Johnson & Johnson (JNJ +1.51%) has had strong momentum over the last year, with shares trading up more than 52%.
After the company's first-quarter 2026 earnings report, however, the response was muted, with the stock price slightly lower following the results' release.
With momentum temporarily stalling, here's what to consider before investing in Johnson & Johnson.
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Why J&J's stock price is falling despite positive updates
For Q1 2026, Johnson & Johnson beat estimates, conservatively boosted its guidance for the year, and showed revenue progress from several drugs. Darzalex, its blood cancer treatment, generated roughly $4 billion in sales, while Tremfya, used to treat inflammatory bowel disease and psoriasis, generated $1.6 billion.
NYSE: JNJ
Key Data Points
While positive, the updates weren't enough to offset a concern shareholders may have. Its drug Stelara, which is used to treat autoimmune diseases, saw its patent expire last year, and sales plummeted from $1.6 billion in Q1 2025 to $656 million in Q1 2026 as competition from generic versions increased.
Is it worth owning shares on the pullback?
In the short term, there likely won't be much news that would move Johnson & Johnson's stock price in either direction.
As a long-term investment, Johnson & Johnson has a promising drug pipeline and has offered stability by increasing its dividend payout for 64 consecutive years. It still has to grow into its forward price-to-earnings ratio, which is higher than in recent quarters, but in terms of mixing stability with upside potential, Johnson & Johnson has a lot to offer.
