TLDR
- JNJ reports Q2 earnings on July 15; Wall Street expects EPS of $2.86 and revenue of $25.02 billion
- The stock is up 25.6% year-to-date, outperforming its industry peers
- Options traders are pricing in a 3.65% move in either direction post-earnings
- Darzalex, Tremfya, and Erleada are expected to be key revenue drivers; Stelara sales are expected to decline due to biosimilar competition
- Analysts hold a Moderate Buy consensus with a price target of $273.21, implying roughly 6% upside
Johnson & Johnson reports second-quarter 2026 earnings on July 15, kicking off earnings season for the drug and biotech sector.
JNJ stock is trading at around $258, up 25.6% year-to-date. Options traders expect a move of 3.65% in either direction following the report.
Wall Street is looking for earnings per share of $2.86, up from $2.77 in Q2 2025. Revenue estimates sit at $25.02 billion, compared to $23.74 billion a year ago.
JNJ has beaten earnings expectations in each of the last four quarters, delivering an average earnings surprise of 1.89%. Its Earnings ESP of +2.08% points to another likely beat.
Innovative Medicine Segment in Focus
The Innovative Medicine segment is expected to report revenue of $16.16 billion. Darzalex is forecast at $4.16 billion, Tremfya at $1.85 billion, and Erleada at $1.05 billion.
Newer drugs including Carvykti, Tecvayli, and Rybrevant are also expected to contribute to growth. Inlexzo, J&J’s bladder cancer therapy, received a permanent reimbursement code in April, which should have lifted Q2 sales above the $30 million it posted in Q1.
Stelara remains a drag. Multiple biosimilars launched in 2025, and the drug’s loss of exclusivity hit the Innovative Medicine segment by 9.2% in Q1. Analysts expect the impact to be steeper in Q2. The Zacks estimate for Stelara sales stands at $654 million.
Imbruvica is also expected to see continued pressure due to new oral competition in the U.S., with estimates at $630 million.
MedTech Momentum, With One Caveat
J&J’s MedTech segment is forecast at $8.96 billion. Cardiovascular, Surgery, and Vision remain the three growth pillars, supported by new product adoption.
The segment continues to face headwinds in China, where the government’s volume-based procurement program is pressuring sales. That’s expected to weigh on China revenue again in Q2.
From a valuation standpoint, JNJ trades at 21.17 times forward earnings, above the industry average of 18.49 and its own five-year mean of 15.65.
RBC Capital’s Shagun Singh Chadha raised her price target to $287 from $265, keeping an Outperform rating. She cited stable procedure volumes and healthy demand across end markets.
TD Cowen’s Michael Nedelcovych went further, lifting his target to $300 from $250 with a Buy rating. BofA’s Jason Gerberry raised his target to $263 from $254, highlighting durable growth drivers in high-quality pharma names.
The TipRanks consensus is Moderate Buy, based on 11 Buy and 4 Hold ratings. The consensus price target is $273.21.
J&J also faces ongoing legal exposure from its talc lawsuits, and upcoming patent expirations for Opsumit and Simponi add to longer-term watch items for investors.
The company has guided for around $100 billion in revenue for 2026, with a target of double-digit growth by end of the decade.
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