Johnson & Johnson Q1 2026 Earnings Beat, Raises Outlook

Johnson & Johnson reported first-quarter 2026 earnings that exceeded Wall Street forecasts and raised its full-year outlook on April 14. Gains from cancer drug Darzalex and psoriasis treatment Tremfya offset a steep decline in Stelara sales.

Quarterly Results and Guidance

The company said in an 8-K filing that reported first-quarter sales reached $24.1 billion, up 9.9% year-over-year. Operational sales grew 6.4%, and adjusted operational growth was 5.3%, surpassing analysts’ estimate of $23.61 billion. Adjusted diluted earnings per share (EPS) were $2.70, down from $2.77 a year earlier. GAAP diluted EPS fell to $2.14 from $4.54.

GAAP net earnings declined 52.4% to $5.2 billion, driven by lower special items. Free cash flow dropped to about $1.5 billion from $3.4 billion a year earlier.

Johnson & Johnson raised its full-year reported sales guidance to a range of $100.3 billion to $101.3 billion and adjusted EPS guidance to $11.45 to $11.65. That outlook assumes operational sales growth near 5.5% at the midpoint and expects continued momentum in Innovative Medicine and MedTech to offset pressure from Stelara. The board approved a quarterly dividend of $1.34 per share, a 3.1% increase marking the 64th consecutive raise. Chairman and CEO Joaquin Duato said in the April 14 press release that the company “had a strong start to 2026” and highlighted recent approvals and portfolio strength.

Product Performance and Capital Returns

Innovative Medicine sales rose 11.2% to $15.4 billion, while MedTech sales increased 7.7% to $8.6 billion. Immunology revenue declined 8.8% year-over-year.

Darzalex sales reached $3.96 billion, beating estimates of $3.84 billion, and Tremfya grew 74% year-over-year. The broader oncology portfolio, including Darzalex, contributed about $5 billion.

Stelara sales fell sharply to $656 million, a 59.7% decline following patent loss and biosimilar competition. Management said on the earnings call that this shortfall reduced growth by roughly 540 basis points, and excluding Stelara, sales rose in the double digits.

The guidance increase and dividend raise reflect management’s confidence that gains in oncology and MedTech will sustain companywide growth despite ongoing Stelara pressure.

Quote

“Johnson & Johnson had a strong start to 2026 and is delivering on its promise for a year of accelerated growth and impact. The depth and strength of our portfolio and pipeline is unrivaled and our relentless focus on innovation delivered multiple game-changing approvals this quarter,” said Joaquin Duato, chairman and CEO.