New York, Jan 21, 2026, 11:32 EST — Regular session
- Shares of J&J slipped following its quarterly results and 2026 outlook, as legal risks reemerged in investor concerns.
- Investors are balancing concerns over tariffs and drug-pricing pressures with optimism about new drug launches.
Shares of Johnson & Johnson fell roughly 1.3% to $215.31 in late morning trading Wednesday, following the company’s release of its 2026 forecast alongside fourth-quarter earnings.
The outlook offers an early glimpse into Big Pharma’s growth plans for 2026. J&J features heavily in many long-only portfolios, so any slip on a guidance day usually sparks swift market moves.
This is crucial now as the company shifts more focus to newer cancer and immunology treatments while Stelara, a former best-seller, falls behind due to biosimilars—cheaper versions of complex biologic drugs. Investors are also keeping an eye on Washington, where drug-price regulations and trade policies could impact the landscape.
The broader market gained ground, with healthcare also climbing, but J&J trailed behind even within defensive stocks. The Health Care Select Sector SPDR ETF advanced roughly 1%, matching the SPDR S&P 500 ETF’s gain of about 1%. Merck, AbbVie, and Eli Lilly all saw their shares rise as well.
J&J reported a 9.1% jump in fourth-quarter sales, hitting $24.564 billion. Innovative Medicine sales climbed 10%, while MedTech grew 7.5%. Adjusted earnings per share came in at $2.46. Looking ahead, the company expects 2026 adjusted EPS between $11.43 and $11.63, with operational sales forecasted at $99.5 billion to $100.5 billion. (Johnson & Johnson Investor Relations)
Traders zeroed in on the challenges embedded in that forecast. Chief Financial Officer Joseph Wolk warned that a recent drug-pricing deal with U.S. President Donald Trump would cost Johnson & Johnson “hundreds of millions of dollars.” The company also flagged roughly $500 million in tariff risks linked to its medical devices segment. RBC Capital Markets analyst Shagun Singh noted that concerns over talc litigation “may be driving the stock down slightly.” (Reuters)
Legal pressure intensified Tuesday after a court-appointed special master—an independent expert helping a judge sort through technical details—recommended that experts be allowed to testify in federal trials claiming J&J’s talc products cause ovarian cancer. J&J pushed back, disputing the allegations and announcing plans to appeal to U.S. District Judge Michael Shipp, who is handling the New Jersey cases. The special master also left some issues open for hearings scheduled later this month and early February. (Reuters)
But the downside is clear. Should the judge follow the recommendation and push the cases quicker toward trial, the stock’s “legal discount” could widen once more, regardless of how the business performs. Tariff and pricing terms remain unsettled, and Stelara’s decline isn’t just a short-term issue.
Investors are watching closely to see if management can maintain momentum in oncology and immunology as Stelara’s sales decline. Attention also turns to the upcoming talc hearings scheduled for later this month and early February.
