Johnson & Johnson (JNJ) AI Stock Analysis

Johnson & Johnson is a multinational healthcare corporation engaged in the research, development, manufacturing, and global distribution of diverse healthcare products. It operates through three core segments: Consumer Health, Pharmaceutical, and Medical Devices. Its Consumer Health segment features recognized brands such as JOHNSON'S, AVEENO Baby, LISTERINE, NEUTROGENA, and TYLENOL for oral hygiene, skin health, pain management, and baby care. The Pharmaceutical segment develops prescription therapies for rheumatoid arthritis, HIV/AIDS, COVID-19, mental health, cancer, diabetes, and eye diseases. The Medical Devices segment manufactures solutions for cardiovascular diseases, strokes, orthopedic procedures, spine treatments, and contact lenses under the ACUVUE brand.

Johnson & Johnson increased revenue from $78.74B in FY2021 to $94.19B in FY2025, achieving a 5-year revenue CAGR of 2.7% through FY2025. Annual net income fluctuated over this span, rising to $35.15B in FY2023, falling to $14.07B in FY2024, and recovering to $26.80B in FY2025, alongside an operating margin of 27.2%. Over the trailing twelve months, revenue totaled $99.33B with a net profit margin of 16.2% and an operating margin of 25.1%. For the latest quarter ended September 30, 2026, quarterly revenue grew 5.9% year-over-year, while quarterly earnings fell 96.0%.

As of June 30, 2026, Johnson & Johnson held $20.76B in cash and short-term investments against total debt of $49.04B, resulting in net debt of $28.28B. Shareholders' equity was $84.97B, with a debt-to-equity ratio of 0.58 and a current ratio of 1.09. In FY2025, the company generated $24.53B in operating cash flow and invested $4.83B in capital expenditures. Capital returns in FY2025 included $12.38B in dividends paid and $5.95B in share buybacks.

Johnson & Johnson trades at a trailing P/E of 38.8x and a forward P/E of 21.0x, above the median of its S&P 500 Healthcare peers at 27.2x and 16.5x, respectively. Its price-to-sales multiple of 6.2x and EV/EBITDA of 19.9x also trade at premiums to the sector peer medians of 3.4x and 15.0x. Over the past year, the stock returned 36.0%, outperforming the S&P 500 (SPY) return of 16.8%, while its 5-year return of 82.2% was slightly below the S&P 500 return of 83.0%.

Johnson & Johnson offers a forward annual dividend of $5.36 per share, representing a dividend yield of 2.10% and a payout ratio of 39.3%. The company distributes quarterly dividends and has paid dividends for 57 consecutive years, with an annualized 5-year dividend growth rate of 5.2%.

Wall Street analysts hold 11 Strong Buy, 5 Buy, 6 Hold, 0 Sell, and 1 Strong Sell ratings on Johnson & Johnson. The mean price target is $279.41, representing 9.3% upside from the last close of $255.56. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $101.22B and EPS of $11.12. Over the last 4 quarters, the company beat EPS estimates 3 times.

This page is an AI-written research summary of Johnson & Johnson (JNJ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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