SuperworthJohnson & Johnson JNJ
- Market cap
- $622.8B
- PE
- 29.9×
- 10y median 24.2×
- Forward PE
- Price to sales
- 6.4×
- EV/EBIT
- 25.7×
- Revenue, 12 months
- $97.9B
- +8% on a year ago
- Net margin
- 21.5%
- Free cash flow yield
- 3.6%
The safe stock now trades like a growth stock
J&J outran Stelara's collapse and settled talc, and the price nearly doubled to pay for it
Dearer per dollar of sales than almost any time in ten years
Johnson & Johnson trades at 6.2 times its last four quarters of sales, higher than 96.6% of the last ten years. The ten-year median is 4.6. It was 3.9 in January 2025 and reached a ten-year high of 6.9 in September 2026. For most of the decade the market paid between 4 and 5 times sales for this business.
The price nearly doubled in twenty months
The shares closed at 142.06 on January 10, 2025 and at a high of 278.43 on September 3, 2026, a 96% rise. In between, J&J raised its 2026 outlook in April and again in July, and on July 27 agreed to settle about 76,000 ovarian talc claims for about 5.5 billion dollars. At 252.93 it is 9.2% below that high. We found no company news behind the slide.
Growth sped up even as its biggest drug fell away
Revenue over four quarters rose from 86.58 billion dollars in June 2024 to 97.93 billion, up 13%. The latest year grew 8.1%, after about 5% a year in 2024 and 2025. Stelara, its former top seller, now faces biosimilars, and Tremfya is the drug outgrowing its decline. Guidance for 2026 is 101.1 billion, and consensus sees 106.67 billion over the four quarters after September, 8.9% more.
On adjusted earnings it is 23 times, not 29
On reported earnings of 8.63 a share over four quarters, the PE is 29.3, higher than 79.6% of the last ten years against a median of 24.2. One-off items swing reported profit, and on adjusted earnings of 10.86 it is 23.3. Peers look pricier at a median of 37.2, but on forward earnings they sit at 16.3, below J&J. This view starts in 2020 to leave out a 2018 spike.
Cash is solid, the yield is thin
Free cash flow over four quarters is 22.24 billion dollars, up from 20.30 billion two years earlier after a dip to 17.78 billion in March 2026. At 27.4 times free cash flow the stock is pricier than 90% of the last ten years. The dividend yield of 2.07% is lower than on 97% of days. The talc deal's first payment, up to 3 billion dollars, falls in 2027.
At today's price, consensus earnings put it at 21.5 times
Consensus adjusted earnings for the next twelve months are 11.78 a share, 8% above the last four quarters, a forward PE of 21.5 against a median of 17.1. It is rebuilt with hindsight before late September, but P/S on real history is also above 96.6%. Bull case: sales grow 8.9%, as consensus expects. Bear case: Stelara cutting 7.6 points off drug growth, and talc payments from 2027. Next test: October 13.
What has happened lately
- SEC, Johnson & Johnson reports Q2 2026 results, raises 2026 outlookSales rose 6.6% to 25.3 billion dollars. Stelara's decline cut about 7.6 points off drug sales growth. Guidance rose to 101.1 billion in sales and 11.68 in adjusted EPS at the midpoint.
- CNBC, Johnson & Johnson Q2 earningsSales and adjusted EPS beat estimates. Tremfya sales rose about 72% to 2 billion dollars, while the medical device unit came in slightly short.
- Bloomberg, J&J to pay $5.5 billion to resolve talc-related cancer claimsThe deal covers about 76,000 ovarian talc claims if firms holding 95% of them sign on. The first payment is capped at 3 billion dollars in 2027, with nothing more due before 2028.
- SEC, Johnson & Johnson reports Q1 2026 results, raises 2026 outlookSales rose 9.9% to 24.1 billion dollars. J&J raised 2026 guidance to 100.8 billion in sales and 11.55 in adjusted EPS at the midpoint, the first of two raises this year.
Headlines link to the original source.
