Johnson & Johnson (NYSE: JNJ) recently released its Q1 earnings, surpassing analyst estimates on both revenue and earnings. The company posted adjusted earnings of $2.77 per share on revenue of $21.9 billion, exceeding consensus estimates of $2.59 per share and $21.6 billion in revenue. This strong performance was largely driven by increased sales of key drugs including Darzalex, Tremfya, and Erleada, supported by growing market share. However, as expected, Stelara experienced a notable 34% year-over-year sales decline to $1.6 billion, due to biosimilar competition. J&J’s adjusted net margins remained just under 31%, consistent with the same quarter last year.
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What’s Next For J&J?
Looking forward, the company raised its revenue forecast from the prior range of $89.2 billion to $90.0 billion to a revised range of $91.0 billion to $91.8 billion. Meanwhile, it reaffirmed its adjusted EPS guidance of $10.50 to $10.70, factoring in $400 million in tariff-related costs, dilution from the Intra-Cellular Therapies acquisition, and foreign currency impacts.
Post-earnings, JNJ shares moved slightly, ending 0.5% lower at $154 on Tuesday, April 15th. Despite a broader market decline linked to tariffs, the stock is still up 7% year-to-date. This reflects a shift by investors toward defensive assets amid prevailing economic uncertainty. We now value Johnson & Johnson’s Valuation at $174 per share — more than 10% above its current trading level. This projection is based on 16x forward adjusted earnings of $10.60 per share, consistent with its five-year average P/E multiple.
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