NEW YORK, Jan 25, 2026, 10:26 EST — Market closed
- Johnson & Johnson shares ended Friday up 0.76%, closing at $220.14 ahead of the new week.
- Traders are balancing J&J’s 2026 outlook with ongoing talc lawsuits and pressure from competing drugs.
- Wednesday brings the next major market test: the Federal Reserve’s rate decision.
Johnson & Johnson (JNJ) shares closed Friday up 0.76% at $220.14, kicking off a week loaded with a U.S. rate decision and major earnings reports. U.S. markets remain closed over the weekend and will reopen Monday. 1
The stock is reacting to a week in which the company released its 2026 outlook and reported Q4 results in an SEC filing, providing investors with updated figures to digest. For J&J, the focus now shifts from any one headline to whether earnings momentum can outpace ongoing legal distractions. 2
On Wednesday, J&J projected 2026 sales and profits to surpass Wall Street expectations, despite accounting for a drug-pricing agreement with the Trump administration and roughly $500 million in tariffs hitting its medical devices segment. Chief Financial Officer Joseph Wolk told Reuters, “We can’t disclose specific details, but it’s hundreds of millions of dollars,” when asked about the pricing deal’s expense. RBC Capital Markets analyst Shagun Singh noted that “the talc litigation concerns may be driving the stock down slightly.” 3
Friday saw the Dow dip 0.58% in a lackluster session, while the Nasdaq eked out a 0.28% gain. Pharma stocks were mixed: Merck slid 0.92%, Pfizer dipped 0.08%, but J&J closed in positive territory. 4
The legal situation remains volatile. A court-appointed special master has recommended that expert witnesses be allowed to testify that J&J’s talc products may cause ovarian cancer in the federal lawsuits. This move could accelerate cases toward trial once a judge weighs in on the recommendation. 5
Johnson & Johnson posted fourth-quarter sales near $24.6 billion, with adjusted earnings coming in at $2.46 per share. The company stuck to its 2026 guidance, targeting sales of roughly $100.5 billion and adjusted EPS around $11.53. CEO Joaquin Duato called 2025 “a catapult year for Johnson & Johnson.” 6
Investors are closely tracking whether new drugs and devices can offset the pressure on Stelara, which faces mounting competition from biosimilars—lower-priced copies of complex biologic medicines. J&J’s shares dropped following its quarterly report earlier this week, despite a strong outlook, as the market absorbed the rapid decline in Stelara’s sales. 7
Macro developments might play an outsized role this week. The Federal Reserve takes the spotlight again, as traders scan for changes in the rate outlook and nuances in Chair Jerome Powell’s remarks. At the same time, earnings reports are hitting multiple sectors. 8
The downside for J&J isn’t tough to outline: a negative shift in the talc lawsuits, a quicker decline in key drug franchises, or tariff costs on medical devices exceeding expectations. J&J’s legal chief Erik Haas commented, “The special master erroneously allowed certain other plaintiffs’ experts opinions to proceed.” 9
The next major catalyst arrives Wednesday with the Fed’s decision at 2:00 p.m. ET, followed by Powell’s press conference half an hour later. This event could shake up rate-sensitive bets, especially in defensive names like J&J. 10
