Johnson & Johnson
JNJ Healthcare Drug Manufacturers General
Johnson & Johnson’s revenue for fiscal 2025 (year ended December 2025) was $94.2 billion, up 6.05% from fiscal 2024. In the quarter to June 2026, revenue grew 6.60%, EPS was flat, free cash flow grew 154.8% and total debt fell 4.82%, each against the same quarter a year earlier. Member of the S&P 500 and Dow Jones; dividend growth for twenty-five consecutive years, revenue growth for three, operating cash flow growth for three; insiders bought in the last twelve months.
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Johnson & Johnson (JNJ) Altman Z-score
Johnson & Johnson's Altman Z-score for fiscal 2025 is 4.78, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 4.78 | 0.77 |
| FY2024 | 4.01 | (0.59) |
| FY2023 | 4.59 | 0.34 |
| FY2022 | 4.25 | (0.08) |
| FY2021 | 4.34 | 0.35 |
| FY2020 | 3.99 | (0.32) |
| FY2019 | 4.31 | 0.03 |
| FY2018 | 4.27 | 0.06 |
| FY2017 | 4.21 | (0.89) |
| FY2016 | 5.10 | (0.05) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.01 | — | 0.01 | |
| Retained earnings / total assets | 0.85 | — | 1.19 | |
| EBIT / total assets | 0.17 | — | 0.57 | |
| Market value of equity / total liabilities | 4.23 | — | 2.54 | |
| Sales / total assets | 0.47 | — | 0.47 | |
| Altman Z-score | Safe zone | 4.78 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.71 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| LLY Eli Lilly and Company compare | 8.6× |
| AZN AstraZeneca PLC compare | 6.3× |
| JNJ Johnson & Johnson | 4.8× |
| NVS Novartis AG compare | 4.1× |
| GILD Gilead Sciences, Inc. compare | 4.0× |
| MRK Merck & Co., Inc. compare | 3.8× |
| ABBV AbbVie Inc. compare | 2.3× |
| PFE Pfizer Inc. compare | 2.0× |
| AMGN Amgen Inc. compare | 1.7× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on JNJ
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement