 101.4 billion dollars, with the midpoint of 101.1 billion dollars slightly exceeding market expectations.
Innovative Medicine continues to drive growth
Chairman and Chief Executive Officer Joaquin Duato said:
“Johnson & Johnson delivered strong second-quarter results, demonstrating the power of our innovation, the depth of our portfolio and the momentum in our pipeline as we advance transformative treatments that address the world’s toughest health challenges.”
The Innovative Medicine division remained the company’s primary growth engine, with worldwide operational sales increasing 6.8 percent.
Strong demand for oncology treatments DARZALEX, CARVYKTI, TECVAYLI and RYBREVANT supported performance, alongside continued growth from immunology drug TREMFYA and neuroscience therapies SPRAVATO and CAPLYTA.
These gains were partially offset by lower sales of STELARA and REMICADE.
MedTech and international markets contribute
The MedTech business delivered operational sales growth of 3.6 percent, driven by wound closure products, biosurgery, electrophysiology and the Shockwave portfolio.
Sales in the United States increased 7.3 percent to 14.53 billion dollars, while international revenue rose 5.7 percent to 10.78 billion dollars.
On a GAAP basis, earnings per share were 2.27 dollars compared with 2.29 dollars a year earlier.
Cash generation remains strong
Johnson & Johnson generated approximately 8.7 billion dollars in free cash flow during the year to date, highlighting the company’s continued ability to support investment, dividends and shareholder returns.
Despite the earnings beat and higher guidance, the stock edged lower in premarket trading as investors assessed the results following recent gains in the shares.
