Johnson & Johnson Lifts FY26 View, Despite Nearly Flat Q2 Profit; Stock Down

(RTTNews) - Drug major Johnson & Johnson, while reporting slightly lower second-quarter profit despite sales growth, on Wednesday raised again its earnings and sales forecast for fiscal 2026. The company also announced a quarterly dividend.

In pre-market activity, the shares were losing around 1.9 percent, trading at $249.00, extending the 1.5% drop on Tuesday's regular trading close.

Joaquin Duato, Chairman and Chief Executive Officer, stated, "With raised guidance and quarterly sales surpassing $25 billion, we are on track to meet our 2026 target of more than $100 billion in annual revenue for the first time in our Company's 140-year history."

For fiscal 2026, the company now projects adjusted earnings in a range of $11.60 to $11.75 per share, with $11.68 in mid-point, and adjusted operational earnings in a range of $11.50 to $11.65 per share, with $11.58 in mid-point.

The company previously expected adjusted earnings in a range of $11.45 to $11.65 per share, with $11.55 in mid-point, and adjusted operational earnings in a range of $11.30 to $11.50 per share, with $11.40 in mid-point.

In mid point, the company now expects year-over-year growth of 8.2 percent in adjusted earnings and 7.3 percent in adjusted operational earnings, compared to previous view of 7.1 percent and 5.7 percent, respectively.

Annual sales are now expected between $100.8 billion and $101.4 billion as well as operational sales between $100.3 billion and $100.9 billion, with adjusted operational sales growth of 6.2 to 6.8 percent.

The company previously expected sales between $100.3 billion and $101.3 billion and operational sales between $99.7 billion and $100.7 billion, with adjusted operational sales growth of 5.6 to 6.6 percent.

In mid point, the company now expects sales of $101.1 billion, an year-over-year growth of 7.3 percent, compared to previous view of 7 percent. Operational sales in mid-point would be $100.6 billion, a growth of 6.8 percent, higher than previous view of 6.4 percent.

Further, the Board of Directors has declared a cash dividend for the third quarter of 2026 of $1.34 per share, payable on September 8 to shareholders of record at the close of business on August 25.

In the second quarter, net earnings edged down 0.1 percent to $5.534 billion from $5.537 billion a year ago. Earnings per share dropped 0.9 percent to $2.27 from $2.29 last year.

Adjusted net earnings were $7.081 billion, compared to $6.699 billion a year earlier. Adjusted earnings per share were $2.90, compared to $2.77 in the prior year.

The company's sales for the period rose 6.6 percent to $25.310 billion from $23.743 billion last year.

Operational growth was 5.6 percent and adjusted operational growth was 5.7 percent.

In the U.S., sales grew 7.3 percent to $14.53 billion, and the growth was 5.7 percent in International sales to $10.78 billion.

Innovative Medicine sales increased 7.8 percent year-over-year to $16.38 billion, with divestitures negatively impacting growth by 10 basis points. The company attributed the growth mainly to DARZALEX, CARVYKTI, TECVAYLI and RYBREVANT/LAZCLUZE in Oncology, TREMFYA and Other Immunology in Immunology, and SPRAVATO and CAPLYTA in Neuroscience.

Growth was partially offset by STELARA and REMICADE in Immunology, as well as IMBRUVICA and ZYTIGA in Oncology.

MedTech sales grew 4.5 percent to $8.93 billion, primarily driven by wound closure products and biosurgery products in Surgery, electrophysiology products and Shockwave in Cardiovascular, contact lenses in Vision, and trauma in Orthopaedics.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.