As a global giant in the healthcare industry, Johnson & Johnson is renowned for its stable operating history spanning over a century. The company has achieved numerous milestones throughout its long development journey, and its stock has delivered substantial returns to long-term holders. This year, Johnson & Johnson is poised to add another significant milestone to its illustrious history.
On January 21 this year, Johnson & Johnson released its fourth-quarter 2025 financial report, showcasing robust performance. The report revealed that the company’s sales increased by 9.1% year-over-year to $24.6 billion, while adjusted earnings per share surged by 20.6% to $2.46. Additionally, Johnson & Johnson’s performance guidance for the 2026 fiscal year is particularly noteworthy: the company expects annual sales to reach between $100 billion and $101 billion.
This projection holds great significance. If realized, it would mark the first time in Johnson & Johnson’s history that its annual sales exceed $100 billion. In fact, among global biopharmaceutical companies, only Pfizer has previously achieved this scale. However, it is worth noting that Pfizer’s $100 billion sales milestone was largely driven by products related to COVID-19 prevention and treatment, and its revenue has since declined significantly.
Based on Johnson & Johnson’s median projection, its 2026 revenue is expected to grow by 6.7% year-over-year, a steady pace of growth for this healthcare giant.
The impressive performance of Johnson & Johnson in 2025 and its 2026 guidance are even more remarkable given the challenging backdrop. First, Stelara, a key growth driver in its immunology portfolio, lost patent exclusivity in Europe in 2024 and in the United States in 2025. Second, the results of the U.S. Medicare drug price negotiations for this year will take effect, with Johnson & Johnson’s Stelara, the cancer drug Imbruvica, and the anticoagulant Xarelto all included in this round of negotiations.
Although Stelara and Imbruvica (the latter of which has already seen declining sales due to market competition) are no longer growth engines, Xarelto’s sales still grew by 11% year-over-year in 2025, reaching $2.6 billion. Despite facing dual pressures from patent cliffs and government drug price negotiations, Johnson & Johnson continues to deliver stable performance, fully demonstrating the resilience and depth of its business. The company’s extensive product portfolio, robust R&D pipeline, and medical technology segment provide ample diversification to help navigate these challenges.
Therefore, although this industry leader will continue to face various obstacles in the future, investors have reason to believe that Johnson & Johnson will maintain relatively strong performance over the long term and uphold its exceptional dividend policy. Johnson & Johnson is one of the renowned “Dividend Kings,” a group of companies that have raised their dividends for at least 50 consecutive years, and Johnson & Johnson has extended this record to 63 years. For dividend investors, Johnson & Johnson is undoubtedly a dream investment.
Do all these positive factors make Johnson & Johnson stock a must-buy that investors should clamor for? Not quite. Johnson & Johnson’s growth is solid but not spectacular, and its stock valuation is similarly moderate, with a forward price-to-earnings ratio of approximately 19. The company has not yet fully overcome the impact of patent expirations.
However, for certain investors, Johnson & Johnson remains an attractive stock. Risk-averse investors will appreciate its long history and stability. Income-focused investors will value its dividend and its exceptional track record of dividend increases. If you belong to either of these investor groups, Johnson & Johnson may not be a screaming buy, but it could still be a worthwhile investment.
