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Johnson & Johnson JNJ

Healthcare  —  Drug Manufacturers General
271.22 0.54 0.20% as of 25 Sep
Market cap
$652.8B
P/E
31.4×
S&P 500 Member Dividend Aristocrat Cash Flow Champion (3y) Revenue Champion (3y) Insider Buys (last 12m)
Indexes indicate stock being part of an index,
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Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

Johnson & Johnson (JNJ) Financial Analysis

Updated · Covers results through Q2 FY2026 · How this is made

Snapshot

Johnson & Johnson generated revenue of $94.2 billion in FY2025, up 6.05% in FY2025 against FY2024. Net income was $26.8 billion in FY2025, diluted EPS was $11.03 in FY2025, and free cash flow was $20.4 billion in FY2025.

In Q2 FY2026, revenue was $25.3 billion, gross profit was $17.3 billion, operating income was $6.7 billion, and net income was $5.5 billion. Diluted EPS was $2.27 in Q2 FY2026 and free cash flow was $7.4 billion in Q2 FY2026. Market capitalisation was $651.6 billion as of September 24, 2026.

Growth

Revenue rose to $94.2 billion in FY2025 from $88.8 billion in FY2024, representing 6.05% growth in FY2025 against FY2024. Revenue compound annual growth was 5.60% in FY2022–FY2025 and 2.67% in FY2020–FY2025.

Diluted EPS reached $11.03 in FY2025, with growth of 90.5% in FY2025 against FY2024. Diluted EPS compound annual growth was 17.9% in FY2022–FY2025 and 14.9% in FY2020–FY2025. Free cash flow was $20.4 billion in FY2025, down −0.48% in FY2025 against FY2024; its compound annual growth was 4.82% in FY2022–FY2025 and −0.07% in FY2020–FY2025.

Revenue was $25.3 billion in Q2 FY2026, up 5.19% against Q1 FY2026 and 6.60% against Q2 FY2025. Diluted EPS was $2.27 in Q2 FY2026, up 6.07% against Q1 FY2026 and down −0.87% against Q2 FY2025.

Profitability

Gross margin was 67.9% in FY2025, compared with 65.6% in FY2020, a change of 2.3 percentage points in FY2020–FY2025. The gross margin declined by −1.2 percentage points in FY2024–FY2025.

Operating margin was 34.6% in FY2025, compared with 20.0% in FY2020, a change of 14.6 percentage points in FY2020–FY2025. Operating margin increased by 15.8 percentage points in FY2024–FY2025. Net margin was 28.5% in FY2025, compared with 17.8% in FY2020, a change of 10.6 percentage points in FY2020–FY2025.

Return on equity was 35.0% in FY2025, return on assets was 14.1% in FY2025, and return on invested capital was 20.2% in FY2025. Industry-median comparisons are not reported.

Balance sheet

Total debt was $39.4 billion in FY2025, compared with $30.7 billion in FY2024. Cash and short-term investments were $20.1 billion in FY2025, compared with $24.5 billion in FY2024. Net debt was $19.3 billion in FY2025, following $6.1 billion in FY2024.

Shareholders’ equity was $81.5 billion in FY2025, up from $71.5 billion in FY2024, while book value per share was $33.87 in FY2025. Working capital was $1.5 billion in FY2025, compared with $5.6 billion in FY2024.

Net debt was $16.6 billion in Q2 FY2026, compared with $15.5 billion in Q1 FY2026. The current ratio was 1.1× in Q2 FY2026, and debt to equity was 0.4× in Q2 FY2026.

Cash flow & capital return

Operating cash flow was $24.5 billion in FY2025, up 1.09% in FY2025 against FY2024. Capital expenditure was $4.1 billion in FY2025, compared with $3.7 billion in FY2024. Free cash flow was $20.4 billion in FY2025, down −0.48% in FY2025 against FY2024, and represented 76.2% of net income in FY2025.

Dividends paid were $12.4 billion in FY2025, while net share repurchases were $2.5 billion in FY2025. Capital returned to shareholders was $14.9 billion in FY2025 and $69.7 billion in FY2021–FY2025. Weighted average shares were 2.4 billion shares in FY2025, and the share count changed by −8.56% in FY2020–FY2025.

Free cash flow was $7.4 billion in Q2 FY2026, up 392.5% against Q1 FY2026 and 154.8% against Q2 FY2025.

Valuation

Market capitalisation was $651.6 billion as of September 24, 2026. P/E was 31.4× as of September 24, 2026, higher than the five-year median of 21.9× as of September 24, 2026, over the five fiscal years to FY2025, and the ten-year median of 24.0× as of September 24, 2026, over the ten fiscal years to FY2025.

P/S was 6.7× as of September 24, 2026, above its five-year median of 5.3× and ten-year median of 4.8× as of September 24, 2026. P/B was 7.7× as of September 24, 2026, above its five-year and ten-year medians of 6.1× as of September 24, 2026. EV/Sales was 6.8× as of September 24, 2026, and EV/Cash flow was 29.4× as of September 24, 2026; both were higher than their five-year and ten-year medians. Industry-median comparisons are not reported.

What changed since last quarter

Revenue increased to $25.3 billion in Q2 FY2026 from $24.1 billion in Q1 FY2026, a change of 5.19% in Q2 FY2026 against Q1 FY2026. Gross margin rose by 1.9 percentage points in Q2 FY2026 against Q1 FY2026 to 68.2% in Q2 FY2026, while operating margin rose by 1.8 percentage points to 26.7% in Q2 FY2026. Diluted EPS increased by 6.07% in Q2 FY2026 against Q1 FY2026 to $2.27 in Q2 FY2026.

Against Q2 FY2025, revenue increased 6.60% in Q2 FY2026, while diluted EPS decreased −0.87% in Q2 FY2026. Free cash flow increased 154.8% in Q2 FY2026 against Q2 FY2025, and net debt decreased by −$3.8 billion in Q2 FY2026 against Q2 FY2025. Management’s reasons for these changes are not reported.

Open questions

  • What accounts for the divergence between revenue growth and diluted EPS growth in Q2 FY2026?
  • What drove the increase in total debt during FY2025?
  • What explains the movement in free cash flow between Q1 FY2026 and Q2 FY2026?
  • How does the company’s profitability compare with the industry median?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.