JNJ stock price today: Why Johnson & Johnson shares dropped despite strong 2026 forecast? Here's what investors are watching

JNJ stock price today: Johnson & Johnson (JNJ) stock fell on Wednesday even after the healthcare giant forecast 2026 sales and profit above Wall Street expectations, as legal concerns continue to weigh on the stock, as per a report.

J&J Stock Today Slips Despite Strong 2026 Sales and Profit Forecast

The company said it expects 2026 operational sales of $99.5 billion to $100.5 billion, ahead of analysts’ estimates of $98.9 billion, as per a Reuters report citing LSEG data. Full-year 2026 profit is projected at $11.43 to $11.63 per share, compared with analysts’ expectations of $11.45 per share.

Drug Pricing Deal With Trump Administration Hits J&J Forecast

The forecast includes a hit of “hundreds of millions of dollars” tied to a drug pricing agreement J&J signed earlier this month with the Trump administration. Under the deal, J&J is one of 16 large pharmaceutical companies that agreed to lower US drug prices in exchange for exemptions from Trump-imposed tariffs.


Chief Financial Officer Joseph Wolk said in an interview that, "We can't disclose specific details, but it's hundreds of millions of dollars," adding, "It's a credit to the team here that we were able to surpass what (analyst) expectations are for 2026 by a pretty sizable amount while ‌digesting that impact," as quoted by Reuters.

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Talc Litigation Concerns Pressure J&J Shares

The JNJ stock decline followed news that a court-appointed special master recommended allowing expert testimony linking the company’s talc products to ovarian cancer. RBC Capital Markets analyst Shagun Singh said that, "The talc litigation concerns ‍may be driving the stock down slightly," as quoted by Reuters.

J&J has long fought talc-related claims in federal and state courts, but maintains that its products are safe and do not cause cancer, as per the Reuters report.

Analysts Say J&J Story Is Moving Beyond Talc

JP Morgan analysts said they are watching for near-term updates on the litigation but believe the “JNJ story” is moving beyond talc, as per the Reuters report.

J&J Fourth-Quarter Results Beat Expectations

Operationally, the company delivered better-than-expected results for the fourth quarter of 2025. On an adjusted basis, J&J earned $6 billion, or $2.46 per share, above analysts’ expectations of $2.44. Quarterly revenue rose to $24.56 billion, topping forecasts of $24.16 billion.

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Strong Drug Sales Support Johnson & Johnson Earnings

The results were driven by strong sales of blood cancer therapy Darzalex, solid growth in psoriasis drug Tremfya, and resilience in the medical devices business. Sales in the Innovative Medicine division, J&J’s largest segment, rose 10% to $15.76 billion, beating estimates of $15.37 billion. Medical devices sales grew 7.5% to $8.80 billion, also ahead of expectations.

CEO Calls 2025 a “Catapult Year” for J&J

Chief Executive Joaquin Duato described 2025 as a “catapult year,” citing that, "fueled by the strongest portfolio and pipeline in our history," as quoted by Reuters. He added that cancer therapy Carvykti surpassed $1 billion in annual sales for the first time.

J&J's Stelara Decline Offset by Broader Portfolio Growth

The upbeat performance comes as J&J faces challenges including tariff uncertainty for its medical devices unit and rising competition for its blockbuster psoriasis drug Stelara from biosimilars. Stelara sales declined more than analysts had expected, but Wolk said the broader portfolio continues to grow.

Wolk said, "How nice ⁠is it that Stelara was down so much - maybe even more than analysts thought - and we still continue to grow?" adding that, "If you just take Stelara out of that mix, that portfolio is growing 14%, 15%. Those are the products that we're going to rely on for the next couple years and the balance of this decade," as quoted by Reuters.

FAQs

Why did Johnson & Johnson stock fall despite strong forecasts?
The stock dipped mainly due to renewed concerns around talc litigation, even though earnings guidance beat expectations.

What is J&J’s sales outlook for 2026?
The company expects operational sales between $99.5 billion and $100.5 billion.