Johnson & Johnson

Johnson & Johnson reported new late-stage data showing that Caplyta improved sexual functioning among depression patients, adding a potentially important commercial argument for the drug. More than 80% of the study's 480 participants entered the trial reporting sexual dysfunction, and patients receiving 42 milligrams of Caplyta alongside their existing antidepressants recorded statistically significant improvements versus placebo across measures including desire, arousal, orgasm and pleasure. Caplyta already carries approvals for schizophrenia, bipolar depression and adjunctive treatment of major depressive disorder, so better tolerability could give J&J another lever to differentiate the drug in a crowded psychiatric market. J&J picked up Caplyta through its $14.6 billion acquisition of Intra-Cellular Therapies, a sizable bet equal to roughly 57.7% of the company's latest $25.3 billion in quarterly sales. J&J shares were roughly flat, slipping about 0.1% to $266.965, while the stock trades 38.04% above the $193.40 GF Value estimate.

Apollo Global Management is reportedly in talks to acquire Johnson & Johnson's DePuy Synthes orthopedics business in a transaction that could value the unit at close to $20 billion, according to Bloomberg, as reported by Reuters. J&J generated $9.3 billion of revenue from the orthopedics business in 2025, making the potential deal material for both companies, and discussions could reach an agreement within weeks, though J&J is also considering a public-market spin-off. The talks are consistent with J&J's October 2025 decision to separate DePuy Synthes within an expected 18-to-24-month timeframe and shift its MedTech portfolio toward higher-growth, higher-margin businesses. For Apollo, the roughly $20 billion valuation against $9.3 billion of 2025 revenue implies a price-to-sales multiple of about 2.2x, and the firm had approximately $1.05 trillion of assets under management as of June 30, 2026, including $198 billion in equity strategies and $849 billion in credit strategies. The principal risk for Apollo is paying a full valuation for a business J&J itself has been restructuring, with $307 million of restructuring expense in 2025 following $167 million in 2024 and $319 million in 2023, and Reuters reported that DePuy Synthes faces lawsuits related to its hip-replacement devices.

Johnson & Johnson announced new Phase 2b COPERNICUS study results showing low rates of treatment-related events for subcutaneous RYBREVANT FASPRO plus LAZCLUZE with prophylactic strategies in previously untreated advanced EGFR-mutated non-small cell lung cancer. In the analysis of 214 U.S. patients at a median follow-up of 8.3 months, rash was reported in 25 percent of patients, while administration-related reactions and venous thromboembolism were each reported in three percent, and only eight percent discontinued treatment due to adverse events. These rates are numerically lower than those seen with intravenous RYBREVANT plus LAZCLUZE in the Phase 3 MARIPOSA study, where rash, administration-related reactions and venous thromboembolism during the first four months were reported in 55 percent, 55 percent and 23 percent of patients, respectively. COPERNICUS is one of the largest global studies in EGFR-mutated NSCLC, with a target enrollment of 300 previously untreated patients; the reported population had a median age of 67 years, with 27 percent Asian, 10 percent African American and 10 percent Hispanic or Latino. The data were presented at the IASLC 2026 World Conference on Lung Cancer in Seoul.

Johnson & Johnson said it remains on track to grow through biosimilar competition for STELARA and expects its medicines, medical devices and pipeline to support accelerating growth through the end of the decade. Speaking at a Morgan Stanley event, Chief Executive Officer and Chairman Joaquin Duato said the company's current guidance calls for 6.5% adjusted operational sales growth and 7.3% adjusted earnings-per-share growth in 2026, with total revenue expected to exceed $100 billion for the first time. Duato said 2027 should be a better year than 2026 and that the company has line of sight to double-digit growth by the end of the decade, with more detail to come at an enterprise business review in early December. John Reed, executive vice president of Innovative Medicine and R&D, said Johnson & Johnson has 12 molecules that have achieved proof of concept and are in Phase III development, and that beyond DARZALEX it has 10 marketed medicines still early in their product life cycles. Capital allocation priorities center on launches such as ICOTYDE, INLEXZO, RYBREVANT, IMAAVY and the OTTAVA robotic surgical system, plus pipeline funding and earlier-stage business development, including the recent acquisitions of Halda Therapeutics and Firefly Bio and a collaboration with an option to acquire Sail. Duato said the company can reach double-digit growth this decade without acquisitions but views M&A as a way to reinforce growth into the following decade.

