Estimates
JNJ is one of the best-performing Wall Street stocks, growing more than 45% last year. A month ago, the shares set a new record, before paring a part of those gains in the following weeks. Over the years, Johnson & Johnson has maintained its commitment to returning capital to shareholders through a long-standing dividend growth streak. The company’s disciplined approach to cash flow allocation and innovation-focused investments has enabled it to consistently raise the payout for many decades.
Results Beat
In Q3 2025, adjusted earnings rose 16% from last year to $2.80 per share, exceeding estimates. Over the past several years, quarterly earnings have frequently beaten estimates. Unadjusted net earnings surged 91% year-over-year to $5.2 billion or $2.12 per share. At $24 billion, third-quarter reported sales were up 6.8%, while operational sales grew 5.4%. The top-line exceeded expectations. Sales rose 7% in both Innovative Medicine and MedTech, the main operating segments. Geographically, US sales rose 6% and International sales increased 8%.
“We continue to invest at industry-leading levels in our pipeline and portfolio while making disciplined decisions to exit businesses that we believe will be better able to thrive outside of Johnson & Johnson. For our Orthopaedics business, the planned separation creates new opportunities. Operating as DePuy Synthes and led by Namal Nawana, it would be the largest, most comprehensive orthopaedics company, with leading market share positions across major categories and addressing a more than $50 billion and growing market opportunity,” JNJ CEO Joaquin Duato said in the Q3 FY25 earnings call.
Outlook
Buoyed by the positive Q3 outcome, the management raised its full-year sales guidance to $93.5-93.9 billion. The forecast is almost in line with analysts’ expectations. Full-year earnings guidance was reaffirmed in the range of $10.80 per share to $10.90 per share, excluding special items. Ongoing portfolio diversification has given the company a competitive advantage in an evolving industry marked by technological breakthroughs and shifting regulatory dynamics. Also, the growing demand for personalized and value-based care bodes well for the business.
The stock has been trading mostly sideways since crossing the $200 mark two months ago. That is well above its 12-month average price of $171.64. On Monday, JNJ traded higher throughout the session.