2026 guidance implies operational sales growth of 5.7%-6.7%, with midpoint of $100B.
Johnson & Johnson reported strong FY2025 results (revenue $94.2B, adj. EPS $10.79) and guided 2026 revenue growth of ~6% and EPS of $11.28-$11.48. Management emphasized a 'clean' growth story driven by 28 billion-dollar platforms, with line-of-sight to double-digit revenue growth by decade-end. Cross-company signals were limited to a partner mention (Bristol-Myers Squibb on milvexian) and a competitor mention (Bayer on factor XIa). MedTech tariffs of ~$500M were flagged as a rising cost headwind. FY2025 revenue $94.2B (+5.3% operational); adj. EPS $10.79 (+8.1%).
Buzzberg read2026 guidance implies operational sales growth of 5.7%-6.7%, with midpoint of $100B.Johnson & Johnson reported strong FY2025 results (revenue $94.2B, adj. EPS $10.79) and guided 2026 revenue growth of ~6% and EPS of $11.28-$11.48. Management emphasized a 'clean' growth story driven by 28 billion-dollar platforms, with line-of-sight to double-digit revenue growth by decade-end. Cross-company signals were limited to a partner mention (Bristol-Myers Squibb on milvexian) and a competitor mention (Bayer on factor XIa). MedTech tariffs of ~$500M were flagged as a rising cost headwind. FY2025 revenue $94.2B (+5.3% operational); adj. EPS $10.79 (+8.1%).Read full analysisCollapse analysis
Johnson & Johnson reported strong FY2025 results (revenue $94.2B, adj. EPS $10.79) and guided 2026 revenue growth of ~6% and EPS of $11.28-$11.48. Management emphasized a 'clean' growth story driven by 28 billion-dollar platforms, with line-of-sight to double-digit revenue growth by decade-end. Cross-company signals were limited to a partner mention (Bristol-Myers Squibb on milvexian) and a competitor mention (Bayer on factor XIa). MedTech tariffs of ~$500M were flagged as a rising cost headwind. FY2025 revenue $94.2B (+5.3% operational); adj. EPS $10.79 (+8.1%).
Management reiterated line-of-sight to double-digit revenue growth by 2029-2030, citing strength in 6 core areas (oncology, immunology, neuroscience, cardiovascular, surgery, vision).
MedTech tariffs seen rising to ~$500M in 2026 (~$150M in 2025); PFA market remains competitive with Varipulse gaining share but pressure from Medtronic/Boston Scientific.
Revenue$24.564B
+2% QoQ
EPS$2.46
-12% QoQ
Gross margin67.56%
reported
Op margin22.76%
reported
What changed this quarter
01
Guidance
2026 guidance implies operational sales growth of 5.7%-6.7%, with midpoint of $100B.
Guidance · revenue to $100B
02
Growth
Line of sight to double-digit growth by end of decade.
CARVYKTI now treating over 10,000 patients across 14 markets.
Management reiterated line-of-sight to double-digit revenue growth by 2029-2030, citing strength in 6 core areas (oncology, immunology, neuroscience, cardiovascular, surgery, vision).
Demand & capex
Demand
Bookings & conversion
Management projects accelerated revenue growth (5.7-6.7% operational) and line of sight to double-digit growth by end of decade, driven by a deep pipeline of recently launched products and a focus on high-growth core businesses.
Capex
Investment and capacity
Management stated they invested over $32 billion in R&D and M&A in 2025 and initiated billions of dollars in new state-of-the-art manufacturing facilities in the U.S. to accelerate delivery of next wave of innovation. Additionally, free cash flow is expected to elevate to approximately $21 billion in 2026.
Tone · Confident
Management repeatedly emphasized strong momentum, accelerating growth, and line of sight to double-digit growth by the end of the decade, reflecting a confident and upbeat tone.
Supply-chain alpha
A1
JNJ expects MedTech tariffs to nearly triple to ~$500M in 2026, creating a significant cost headwind that may pressure margins across the industry.
JNJ's EP business growth accelerated to 9.5% in Q4 driven by Varipulse, but competitive PFA pressures remain, indicating ongoing share battles in the pulsed-field ablation market.
