Johnson & Johnson

Q1 2026 sales grew roughly 10% year-over-year to $24.1 billion on reported basis, with operational growth near 6.4% stripping out currency effects — a beat against consensus expectations.

DARZALEX was the standout performer, delivering 18% growth and crossing $4 billion in quarterly sales, while immunology drug TREMFYA posted 64% growth driven by expanded indications.

Adjusted EPS came in at $2.70. Management raised full-year 2026 guidance, now targeting roughly $100.8 billion in reported sales and adjusted EPS of ~$11.55 — both representing approximately 7% growth at midpoint.

The company also announced a 3.1% dividend increase to $1.34 per share quarterly, extending its streak to 64 consecutive years of dividend growth.

In February 2026, a U.S. bankruptcy court issued final approval for J&J's $10.5 billion talc settlement fund — a major resolution to litigation that had overhung the stock for years. Approximately 83% of claimants voted in favor of the plan.

However, a separate Texas Two-Step bankruptcy attempt was subsequently denied by a judge, and J&J chose not to appeal, instead withdrawing a ~$7 billion offer and indicating it will defend remaining talc claims in court. The total pending case count remains elevated.

Q1 2026 product approvals included ICOTYDE (a targeted oral peptide for plaque psoriasis), the TECVAYLI plus DARZALEX FASPRO combination for relapsed/refractory multiple myeloma, VARIPULSE Pro in Europe, and the TECNIS PureSee intraocular lens for U.S. cataract patients.

J&J also tentatively agreed to a $700 million settlement with more than 40 U.S. states over talcum powder marketing practices.

Bulls point to DARZALEX's durable growth trajectory and the maturing oncology pipeline as a credible path to mid-to-high single-digit revenue growth through the decade — with the talc overhang now substantially reduced.

Skeptics highlight that the talc litigation is not fully resolved: ongoing individual trials, the remaining case backlog, and the abandoned $7 billion bankruptcy offer leave residual legal uncertainty that is difficult to model. Additionally, drug pricing pressure from IRA negotiations and a strong dollar create headwinds to forward estimates.

With the stock up significantly over the trailing year and valuation multiples not as discounted as historically seen for J&J, the near-term upside case depends heavily on pipeline execution — particularly late-stage oncology and immunology assets delivering on clinical timelines.