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By Brian Nelson, CFA
Johnson & Johnson (JNJ) recently reported better than expected first quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecast. First-quarter reported sales growth was 9.9%, to $24.1 billion, with adjusted operational growth of 5.3%. First-quarter earnings per share was $2.14, while adjusted earnings per share came in at $2.70.
Management had the following to say about the results:
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, including ICOTYDE in the U.S. for moderate to severe plaque psoriasis and VARIPULSE Pro in Europe. These advancements have the potential to transform patient outcomes and create sustainable, long-term value for shareholders.
Innovative Medicine worldwide operational sales grew 7.4% with growth driven primarily by DARZALEX, CARVYKTI, ERLEADA, and RYBREVANT/LAZCLUZE in Oncology, TREMFYA in Immunology, and SPRAVATO in Neuroscience. MedTech worldwide operational sales grew 4.6% thanks to growth in electrophysiology products, Abiomed, and Shockwave in Cardiovascular, as well as trauma in Orthopaedics. Looking to 2026, management expects adjusted operational sales growth of 6.1% at the midpoint of its guidance range, up from 5.9% previously. Adjusted operational earnings per share is targeted at $11.40 (up 5.7%) at the midpoint of the guidance range, up from $11.38 previously. We like J&J, with shares yielding 2.4% on a forward estimated basis.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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