New York, January 21, 2026, 17:55 EST — After-hours
- Johnson & Johnson shares slipped 0.05% in after-hours trading, following a volatile session earlier in the day
- J&J projects 2026 sales and profits will surpass Wall Street expectations, even with pressure from pricing and tariffs
- A recent court recommendation on talc expert testimony renewed attention on litigation risks
Johnson & Johnson shares dipped 0.05% to $218.01 in after-hours trading Wednesday, swinging from a low of $209.20 to a high of $218.61. Investors balanced the company’s 2026 forecast with fresh scrutiny over talc-related lawsuits.
The numbers are crucial as J&J aims to prove it can sustain growth despite mounting challenges. Stelara, one of its top drugs, is up against tougher competition and growing U.S. scrutiny over drug pricing. Tariffs on medical devices add another layer of cost pressure.
After a strong 2025, the stock entered the earnings report riding high, so expectations were set pretty steep. Investors are now watching closely to see if new product launches and medical devices can pick up the slack as older blockbusters lose steam.
J&J projected 2026 sales between $99.5 billion and $100.5 billion, with profits of $11.43 to $11.63 per share—both topping consensus estimates. This outlook holds despite the expected impact from a recent drug-pricing deal with the Trump administration and roughly $500 million in tariffs hitting its medical devices segment. “We can’t disclose specific details, but it’s hundreds of millions of dollars,” CFO Joseph Wolk noted. RBC Capital Markets analyst Shagun Singh flagged talc litigation as weighing on investor sentiment. Reuters
Johnson & Johnson posted adjusted earnings of $2.46 per share for Q4 on $24.6 billion in revenue. Its 2026 guidance points to mid-single-digit sales growth at the midpoint. CEO Joaquin Duato labeled 2025 “a catapult year,” noting several upcoming drug and device milestones tied to the results. JNJ.com
A Form 8-K filing revealed the company submitted its earnings release and supplemental sales data to the U.S. Securities and Exchange Commission on Wednesday.
A legal development grabbed attention as retired U.S. District Judge Freda Wolfson, serving as a court-appointed special master, advised that plaintiffs in the federal talc multidistrict litigation should be permitted to introduce expert testimony linking genital talc use to ovarian cancer. This case bundle involves over 67,500 lawsuits. Johnson & Johnson announced plans to appeal parts of this ruling, with its worldwide vice president of litigation, Erik Haas, labeling the opinion “erroneous.” Reuters
Expert testimony battles like this can influence case speed and costs, and investors are paying attention. The judge handling the case, Michael Shipp in Trenton, New Jersey, will ultimately rule on whether to follow the recommendations.
J&J maintains its talc products are safe and halted sales of talc-based baby powder in the U.S. back in 2020, switching over to cornstarch instead. Plaintiffs’ lawyers counter that the science backs their claims, but J&J disagrees.
The risk for bulls is straightforward: should the court follow the recommendation and accelerate trials, the company may encounter increased settlement pressure and volatile headlines, despite stable drug and device sales. On the business front, Stelara sales could decline faster than anticipated due to biosimilars—near-identical versions of complex biologic drugs—narrowing the margin for error in meeting 2026 targets.
Investors will be keeping an eye on any court moves related to the special master’s recommendations, as well as updates on how tariff exemptions and price cuts will impact guidance for 2026. Johnson & Johnson has scheduled its next earnings webcast for first-quarter results on Tuesday, April 14, 2026.
