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New Brunswick, New Jersey-based Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the healthcare field worldwide. With a market cap of $366.4 billion, the company operates through its Innovative Medicine and MedTech segments.
The healthcare major is set to unveil its second-quarter results before the markets open on Wednesday, July 16. Ahead of the event, analysts expect JNJ to report a non-GAAP earnings of $2.65 per share, down 6% from the profit of $2.82 per share reported in the year-ago quarter. On a positive note, the company has surpassed the Street’s bottom-line projections in each of the past four quarters.
For the full fiscal 2025, its earnings are expected to come in at $10.60 per share, up 6.2% from $9.98 per share reported in the year-ago quarter. While in fiscal 2026, its earnings are expected to rise 3.6% year-over-year to $10.98 per share.
JNJ stock has grown 3.5% over the past 52 weeks, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 8.1% decline but lagging behind the S&P 500 Index’s ($SPX) 12.1% uptick during the same time frame.
Despite delivering better-than-expected financials, Johnson & Johnson’s stock prices observed a marginal dip after the release of its Q1 results on Apr. 15. Driven by a solid growth in US sales, the company’s overall topline for the quarter increased 2.4% year-over-year to $21.9 billion, exceeding the Street’s expectations by 1.3%. Meanwhile, the company’s adjusted EPS inched up 2.2% year-over-year to $2.77, surpassing the consensus estimates by 7.8%. On an even more positive note, JNJ’s free cash flows surged 19.3% year-over-year to $3.4 billion. Following the initial dip, JNJ stock rebounded and remained green for the next two trading sessions.
The consensus opinion on JNJ is cautiously optimistic, with a “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include nine “Strong Buys,” two “Moderate Buys,” and 12 “Holds.” Its mean price target of $169.14 suggests an 11.3% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
