Key Takeaways for Johnson & Johnson Stock
- Johnson & Johnson’s revenue rose 7% year over year to $25.31 billion in the most recent quarter.
- Operating income grew 8% year over year, reaching $7.24 billion in the same quarter.
- TIKR’s model values Johnson & Johnson stock at approximately $335 by December 2030.
Johnson & Johnson Stock Climbs as Q2 Beat Overcomes STELARA Headwind
Johnson & Johnson (JNJ) delivered operational sales growth of 6% in the second quarter of fiscal 2026, even as a steep decline in its older immunology drug STELARA weighed on the results. Chief Executive Officer Joaquin Duato said the company’s newer launches offset that headwind so effectively that growth excluding STELARA reached double digits for the quarter.
STELARA, once a leading treatment for psoriasis and other immune conditions, has been losing patients to lower-cost biosimilar copies since its patent protection expired. That erosion cut into total sales, yet Johnson & Johnson still posted revenue of $25.31 billion for the quarter, its highest quarterly total on record.
On the earnings call, Duato addressed the quarter’s significance directly on Q2 earnings call: “We said 2026 would be a year of accelerated growth and impact for Johnson & Johnson, and with our Q2 beat on the top and bottom line and raised guidance, we are delivering.” That guidance raise reflected confidence that the company’s new drug launches, not STELARA, would carry momentum into the second half of the year.
Executives pointed to ICOTYDE, a new oral psoriasis treatment, and TREMFYA, an injectable therapy for inflammatory bowel disease, as the launches now carrying the growth STELARA once provided.
TREMFYA’s sales grew 71% in the quarter. That marked the drug’s first quarter above $2 billion, cementing it as the company’s newest blockbuster franchise.
In the immunology franchise specifically, ICOTYDE’s early results underscored why executives see it as a genuine STELARA replacement rather than a smaller follow-on drug. Executive Vice President Jennifer Taubert said patients treated with ICOTYDE topped 10,000 within months of launch. She added that more than 6,000 unique prescribers had already written prescriptions, a sign of rapid adoption beyond dermatology specialists.
The real significance of the quarter is that Johnson & Johnson’s new launches proved capable of outrunning a patent cliff rather than merely offsetting it, which is the dynamic now repricing the stock.
Operating Income Is Finally Outrunning Revenue Again
Johnson & Johnson’s operating income climbed 8% year over year in the most recent quarter, extending a recovery that began after consecutive quarters of double-digit declines the prior year.
Revenue grew 7% year over year in the same quarter, meaning operating income expanded faster than sales for the second straight period.
That leverage lifted the operating margin to 29%, roughly back to where it stood before the STELARA-driven decline began.
Selling, general and administrative expenses reached $6.42 billion in the quarter as the company funded its newest product launches.
Gross margin held at 68%, showing the SG&A increase reflects growth investment rather than pricing pressure on existing products.
TIKR’s $335 Target on Johnson & Johnson Stock Holds: If Launch-Driven Leverage Continues
TIKR’s model values Johnson & Johnson at approximately $335 by December 2030, implying around 34% total return from the current price of $251, or roughly 7% per year.
That target depends on the operating leverage already visible in the income statement, where operating income is growing faster than revenue as new launches scale.
If gross margin stays near current levels while SG&A investment moderates once launches mature, operating income has room to keep compounding toward the earnings power TIKR’s target implies.
The condition that has to hold is straightforward: STELARA’s decline needs to keep shrinking as a share of the business while operating margin continues its recovery toward prior peak levels.
Should You Invest in Johnson & Johnson?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Johnson & Johnson stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Johnson & Johnson alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Access Professional Tools to Analyze JNJ stock on TIKR for Free →
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
