Johnson & Johnson
JNJ
$256.35
+0.21%
Johnson & Johnson is the world's largest and most diversified healthcare company, operating through two primary segments: Innovative Medicine (pharmaceuticals) and MedTech (medical devices). Following the 2023 divestiture of its consumer health business (Kenvue), the company has sharpened its focus on high-growth areas such as oncology, immunology, and neurology, while maintaining a leading position in medical devices. The current investor narrative centers on the company's robust pipeline, including the recent FDA clearance for its surgical robot, a proposed talc settlement that removes a major legal overhang, and an ambitious target of $100 billion in revenue, which has fueled a significant re-rating of the stock over the past year.…
JNJ
Johnson & Johnson
$256.35
Related headlines
Investment Opinion: Should I buy JNJ Today?
Rating: Buy. Johnson & Johnson is a high-quality healthcare leader with accelerating revenue growth, a robust pipeline, and a favorable risk/reward profile. The consensus analyst rating is 'Buy' with an average target price of $270.59, implying 5.6% upside from the current price of $256.35.
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JNJ 12-Month Price Forecast
The AI assessment is bullish with medium confidence. JNJ's accelerating revenue growth, strong pipeline, and removal of legal overhang support a positive outlook. However, the stock's proximity to its 52-week high and limited upside to analyst targets temper enthusiasm. The stance would be upgraded to high confidence if the stock pulls back to below $240 or if pipeline catalysts materialize sooner than expected. Conversely, a downgrade to neutral would occur if revenue growth decelerates below 5% or if legal issues resurface.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Johnson & Johnson's 12-month outlook, with a consensus price target around $271.05 and implied upside of +5.7% versus the current price.
Average Target
$271.05
0 analysts
Implied Upside
+5.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$190 - $305
Analyst target range
Johnson & Johnson is covered by 22 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.91 (where 1 is Strong Buy and 5 is Sell). The average price target is $270.59, implying approximately 5.6% upside from the current price of $256.35. The distribution of ratings is bullish, with 10 analysts rating it Buy or Outperform, 2 at Hold, and none at Sell, reflecting strong confidence in the company's growth prospects and pipeline.
Bulls vs Bears: JNJ Investment Factors
Johnson & Johnson presents a compelling bull case with accelerating revenue growth, a strong pipeline, and the removal of a major legal overhang. The bear case centers on valuation concerns, with the stock near its 52-week high and limited upside to analyst targets. Currently, the bull case has stronger evidence given the fundamental momentum and strategic clarity, but the key tension is whether the market has already priced in the good news. If the company continues to execute on its $100B revenue goal and pipeline milestones, the stock could re-rate higher, but any setback could trigger a correction given the elevated multiples.
Bullish
- Revenue Growth Accelerating: Q1 2026 revenue grew 9.9% YoY to $24.06B, up from 4.4% in Q4 2025 and 8.1% in Q3 2025, indicating accelerating momentum. This is driven by strong performance in Innovative Medicine and MedTech.
- Robust Pipeline and Innovation: Recent FDA clearance for its surgical robot and the $1B acquisition of Firefly Bio to target undruggable cancers strengthen long-term growth prospects. These developments support management's $100B revenue target.
- Talc Litigation Overhang Removed: The proposed talc settlement removes a major legal overhang, reducing uncertainty and potential liabilities. This has been a key catalyst for the stock's re-rating.
- Strong Profitability and Cash Flow: Gross margin is 72.8%, operating margin 27.2%, and net margin 28.5%, with TTM free cash flow of $17.8B. This financial strength supports continued investment and dividend growth.
Bearish
- Stock Near 52-Week High: At $256.35, the stock is 93.3% of its 52-week range (high $274.90), leaving limited upside to the average analyst target of $270.59 (5.6% upside). This suggests the stock may be fully valued in the near term.
- Forward P/E Higher Than Trailing: Forward P/E of 20.0x is above trailing P/E of 18.8x, implying the market expects earnings to decline slightly over the next year. This is unusual for a growth company and may indicate over-optimism in current estimates.
- High Valuation Multiples: P/S ratio of 5.35x and EV/EBITDA of 12.97x are elevated relative to historical norms for JNJ. The stock has re-rated significantly, and any disappointment could lead to multiple compression.
- Legal and Regulatory Risks Remain: Despite the talc settlement, other litigation and regulatory risks persist, including potential challenges to drug pricing and device regulations. These could impact future earnings and sentiment.
JNJ Technical Analysis
Johnson & Johnson is in a powerful sustained uptrend, with the stock up 55.6% over the past year, dramatically outperforming the S&P 500's 18.2% gain. The current price of $256.35 sits at 93.3% of its 52-week range (low: $164.79, high: $274.90), indicating strong momentum and bullish sentiment, though it also suggests the stock may be approaching overbought conditions. The 1-year relative strength of 37.4% underscores the stock's exceptional performance relative to the market, positioning it near its highs as a momentum leader in the healthcare sector.
Beta
0.23
0.23x market volatility
Max Drawdown
-11.0%
Largest decline past year
52-Week Range
$167-$275
Price range past year
Annual Return
+55.6%
Cumulative gain past year
| Period | JNJ Return | S&P 500 |
|---|---|---|
| 1m | +0.9% | +0.3% |
| 3m | +12.8% | +4.0% |
| 6m | +12.8% | +8.3% |
| 1y | +55.6% | +20.2% |
| ytd | +23.6% | +9.6% |
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JNJ Fundamental Analysis
Johnson & Johnson's revenue trajectory is accelerating, with Q1 2026 revenue of $24.06 billion, up 9.9% year-over-year, compared to 4.4% growth in Q4 2025 and 8.1% in Q3 2025. The Innovative Medicine segment drove $15.43 billion in revenue, while MedTech contributed $8.64 billion, with the drug business benefiting from strong oncology and immunology sales. This acceleration is a positive signal, indicating that the company's strategic focus on high-growth therapeutic areas is paying off, and management's raised guidance for the year supports continued momentum.
Quarterly Revenue
$24.1B
2026-03
Revenue YoY Growth
+9.9%
YoY Comparison
Gross Margin
71.5%
Latest Quarter
Free Cash Flow
$17.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is JNJ Overvalued?
Given that Johnson & Johnson is highly profitable, the P/E ratio is the most appropriate valuation metric. The trailing P/E stands at 18.8x, while the forward P/E is 20.0x, implying that the market expects earnings to decline slightly over the next year, which is unusual for a growth-oriented company. The gap between trailing and forward P/E suggests that analysts anticipate higher earnings in the coming year, likely due to continued revenue growth and margin expansion, but the modest forward multiple indicates that the market is not pricing in aggressive growth.
PE
18.8x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 17x~36x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.0x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks include a debt-to-equity ratio of 0.59, which is manageable but not negligible, and a current ratio of 1.03, indicating tight liquidity. The company's net margin of 28.5% is strong, but it is dependent on continued growth to justify its valuation. Revenue concentration in the US (over half) exposes it to domestic policy changes, such as drug pricing reforms. Additionally, the forward P/E of 20.0x implies the market expects earnings to decline, which could signal over-optimism in estimates.