Johnson & Johnson reported first-quarter earnings on April 14 that beat Wall Street expectations and raised its full-year forecast, even as Jnj stock was marginally lower in premarket trading. The healthcare giant posted revenue of $24.1 billion, up nearly 10% from a year earlier and above analysts' estimates of $23.6 billion.
Adjusted earnings came in at $2.70 per share, topping the consensus estimate of $2.66. The company also lifted its full-year 2026 revenue forecast to a midpoint of about $100.8 billion and raised its adjusted earnings outlook to $11.55 per share at the midpoint.
The quarter underscored how Johnson & Johnson is leaning on newer drugs and its medical technology business to offset pressure on older medicines. Sales of Stelara fell around 60% to $656 million after the drug lost patent protection last year and began facing biosimilar competition, while Tremfya brought in $1.6 billion, well ahead of analysts' expectations of $1.2 billion. Darzalex also beat forecasts, with sales of $4.0 billion versus expectations of $3.4 billion. Medical technology quarterly sales rose 7.7% to $8.6 billion.
Chief Financial Officer Joseph Wolk said the company is seeing increased share in Tremfya and expects something similar from its new oral offering. He also said the company is not a fan of codifying, calling it a back door to price controls and arguing that countries with price controls tend to leave patients with less access to important medicines and weaker innovation.
Stelara was once a blockbuster autoimmune drug that topped $10 billion in annual sales at its peak, so its decline has been a key test of whether Johnson & Johnson can replace lost revenue quickly enough. The company said many patients have chosen treatments like Tremfya instead of switching to Stelara biosimilars, a shift that has helped cushion the blow as newer products gain traction. Johnson & Johnson is also among the drugmakers that agreed to most-favored-nation drug pricing deals with the Trump administration.
The market reaction suggests investors already expected a solid quarter, but the raised outlook gives Johnson & Johnson more room to absorb the drag from Stelara and keep its growth story intact. Shares have risen 15% so far this year, and the next test will be whether the company can keep that momentum as biosimilar pressure broadens and its newer portfolio carries more of the load.