Johnson & Johnson announced that first-line intravenous RYBREVANT (amivantamab-vmjw) plus carboplatin-pemetrexed chemotherapy achieved the longest reported median overall survival in patients with advanced non-small cell lung cancer with EGFR exon 20 insertion mutations, according to the final overall survival analysis of the Phase 3 PAPILLON study. Patients treated with the combination reached a median overall survival of nearly three years, or 34.3 months, compared with 27.9 months for chemotherapy alone, extending median overall survival by more than six months despite 76 percent of eligible patients in the chemotherapy arm crossing over to second-line RYBREVANT after disease progression. A prespecified analysis accounting for that crossover showed a significant overall survival benefit with the combination, reducing the risk of death by 43 percent, with a hazard ratio of 0.57 and a nominal P value of 0.003. The results, presented during the Presidential Symposium at the IASLC 2026 World Conference on Lung Cancer in Seoul, mark significant progress for a patient population with a historical five-year survival rate of just 8 percent. RYBREVANT is a first-in-class bispecific antibody designed to dual-target EGFR and MET, and it is currently approved for EGFR-mutated advanced NSCLC across common and exon 20 insertion mutations in the first- and second-line settings.

Johnson & Johnson has received CE Marking for ACUVUE OASYS MAX 2-Week, a new reusable contact lens that brings the company's advanced MAX technologies to the reusable segment of its ACUVUE OASYS MAX portfolio. The lens will be rolled out in select European countries later this year, with wider market expansion planned throughout 2027 and 2028, subject to local regulatory approvals and market readiness. The product features an OptiBlue Light Filter that filters at least 60% of blue-violet light, the highest among reusable contact lenses, along with TearStable Technology and Class 1 UV blocking in each lens. In clinical testing, 99% of subjects wearing ACUVUE OASYS 2-Week were successfully refit into ACUVUE OASYS MAX 2-Week with the same power, base curve and diameter. Globally, 140 million people wear contact lenses, with one in two choosing a reusable lens, and the company said comfort remains their leading priority. The lens has received CE Marking for European markets but is not approved by the U.S. Food and Drug Administration and is not available for sale in the United States at this time.

Johnson & Johnson MedTech Chairman Tim Schmid said the company remains confident it is delivering growth at the high end of its previously stated 5% to 7% operational market-growth range for 2022 through 2027, citing a portfolio shift toward cardiovascular products and continued investment in differentiated technologies. Speaking at a Wells Fargo fireside chat, Schmid said the planned separation of the orthopedics business is expected around mid-2027, with greater clarity on the method before year-end. Cardiovascular, which Schmid called the largest and fastest-growing MedTech market, is expected to become Johnson & Johnson's largest and fastest-growing MedTech business by the first quarter of next year, driven by the Abiomed and Shockwave acquisitions and its electrophysiology operations. Schmid acknowledged competitive pressure in EP, especially outside the U.S., and said China's volume-based procurement could affect the EP market later this year and into 2027. He also noted that feedback on the FDA-approved OTTAVA surgical robot has been resoundingly positive, with pilot sites being selected and details expected at the Dec. 8 Investor Day, and that the company remains confident it can meet the guidance it raised in July.

Johnson & Johnson announced that 24 abstracts featuring clinical data and real-world evidence across its neuropsychiatry portfolio will be presented at the 2026 Psych Congress Annual Meeting in New Orleans from September 15-19. Among the highlights are the first presentation of pivotal Phase 3 data for CAPLYTA in adults with bipolar mania, along with additional CAPLYTA data in bipolar depression and major depressive disorder, and new analyses of SPRAVATO on anhedonia. The company will also present Phase 3 data for seltorexant in major depressive disorder with insomnia symptoms, and real-world studies on its long-acting injectables for schizophrenia. Jane Tiller, Vice President and Global Head of Development for Neuroscience at Johnson & Johnson, emphasized the company's commitment to advancing research in areas where patients and clinicians face significant treatment challenges.

