Johnson & Johnson – profit growth in Q3 2025, upbeat 2025 outlook, and new price target at 225 USD

Johnson & Johnson (NYSE: JNJ) once again exceeded market expectations with its Q3 2025 financial results, reinforcing its status as a reliable dividend aristocrat. The company’s shares reached a new all-time high as a result.

In Q3 2025, Johnson & Johnson reported revenue of 23.99 billion USD, up 6.8% year-on-year and above analyst forecasts (consensus: 23.76 billion USD). Adjusted earnings per share came in at 2.80 USD, also ahead of expectations (around 2.75 USD).

Revenue growth was driven by both core divisions: sales in the Innovative Medicine segment rose to 15.56 billion USD, supported by strong performance from oncology and immunology drugs, while the MedTech segment generated 8.43 billion USD, with cardiology and electrophysiology leading the increase. Despite continued pressure from declining sales of Stelara and Imbruvica, the company has been successfully expanding its portfolio of new products.

Management raised its full-year revenue guidance to 93.5–93.9 billion USD and reaffirmed its profit target at 10.80–10.90 USD per share. Johnson & Johnson also announced plans to spin off its orthopaedics division, DePuy Synthes, into a separate company within 18–24 months, aiming to focus on higher-growth business segments.

Investors reacted positively to the results, encouraged by the company’s strong revenue and earnings performance and the upward revision of its full-year revenue forecast. The planned DePuy Synthes spin-off was likewise welcomed as a step towards greater strategic focus on fast-growing areas of business.

This article includes reports for Q2, Q3, and Q4 2024 and Q1, Q2, and Q3 2025, along with a technical analysis of JNJ shares, forming the basis for the 2025 stock forecast for Johnson & Johnson. It also provides an overview of the company’s business model, revenue structure, and expert forecasts for Johnson & Johnson stock in 2025.

About Johnson & Johnson

Founded in 1886 in the US, Johnson & Johnson manufactures medical products, pharmaceuticals, and health-related items, including personal care products and medical devices. J&J is renowned for its well-known brands, such as Band-Aid, Neutrogena, Tylenol, and others. The company went public in 1944 and is now one of the largest healthcare corporations in the world.

Johnson & Johnson’s business model

Johnson & Johnson is one of the world’s largest companies, engaged in the healthcare and consumer goods sectors. It has a diversified business model and sells its products in three main segments:

• Pharmaceutical Segment: revenue primarily comes from the sale of prescription medicines. Key therapeutic areas include oncology, immunology, neurology, infectious diseases, cardiology, metabolism, and vaccines.
• Medical Devices Segment: this division generates revenue mainly from sales of medical equipment and devices. Its core areas include surgery, orthopaedics, interventional solutions, and eye surgery.
• Consumer Health Segment: the main revenue stream is derived from sales of health and personal care products. The key areas include skin care, baby care, oral care, dietary supplements, and over-the-counter medicines.

Johnson & Johnson’s business model is based on diversifying revenues across three segments, enabling the company to earn not only from pharmaceuticals but also from the production and sale of medical equipment.

The consumer segment is also a significant area for revenue diversification as it covers products sold outside medical centres that do not require prescriptions.

Johnson & Johnson Q2 2024 earnings results

Johnson & Johnson released its Q2 2024 results on 17 July 2024. In addition to the key financial metrics, the company disclosed segmental data for Innovative Medicine (including pharmaceuticals, health products, and personal care items) and MedTech (comprising medical devices and equipment). Below are the figures compared with the same period last year:

• Revenue: 22.45 billion USD (+4.3%)
• Net profit: 4.68 billion USD (−12.8%)
• Earnings per share: 2.82 USD (+10.2%)
• Innovative Medicine revenue: 14.49 billion USD (+5.5%)
  • US: 8.51 billion USD (+8.9%)
  • Rest of the world: 5.98 billion USD (+1.1%)
• MedTech revenue: 7.96 billion USD (+2.2%)
  • US: 4.05 billion USD (+5.7%)
  • Rest of the world: 3.89 billion USD (−1.3%)

Johnson & Johnson’s management described its Q2 2024 performance as strong. In particular, Chairman and CEO Joaquin Duato highlighted that the results reflect the company’s ongoing commitment to advancing the next wave of medical innovations, which has driven significant sales growth and an improvement in operating earnings per share. With a robust product portfolio, the integration of Shockwave, and the continued expansion of its pharmaceutical range, the company maintains a solid foundation for both near- and long-term growth.

