New York, Jan 12, 2026, 18:44 EST — After-hours
- J&J shares climbed roughly 2.6% late Monday, beating the broader market gains.
- Delaware’s highest court tossed out a portion of the roughly $1 billion Auris damages award and ordered the case remanded for recalculation.
- Investors are gearing up for J&J’s quarterly results on Jan. 21, along with its outlook for 2026.
Johnson & Johnson shares climbed roughly 2.6% to $209.72 in after-hours Monday, following Delaware’s Supreme Court tossing out a portion of a nearly $1 billion damages award linked to its 2019 surgical-robotics acquisition.
The ruling comes at a sensitive time for major healthcare stocks: investors prize steady earnings but react sharply to unexpected legal costs. As J&J prepares to report earnings next week, shifts in the amount or timing of any payout will draw close scrutiny.
It also touches on another investor theme. On Monday, J&J’s management pitched a growth story at the J.P. Morgan Healthcare Conference, but the court ruling brought a stark reminder: the company’s move into faster-growing medtech carries its own set of challenges.
Former Auris shareholders, represented by Fortis Advisors, claimed J&J failed to back Auris’ iPlatform technology and stalled regulatory approvals. Their deal included “milestones” triggering additional payments—essentially an earnout tied to targets. The Delaware Supreme Court unanimously overturned a lower court’s ruling that J&J had an implied duty to secure approval by the end of 2021 for an iPlatform product focused on abdominal procedures. Most other findings were left intact, but damages must be recalculated—likely cutting the total by a couple hundred million dollars after interest. Fortis lawyer Philippe Selendy slammed J&J for “inexcusably breach[ing] the merger agreement and depriving the world of Auris’s transformative and life-saving surgical robot.” J&J has not yet commented. (Reuters)
J&J’s announcement outpaced the market’s modest gains. The S&P 500-tracking SPY ETF ticked up roughly 0.2%, with the healthcare-sector XLV ETF barely moving. Pfizer dropped around 0.8%, and Merck slipped about 1.2%.
At JPMorgan’s healthcare conference earlier, CEO Joaquin Duato said, “We see the company doing better in 2026 than in 2025,” highlighting what he called an “accelerated growth” phase for the business. (Seeking Alpha)
For traders, the key takeaway isn’t the precise figure but the trajectory. Even with a recalculation, there’s room for another briefing or a potential settlement. It also highlights how far J&J can push its surgical business without facing further write-downs or setbacks.
The downside risk remains. The Supreme Court upheld most of the lower court’s rulings, and the final damages figure could still balloon once interest is factored in. On another front, J&J is still battling talc-related lawsuits. Back in late December, a Baltimore jury slapped the company with a verdict exceeding $1.5 billion, which J&J says it will appeal. (Reuters)
Mark your calendar for Jan. 21, when J&J releases its fourth-quarter results at 8:30 a.m. ET. Investors will zero in on updates regarding litigation reserves and cash allocation. They’ll also be watching to see if management sticks to its 2026 outlook after the earnings come through. (Jnj)
