Johnson & Johnson shares (NYSE: JNJ) have been an outperformer through 2026, adding 13.7% YTD, yet the share price is down 1% today ahead of earnings, with markets bracing for volatility before the US market opens tomorrow.
The consensus on Wall Street is for JNJ to put up an EPS of $2.68 on revenue of $23.61 billion for the quarter. Should the street be on the mark, this would reflect a 7.86% sales growth rate Y/Y, although with EPS being squeezed from the $2.77 this time last year.
Leading in to earnings, Guggenheim upgraded its price target for JNJ from $240 to $244 on April 8, 2026, maintaining a “buy” rating based on the company’s strong product pipeline and market dominance. This positive sentiment fueled a 1.1% increase in JNJ shares, reaching a session high of $241.33.
Johnson & Johnson’s MedTech division achieved a notable success with the FDA approval of the TECNIS PureSee intraocular lens in March 2026. This innovative lens for cataract surgery promises enhanced vision without compromising contrast sensitivity, potentially boosting the company’s presence in the surgical vision market. The market will be looking for more details during the earnings call about the potential revenue generation from this product.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
The company continues to grapple with legal challenges, most notably the ongoing talc litigation. A court-appointed special master recommended in January 2026 that expert testimony linking J&J’s talc products to ovarian cancer be allowed in court. This legal overhang remains a significant factor influencing investor sentiment, as potential liabilities could impact future earnings and cash flow.
The key focus for investors will be on Johnson & Johnson’s ability to navigate its legal challenges while capitalizing on opportunities in its MedTech and pharmaceutical segments. The company’s diversified portfolio and strategic initiatives are expected to continue to drive long-term growth, but near-term performance may be subject to volatility.