Johnson & Johnson issued an upbeat outlook for 2024, expecting continued expansion across its core segments – Innovative Medicine and MedTech.

The company forecast full-year revenue of 89.30–90.30 billion USD, representing a 4.0–5.0% year-on-year increase. Earnings per share (EPS) were projected in the range of 10.70–10.80 USD, marking a 2.5–3.5% rise compared with 2023.

Management emphasised that Johnson & Johnson remains well-positioned for long-term growth, supported by its diversified product portfolio and sustained investment in innovation.

Johnson & Johnson Q3 2024 earnings results

On 15 October 2024, Johnson & Johnson released its Q3 2024 results, showing that revenue once again exceeded the figure recorded in the same period of 2023. Below are the key figures compared to Q3 2023:

• Revenue: 22.47 billion USD (+5.2%)
• Net profit: 2.69 billion USD (−37.5%)
• Earnings per share (EPS): 2.42 USD (−9.0%)
• Innovative Medicine revenue: 14.58 billion USD (+4.9%)
  • US: 8.87 billion USD (+7.5%)
  • Rest of the world: 5.70 billion USD (+1.2%)
• MedTech revenue: 7.89 billion USD (+7.1%)
  • US: 4.03 billion USD (+5.7%)
  • Rest of the world: 3.85 billion USD (+3.9%)

Joaquin Duato stated that J&J’s Q3 2024 results demonstrate the strength and diversity of the company’s business model and reflect its commitment to innovation in healthcare. He highlighted continued progress in developing treatments for diseases with high unmet needs, which positions J&J for sustainable long-term growth.

The earnings commentary noted significant progress in expanding the product portfolio, including regulatory approval for TREMFYA in ulcerative colitis and the combination of RYBREVANT with LAZCLUZE for treating non-small cell lung cancer. It also mentioned the submission of an application for exclusive rights related to the development of the OTTAVA general-purpose robotic surgery system.

The company attributed the decline in net profit to one-off research and development expenses associated with the acquisition of M-Wave’s research outcomes.

Johnson & Johnson Q4 2024 earnings results

On 22 January 2025, Johnson & Johnson released its Q4 2024 results, which exceeded expectations, although the key indicator dynamics were mixed:

• Revenue: 22.52 billion USD (+5.3%)
• Net profit: 3.43 billion USD (−17.5%)
• Earnings per share (EPS): 2.04 USD (−10.9%)
• Revenue from Innovative Medicine: 14.33 billion USD (+4.4%)
  • US: 8.97 billion USD (+11.1%)
  • Rest of the world: 5.35 billion USD (−5.1%)
• Revenue from MedTech: 8.18 billion USD (+6.7%)
  • US: 4.22 billion USD (+7.6%)
  • Rest of the world: 3.96 billion USD (+5.8%)

Joaquin Duato described 2024 as a "year of transformation" for Johnson & Johnson, highlighting robust growth and accelerated progress in the company’s product portfolio. J&J achieved annual sales of 88.80 billion USD and an EPS of 9.98 USD, representing growth compared to 2023, but was slightly below the forecast it provided in its Q2 2024 earnings commentary.

The decline in net profit was attributed to increased costs related to acquisitions, operating activities, adverse foreign exchange movements, and legal settlement expenses.

For 2025, the company provided a cautious outlook, expecting sales to range between 89.20 billion USD and 90.00 billion USD, below analysts’ expectations of 91.04 billion USD. The adjusted EPS forecast was set at 10.50-10.70 USD per market expectations.

