As Johnson & Johnson (J&J) (JNJ) approaches its upcoming Q1 earnings report on April 14, investors are once again wondering whether this healthcare giant still deserves a place in a long-term portfolio. Known for its resilience, diversified business model, and unmatched six-decade dividend streak, Johnson & Johnson enters 2026 with strong momentum. Furthermore, its 2026 growth outlook is tied to a wave of new drug approvals that could meaningfully expand its revenue base over the next few years.
JNJ stock is up 15% year-to-date (YTD), outperforming the S&P 500 Index ($SPX) dip of 0.11%. Should you grab this growth and income stock now?
New Drug Approvals Could Boost J&J’s Sales in 2026
Valued at $581 billion, Johnson & Johnson is a global healthcare company that makes drugs and medical technologies to treat diseases and improve patient care worldwide. J&J’s strength lies in its diversified growth drivers across six major areas, including oncology, immunology, neuroscience, cardiology, surgery, and vision.
The loss of exclusivity for Stelara, which treats chronic immune-mediated inflammatory diseases, remains a near-term headwind. However, a wave of new drug approvals tells you that J&J's 2026 has started off on a strong note.
The most notable one has been icotrokinra (to be marketed as ICOTYDE), which the U.S. Food and Drug Administration (FDA) approved in March. This is a next-generation oral IL-23 therapy for psoriasis and other immune-mediated diseases, expected to compensate for Stelara. Management expects this drug to help lead the next phase of immunology innovation. According to industry estimates, ICOTYDE alone could generate more than $5 billion annually, with the potential to reach a peak of $10 billion in sales, placing it firmly in blockbuster territory.
In oncology, the FDA approved TECVAYLI in combination with DARZALEX for earlier lines of multiple myeloma treatment, citing solid clinical data showing an 83% reduction in disease progression or death. Darzalex alone generated $14.4 billion in 2025 sales. This combination therapy is expected to drive multi-billion-dollar sales over time as adoption broadens and strengthens J&J’s dominance in blood cancer treatments. In J&J’s medtech portfolio, the FDA approved the TRUFILL n-BCA Liquid Embolic System in 2025, a medical device used to treat symptomatic chronic subdural hematoma.
With 51 approvals and 32 regulatory submissions in 2025 alone, Johnson & Johnson has one of the most active pipelines in the industry.
In 2025, J&J’s total revenue increased 5.3% year-over-year (YoY) to $94.2 billion, with adjusted earnings per share (EPS) growth of 8.1% to $10.79. The pharmaceutical segment generated over $60 billion in annual sales for the first time. Meanwhile, MedTech delivered nearly $34 billion in revenue, with 5.4% YoY growth, led by cardiovascular innovations and surgical advancements.
For the first quarter, analysts forecast $23.6 billion in revenue alongside EPS of $2.68. Looking ahead, management expects 2026 revenue to reach around $100 billion, driven by key products including Tremfya, Darzalex, Carvykti, Erleada, and Spravato, along with new launches in oncology and neuroscience. The company is confident that growth will be faster in 2026 compared to 2025, possibly reaching double digits by the end of the decade. Adjusted EPS could land between $11.28 and $11.48, an increase of 5.4% at the midpoint.
Meanwhile, analysts expect revenue to increase by 6.8% to $100.6 billion along with a 6.9% increase in earnings in 2026. Revenue and earnings could increase by 5.7% in 2027, followed by 8.9% earnings growth in 2027. Investors will have a better idea over the next quarters of how the newly approved drugs will contribute to revenue and earnings in the next few years.
Dividend Track Record Intact
Johnson & Johnson has maintained its reputation as a “Dividend King,” a title awarded to companies that have increased their dividends for more than 50 years in a row. J&J has proudly maintained a track record of 63 years of consecutive dividend hikes, regardless of the economic scenario. In 2025, the company generated $19.7 billion in free cash flow (FCF), while holding $20 billion in cash and marketable securities and $48 billion in debt. This financial position enabled it to pay $12.4 billion in dividends despite investing $14.7 billion in R&D.
J&J expects to generate $21 billion in FCF in 2026, providing ample room for continued shareholder returns after paying off debt and investing in product innovation. J&J offers a forward yield of 2.18%, with a sustainable payout ratio (amount of earnings paid as dividends) of 47.2%.
Is JNJ Stock a Buy Before Q1 Earnings?
Johnson & Johnson enters its April earnings with strong fundamentals, a diversified growth engine, and a robust pipeline that could drive the next decade of expansion. In a volatile market, where investors seek steady earnings growth, a resilient business model, and a reliable dividend stock, JNJ perfectly fits a diversified portfolio. In my opinion, JNJ stock still remains a compelling buy ahead of earnings.
On Wall Street, JNJ stock is a “Moderate Buy.” Out of the 26 analysts covering the stock, 13 rate it a “Strong Buy,” three rate it a “Moderate Buy,” and 10 rate it a “Hold.” JNJ stock is trading close to its mean target price of $243.76. Meanwhile, its high target price of $285 implies a potential upside of 19% in the next 12 months.
