A Business at a Glance
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JOHNSON & JOHNSON
JNJ
$640.1B
Mkt Cap
$263.40
+1.59%
JOHNSON & JOHNSON (JNJ) has a current P/E ratio of 23.9, compared to its historical median P/E of 20.5. The stock is currently considered Expensive based on its historical valuation range.
JOHNSON & JOHNSON (JNJ) has a 5-year average return on invested capital (ROIC) of 25.1%. This indicates strong capital allocation and a potential competitive advantage.
JOHNSON & JOHNSON (JNJ) has a market capitalization of $821.8B. It is classified as a mega-cap stock.
Yes, JOHNSON & JOHNSON (JNJ) pays a dividend with a trailing twelve-month yield of 1.52%. The company also returns capital through share buybacks, with a buyback yield of 0.96%.
Based on historical P/E analysis, JOHNSON & JOHNSON (JNJ) appears expensive. The current P/E of 23.9 is 16% above its historical median of 20.5. The estimated fair value CAGR (P/E method) is 12.5%.
JOHNSON & JOHNSON (JNJ) operates in the Pharmaceutical Preparations industry, within the Healthcare sector.
JOHNSON & JOHNSON (JNJ) reported annual revenue of $94.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Johnson & Johnson is a diversified healthcare holding company with approximately 138,200 employees worldwide organized into two primary business segments: Innovative Medicine and MedTech. The Innovative Medicine segment focuses on prescription pharmaceuticals across six therapeutic areas—Oncology, Immunology, Neuroscience, Pulmonary Hypertension, Infectious Diseases, and Cardiovascular and Metabolism—distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals. Key products include DARZALEX (multiple myeloma), TREMFYA (immunology), STELARA (immunology), CARVYKTI (CAR-T cell therapy), and SPRAVATO (treatment-resistant depression), with the company's largest product DARZALEX accounting for approximately 15% of total revenues. The MedTech segment develops and manufactures products across Cardiovascular (electrophysiology, mechanical circulatory support, circulatory restoration, neurovascular care), Orthopaedics (joint reconstruction, trauma, spine), Surgery (instrumentation, energy devices, stapling systems, robotic technologies), and Vision (ACUVUE contact lenses, TECNIS intraocular lenses) portfolios, distributed to wholesalers, hospitals, and retailers for use by physicians and healthcare professionals. The company operates globally with a business model combining direct pharmaceutical distribution with procedural medical device sales, supported by substantial research and development investment and protected by significant patent portfolios, though facing biosimilar competition on key products and ongoing patent challenges from third parties.
【Accelerating innovation-driven growth】 Management expects operational sales growth to reach approximately $100 billion in 2026 with line of sight to double-digit growth by the end of the decade, driven by newly launched products across oncology, immunology, and neuroscience in Innovative Medicine, and continued uptake of cardiovascular, surgery, and vision innovations in MedTech. The company anticipates regulatory approvals for multiple pipeline candidates including ICOTYDE (oral IL-23 inhibitor for psoriasis), TECVAYLI (bispecific antibody for multiple myeloma), and OTTAVA (robotic surgical system), with expectations for at least one new catheter launch annually through decade-end and accelerated growth in surgical vision. Operating margins are expected to improve by at least 50 basis points in 2026 despite investments in new product launches and pipeline advancement, supported by continued operating efficiencies and a 53rd week benefit. The company remains disciplined on capital allocation, prioritizing pipeline and portfolio investment over large acquisitions, while progressing toward a mid-2027 separation of its Orthopaedics business.
| Metric | Target | Period |
|---|---|---|
| Operational sales growth | 5.9%-6.9% | FY2026 |
| Revenue | $100.2 billion | FY2026 |
| Adjusted pre-tax operating margin improvement | at least 50 basis points | FY2026 |
| Adjusted operational earnings per share | $11.30-$11.50 | FY2026 |
| Free cash flow | approximately $21 billion | FY2026 |
Operational sales growth (FY2026): “We are increasing our operational sales guidance to be in the range of 5.9%-6.9%, with a midpoint of $100.2 billion or 6.4%.”
Revenue (FY2026): “We are increasing our operational sales guidance to be in the range of 5.9%-6.9%, with a midpoint of $100.2 billion or 6.4%.”
