What is Erste Group Bank's Estimate for JNJ FY2027 Earnings?

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Johnson & Johnson to $12.83, up from $12.81 and well above the current consensus estimate of $11.61.
• Analysts maintain a broadly positive outlook, with J&J carrying a “Moderate Buy” consensus rating and an average price target of $274.13.
• J&J recently exceeded quarterly expectations with $2.90 EPS and $25.31 billion in revenue, while its $1.34 quarterly dividend provides a 2.0% yield; however, investors continue to monitor Stelara-related losses, MedTech weakness and talc litigation.

Johnson & Johnson (NYSE:JNJ - Free Report) - Equities researchers at Erste Group Bank increased their FY2027 earnings per share (EPS) estimates for Johnson & Johnson in a research report issued on Friday, September 18th. Erste Group Bank analyst H. Engel now expects that the company will post earnings per share of $12.83 for the year, up from their prior forecast of $12.81. The consensus estimate for Johnson & Johnson's current full-year earnings is $11.61 per share.

Other equities analysts also recently issued research reports about the company. Raymond James Financial set a $280.00 price target on Johnson & Johnson in a research report on Monday, August 3rd. Stifel Nicolaus set a $260.00 target price on Johnson & Johnson in a research note on Wednesday, July 15th. Bank of America increased their price target on Johnson & Johnson from $254.00 to $263.00 and gave the company a "neutral" rating in a research note on Friday, July 10th. UBS Group assumed coverage on shares of Johnson & Johnson in a research report on Wednesday, September 2nd. They set a "buy" rating and a $320.00 price objective for the company. Finally, Scotiabank restated an "outperform" rating and set a $305.00 target price on shares of Johnson & Johnson in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $274.13.

Johnson & Johnson Stock Performance

Shares of JNJ opened at $269.97 on Monday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81. The firm has a 50-day moving average of $263.74 and a 200-day moving average of $246.70. The company has a market cap of $650.61 billion, a PE ratio of 31.28, a price-to-earnings-growth ratio of 2.58 and a beta of 0.24. Johnson & Johnson has a one year low of $173.33 and a one year high of $281.07.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last released its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 EPS for the quarter, beating the consensus estimate of $2.84 by $0.06. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The company had revenue of $25.31 billion during the quarter, compared to the consensus estimate of $25.06 billion. During the same quarter in the prior year, the firm posted $2.77 EPS. The firm's revenue for the quarter was up 6.6% compared to the same quarter last year. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Geode Capital Management LLC boosted its position in shares of Johnson & Johnson by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 57,953,747 shares of the company's stock worth $11,967,947,000 after acquiring an additional 1,738,292 shares in the last quarter. Norges Bank bought a new position in shares of Johnson & Johnson in the 4th quarter valued at $6,924,523,000. Wellington Management Group LLP boosted its stake in Johnson & Johnson by 12.5% in the second quarter. Wellington Management Group LLP now owns 22,588,696 shares of the company's stock valued at $5,736,851,000 after buying an additional 2,513,321 shares in the last quarter. Deutsche Bank AG raised its stake in Johnson & Johnson by 8.5% during the second quarter. Deutsche Bank AG now owns 15,661,323 shares of the company's stock worth $3,977,506,000 after acquiring an additional 1,225,676 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Johnson & Johnson by 8.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 17,275,937 shares of the company's stock valued at $3,575,255,000 after purchasing an additional 1,376,828 shares in the last quarter. Institutional investors own 69.55% of the company's stock.

Insider Buying and Selling at Johnson & Johnson

In related news, EVP Timothy Schmid sold 33,597 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $274.74, for a total value of $9,230,439.78. Following the completion of the sale, the executive vice president directly owned 25,447 shares in the company, valued at approximately $6,991,308.78. The trade was a 56.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Vanessa Broadhurst sold 23,054 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $251.27, for a total value of $5,792,778.58. Following the sale, the executive vice president directly owned 23,003 shares in the company, valued at $5,779,963.81. This represents a 50.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 87,569 shares of company stock worth $23,064,544 over the last quarter. Company insiders own 0.16% of the company's stock.

Johnson & Johnson Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th were paid a $1.34 dividend. The ex-dividend date was Tuesday, August 25th. This represents a $5.36 annualized dividend and a dividend yield of 2.0%. Johnson & Johnson's dividend payout ratio is 62.11%.

Key Headlines Impacting Johnson & Johnson

Here are the key news stories impacting Johnson & Johnson this week:

• Positive Sentiment: Johnson & Johnson remains attractive to income-focused investors as a Dividend Aristocrat with 64 consecutive years of dividend increases. Analysts also point to its defensive characteristics, healthy balance sheet, buyback potential and ability to provide steady cash returns amid economic and inflation uncertainty. 3 Strong Buy Dividend Aristocrat Stocks to Generate Steady Cash
• Positive Sentiment: Recent drug launches, pipeline progress and oncology data are supporting the growth case. Management has highlighted underlying growth despite the loss of Stelara sales, with revenue reportedly rising 5.6% after excluding a significant Stelara-related drag. J&J Up 18% in Three Months
• Neutral Sentiment: Reports that J&J may sell its DePuy Synthes orthopedic unit for approximately $20 billion have renewed focus on portfolio strategy and capital allocation. A transaction could unlock value or fund growth, but the sale remains only potential and could reduce the company’s MedTech scale. J&J Faces a Fresh Valuation Test on DePuy Sale Talk
• Neutral Sentiment: CEO Joaquin Duato’s appointment to PepsiCo’s independent board, effective December 1, adds visibility to J&J’s leadership but is not a direct change to J&J’s earnings outlook. PepsiCo Welcomes Joaquin Duato to Its Board
• Negative Sentiment: Investors remain concerned about Stelara’s patent loss, MedTech weakness and billions of dollars in talc-related litigation liabilities. In addition, J&J’s elevated valuation after its strong run may limit upside unless operating results continue to exceed expectations. Better Dividend King to Buy and Hold: Johnson & Johnson or Kenvue?

Johnson & Johnson Company Profile

Johnson & Johnson NYSE: JNJ is a global healthcare company that develops, manufactures and markets pharmaceutical and medical device products. Founded in 1886 and headquartered in New Brunswick, New Jersey, the company serves patients, healthcare professionals and institutions in markets around the world.

Johnson & Johnson operates through two primary business segments: Innovative Medicine and MedTech. Innovative Medicine focuses on prescription treatments in areas including immunology, oncology, neuroscience, cardiovascular and metabolic disease, infectious diseases, and pulmonary hypertension.

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