Johnson & Johnson Shares Fall Following Soft MedTech Sales and Earnings Dip
Johnson & Johnson (JNJ) shares dropped nearly 5.8% after the company delivered third-quarter 2026 revenue that slightly missed expectations. Although earnings exceeded forecasts, total revenue rose 5.9% to $25.4 billion, while adjusted earnings per share fell 7.5% to $2.59 due to costs associated with the Firefly Bio acquisition and a research partnership with Sail Biomedicines.
The decline was driven by sluggish performance in the MedTech division, where sales grew only 2.5% to $8.64 billion. MedTech results were hindered by a 2.3% sales drop at Abiomed following a U.K. trial involving Impella devices, along with procurement policies in China and Middle East disruptions. In the Innovative Medicine unit, sales of oncology drugs Darzalex, Erleada, and Imbruvica missed forecasts, while loss of exclusivity for Stelara trimmed segment growth by about 690 basis points.
Looking ahead, the company upgraded its full-year outlook and reaffirmed its target to top $100 billion in 2026 revenue, with $74.8 billion achieved through nine months. Management expects MedTech and Surgery performance to recover in the fourth quarter behind new product launches, laying the groundwork for stronger top-line growth in 2027 and potential double-digit expansion by decade's end.
Key points
- Johnson & Johnson (JNJ) stock dropped 5.8% after third-quarter 2026 sales missed forecasts, even as earnings topped expectations.
- MedTech segment sales grew just 2.5% to $8.64 billion, hindered by lower Abiomed procedure volumes and international headwinds.
- Adjusted earnings per share fell 7.5% to $2.59 as deal expenses for Firefly Bio and Sail Biomedicines squeezed margins.
- Management increased its full-year outlook and reiterated confidence in generating more than $100 billion in revenue for 2026.
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Why did Johnson & Johnson stock drop after Q3 2026 earnings?
J&J stock fell 5.8% because third-quarter revenue fell short of expectations due to sluggish MedTech growth, lower sales for key cancer drugs, and margin pressure from recent acquisition costs.
Did Johnson & Johnson beat third-quarter earnings expectations?
Yes, J&J beat adjusted earnings estimates despite a 7.5% decline in adjusted earnings per share to $2.59. Total sales grew 5.9% to $25.4 billion, slightly missing forecasts.
What is Johnson & Johnson's revenue outlook for 2026?
J&J raised its full-year guidance and expects to generate over $100 billion in revenue for 2026, having already reached $74.8 billion in sales during the first three quarters.