Johnson & Johnson (NYSE:JNJ) Stock Price Up 1.1% Following Earnings Beat

Key Points

• Johnson & Johnson shares rose 1.1% after the company reported quarterly results that topped Wall Street expectations. The stock traded higher intraday on heavier-than-normal volume.
• Q2 earnings and revenue both beat estimates, with EPS of $2.90 versus $2.84 expected and revenue of $25.31 billion versus $25.02 billion forecast. Revenue also increased 6.6% year over year, helped by strong performance in key medicines.
• The company raised its full-year 2026 guidance to 11.600–11.750 EPS and reiterated its income appeal with a quarterly dividend of $1.34 per share. The annualized dividend is $5.36, yielding about 2.1%.

Johnson & Johnson (NYSE:JNJ - Get Free Report) shares were up 1.1% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $253.55 and last traded at $249.70. 10,921,483 shares were traded during mid-day trading, an increase of 29% from the average session volume of 8,446,838 shares. The stock had previously closed at $247.02.

The company reported $2.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.84 by $0.06. Johnson & Johnson had a return on equity of 32.60% and a net margin of 21.83%.The company had revenue of $25.31 billion for the quarter, compared to analysts' expectations of $25.02 billion. During the same period last year, the firm earned $2.77 EPS. The firm's revenue for the quarter was up 6.6% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS.

Johnson & Johnson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th will be issued a dividend of $1.34 per share. This represents a $5.36 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, August 25th. Johnson & Johnson's payout ratio is presently 61.97%.

Key Stories Impacting Johnson & Johnson

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

• Positive Sentiment: Johnson & Johnson beat Q2 estimates, reporting EPS of $2.90 on revenue of $25.31 billion, with strength in key drugs like Darzalex, Tremfya, and Spravato helping drive results. Article Title
• Positive Sentiment: The company raised its full-year 2026 guidance, signaling confidence in continued growth from Innovative Medicine and its pipeline. Article Title
• Positive Sentiment: J&J also declared a quarterly dividend of $1.34 per share, reinforcing its appeal as a defensive income stock. Article Title
• Neutral Sentiment: Analyst commentary remained mixed-to-positive, with Stifel keeping a Hold rating and a $260 price target as strong pharma growth was balanced against uneven MedTech performance. Article Title
• Negative Sentiment: The shares fell after the report because investors seemed to expect an even bigger beat; the pullback was also tied to lingering concerns about weaker MedTech results and litigation risk. Article Title

Analysts Set New Price Targets

Several equities analysts have recently issued reports on JNJ shares. JPMorgan Chase & Co. lifted their price objective on shares of Johnson & Johnson from $250.00 to $260.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 15th. Stifel Nicolaus set a $260.00 target price on shares of Johnson & Johnson in a report on Wednesday. Guggenheim lifted their price target on shares of Johnson & Johnson from $266.00 to $270.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Argus upped their price target on Johnson & Johnson from $240.00 to $275.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Finally, Wells Fargo & Company increased their price objective on Johnson & Johnson from $263.00 to $272.00 and gave the company an "overweight" rating in a research report on Thursday. Twenty research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $265.30.

Insider Buying and Selling

In other Johnson & Johnson news, EVP Kathryn E. Wengel sold 10,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $241.15, for a total value of $2,411,500.00. Following the completion of the transaction, the executive vice president directly owned 114,288 shares in the company, valued at $27,560,551.20. This trade represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.16% of the company's stock.

Hedge Funds Weigh In On Johnson & Johnson

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ballast Inc. grew its position in Johnson & Johnson by 9.0% during the 2nd quarter. Ballast Inc. now owns 25,218 shares of the company's stock worth $6,405,000 after purchasing an additional 2,088 shares in the last quarter. Regent Peak Wealth Advisors LLC lifted its holdings in shares of Johnson & Johnson by 4.1% in the second quarter. Regent Peak Wealth Advisors LLC now owns 6,475 shares of the company's stock valued at $1,644,000 after purchasing an additional 253 shares in the last quarter. Insight Wealth Strategies LLC acquired a new stake in shares of Johnson & Johnson in the second quarter worth $216,000. Hudson Value Partners LLC grew its holdings in shares of Johnson & Johnson by 8.5% during the second quarter. Hudson Value Partners LLC now owns 38,698 shares of the company's stock valued at $9,828,000 after buying an additional 3,045 shares in the last quarter. Finally, Adirondack Capital Advisors LLC acquired a new position in Johnson & Johnson during the second quarter valued at $281,000. 69.55% of the stock is currently owned by hedge funds and other institutional investors.

Johnson & Johnson Stock Performance

The firm has a 50 day moving average of $238.64 and a 200-day moving average of $234.20. The stock has a market capitalization of $601.08 billion, a PE ratio of 28.87, a P/E/G ratio of 2.42 and a beta of 0.24. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.77 and a current ratio of 1.03.

About Johnson & Johnson

Johnson & Johnson is a multinational healthcare company headquartered in New Brunswick, New Jersey, that develops, manufactures and markets a broad range of products across pharmaceuticals, medical devices and previously consumer health. Founded in 1886 by the Johnson family, the company has grown into a global healthcare organization with operations and sales in many countries around the world.

The company's pharmaceuticals business, organized largely under its Janssen research and development organization, focuses on prescription medicines across therapeutic areas such as immunology, infectious disease, oncology and neuroscience.

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