Johnson & Johnson (JNJ) stock fell 2% after earnings beat — here’s why

TLDR

• J&J reported second-quarter adjusted EPS of $2.90, beating analyst estimates of $2.85.
• Second-quarter sales were $25.31 billion, up 6.6% year over year, beating Wall Street expectations.
• Raised full-year sales guidance to approximately $101.1 billion; EPS guidance was raised to $11.68 at the midpoint
• Tremfya sales rose 72.5% to $2 billion. Darzalex brought in $4.2 billion
• JNJ stock is down nearly 2% in premarket trading despite the upbeat beat and guidance

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Johnson & Johnson reported second-quarter earnings that beat Wall Street estimates, then watched its stock fall anyway. JNJ stock fell nearly 2% in premarket trading on Wednesday, even as the company raised its full-year outlook.

Johnson & Johnson, JNG

Adjusted earnings per share came in at $2.90, above analysts’ expectations of $2.85. Total sales were $25.31 billion, up 6.6% from last year and above the consensus estimate of $25.05 billion.

The market reaction was not surprising given the setting. Johnson & Johnson had already gained nearly 23% in 2026 before the press, long before the S&P 500 rose 10%. Results that exceeded expectations, but did not exceed them, are unlikely to move the needle much higher.

$JNJ Highlights of the second quarter earnings results of 2026

🔹 Sales: $25.31 billion (estimated value $25.02 billion) 🟢; +6.6% YoY
🔹 EPS: $2.90 ($2.86 estimated) 🟢; +4.7% YoY
🔹 Net profits: $7.08 billion; +5.7% YoY

FY26 Guide:
🔹 Sales: $100.8 billion to $101.4 billion (estimate $101.06 billion) 🟡; +7.3% YoY
🔹 EPS: $11.60 to $11.75 ($11.58)…

– Wall Street Engine (@wallstengine) July 15, 2026

The pharmaceutical unit was its most prominent feature. It achieved quarterly sales of $16.38 billion, exceeding analysts’ expectations of $16.1 billion.

Tremfya was a major number. The psoriasis and inflammatory bowel disease drug had sales of $2 billion, up 72.5% year over year and well above LSEG estimates of $1.74 billion. Tremfya is growing in importance as Johnson & Johnson works to fill the gap left by Stelara, whose revenues have fallen sharply since launching biosimilar competition in 2025.

Darzalex, a blood cancer treatment, contributed $4.2 billion to sales, roughly in line with estimates. Carfacti and TechFile also helped achieve 6.8% growth in the Innovative Medicine Oncology segment.

MedTech pull, Impella in focus

The MedTech department was the weak point. Sales were $8.93 billion, up 4.5% but slightly below Wall Street expectations of $9 billion.

Within MedTech, sales of Impella heart pumps declined 2% year over year. This is a sharp reversal from the 14% growth recorded in the first quarter. Chief Financial Officer Joseph Wolk attributed the decline to a British study published earlier this year that raised questions about the use of Impella during some high-risk coronary procedures.

Wolk said Johnson & Johnson It expects the pipeline to return to growth as the company releases more supporting data. “We have a large set of data that will likely be released in the first half of next year that should dispel any concerns,” he said.

I raised guidance

Johnson & Johnson raised its full-year forecasts on both lines. The company now expects sales of about $101.1 billion at the midpoint, up from $100.8 billion previously. Adjusted EPS guidance was raised to $11.68 at the midpoint, from $11.55.

Johnson & Johnson has only raised its sales guidance during its second-quarter report once in the past four years, seeing that as a potentially positive sign, Wells Fargo analyst Lawrence Biegelsen noted before publication.

JPMorgan analyst Chris Schott called Johnson & Johnson “one of the cleaner names” in its peer group as it moves beyond the Stelara patent cliff.

Johnson & Johnson now has 28 platforms that each generate at least $1 billion in annual revenue, according to Wolk.