JNJ US S&P 500DJIARussell 1000 Earnings call · transcribed from the recording
Johnson & Johnson (JNJ) · Q3 2026 results and valuation
Share price: $280.41 · 2026-11-11
Johnson & Johnson is a healthcare holding company that develops and manufactures products for human health, including medicines and medical technology. Its products are distributed to healthcare professionals, hospitals, and distributors in nearly all countries worldwide. Source: 10-K annual report (2026-02-11)
Results Q3 2026 vs Q2 2026 · previous quarter · published 13 Oct 2026 and 15 Jul 2026
Net income down 96.2% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
−96.2%
Net income vs Q2 2026
Outlook given
Net income 210.0M vs 5.53B
Revenue +0.4%
Against the same quarter last year (Q3 2025) it is −95.9%, so it is not just seasonal.
Why Against the same quarter last year (−95.9%), net income fell primarily because other income and expense was a net expense of $5.8 billion, driven by the proposed talc litigation resolution and orthopedic separation-related costs.
2 · How management spoke
Upbeat
More upbeat than 79% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Johnson & Johnson's Innovative medicine margin declined from 44.3% to 35.4% due to approximately $1 billion in research and development expenses from the Firefly Bio acquisition and other factors.
Valuation
Is Johnson & Johnson undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.6% growth a year (3-year revenue growth), the model's fair value is $122.43 a share — the stock trades 129% above it. Today's price assumes 15.9% growth a year.
Current price
$280.41
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.9% for 10 yrs
Fair value / share
$122.43
Buy below
$91.82
Price vs fair value
Overvalued 129%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
With sales exceeding $25 billion this quarter, the company is on track to surpass $100 billion in annual revenue for the first time in its 140-year history.
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Guidance
Johnson & Johnson maintained its full-year free cash flow guidance of approximately $21 billion.
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Key theme
Alexo achieved year-to-date sales of approximately $200 million and expects to build on this momentum with a data readout in high-risk non-muscle invasive bladder cancer later this year.
Source quote
“We continue to see strong adoption for Alexo with year-to-date sales of approximately $200 million and expect to build on that momentum with a data readout in high-risk non-muscle invasive bladder cancer later this year.”
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Figure
Trenfaya sales grew 68% in the quarter.
Source quote
“Trenfaya delivered exceptional sales growth of 68% in the quarter, reflecting strong momentum across its indications.”
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Figure
Kaplita reached $1 billion in year-to-date sales, making it part of a $29 billion platform due to its uptake as an adjunctive treatment for major depressive disorder.
Source quote
“Kablita reached $1 billion in year-to-date sales, making it our $29 billion platform, Driven by strong uptake as an adjunctive treatment for major depressive disorder, Kaplaita is now the fastest-growing oral-branded therapy in this space.”
4 more
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Figure
Worldwide sales increased 6% to $25.4 billion for the quarter, indicating growth in the company's total revenue.
Source quote
“Worldwide sales were $25.4 billion for the quarter, increasing 6%.”
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Guidance
Johnson & Johnson is raising its 2026 guidance compared to the update provided in July.
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Figure
The oncology business grew approximately 17% in the third quarter.
Source quote
“In the third quarter, our oncology business grew approximately 17%.”
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Figure
MedTech margin increased from 21% to 22.9% due to tariff recoveries, which were partially offset by higher strategic investments in commercial capabilities.
Source quote
“MedTech margin increased from 21% to 22.9%, driven by the impact of tariff recoveries, partially offset by increased strategic investments in commercial capabilities.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Carvicti achieved growth of 35.2%, driven by share gains across earlier lines of therapy and continued site expansion.”
“In neuroscience, Spravato grew 36%, driven by continued share gains reflecting strong physician adoption and increased patient demand.”
“Kaplitis showed significant growth of 66.1%, driven by strong continued launch momentum and adjunctive major depressive disorder and continued demand increases across bipolar disorder and schizophrenia.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-27)
| Metric | Q3 2026period end 2026-09-27 | Q2 2026period end 2026-06-28 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 25.40B | 25.31B | +0.4% | 23.99B | +5.9% |
| Gross profit | 17.30B | 17.26B | +0.2% | 16.69B | +3.7% |
| Operating income | 34.0M | 6.75B | −99.5% | 7.49B | −99.5% |
| Net income | 210.0M | 5.53B | −96.2% | 5.15B | −95.9% |
| EPS | 0.09 | 2.27 | −96.0% | 2.12 | −95.8% |
| P/E today 42.0 | 41.2 | 29.5 | +11.7 | 17.4 | +23.8 |
Topics
Most discussed now
- Selling, marketing, and administrative expenses were flat as a percent of sales, reflecting consistent commercial investments in the…
- Its launches are gaining significant traction, and Johnson & Johnson is advancing its new product pipeline that will sustain its growth…
- In innovative medicine, Johnson & Johnson delivered operational sales growth of 7.9% with eight brands growing double digits.
- Adjusted net earnings for the quarter were $6.3 billion, and adjusted diluted earnings per share were $2.59, representing a decrease...
- This is one of the most significant medtech innovations Johnson & Johnson will bring to market this decade.
Faded since Q2 2026
- Nothing dropped away.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Johnson & Johnson reported third-quarter 2026 sales of $25.4 billion, representing a 5.9% increase compared to $23.993 billion in the same period of the previous year.
- Director or officer change · SEC 8-K
Johnson & Johnson announced that Jennifer Taubert will retire as Executive Vice President, Worldwide Chairman, Innovative Medicine, and Tom Cavanaugh will succeed her in the role effective September 1, 2026.
- Regulation FD disclosure · SEC 8-K
Johnson & Johnson completed the acquisition of Firefly Bio, Inc. for $1 billion in cash, which is expected to reduce adjusted operational earnings per share by approximately $0.46 in 2026.
- Regulation FD disclosure · SEC 8-K
Johnson & Johnson announced a proposed resolution of ovarian talc litigation involving a $5.5 billion commitment, with the first payment of up to $3 billion scheduled for 2027.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Other events · SEC 8-K
- Results of operations · SEC 8-K
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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by the end of the year
expected to receive US FDA approval for Ribreban FASPRO in advanced head and neck cancer
Source quote
“And by the end of the year, we expect to receive US FDA approval for Ribreban FASPRO in advanced head and neck cancer, a disease with significant unmet needs.”
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by 2030
ambition to become the number one oncology company with sales projected to exceed $50 billion
Source quote
“Our ambition is to become the number one oncology company by 2030 with sales projected to exceed $50 billion.”
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2026
finish the year strong
Source quote
“That is why we have the confidence to say that we will finish 2026 strong and that 2027 will be an even better year for Johnson & Johnson.”
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by the end of this decade
achieving double-digit growth
Source quote
“The depth of our portfolio, momentum from new product launches, and upcoming pipeline catalysts further reinforce our conviction in achieving double-digit growth by the end of this decade with sustainable growth beyond.”
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full-year
free cash flow guidance
Source quote
“We remain confident in our full-year free cash flow guidance of approximately $21 billion.”