JNJ earnings analysis
What we found in JNJ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Johnson & Johnson reported fiscal Q1 2026 sales of $24.062 billion, up 9.9% year-over-year (operational +6.4%, FX +3.5%) with segment strength in Innovative Medicine and MedTech. GAAP diluted EPS was $2.14, down versus the prior-year quarter (impacted by a $7.0 billion talc reserve reversal in Q1 2025), and operating profitability was roughly in line with pre-interest measures though below the same quarter a year ago. Cash and cash equivalents rose to $21.688 billion while net debt expanded to $32.9 billion as the company continued share repurchases and paid dividends.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Top-line growth and beat
- Worldwide sales were $24,062 million, an increase of 9.9% versus Q1 2025 sales of $21,893 million (management reports operational growth of 6.4% and favorable currency of 3.5%).
- Innovative Medicine outperformance
- Innovative Medicine segment sales were $15,426 million, up 11.2% versus $13,873 million a year ago.
- MedTech growth
- MedTech segment sales were $8,636 million, up 7.7% versus $8,020 million in Q1 2025.
- Strength in Oncology franchises
- Oncology sales reached $6,973 million versus $5,678 million a year ago, up 22.8% (operational +17.8%).
- Strong liquidity base
- Cash and cash equivalents increased to $21,688 million at March 29, 2026 from $19,709 million at December 28, 2025 (increase of $1,979 million).
- Positive operating cash generation
- Net cash flows from operating activities were $2,514 million in Q1 2026 and free cash flow (operating cash flow less additions to PP&E of $1,049 million) was approximately $1,465 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- STELARA sales collapse
- STELARA sales declined to $656 million in Q1 2026 from $1,625 million in Q1 2025, a decrease of 59.7% (management attributes this to biosimilar competition and expects continued launches).
- Year-over-year earnings decline (talc impact)
- Net earnings were $5,235 million in Q1 2026 versus $10,999 million in Q1 2025 (Q1 2025 included approximately $7.0 billion related to the talc reserve reversal).
- Rising net debt
- The Company reports a debt position of $55.0 billion and cash, cash equivalents and marketable securities of $22.1 billion for a net debt position of $32.9 billion as of March 29, 2026 versus a prior year fiscal first quarter net debt position of $13.5 billion.
- Operating cash flow and FCF down vs prior year
- Net cash flows from operating activities declined to $2,514 million in Q1 2026 from $4,174 million in Q1 2025; free cash flow was about $1,465 million versus $3,370 million (historical Q1 2025 FCF shown in the user-supplied history).
- Near-term product-competition risks called out
- Management expects continued launches of biosimilar versions of STELARA globally and states it expects generic competition for OPSUMIT in the U.S. in the second half of 2026, which would likely reduce future sales.
- Working capital pressure (current liabilities increase)
- Current liabilities increased to $57,716 million at March 29, 2026 from $54,126 million at December 28, 2025, compressing current liquidity despite higher cash balances.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.14
- Gross margin
- 66.3%
- Operating margin
- 26.3%
- Segment
- Innovative Medicine: $15,426 million (Q1 2026) vs $13,873 million (Q1 2025), +11.2%
- Segment
- MedTech: $8,636 million (Q1 2026) vs $8,020 million (Q1 2025), +7.7%
What they said about what is next.
No explicit numeric FY or next-quarter guidance provided in the 10-Q. Management discloses directional/operational commentary: expects continued biosimilar launches to negatively impact STELARA, expects generic competition for OPSUMIT in the U.S. in H2 2026, targets an Orthopaedics separation within 18–24 months of the October 2025 announcement, expects restructuring program costs of approximately $0.9–$1.0 billion (substantially completed by end of fiscal 2026), and states it expects operating cash flows and borrowing capacity to provide sufficient resources to fund operating needs (including remaining talc ~$3.4 billion, current portion of corporate bonds due ~$1.8 billion and opioid settlements ~ $1.1 billion). The Board declared a $1.34 per share quarterly dividend on April 14, 2026.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 11, 2026
- Johnson & Johnson delivered fiscal 2025 sales of $94,193 million and net earnings from continuing operations of $26,804 million (diluted continuing EPS $11.03), driven by operating cash flow of $24,530 million and a…
- 10-Q · April 23, 2025
- Johnson & Johnson reported fiscal Q1 2025 revenue of $21.893 billion, up 2.4% year‑over‑year, and diluted EPS of $4.54 driven largely by a one‑time talc reserve reversal of approximately $7.0 billion. Operationally…
- 10-K · February 13, 2025
- Johnson & Johnson reported fiscal 2024 sales of $88,821 million (up from $85,159 million in 2023) with continuing-operations diluted EPS of $5.79. The company generated strong operating cash flow of $24,266 million…
- 10-Q · October 23, 2024
- Johnson & Johnson reported Q3 sales of $22.471 billion, up 5.2% year-over-year, while pre-tax earnings and diluted EPS from continuing operations compressed materially. Innovative Medicine ($14.580B, +4.9% YoY) and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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