DelveInsight projects the ulcerative colitis market across the seven major markets—the US, EU4, UK, and Japan—will grow from approximately USD 9.4 billion in 2025 at a CAGR of 7.6% through 2036, driven by novel targeted therapies and a robust pipeline of late-stage candidates. Among these, Abivax's obefazimod, a first-in-class oral miR-124 enhancer, met its primary endpoint in Phase III ABTECT induction studies, with a pooled placebo-adjusted clinical remission rate of 16.4% at Week 8. Merck's tulisokibart, acquired via Prometheus Biosciences, achieved clinical remission in the Phase 3 ATLAS-UC study, while Roche's afimkibart, from its $7.1 billion Telavant acquisition, showed a 35% remission rate in Phase IIb TUSCANY-2. Johnson & Johnson and Protagonist Therapeutics' icotrokinra, a first-in-class oral IL-23 receptor antagonist, met its primary endpoint in the Phase 2b ANTHEM-UC trial, and Teva and Sanofi's duvakitug, backed by a $400 million Blackstone funding deal, is in Phase III. These therapies target unmet needs in moderate-to-severe disease, with the market shifting toward IL-23 inhibitors and oral advanced therapies, though biosimilars and established anti-TNFs remain widely used.

A new report from ResearchAndMarkets.com projects the global surgical robots market will grow from USD 10.6 billion in 2026 to USD 22.9 billion by 2035, a compound annual growth rate of about 8.9%. The expansion is driven by demand for minimally invasive surgery, AI integration, and compact systems that lower capital costs. North America is expected to lead the market, while Asia-Pacific is forecast to see the fastest growth. Key players include Intuitive Surgical, Medtronic, Johnson & Johnson, and Stryker. Recent developments include Medtronic's FDA clearance for its Hugo system in urology and a partnership between Ronovo Surgical and Johnson & Johnson Medical Shanghai.

Protagonist Therapeutics reported second-quarter 2026 results that flipped the company from a loss to a $162.8 million profit, or $2.29 per diluted share, compared with a $34.8 million loss a year earlier. The swing came as the company banked payments tied to two drugs: ICOTYDE, an oral psoriasis treatment, and rusfertide, an injectable awaiting an FDA decision. ICOTYDE, approved on March 18, triggered a $50 million milestone payment from partner Johnson & Johnson, with up to $580 million more in milestones and royalties averaging around 7.25 percent at $4 billion in annual sales. Rusfertide, under Priority Review with a PDUFA date in August, has already brought in $200 million from partner Takeda, with another $200 million and a $75 million approval milestone due, plus royalties up to 29 percent of sales above $1.5 billion. However, $192.4 million of the $213.5 million in license and collaboration revenue came from recognizing Takeda's opt-out payment, not repeatable product sales, and management expects R&D costs to rise significantly in the second half of 2026. Cash and marketable securities stood at $849.5 million, with short interest at 13.99 percent of float and a forward P/E of 36.90 as of September 4.

Johnson & Johnson has struck a deal to collaborate with Sail Biomedicines to develop in vivo CAR-T therapies for immune-mediated diseases, paying $785 million upfront and up to $140 million in milestones, with an option to acquire Sail for $2.58 billion. The global CAR-T therapy market is projected to grow from $2.69 billion in 2022 to $35.9 billion by 2032, a compound annual growth rate of 28.5%. Johnson already markets Carvykti for multiple myeloma, while Bristol-Myers Squibb's Breyanzi franchise targets B-cell lymphomas and leukemias. At the end of the second quarter, 117 hedge funds held Johnson stock, up from 113, while Bristol was held by 74, down from 83. Johnson's short interest stands at 0.90% of float, compared with 2.25% for Bristol.

The US FDA has expanded the use of Johnson & Johnson's Stelara (ustekinumab) to pediatric patients two years and older with moderately to severely active ulcerative colitis. Approval was based on study data on Stelara in ulcerative colitis in adults, pharmacokinetic and safety data from pediatric patients between two and 17 years old, and additional data from a 52-week study in 112 pediatric patients between 3 and 17 years old with the condition. Johnson & Johnson received Orphan Drug designation in the indication. In April, the FDA approved Stelara for Crohn's disease in the same age group.

