New York, Jan 27, 2026, 14:16 ET — Regular session
- JNJ shares climbed roughly 1.7% in afternoon trading, outperforming the weaker healthcare sector
- Freedom Capital raises its price target for J&J to $220 but maintains a “Hold” rating on the stock
- Attention shifts to 2026 pipeline targets and the threat of upcoming litigation
Shares of Johnson & Johnson climbed 1.7% to $225.19 Tuesday afternoon, outpacing the wider healthcare sector. The gain came after analysts raised their price targets in response to the company’s latest earnings report and its outlook for 2026. 1
J&J’s stock has surged into early 2026, driving valuations up to a point where positive news needs to be more substantial. Investors want to see concrete evidence that new drugs and medical devices will counterbalance patent expirations and regulatory challenges, instead of leaning on gains from last year.
Freedom Capital Markets lifted its price target on J&J to $220 from $190 but kept a “Hold” rating, citing that the stock is trading close to its fair value estimate. The firm highlighted recent revenue beats and projected that Johnson & Johnson could surpass $100 billion in revenue by 2026. 2
J&J climbed despite the Health Care Select Sector SPDR Fund dropping roughly 1.4%. The S&P 500, tracked by SPY, edged up about 0.5%. Within the group, Pfizer jumped around 2.6%, AbbVie gained 1.2%, Merck was up 0.7%, while Eli Lilly dipped about 1.1%. 3
J&J’s recent surge followed last week’s quarterly report, which projected 2026 profit and sales surpassing Wall Street’s estimates, despite accounting for a setback from a U.S. drug-pricing deal, Reuters reported. 4
During the earnings call, CEO Joaquin Duato described 2025 as a “catapult year,” expressing confidence that the company has clear “line of sight” to accelerated growth in 2026. Management also noted that their guidance factors in about $500 million in full-year MedTech tariffs. 5
Traders are focusing on whether J&J can stay above the cluster of recently raised targets — some of which still label the stock as fully valued — as investors shift between growth and defensive plays for the rest of the week.
J&J is eyeing 2026 with a focus on possible regulatory decisions and clinical updates for drugs including Tremfya, Darzalex, Tecvayli, and icotrokinra, per a company pipeline slide. They also plan submissions for other programs. 6
Johnson & Johnson revealed earlier this month that it has filed its OTTAVA robotic surgical system with the U.S. FDA, seeking De Novo classification. This move puts the company in direct competition with Intuitive Surgical, which has dominated the space for years. 7
There’s a downside risk, though. Talc-related litigation still looms as a major wildcard, with court decisions on expert testimony likely to influence settlement pressure and the pace of trials, Reuters reported last week. 8
Johnson & Johnson’s shares will go ex-dividend on Feb. 24, marking the cutoff for its $1.30 quarterly payout, with the dividend scheduled for payment on March 10, the company announced. 9
