New York, January 23, 2026, 20:21 EST — Markets have closed for the day
- Shares of Johnson & Johnson ended Friday’s session 0.76% higher, closing at $220.14
- Following the company’s 2026 outlook and earnings, brokerages raised their price targets
- Talc litigation and policy expenses continue to weigh heavily as we approach next week
Johnson & Johnson (JNJ) shares ended Friday 0.76% higher at $220.14, wrapping up a choppy week on a stronger note. The uptick followed new analyst price target boosts, driven by the company’s recent quarterly results and its outlook for 2026.
The bounce is crucial now as J&J’s guidance runs up against two tricky factors investors often struggle to price: evolving U.S. policies on drug pricing and tariffs, plus an ongoing talc litigation saga. These elements can shift more abruptly than quarterly forecasts suggest.
This stock, a major player in healthcare portfolios and a Dow component, often signals if investors are flocking to “defensives” or still chasing risk. The key question next week: was Friday’s buying genuine demand or just weekend positioning?
TD Cowen’s Joshua Jennings bumped his price target to $250 from $222, maintaining a Buy rating. He’s banking on a stronger 2026 outlook to drive higher revenue and EPS — the standard profit metric. Wells Fargo also raised its target, this time to $240, while sticking with an Overweight rating. Scotiabank took it a step further, lifting its target to $265 and holding an Outperform rating.
Johnson & Johnson posted a 9.1% jump in fourth-quarter sales, hitting $24.6 billion. For the full year, sales climbed 6%, reaching $94.2 billion. The company reported fourth-quarter EPS of $2.10, while adjusted EPS—which excludes selected special charges—came in at $2.46.
J&J projected 2026 sales between $99.5 billion and $100.5 billion earlier this week, with adjusted earnings expected around $11.43 to $11.63 per share, according to Reuters. CFO Joseph Wolk noted a drug-pricing deal would cost “hundreds of millions of dollars.” RBC Capital Markets’ Shagun Singh suggested the stock might be under pressure due to ongoing talc litigation concerns. Reuters
Litigation remains the key variable. A court-appointed special master has recommended accepting plaintiffs’ expert testimony that links J&J’s talc products to ovarian cancer, a crucial step in deciding what evidence a jury will see. The New Jersey federal docket includes over 67,500 cases. The special master noted that some other requests will be tackled during hearings scheduled for later in January and early February.
On Friday, the Dow dropped 0.6%, with the S&P 500 holding steady and the Nasdaq climbing 0.3%, per AP market data. J&J’s strong showing highlighted how fast investors pivot to big healthcare stocks once the headlines get complicated.
Investors remain focused on how quickly Stelara, once J&J’s blockbuster psoriasis drug, is losing ground to biosimilars—these cheaper, near-identical versions of complex biologics. The company is relying on gains from newer drugs and its medical-technology segment to counterbalance that decline.
The setup isn’t straightforward. Should the talc litigation speed up toward trials, or if policy change costs hit harder than investors anticipate, the stock could shift from a safe haven to a headline-driven gamble.
Markets reopen Monday, Jan. 26, with traders eyeing if recent post-earnings target upgrades spark new buying or just hold the stock close to $220. A key date ahead: Feb. 24, when shares go ex-dividend ahead of the $1.30 quarterly payout set for March 10.