U.S. pharmaceutical giant Johnson & Johnson (J&J) announced on the 27th that Chinese drug regulators have approved its oral psoriasis treatment Icotide. China has more than 8.4 million psoriasis patients, and in this market, J&J's Tremfya, Bristol-Myers Squibb's Sotyktu, and AbbVie's Skyrizi are among the competitors. Analysts point out that Icotide, as a once-daily oral medication, could become a blockbuster and take market share from injectables. Icotide is approved for the treatment of moderate to severe plaque psoriasis, and Chinese companies such as InnoCare Pharma and Takeda are also developing oral treatments.

The U.S. FDA has approved Bristol-Myers Squibb's oral blood-cancer drug iberdomide, sold as Zenbexus, for patients with relapsed or refractory multiple myeloma, given with Johnson & Johnson's Darzalex and dexamethasone. The approval adds a potential growth driver to BMY's oncology portfolio, supported by late-stage data showing improved minimal residual disease rates versus standard therapy. Zenbexus has a list price of $29,500 for a 28-day cycle, and about 36,000 new U.S. cases are expected this year. However, the drug received accelerated approval, requiring confirmatory trials, and carries a boxed warning for embryo-fetal toxicity, distributed through a restricted program. Competition in multiple myeloma remains intense, so Zenbexus may build into a growth driver over time rather than an immediate game changer.

The global atrial fibrillation treatment devices market is projected to grow from USD 9.6 billion in 2026 to USD 29.0 billion by 2035, at a compound annual growth rate of 13.1%, according to a new report from ResearchAndMarkets.com. The market expansion is driven by the rising prevalence of atrial fibrillation, an aging population, and increasing adoption of advanced ablation and left atrial appendage closure technologies. Ablation catheters are expected to account for approximately 75% of market revenue, while the left atrial appendage closure segment is projected to grow at a CAGR of 13.4%, the fastest among device types. Pulsed field ablation is forecast to generate more than 60% of total market revenue by 2035. North America is projected to retain close to 50% of global revenue, while Asia-Pacific is expected to register the fastest regional growth. Key players include Abbott, AtriCure, Boston Scientific, Johnson & Johnson, and Medtronic.

Johnson & Johnson announced that the FDA has approved Imaavy, also known as nipocalimab-aahu, for the treatment of warm autoimmune hemolytic anemia in adults and pediatric patients aged 12 years and above who are currently or have been previously treated with corticosteroids. The approval makes Imaavy the first FDA-approved treatment specifically indicated for wAIHA, a rare and potentially life-threatening autoimmune disease in which autoantibodies attack and destroy red blood cells, resulting in severe anemia and debilitating fatigue. The approval was based on data from the pivotal phase II/III ENERGY study, which showed that patients receiving the approved 30 mg/kg dose achieved a significantly higher rate of durable hemoglobin response compared with placebo, with approximately three times as many patients achieving durable hemoglobin levels by week 24. Imaavy also demonstrated a rapid treatment effect, with a mean hemoglobin increase of 1 g/dL as early as week 1, and patients treated with Imaavy showed a 3.5-point greater mean improvement in FACIT-Fatigue scores at week 24 compared with placebo. The latest approval marks an important milestone for J&J's immunology portfolio and provides Imaavy with an additional commercial opportunity beyond its existing use in generalized myasthenia gravis, for which it was approved in April 2025 in the U.S. and in December 2025 in the EU.

Dick's Sporting Goods shares fell 18.23% in premarket trading Tuesday after the retailer missed quarterly estimates and issued a cautious full-year outlook amid a promotional sporting goods backdrop. Comparable sales rose 4.9%, helped by broad-based category growth including strong results from the 2026 FIFA World Cup, while Foot Locker's pro forma comparable sales fell 3.6%. Meta Platforms gained 0.66% premarket on a report that it plans to launch a consumer-facing AI agent in the coming weeks and a new AI model in October. Johnson & Johnson rose 0.49% after the FDA approved a label expansion for its myasthenia gravis therapy Imaavy as a treatment for warm autoimmune hemolytic anemia, potentially making it the first U.S.-approved therapy for wAIHA. Hims & Hers Health edged up 0.26% premarket after tumbling over 8% Monday on reports that Visa will impose nearly $75,000 in penalties in September after thousands of credit card dispute complaints tied to weight-loss subscriptions triggered its inclusion in Visa's Acquirer Monitoring Program.