“We saw continued acceleration in the markets that matter most, especially here in the U.S. and in Europe. You will have seen that in the fourth quarter, our growth accelerated to 9.5 percent.”
JNJ's partnership with BMS on milvexian (factor XIa inhibitor) may yield a $5B+ asset if pivotal data in AFib and secondary stroke are positive; JNJ's confidence in the collaboration suggests BMS shares development risk and upside.
“we're looking forward to this product that we're developing in collaboration with Bristol-Myers Squibb”
John ReedExecutive Vice President, Innovative Medicine Research and Development
And so on milvexin, we're expecting data readouts later this year for both secondary stroke as well as atrial fibrillation. We often get asked about atrial fibrillation because the competitor molecule had failed in that indication. And we cite a couple things. One is that milvexin, at least in vitro, is about 10 times more potent than the other molecule that is being developed by another company. And we know from monitoring the APTT biomarker, the thromboplasmin time, that we have very effective reductions in clotting at the dose that we have selected for atrial fibrillation, which is 100 milligrams twice a day. So we feel that we've got the right dose and the right study design. So we'll…
Management answer
Jennifer TalbotExecutive Vice President, Worldwide Chairman, Innovative Medicine
We're really excited about the opportunity with Milvexian. And what we're really looking to show there is clear superiority in terms of safety and bleeding risk. We know from all of our experience in the market with Xarelto that there are a lot of patients that are not treated or are undertreated. because of fear of safety risk. And so we think there's extraordinary need for highly efficacious and highly safe with low bleeding risk product in the market, both for atrial fibrillation and then we're very excited about the possibilities in secondary stroke as well. So we're looking forward to this product that we're developing in collaboration with Bristol-Myers Squibb. It is absolutely one of our $5 billion plus assets on our list.
JNJ's EP business growth accelerated to 9.5% in Q4 driven by Varipulse, but competitive PFA pressures remain, indicating ongoing share battles in the pulsed-field ablation market. — Varipulse adoption (40k+ cases) shows JNJ is regaining EP share, but 'competitive pressures' signal Medtronic and Boston Scientific are not ceding ground; a multi-year battle for PFA leadership is underway.
Joe WolkExecutive Vice President and Chief Financial Officer
… In 2026, we expect to drive continued operating efficiencies, the majority of which we plan to invest in our business to power our new product launches and pipeline with heavier investment at the outset of the year. Despite that increased investment, we are planning for our 2026 adjusted pre-tax operating margin to improve by at least 50 basis points. Our pre-tax operating margin guidance takes into account the costs from the 53rd week of operations and full-year MedTech tariffs of approximately $500 million, which is significantly above the 2025 amount. It also includes the impact of the recently announced voluntary agreement with the U.S. government to improve access to medicines and lower costs to U.S. patients. We expect net interest expense between $300 million and $400 million. We anticipate net other income to be $1 to $1.2 billion for 2026, relatively flat to last year. Finally, we are projecting an effective tax rate in the range of 17.5% to 18.5%, with the increase largely due to a mixed change with income in higher tax jurisdictions. Turning to adjusted operational earnings per share, we expect growth of 5.5% at the midpoint for a range of $11.28 to $11.48. By …
Joe WolkExecutive Vice President and Chief Financial Officer
… In 2026, we expect to drive continued operating efficiencies, the majority of which we plan to invest in our business to power our new product launches and pipeline with heavier investment at the outset of the year. Despite that increased investment, we are planning for our 2026 adjusted pre-tax operating margin to improve by at least 50 basis points. Our pre-tax operating margin guidance takes into account the costs from the 53rd week of operations and full-year MedTech tariffs of approximately $500 million, which is significantly above the 2025 amount. It also includes the impact of the recently announced voluntary agreement with the U.S. government to improve access to medicines and lower costs to U.S. patients. We expect net interest expense between $300 million and $400 million. We anticipate net other income to be $1 to $1.2 billion for 2026, relatively flat to last year. Finally, we are projecting an effective tax rate in the range of 17.5% to 18.5%, with the increase largely due to a mixed change with income in higher tax jurisdictions. Turning to adjusted operational earnings per share, we expect growth of 5.5% at the midpoint for a range of $11.28 to $11.48. By …
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