Johnson & Johnson Raises 2026 Outlook After Third-Quarter Earnings Beat
Johnson & Johnson (JNJ) reported third-quarter adjusted earnings of $2.59 per share, exceeding analyst estimates by $0.06. Revenue rose 5.9% year over year to $25.4 billion, matching expectations. Following the quarterly results, the healthcare giant raised its full-year 2026 sales and adjusted profit forecasts. Shares traded down 1.4% in premarket action despite the raised guidance.
Growth was led by the Innovative Medicine division, where operational sales climbed 7.9%. Strong demand for immunology treatments like Tremfya and a 66% sales jump for psychiatric drug Caplyta helped offset a softer performance from top seller Darzalex, which grew double digits but missed analyst expectations. Meanwhile, reported earnings dropped to $0.09 per share due to special charges, including a proposed $5.5 billion settlement to resolve long-standing talc litigation.
Investors will closely monitor whether talc claimants accept the proposed $5.5 billion settlement agreement, which includes an initial payment of up to $3 billion scheduled for 2027. Market participants will also track the integration of recent transactions, including the acquisition of Firefly Bio and a strategic collaboration with Sail Biomedicines, alongside JNJ's target of exceeding $100 billion in full-year sales.
Key points
- Third-quarter adjusted earnings reached $2.59 per share on $25.4 billion in revenue, topping profit expectations.
- Full-year 2026 adjusted EPS guidance was raised to $11.05-$11.15, with revenue projected between $101.0 billion and $101.4 billion.
- Innovative Medicine sales grew 7.9% operationally, boosted by strong sales of Caplyta and Tecvayli.
- Reported EPS was $0.09 due to special charges for a proposed $5.5 billion talc litigation settlement.
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What were Johnson & Johnson's Q3 2026 earnings?
Johnson & Johnson reported Q3 adjusted earnings of $2.59 per share on $25.4 billion in revenue. Adjusted EPS beat analyst estimates by $0.06, while revenue grew 5.9% year over year and matched expectations.
Why did J&J's reported earnings drop in Q3?
Reported EPS fell to $0.09 due to special charges, primarily reflecting a proposed $5.5 billion settlement for talc litigation, as well as costs tied to acquiring Firefly Bio and collaborating with Sail Biomedicines.
What is Johnson & Johnson's updated full-year forecast?
The company raised its 2026 adjusted EPS target to a range of $11.05 to $11.15 per share and increased its full-year sales guidance to between $101.0 billion and $101.4 billion.