J&J lifts 2026 outlook as Q2 sales rise 6.6% to $25.31B
Johnson & Johnson raised its full-year 2026 guidance after reporting a 6.6% increase in second-quarter sales to $25.31 billion, driven by robust operational performance. The company now targets annual revenue exceeding $100 billion, with adjusted EPS projected to reach $11.68 at the midpoint. RBC Capital Markets maintained an Outperform rating, citing strong Innovative Medicine momentum and ex-Stelara growth of more than 14%.
*this image is generated using AI for illustrative purposes only.
Johnson & Johnson raised its full-year 2026 guidance after reporting a 6.6% increase in second-quarter sales to $25.31 billion, driven by robust operational performance across its Innovative Medicine and MedTech segments. The company now targets annual revenue exceeding $100 billion for the first time in its 140-year history, with adjusted EPS projected to reach $11.68 at the midpoint. RBC Capital Markets maintained an Outperform rating and a price target of $287, noting that Innovative Medicine momentum is building into 2027 with ex-Stelara growth of more than 14% year-on-year.
Q2 2026 Financial Highlights
Worldwide reported sales increased to $25.31 billion from $23.74 billion in the prior-year period. Operational sales growth, excluding translational currency impact, was 5.6%. Adjusted net earnings rose 5.7% to $7.08 billion, while adjusted diluted EPS increased 4.7% to $2.90. Free cash flow for the year-to-date period was estimated at approximately $8.7 billion.
| Metric | Q2 2026 | Q2 2025 | % Change |
|---|---|---|---|
| Reported Sales | $25,310M | $23,743M | +6.6% |
| Net Earnings (GAAP) | $5,534M | $5,537M | -0.1% |
| EPS Diluted (GAAP) | $2.27 | $2.29 | -0.9% |
| Adjusted Net Earnings | $7,081M | $6,699M | +5.7% |
| Adjusted EPS Diluted | $2.90 | $2.77 | +4.7% |
| Free Cash Flow (YTD est.) | ~$8,700M | $6,214M | — |
Segment Performance
The Innovative Medicine segment posted sales of $16.38 billion, up 7.8% reported and 6.8% operational. Growth was led by DARZALEX, CARVYKTI, and TREMFYA, partially offset by headwinds from STELARA and REMICADE. The MedTech segment reported sales of $8.93 billion, up 4.5% reported and 3.6% operational, driven by wound closure, electrophysiology, and contact lenses.
| Segment | Q2 2026 Sales | Q2 2025 Sales | Reported Change | Operational Change |
|---|---|---|---|---|
| Innovative Medicine | $16,384M | $15,202M | +7.8% | +6.8% |
| MedTech | $8,926M | $8,541M | +4.5% | +3.6% |
| Worldwide Total | $25,310M | $23,743M | +6.6% | +5.6% |
Raised Full-Year 2026 Guidance
Johnson & Johnson increased its full-year 2026 guidance for reported sales to a range of $100.8 billion to $101.4 billion, with a midpoint of $101.1 billion. Adjusted EPS guidance was raised to $11.60 to $11.75, with a midpoint of $11.68, compared to the previous range of $11.45 to $11.65.
| Metric | July 2026 Guidance | April 2026 Guidance |
|---|---|---|
| Reported Sales (midpoint) | $100.8B–$101.4B / $101.1B | $100.3B–$101.3B / $100.8B |
| Operational Sales (midpoint) | $100.3B–$100.9B / $100.6B | $99.7B–$100.7B / $100.2B |
| Adjusted EPS Diluted (midpoint) | $11.60–$11.75 / $11.68 | $11.45–$11.65 / $11.55 |
How will Johnson & Johnson manage the anticipated revenue gap as STELARA faces biosimilar competition in the coming years?
What specific pipeline candidates are expected to drive the projected 14% ex-Stelara growth in Innovative Medicine by 2027?
Will the strong MedTech performance in electrophysiology and wound closure lead to increased M&A activity or R&D investment in those areas?
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