Following the earnings release, J&J’s stock price declined, likely due to the conservative 2025 sales forecast.

Johnson & Johnson Q1 2025 earnings results

On 15 April 2025, Johnson & Johnson released its Q1 2025 results, which exceeded expectations. The key figures are presented below, compared to Q1 2024:

• Revenue: 21.89 billion USD (+2.4%)
• Net profit: 6.71 billion USD (+1.9%)
• Earnings per share (EPS): 2.77 USD (+2.2%)
• Innovative Medicine revenue: 13.87 billion USD (+2.3%)
  • US: 8.09 billion USD (+6.3%)
  • Rest of the world: 5.78 billion USD (–2.9%)
• MedTech revenue: 8.02 billion USD (+2.5%)
  • US: 4.21 billion USD (+5.1%)
  • Rest of the world: 3.81 billion USD (–0.2%)

The company delivered strong results, beating Wall Street estimates for both earnings per share and revenue. This performance was supported by steady growth in the Innovative Medicine and MedTech segments. Johnson & Johnson’s ability to maintain robust performance despite challenges, such as biosimilar competition for Stelara and macroeconomic pressures in key markets, underscores its strategic resilience and operational effectiveness.

Johnson & Johnson continues to enhance its portfolio through strategic acquisitions. The 14.6 billion USD deal to acquire Intra-Cellular Therapies is nearing completion, strengthening J&J’s position in neurology. Progress in product development – including the approval of TREMFYA for the treatment of Crohn’s disease and positive clinical results for RYBREVANT in lung cancer therapy – reaffirms the company’s commitment to innovation. Additionally, the launch of clinical trials for the OTTAVA surgical robotic system positions J&J as a potential competitor to leading players in the medical technology sector, such as Intuitive Surgical.

From a financial perspective, Johnson & Johnson remains highly resilient. The company increased its quarterly dividend to 1.30 USD per share,

marking the 63rd consecutive year of dividend growth. It also raised its full-year 2025 revenue forecast to 91.0–91.8 billion USD, reflecting anticipated tariffs of around 400 million USD and the expected impact of the pending Intra-Cellular Therapies acquisition.

Nevertheless, certain challenges remain. The company continues to face legal risks related to talc-based product litigation and declining Stelara sales due to intensifying competition from biosimilars.

Johnson & Johnson Q2 2025 earnings results

Johnson & Johnson released its Q2 2025 earnings report on 16 July 2025, once again beating market expectations. The key metrics are outlined below, compared to Q2 2024:

• Revenue: 23.74 billion USD (+5.8%)
• Net income: 5.54 billion USD (+18.2%)
• Earnings per share: 2.77 USD (−1.8%)
• Revenue – Innovative Medicine: 15.20 billion USD (+4.9%)
  • US: 9.16 billion USD (+7.6%)
  • Rest of the world: 6.04 billion USD (+1.0%)
• Revenue – MedTech: 8.54 billion USD (+7.3%)
  • US: 4.38 billion USD (+8.0%)
  • Rest of the world: 4.16 billion USD (+6.7%)

Johnson & Johnson delivered strong results for Q2 2025, surpassing market expectations. Revenue stood at 23.7 billion USD, marking a 5.8% year-on-year increase, while adjusted EPS reached 2.77 USD, significantly ahead of analyst forecasts. Management noted solid growth in both the Innovative Medicine and MedTech segments, with oncology and cardiovascular products performing particularly well. Darzalex once again exceeded expectations, delivering sales of 3.54 billion USD (+22%), and the MedTech division expanded further, driven by electrophysiology and cardiovascular surgery, achieving double-digit growth.

A major positive factor was the halving of projected tariff costs, from 400 million USD to 200 million USD, due to easing trade tensions. Johnson & Johnson directed these savings towards R&D and the expansion of its product portfolio, reflecting prudent capital allocation and a clear long-term strategy. Additional support for revenue came from favourable currency effects.