Adjusted pre-tax operating margin improvement (FY2026): “We are maintaining our guidance for adjusted pre-tax operating margin to improve by at least 50 basis points in 2026.”
Adjusted operational earnings per share (FY2026): “Turning to adjusted operational earnings per share, we are increasing our guidance by $0.02 to a range of $11.30-$11.50, representing 5.7% growth at the midpoint.”
Free cash flow (FY2026): “we remain confident in our full-year free cash flow outlook of approximately $21 billion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 96.4B | 94.2B | 88.8B | 85.2B | 78.7B | 82.6B |
| Net Income | 21.0B | 26.8B | 14.1B | 35.2B | 20.9B | 14.7B |
| EPS | $6.74 | $11.03 | $5.79 | $13.72 | $7.81 | $5.51 |
| Free Cash Flow | 17.8B | 19.7B | 19.8B | 18.2B | 19.8B | 20.2B |
| ROIC | 0.0% | 28.1% | 17.3% | 37.4% | 24.5% | 18.0% |
| Gross Margin | 67.8% | 67.9% | 69.1% | 68.8% | 70.3% | 65.6% |
| Debt/Equity | 0.68 | 0.61 | 0.54 | 0.40 | 0.48 | 0.70 |
| Dividends/Share | $4.01 | $5.14 | $4.91 | $4.70 | $4.19 | $3.98 |
| Operating Income | 0 | 33.6B | 17.4B | 37.7B | 22.4B | 16.7B |
| Operating Margin | 0.0% | 35.6% | 19.6% | 44.2% | 28.5% | 20.2% |
| ROE | 25.9% | 35.0% | 19.0% | 46.6% | 30.4% | 23.3% |
| Shares Outstanding | 3,120M | 2,430M | 2,429M | 2,562M | 2,673M | 2,670M |
JOHNSON & JOHNSON passes 7 of 9 quality checks, indicating strong fundamentals.
JOHNSON & JOHNSON trades at 23.9x trailing earnings, compared to its 15-year median P/E of 20.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 32.2x vs a median of 17.4x. The company's 5-year average ROIC is 25.1% with a gross margin of 68.3%. Total shareholder yield (dividends + buybacks) is 2.5%. At current prices, the estimated annualized return to fair value is +5.6%.
JOHNSON & JOHNSON (JNJ) has a net profit margin of 28.5%. This is a strong margin indicating high profitability.
JOHNSON & JOHNSON (JNJ) generated $19.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
JOHNSON & JOHNSON (JNJ) has a debt-to-equity ratio of 0.61. This indicates moderate leverage.
JOHNSON & JOHNSON (JNJ) reported earnings per share (EPS) of $11.03 in its most recent fiscal year.
JOHNSON & JOHNSON (JNJ) has a return on equity (ROE) of 35.0%. This indicates the company generates strong returns for shareholders.
JOHNSON & JOHNSON (JNJ) has a 5-year average gross margin of 68.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for JOHNSON & JOHNSON (JNJ), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
JOHNSON & JOHNSON (JNJ) has a book value per share of $33.56, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects operational sales growth to reach approximately $100 billion in 2026 with line of sight to double-digit growth by the end of the decade, driven by newly launched products across oncology, immunology, and neuroscience in Innovative Medicine, and continued uptake of cardiovascular, surgery, and vision innovations in MedTech. The company anticipates regulatory approvals for multiple pipeline candidates including ICOTYDE (oral IL-23 inhibitor for psoriasis), TECVAYLI (bispecific antibody for multiple myeloma), and OTTAVA (robotic surgical system), with expectations for at least one new catheter launch annually through decade-end and accelerated growth in surgical vision. Operating margins are expected to improve by at least 50 basis points in 2026 despite investments in new product launches and pipeline advancement, supported by continued operating efficiencies and a 53rd week benefit. The company remains disciplined on capital allocation, prioritizing pipeline and portfolio investment over large acquisitions, while progressing toward a mid-2027 separation of its Orthopaedics business.
Based on recent SEC filings and earnings calls, JOHNSON & JOHNSON (JNJ) has provided the following forward guidance: Operational sales growth: 5.9%-6.9% (FY2026); Revenue: $100.2 billion (FY2026); Adjusted pre-tax operating margin improvement: at least 50 basis points (FY2026); Adjusted operational earnings per share: $11.30-$11.50 (FY2026); Free cash flow: approximately $21 billion (FY2026).