Johnson & Johnson (JNJ 0.02%), a leading healthcare giant, has been around for over 100 years and has achieved a lot in its long and storied history. The stock has also delivered solid returns over the long run.
However, Johnson & Johnson could add another notch to its belt this year. Let's see what that is and whether it makes the stock a buy.
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A rare accomplishment for a drugmaker
Johnson & Johnson released its fourth-quarter 2025 earnings report on Jan. 21. The company performed well. Sales were up a strong 9.1% year over year to $24.6 billion, while adjusted earnings per share rose 20.6% to $2.46. Johnson & Johnson's guidance for fiscal year 2026 was also worth a second look. The company projects that it will generate between $100 billion and $101 billion in sales this year.
Why is this significant? This would be the first time in its history that Johnson & Johnson achieves $100 billion in annual sales. In fact, only one other biopharma company has ever done that: Pfizer. Note, however, that Pfizer did so in the middle of the coronavirus pandemic thanks to products that helped prevent and treat the disease, and its sales have since declined significantly.
Johnson & Johnson's midpoint guidance for 2026 implies its revenue will grow 6.7% year over year, a solid performance for the healthcare giant.
NYSE: JNJ
Key Data Points
An outstanding dividend stock
Johnson & Johnson's performance in 2025 and its 2026 guidance are particularly impressive for a couple of reasons. First, it lost patent exclusivity for an important growth driver, immunology drug Stelara, in 2024 in Europe and last year in the U.S.
Second, this year, Medicare-negotiated prices for some medicines will take effect. Three of Johnson & Johnson's drugs were selected for this round: Stelara, cancer drug Imbruvica, and Xarelto, an anticoagulant.
And while Stelara and Imbruvica (whose sales have been declining due to competition) are no longer growth drivers, Xarelto was still contributing. In 2025, the medicine's sales jumped by 11% year over year to $2.6 billion. Johnson & Johnson's ability to deliver consistent results despite patent cliffs and government drug price negotiations says a lot about its underlying business. The company's vast lineup and pipeline, along with its medtech division, provide ample diversification and help it navigate challenges.
So, even though the healthcare leader will continue to face obstacles, investors can rest assured that Johnson & Johnson will perform relatively well over the long run while sustaining its outstanding dividend program. Johnson & Johnson is a Dividend King. Those are companies with at least 50 consecutive years of payout increases -- the drugmaker is at 63. Johnson & Johnson is a dividend investor's dream come true.