The company made an aggressive push into oncology, setting a goal of reaching 50 billion USD in revenue from this area by 2030, and is actively advancing new developments in oncology, immunology, cardiology, and surgical robotics. These positive trends enabled management to raise its guidance for 2025: revenue is now expected in the range of 93.2–93.6 billion USD, and EPS between 10.80 and 10.90 USD (previously 10.50–10.70 USD).

The company did not provide guidance for Q3 2025, but management’s generally optimistic tone and the upgraded annual outlook indicated sustained growth momentum. Analysts expected Q3 2025 EPS of about 2.75 USD and revenue of roughly 23.17 billion USD. High expectations were placed on new product lines and on the continued expansion of the MedTech and Innovative Medicine segments.

Johnson & Johnson Q3 2025 earnings results

On 14 October 2025, Johnson & Johnson released its Q3 2025 results. The key figures compared with Q3 2024 are as follows:

• Revenue: 23.99 billion USD (+6.8%)
• Net profit: 6.80 billion USD (+15.7%)
• Earnings per share: 2.80 USD (+15.7%)
• Innovative Medicine revenue: 15.56 billion USD (+6.8%)
  • US: 9.40 billion USD (+6.0%)
  • Rest of world: 6.16 billion USD (+7.9%)
• MedTech revenue: 8.43 billion USD (+6.8%)
  • US: 4.31 billion USD (+6.6%)
  • Rest of world: 4.12 billion USD (+7.0%)

Johnson & Johnson’s Q3 2025 results exceeded analyst expectations. Revenue totalled 23.99 billion USD, slightly above the market forecast of 23.79 billion USD. Adjusted earnings per share were 2.80 USD, also beating estimates of 2.75 USD.

Sales increased across all major business areas. In the Innovative Medicine segment, growth was mainly driven by oncology and neuroscience therapies, with strong performance from Darzalex, Carvykti, Erleada, Rybrevant/Lazcluze, and Spravato (for depression treatment). Sales of Stelara and Imbruvica declined, partly due to competition from lower-cost biosimilars and changes in the Medicare program. According to the company, the loss of exclusivity for Stelara reduced total growth by approximately 10.7 percentage points. Darzalex alone generated 3.67 billion USD in sales during the quarter.

In the MedTech segment, growth was supported by devices for treating arrhythmias (Biosense Webster), cardiovascular technologies (Abiomed, Shockwave), surgical sutures, and ophthalmic instruments. The fastest growth was recorded in the Cardiovascular and Vision divisions.

The company raised its full-year revenue forecast to 93.5–93.9 billion USD (midpoint: 93.7 billion USD) and maintained its EPS outlook at 10.80–10.90 USD. A favourable currency translation also provided a tailwind, adding roughly 1.4% to revenue in the quarter.

Johnson & Johnson also announced plans to spin off its orthopaedics division, DePuy Synthes, into a separate company within 18–24 months. This move will allow the company to focus on higher-growth areas, including oncology, immunology, neuroscience, cardiovascular care, surgery, and ophthalmology.

Fundamental analysis of Johnson & Johnson

Below is the fundamental analysis of Johnson & Johnson (NYSE: JNJ) based on the results for Q3 2025:

• Liquidity and cash flows: during the first nine months of 2025, Johnson & Johnson generated 14.2 billion USD in free cash flow. By the end of the third quarter, the company held around 19 billion USD in cash, more than sufficient to fund business development, R&D, and dividend payments.
• Debt and interest coverage: the total debt stands at approximately 46 billion USD, but after accounting for cash holdings, net debt amounts to about 27 billion USD. During Q3, the company paid only 18 million USD in interest, an extremely low figure relative to its profit, indicating virtually no risk in servicing its debt. Johnson & Johnson holds the highest possible credit rating – AAA – reaffirmed by S&P in spring 2025.
• Profitability and operating expenses: the company retains around 70 cents of every dollar of revenue after cost of goods sold. Selling and marketing expenses account for roughly 25% of revenue, while research and development absorbs about 15%. These figures have returned to normal following elevated spending last year. Profitability remains supported by strong oncology and cardiovascular drug sales, despite the loss of exclusivity for older medicines such as Stelara and Imbruvica.
• Dividends and payout coverage: in Q3 2025, Johnson & Johnson paid 1.30 USD per share in dividends, equivalent to 5.20 USD on an annualised basis. Dividends consume roughly 50% of profit and 40% of free cash flow, meaning payments are fully covered by operating income without the need for additional borrowing. The current dividend level appears sustainable.
• Key business segments: the company’s two main divisions – pharmaceuticals and medical devices – are growing at a similar rate of about 6.8% per year. In pharmaceuticals, excluding Stelara, growth is even stronger at around 16%, driven by robust sales of Darzalex, Carvykti, and Tremfya. The fastest growth in the medical devices segment is seen in arrhythmia treatment (Biosense Webster), cardiology (Abiomed, Shockwave), ophthalmology, and surgical technologies.

Conclusion – fundamental view on JNJ

Johnson & Johnson’s financial position remains exceptionally strong. The company has moderate debt, substantial cash reserves, and minimal interest-rate risk. Its AAA credit rating underscores its outstanding financial reliability. The company continues to deliver high profitability, retaining about 70% of revenue after production costs, with a well-diversified business structure across multiple sectors.

The decline in revenue from legacy drugs such as Stelara is already being offset by robust growth in oncology and immunology. Dividends remain stable and well covered, with significant liquidity retained for further development.

In the coming years, Johnson & Johnson is positioned to strengthen its operations further through the expansion of key therapeutic areas, including cardiology (Abiomed, Shockwave), and the planned spin-off of its orthopaedics division, enabling greater focus on higher-margin, faster-growing segments.

Expert forecasts for Johnson & Johnson stock for 2025

• Barchart: 12 out of 25 analysts rated Johnson & Johnson shares as Strong Buy, 2 as Buy, and 11 as Hold. The top forecast reaches 225 USD, while the bottom stands at 155 USD.
• MarketBeat: 15 of 23 specialists gave the stock a Buy rating, and 8 recommended Hold. The highest forecast is 215 USD, with the lowest at 153 USD.
• TipRanks: 13 of 20 professionals recommend Buy, and 7 suggest Hold. The top forecast level is 225 USD, and the bottom is 176 USD.
• Stock Analysis: 4 of 15 experts rated the shares as Strong Buy, 4 as Buy, and 7 as Hold. The upper forecast limit is 215 USD, and the lower is 153 USD.

None of the analysts recommended selling Johnson & Johnson shares.

Johnson & Johnson stock price forecast for 2025

Following the release of the Q2 2025 report, Johnson & Johnson shares broke above resistance at 167 USD, leaving behind the 140–167 USD trading range in which they had been trading since 2021. Historically, when prices break out of such a range, the subsequent advance often mirrors the width of the previous one. In Johnson & Johnson’s case, the width was around 27 USD, setting a target near 194 USD after the breakout – a level the stock reached on the day the Q3 2025 results were published.

However, the Q3 report exceeded analyst expectations, providing an additional catalyst for a potential continuation of JNJ’s upward momentum. Based on the current price dynamics, the likely scenarios for Johnson & Johnson’s share performance in 2025 are as follows:

The optimistic forecast for Johnson & Johnson shares points to a break above resistance at 194 USD, followed by a move towards the upper boundary of the channel around 202 USD. If the price consolidates above 194 USD, the uptrend is expected to continue. The target level in this scenario could approach the upper limit of analysts’ forecasts at 225 USD. However, historical patterns indicate that share prices rarely reach the top of analyst ranges within a single quarter.

The alternative forecast for Johnson & Johnson stock assumes reduced market activity and potential profit-taking following a quarterly gain of around 15%. In this case, JNJ shares could decline towards support near 167 USD, from which a rebound and subsequent return to 194 USD are anticipated.

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