JNJ Stock Forecast & Price Target

Johnson & Johnson's Innovative Medicine division reported revenues of $15.20 billion, exceeding consensus estimates and demonstrating a year-over-year adjusted operational growth of 2.4%, while the impressive performance of its drug portfolio, particularly outside of STELARA, contributed to a significant overall revenue outlook. The company has raised its FY25 sales guidance to $93.2–$93.6 billion, attributing this increase to both operational strength and favorable currency fluctuations, indicating robust demand and effective management strategies. Furthermore, with expectations of operational sales growth improving in the second half of 2025 and continued acceleration into 2026, JNJ is projected to achieve bottom-line growth that aligns with or surpasses top-line performance, reinforcing a positive long-term outlook for the stock.

Johnson & Johnson's recent financial performance indicates notable challenges, particularly in its Orthopedics segment, where sales of $2.31 billion saw a 1.6% year-over-year decline, attributed to factors such as volume-based procurement in China and adverse inventory dynamics. There is also concern regarding the pharmaceutical division's future revenue growth, with the expectation of losing exclusivity on key products potentially leading to less than $57 billion in revenue by 2025 and subdued growth prospects for the latter half of the decade. Furthermore, competitive pressures in the MedTech sector and the potential disruptions from mergers and acquisitions, alongside increased litigation costs, contribute to a negative outlook for the company's overall performance.