New York, Jan 23, 2026, 11:01 (EST) — Regular session
- J&J shares held steady Friday morning, with investors balancing optimistic 2026 targets against ongoing talc litigation news.
- Following the company’s latest results and guidance, brokers raised their price targets.
- Attention now shifts to a judge’s review of the proposed expert testimony in federal talc litigation.
Johnson & Johnson shares barely moved on Friday, edging up less than 0.1% to $218.59 by 11:01 a.m. EST. Upgrades from Wall Street clashed with renewed concerns over the company’s ongoing talc litigation.
The tug-of-war matters because J&J’s new guidance arrives as investors juggle two challenges: betting on growth after Stelara and grappling with a lingering legal issue that refuses to disappear.
Stelara, once a top seller for the company, is slipping as biosimilars—close copies of complex biologic drugs—gain traction in the U.S. This shift increases pressure on newer oncology therapies and the medical-device segment to drive steady growth.
J&J reported a 9.1% jump in fourth-quarter sales, hitting $24.6 billion, with adjusted EPS at $2.46—down 10 cents due to the Halda Therapeutics deal. The company projects 2026 sales between $100 billion and $101 billion, and adjusted EPS ranging from $11.43 to $11.63. CEO Joaquin Duato described 2025 as “a catapult year” for the firm. 1
Analysts wasted no time reacting. BofA Securities inched its price target up to $221 from $220, maintaining a Neutral rating. They called the quarter “solid” but flagged recent talc news as “directionally negative.” Raymond James took a bolder step, raising its target to $237 from $209 and keeping an Outperform call, saying J&J’s 2026 guidance seemed conservative. 2
The legal cloud deepened after a court-appointed special master—an outside official tasked with helping the judge review evidence in complex cases—recommended letting plaintiffs’ experts testify that J&J talc products can cause ovarian cancer. This applies to more than 67,500 federal lawsuits in New Jersey. J&J Worldwide Vice President of Litigation Erik Haas slammed the special master, saying she “breached” her “gatekeeping duty.” The official, however, said she would reserve some issues for hearings set later this month and in early February. 3
Expert testimony rulings often mark a turning point in product-liability cases. When experts are excluded, claims frequently lose steam; if admitted, the path to trial becomes more defined and settlement calculations shift.
Policy risk looms large. CFO Joseph Wolk warned that a drug-pricing deal with the Trump administration could shave off “hundreds of millions of dollars” from the company’s bottom line. On top of that, J&J anticipates around $500 million in tariff costs hitting its medical devices segment in 2026. RBC Capital Markets analyst Shagun Singh noted that concerns over talc litigation “may be driving the stock down slightly,” despite the upbeat forecast. 4
However, the upside scenario could falter quickly if talc lawsuits ramp up ahead of trial dates or if pricing and tariff pressures exceed expectations. J&J has cautioned that legal results remain a key variable, which explains why it hasn’t provided a GAAP profit forecast for 2026.
Investors now turn to U.S. District Judge Michael Shipp as he reviews the special master’s recommendations, with hearings slated for later this month and early February. The stock’s next significant move probably depends on those upcoming legal decisions — and if J&J can keep its 2026 targets intact amid mounting pressure from Stelara’s decline.
