New York, Jan 22, 2026, 12:07 EST — Regular session
Johnson & Johnson shares climbed roughly 1.1% to $220.36 in late morning trading Thursday, recovering after a volatile response to its quarterly earnings and 2026 guidance.
The healthcare giant outlined profit and sales goals that beat Wall Street forecasts, despite warning of a blow from a U.S. drug-pricing agreement and roughly $500 million in tariffs connected to its medical devices segment. CFO Joseph Wolk said the pricing effect would hit “hundreds of millions of dollars.” Meanwhile, RBC Capital Markets analyst Shagun Singh flagged talc lawsuits as weighing on investor sentiment. Reuters
The legal pressure is very real. A court-appointed special master, tasked with reviewing evidence, this week recommended that plaintiffs be permitted to call expert witnesses claiming J&J’s talc products can cause ovarian cancer—an assertion the company denies. Erik Haas, J&J’s Worldwide Vice President of Litigation, accused the special master of having “breached that duty” and said the company will appeal to the judge handling the federal New Jersey case. Reuters
J&J reported a 9.1% jump in fourth-quarter sales, reaching $24.564 billion. Adjusted earnings per share, which exclude certain items, came to $2.46. Looking ahead to 2026, the company projected adjusted EPS between $11.43 and $11.63. It also outlined sales expectations from $100 billion to $101 billion, with “operational” sales—excluding currency impacts—forecast at $99.5 billion to $100.5 billion. JNJ.com
On Wednesday, a regulatory filing came through as an 8-K, including the press release detailing the quarter and full year results ending Dec. 28, 2025.
Stocks initially moved against the report. Barron’s highlighted that shares dipped about 1.1% on Wednesday, despite beating estimates. Traders zeroed in on a steep decline in Stelara sales, hit by lost exclusivity and biosimilar competition—cheaper copies of biologic drugs. The report also showed faster growth in Darzalex and Tremfya, but Carvykti sales fell short, dragging on partner Legend Biotech.
Some investors are keeping an eye on J&J’s progress in medical devices. Investors.com pointed out challenges in electrophysiology, where pulsed-field ablation systems—used to treat atrial fibrillation—are facing stiff competition from Boston Scientific and Medtronic, both of which have been taking market share.
There’s another complication with the outlook: the divide between “reported” and “operational” figures. Nasdaq.com pointed out that J&J also issued guidance for adjusted operational earnings and sales ranges for 2026. These metrics aim to remove currency fluctuations and some deal-related distortions—handy for comparisons, though they rely on certain assumptions. Nasdaq
U.S. stocks climbed Thursday, buoyed by easing concerns over tariffs and positive economic data. Major indexes built on gains from the previous day, Reuters reported.
For J&J, the next key event isn’t economic but legal. Traders are focused on hearings scheduled later this month and in early February, covering expert testimony in the talc litigation. After that, all eyes will be on whether the judge approves the special master’s recommendations. That move could accelerate trials and keep the stock volatile, even as J&J works to make up for Stelara’s slump with new drugs and devices.
