Johnson & Johnson, one of the world’s most recognizable healthcare and pharmaceutical companies, recently released its fiscal Q4 2025 earnings report, showcasing both impressive growth and notable challenges.
Strong Earnings and Stock Performance
The company’s earnings per share (EPS) rose to an estimated range of $2.49-$2.50, reflecting a 22% climb from last year. Additionally, revenue increased by an estimated 7.3% year-over-year to an impressive $24.14 billion. Over the past year, Johnson & Johnson’s stock has soared 47-48.7%, significantly outperforming the S&P 500’s 14.7% return.
Maintaining its reputation as a “Dividend King,” Johnson & Johnson has consistently increased dividends for over 60 years, currently offering $1.30 per share quarterly, yielding 2.50%. Such reliability continues to make the company a popular choice for long-term investors.
Innovative Medicine Growth Drives Momentum
Johnson & Johnson’s Innovative Medicine division has been pivotal in driving sales, with products like Darzalex, Tremfya, and Erleada performing particularly well. Analysts forecasted Q4 sales of Darzalex at $3.74 billion, Tremfya at $1.36 billion, and Erleada at $936 million. Additionally, newer treatments such as Carvykti, Tecvayli, and Spravato are quickly gaining traction and contributing to overall growth.
Challenges on the Horizon: Stelara Loss of Exclusivity
Despite its strong portfolio, Johnson & Johnson faces pressures, particularly with the loss of Stelara’s market exclusivity in 2025. The entry of biosimilar competitors like Amgen, Teva, and Samsung Bioepis/Sandoz has significantly impacted sales. Stelara sales for Q4 are estimated at $1.36 billion—a notable decline compared to previous years. This highlights the increasingly competitive pharmaceutical landscape the company operates within.
MedTech Expansion and Manufacturing Investments
The MedTech segment has seen substantial recovery recently, with segments such as cardiovascular (boosted by acquisitions like Abiomed and Shockwave) and vision & surgical devices performing well. These advancements are further supported by Johnson & Johnson’s announced $55 billion investment in U.S. manufacturing expansions, including a $2 billion biologics factory in North Carolina, projected to create 5,000 jobs.
Ongoing Legal Challenges
The talc litigation continues to be a pain point for Johnson & Johnson. A Maryland jury recently awarded $1.56 billion—the largest single-plaintiff verdict against the company. Johnson & Johnson denies the presence of asbestos in their talc powder and plans to appeal the decision. Despite these legal challenges, the company remains focused on delivering strong results and maintaining consumer trust.
Looking Ahead
With 2026 guidance in focus, the company is optimistic about new growth opportunities, despite hurdles like biosimilar challenges, legal disputes, and pricing pressures in key international markets like China. Investors are advised to monitor the company’s updated growth forecasts and pipeline developments closely.
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