Johnson & Johnson expects further growth in 2026 as Q4 earnings jump

21st Jan 2026 11:36

(Sharecast News) - American healthcare and medical device giant Johnson & Johnson matched analysts' estimates with its fourth-quarter results, as earnings jumped on the back of improved sales of cancer and autoimmune drugs.

The company also delivered better-than-expected guidance for the current financial year, but shares were lower in pre-market trading.

Sales totalled $24.6bn over the final three months of 2025, up 9.1% over the year before, with Innovative Medicine sales - which account for 64% of group sales - rising 10% to $15.8bn.

Innovative Medicine results were helped by a 24.8% surge in oncology sales to $6.8bn, with a standout performance from its best-selling multiple myeloma treatment Darzalex (+26.6% at $3.9bn).

That helped to mitigate the impact of a 8.9% decline in immonology sales to $3.9bn after the division's flagship skin and gut treatment Stelara lost patent protection last year, with sales dropping 47.7% to $1.23bn. That was slightly offset by a strong performance from autoimmune treatment Tremfya which saw a 67.6% jump in sales to $1.59bn.

Net earnings increased 49.1% to $5.12bn, while earnings per share surged to $2.10 from $1.41 previously. On an adjusted basis, EPS jumped 20.6% to $2.46, in line with analysts' forecasts.

"2025 was a catapult year for Johnson & Johnson, fuelled by the strongest portfolio and pipeline in our history," said chair and chief executive Joaquin Duato. He said 2025 kickstarted a "new era of accelerated growth", driven by medical innovation across the business.

Sales for the whole of 2025 rose 6.0% to $94.2bn, while adjusted net earnings increased 8.1% to $26.2bn, with adjusted EPS rising to $10.79 from $9.98.

Looking ahead, the company guided to sales rising 6.7% to $100.5bn at the mid-point of the guidance range, while adjusted EPS is expected to jump 6.9% to $11.53. Both targets were ahead of market forecasts.

JNJ futures were down 3.3% at $211.07 by 1321 GMT.