Johnson & Johnson's Q1 Results, FY Guidance Highlight The 'Power Of The Pharma Portfolio'

Johnson & Johnson JNJ reported upbeat first-quarter results on Wednesday.

Here are some key analyst takeaways.

Goldman Sachs On Johnson & Johnson

Analyst Asad Haider maintained a Buy rating and price target of $172.

Despite Stelara sales declining due to the arrival of biosimilars in the market, the company reported impressive results across the Innovative Medicines business, Haider said in a note. The results and guidance highlight the power of the company's pharma portfolio, with upside drivers comprising "established products across the company's industry-leading multiple myeloma franchise, the Immunology franchise, as well emerging new product-cycles that we are monitoring in oncology and neuroscience."

Management raised its full-year sales guidance by $1.8 billion at the midpoint to a range of $91.0 billion to $91.8 billion, Haider stated. He expects the company to outperform the current consensus for sales in 2025 and 2026.

Check out other analyst stock ratings.

RBC Capital Markets On Johnson & Johnson

Analyst Shagun Singh reiterated an Outperform rating and price target of $181.

Although Johnson & Johnson reported its sales and earnings ahead of expectations, its stock declined due to lower-than-expected MedTech growth and gross margins missing consensus by 290 basis points, Singh said.

"JNJ quantified tariff exposure ($400MM or 1.9% of MedTech sales, no pharma) that gave investors some reprieve and also indicated that healthcare is fairly recession-proof with no signs yet of an impact on elective procedures or prescription coverage," the analyst wrote. Management's 2025 guidance reflected healthy earnings growth of 6.2% despite Stelara's loss of exclusivity, he added.

Guggenheim Securities On Johnson & Johnson

Analyst Steven Forbes reaffirmed a Neutral rating on the stock.

Johnson & Johnson reported first-quarter sales of $21.89 billion, beating consensus of $21.56 billion, and earnings of $2.77 per share surpassing consensus of $2.58 per share, Forbes said. "The beat appears to be mainly driven by higher total revenue, lower R&D and SG&A expenses, and higher interest and other income," he added.

The Innovative Medicines segment delivered a strong performance, while Stelara and the Invega products performed below expectations. "We do not believe the 1Q 2025 results fundamentally change the overall JNJ story, with investors likely focusing more on current macro factors (e.g., tariffs, taxes, healthcare utilization, etc…), and their impact on JNJ and its peers, and potentially less focus than usual on JNJ’s current growth drivers and pipeline assets," Forbes wrote.

JNJ Price Action: Shares of Johnson & Johnson had declined by 0.47% to $152.90 at the time of publication on Wednesday.

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