Apple, EMCOR Group, and Johnson & Johnson each reported record-breaking results in their latest quarterly reports. Apple posted its strongest June-quarter ever with revenue of $109.4 billion, up 16% year-over-year, and adjusted EPS of $2.02, up 29%. EMCOR Group delivered record revenues of $5.2 billion, up nearly 20%, and adjusted EPS of $9.06, up 35%, while also reporting record remaining performance obligations of $17.1 billion. Johnson & Johnson achieved a new quarterly sales record of $25.3 billion, up 6.6%, and raised its full-year guidance, putting it on track to surpass $100 billion in annual revenue for the first time.

Johnson & Johnson's pipeline is becoming an increasingly important growth driver as the company looks to offset future pressure from mature products such as Stelara and eventually Darzalex. The company has a particularly strong set of catalysts in oncology, immunology and neuroscience, with several potential approvals, label expansions and important phase III readouts scheduled. In the past year, it has gained approval for new products like Inlexzo/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer, Imaavy (nipocalimab) for treating generalized myasthenia gravis and Icotyde (icotrokinra), an oral targeted peptide inhibitor of the IL-23 receptor, for treating moderate-to-severe plaque psoriasis. J&J markets Icotyde in partnership with Protagonist Therapeutics. On the second-quarter conference call, J&J said that it is seeing strong launches of Inlexzo, Icotyde, as well as Imaavy. Nipocalimab, an FcRn blocker, is also being evaluated for various immune-mediated conditions. It is under priority review in the United States for warm autoimmune hemolytic anemia, in late-stage studies for hemolytic disease of the fetus and newborn, systemic lupus erythematosus and Sjogren's disease, and in mid-stage studies for idiopathic inflammatory myopathy. J&J believes that nipocalimab has pipeline-in-a-product potential. J&J believes that Icotyde/icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-daily pill, whereas most currently available effective options for treating plaque psoriasis are injectables, such as AbbVie's popular injection, Skyrizi, and J&J's own injection, Tremfya. Icotyde offers a compelling advantage over existing plaque psoriasis treatments by combining biologic-level precision with the convenience of an oral pill. Unlike injectable IL-23 biologics, such as AbbVie's Skyrizi and Tremfya, it eliminates the need for injections, improving patient comfort and adherence. Icotrokinra is also being evaluated in phase III studies for ulcerative colitis and psoriatic arthritis and in phase II for Crohn's Disease. It has the potential to be J&J's largest product ever, with $10 billion in sales potential. J&J expects several meaningful pipeline catalysts in the second half of the year, including potential FDA regulatory approval for Imaavy for warm autoimmune hemolytic anemia. In July, J&J announced positive top-line data from the phase III MonumenTAL-6 study evaluating Tecvayli plus Talvey in patients with relapsed or refractory multiple myeloma who had received one to four prior lines of therapy. The combination regimen reduced the risk of disease progression or death by 89% versus investigator's choice of standard care while reducing the risk of death by 62%. Other important data readouts expected later this year include Inlexzo in high-risk bladder cancer, Icotyde in psoriatic arthritis and Caplyta in bipolar mania. A key pipeline candidate is JNJ-4804, a co-antibody therapeutic being developed in phase III studies for ulcerative colitis and Crohn's disease. The company is also working on expanding labels of currently marketed products like Darzalex, Tremfya, Carvykti, Erleada, Rybrevant/Lazcluze and others. As regards its MedTech segment, a key product approved recently in the United States was the OTTAVA robotic surgery system, J&J's next-generation soft-tissue surgical robot. It was approved in July. VARIPULSE Pro, an advanced Pulsed Field Ablation platform, is expected to be approved by the FDA later this year. VARIPULSE Pro was launched in the EU in April. Overall, J&J's robust pipeline and a steady stream of clinical and regulatory catalysts should support growth in the second half of 2026 and beyond. The potential expansion of newer drugs, strong late-stage candidates and continued MedTech innovation provide multiple avenues for J&J to offset patent pressures and sustain long-term growth. J&J's shares have outperformed the industry so far this year. The stock has risen 30.6% year to date compared with 18.2% appreciation of the industry. From a valuation standpoint, J&J is expensive. Going by the price/earnings ratio, the company's shares currently trade at 21.84 forward earnings, higher than 19.50 for the industry. The stock is also trading above its five-year mean of 15.65. The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.59 per share over the past 60 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame. J&J has a Zacks Rank #3 (Hold) at present.

Johnson & Johnson appears better prepared for its patent cliff than Pfizer, based on their latest results. J&J's Innovative Medicine sales rose 7.8% to $16.38 billion despite a 55% decline in Stelara revenue, helped by Tremfya sales jumping 72.5% to about $2 billion. The company raised its 2026 reported-sales guidance to a midpoint of $101.1 billion and increased adjusted EPS guidance by $0.13 to $11.68. Pfizer's revenue excluding Comirnaty and Paxlovid grew 5% operationally in fiscal Q2 2026, but total operational growth was only 1%, and the company recorded a GAAP net loss of $248 million. Pfizer expects about $9.7 billion in total net savings through 2029 from cost-realignment and manufacturing-optimization programs.

Johnson & Johnson has proposed a $5.5 billion settlement to resolve roughly 76,000 lawsuits alleging its talc products cause ovarian cancer. The agreement requires participation from at least 95% of eligible claimants, does not cover future lawsuits, and could ultimately cost more than the headline figure, with an attorney telling Reuters the payout could reach $7 billion or more. The company ended fiscal Q2 2026 with about $21 billion in cash and marketable securities and expects to pay up to $3 billion in 2027, followed by additional payments beginning in 2028. A federal judge has cast doubt on individual plaintiffs' ability to prove talc caused their cancer, suggesting J&J is settling from a position of improved legal strength. The settlement would reduce a major legal overhang but not eliminate talc liability entirely.

Johnson & Johnson and Thermo Fisher Scientific both reported encouraging quarterly results, with J&J raising its full-year sales and adjusted earnings guidance while Thermo Fisher saw a recovery in its Analytical Instruments segment. J&J's pharmaceutical business generated $16.38 billion in quarterly sales, exceeding analysts' estimate of $16.1 billion, and the company now expects annual sales of about $101.1 billion at the midpoint, up from $100.8 billion previously, with adjusted earnings per share forecast raised to $11.68 from $11.55. Thermo Fisher's Life Sciences Solutions segment reported revenue up 13% year over year, with organic revenue up 3%, led by strength in bioproduction, and its Analytical Instruments business returned to growth after nearly two years of weak demand. J&J's MedTech segment slightly missed expectations due to temporary headwinds including inventory pressures in China and softer U.S. procedure trends, while Thermo Fisher's organic revenue growth of 5% remains below its historical double-digit rates.

Johnson & Johnson received FDA 510(k) clearance for MONARCH QUEST 3, the latest software update for its MONARCH Platform for robotically assisted bronchoscopy. The update advances planning, navigation and targeting capabilities, with a focus on supporting clinicians during complex procedures and improving confidence in the early detection of lung cancer. The MONARCH Platform is the first flexible, robotically assisted bronchoscopy platform and provides continuous visualization throughout procedures, including navigation to and biopsy of targets under direct vision. MONARCH QUEST 3 builds on this foundation by enhancing the platform's ability to account for CT-to-body divergence and anatomical changes that may occur during bronchoscopy. The latest release incorporates Polyphonic for MONARCH, Johnson & Johnson's open digital ecosystem, which enables clinicians to review procedural volume data and collaborate through a centralized video library.

The European Commission has approved Johnson & Johnson's TECVAYLI (teclistamab) in combination with daratumumab for adults with relapsed or refractory multiple myeloma who have received at least one prior therapy. The approval is based on Phase 3 MajesTEC-3 data showing the combination reduced the risk of disease progression or death by 83.4% compared to standard of care, with a hazard ratio of 0.17 and a p-value less than 0.001. Overall survival also favored the combination, with a hazard ratio of 0.46 and three-year overall survival rates of 83.3% versus 65.0% for standard of care. More than 90% of patients who were progression-free at six months remained progression-free at three years. The safety profile was consistent with the known profiles of the individual therapies, with all cytokine release syndrome cases being Grade 1 or 2 and no new safety signals identified.

Johnson & Johnson raised its quarterly dividend by 3.1% to $1.34 per share, marking the company's 64th consecutive year of dividend increases. The healthcare giant reported second-quarter 2026 revenue of $25.3 billion, up 6.6% year over year, with adjusted EPS climbing 4.7% to $2.90 and free cash flow jumping to about $8.7 billion from $6.2 billion a year earlier. Management also raised its full-year outlook to approximately $101.1 billion in sales and adjusted EPS of $11.68, implying a payout ratio of roughly 46%. The company highlighted FDA approval of ICOTYDE, an oral peptide for plaque psoriasis and the first targeted oral peptide of its kind, as part of a pipeline that supports future dividend growth.

Johnson & Johnson shares surged approximately 3% to $270.19 Tuesday morning as investors rotated out of high-growth technology stocks and into defensive companies. The healthcare heavyweight reported second-quarter sales climbed 6.6% to $25.31 billion, while adjusted earnings reached $2.90 per share. Management also raised its 2026 outlook, targeting approximately $101.1 billion in revenue and $11.68 in adjusted earnings per share at the midpoint. The stock is trading at $271.19 versus an estimated fair value of $192.38, meaning it sits roughly 41% above its GF Value.

Johnson & Johnson's immunology and neuroscience franchises are becoming meaningful growth engines as the company diversifies beyond oncology. In the first half of 2026, immunology contributed around 23% of Innovative Medicine sales with $7.22 billion in revenue, down 8.1% year over year due to Stelara's loss of exclusivity, while neuroscience accounted for approximately 14% with $4.5 billion in sales, up 20.5%. Tremfya sales surged 67.8% to $3.65 billion, and J&J expects it to exceed $10 billion in peak-year sales, while new launches Icotyde and Imaavy are seeing strong starts. Spravato sales rose 42% to $1.05 billion, and Caplyta generated $631 million following its November 2025 FDA approval for adjunctive major depressive disorder. J&J shares have risen 26.8% year to date, and the Zacks Consensus Estimate for 2026 earnings has edged up to $11.59 per share.

Johnson & Johnson raised its full-year 2026 guidance after second-quarter earnings and sales beat estimates. Adjusted earnings per share came in at $2.90, above the Zacks Consensus Estimate of $2.84, while sales of $25.3 billion edged past the $25.1 billion consensus. The company now expects 2026 reported sales of $100.8 billion to $101.4 billion, up from $100.3 billion to $101.3 billion, and adjusted EPS of $11.60 to $11.75, up from $11.45 to $11.65. Innovative Medicine sales rose 7.8% to $16.38 billion, driven by Darzalex, Tremfya, and new drugs like Carvykti, while MedTech sales increased 4.5% to $8.93 billion. Shares have added about 4.8% since the last earnings report, outperforming the S&P 500.

OmniAb reported second quarter 2026 revenue of $13.4 million and raised its full-year revenue guidance to a range of $32 million to $36 million, up from the prior $28 million to $33 million. The company's net loss narrowed to $5.9 million, or $0.05 per share, from $15.9 million a year earlier. OmniAb ended the quarter with 110 active partners and 425 active programs, including new license agreements with argenx and EnRosa Therapeutics. Management highlighted two programs that advanced directly from Phase I to Phase III during the quarter: J&J's Ramantamig and Merck KGaA's precemtabart tocentecan. The company also sold two xPloration instruments, bringing the total in the field to four, and expects year-end cash of $37 million to $41 million.

Johnson & Johnson has agreed to pay $5.5 billion to settle lawsuits alleging that its talc-based products caused ovarian cancer, covering nearly 80,000 outstanding claims. The proposed settlement requires support from 95% of eligible claimants to become effective, and previous settlement plans have fallen through. A federal judge recently questioned key expert testimonies linking talc to individual cancer cases and disqualified one plaintiffs' law firm, tilting things in the company's favor. If finalized, the settlement could reduce legal uncertainty that has weighed on Johnson's shares and management attention for years. Hedge fund interest in Johnson & Johnson rose to 113 funds at the end of Q1 2026, up from 104 in the previous quarter, with Fisher Asset Management boosting its position by 5% to $2.26 billion.