Charts
Financials
| Income statement | Q4 FY23 | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $21.4B | $21.4B | $22.4B | $22.5B | $22.5B+5% | $21.9B+2% | $23.7B+6% | $24B+7% | $24.6B+9% | $24.1B+10% | $25.3B+7% | |
| Cost of revenue | $6.8B | $6.5B | $6.9B | $7B | $7.1B+5% | $7.4B+13% | $7.6B+11% | $7.3B+5% | $8B+12% | $8.1B+10% | $8.1B+6% |
| Gross profit | $14.6B | $14.9B | $15.6B | $15.5B | $15.4B+5% | $14.5B−2% | $16.1B+3% | $16.7B+8% | $16.6B+8% | $16B+10% | $17.3B+7% |
| R&D | $4.5B | $3.5B | $3.4B | $5B | $5.3B+18% | $3.2B−9% | $3.5B+2% | $3.7B−26% | $4.3B−20% | $3.5B+9% | $3.7B+4% |
| SG&A | $5.8B | $5.3B | $5.7B | $5.5B | $6.5B+11% | $5.1B−3% | $5.9B+4% | $5.9B+8% | $6.8B+5% | $6B+18% | $6.4B+9% |
| $4.6B | $6.3B | $6.7B | $5.3B | $3.8B−17% | $6.3B+0% | $6.8B+2% | $7.1B+34% | $5.6B+46% | $6.4B+2% | $7.2B+5% | |
| Interest expense | $151M | $155M | $270M | $193M | $137M−9% | $204M+32% | $308M+14% | $245M+27% | $214M+56% | $272M+33% | $281M−9% |
| Pre-tax income | $4.8B | $3.7B | $5.7B | $3.3B | $3.9B−20% | $13.6B+267% | $6.5B+13% | $7.5B+125% | $5B+28% | $6B−56% | $6.7B+4% |
| $694M | $459M | $1.1B | $644M | $456M−34% | $2.6B+473% | $954M−10% | $2.3B+264% | −$150M | $755M−71% | $1.2B+27% | |
| Net income | $4B | $3.3B | $4.7B | $2.7B | $3.4B−15% | $11B+238% | $5.5B+18% | $5.2B+91% | $5.1B+49% | $5.2B−52% | $5.5B−0% |
| $1.67 | $1.34 | $1.93 | $1.11 | $1.41−16% | $4.54+239% | $2.29+19% | $2.12+91% | $2.10+49% | $2.14−53% | $2.27−1% | |
| 2.4B | 2.4B | 2.4B | 2.4B | 2.4B−0% | 2.4B−0% | 2.4B−0% | 2.4B+0% | 2.4B+1% | 2.4B+1% | 2.4B+1% |
From each company's 10-Q and 10-K filings. Fiscal years are four fiscal quarters added up; balance sheet lines are as of the period's end. Growth is on the same period a year earlier.
Estimates
Next earnings report: .
Analyst consensus for the next eight quarters, with the range from the lowest to the highest estimate, is part of Superworth Pro.
Peers
Companies in Drug Manufacturers - General within ten times Johnson & Johnson's size, closest in size first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| JNJJohnson & Johnson | $622.8B | 29.9× | 24.2× | 6.4× | +8% | 21.5% | |
| ABBVAbbVie Inc. | $479.5B | 76.7× | 27.5× | 7.4× | +10% | 9.8% | |
| MRKMerck & Co., Inc. | $352.3B | 114× | 25.7× | 5.3× | +5% | 4.8% | |
| LLYEli Lilly and Company | $1.1T | 39.9× | 41.3× | 14.0× | +50% | 33.5% | |
| AMGNAmgen Inc. | $223.3B | 25.7× | 21.0× | 5.9× | +9% | 23.0% | |
| PFEPfizer Inc. | $159.6B | 36.8× | 16.3× | 2.5× | −0% | 6.8% | |
| BMYBristol-Myers Squibb Company | $122B | 13.1× | 19.9× | 2.5× | +3% | 18.9% | |
| Peer median | $287.8B | 38.4× | 23.4× | 5.6× | +7% | 14.3% |
About
- Chief executive
- Joaquin Duato, since 2022Joined 1989, CEO since 2022. Source
- Industry
- Drug Manufacturers - General
- Sector
- Healthcare
Valuation data, not investment advice. Prices as of .