J&J Outpaces Wall Street Amid Pricing Pact Challenge

Johnson & Johnson projects 2026 sales and profits exceeding estimates despite potential losses from a drug pricing deal with the Trump administration. The company faces legal challenges over talc products, but reports strong quarterly profits driven by its Innovative Medicine division and medical devices sales.

Johnson & Johnson has projected its 2026 sales and profits will surpass Wall Street expectations, even as a drug pricing agreement with the Trump administration impacts its finances. The pharmaceutical giant is one of 16 companies that have agreed to lower U.S. drug prices for tariff exemptions.

The company's forecast includes operational sales between $99.5 billion and $100.5 billion, exceeding analyst estimates of $98.9 billion. J&J also anticipates 2026 earnings per share ranging from $11.43 to $11.63, contrasting with analyst predictions of $11.45 per share. Despite this optimism, J&J shares declined 2.7% in premarket trading after rising by 43% in 2025.

J&J's quarterly performance, bolstered by strong sales in its Innovative Medicine and medical devices divisions, contrasts with ongoing legal issues regarding its talc products. The company continues to face challenges including tariff uncertainties and competition from biosimilars affecting its psoriasis drug Stelara.

(With inputs from agencies.)