Johnson & Johnson (J&J) is witnessing significant sales growth from its newer drugs, which has positively impacted the company’s financial performance for the latest quarter. The New Brunswick, N.J.-based pharmaceutical and medical device giant reported a rise in revenue and profit that was driven primarily by increased sales of treatments for cancer and autoimmune diseases, effectively offsetting losses from a key drug’s patent expiration.
In the fourth quarter, J&J announced a 20.8% increase in net earnings, reaching $5.12 billion or $2.10 per share, compared to $3.43 billion or $1.41 per share a year prior. When adjusted for specific costs such as litigation, the earnings per share rose to $2.46, aligning with analysts’ expectations as surveyed by Factset.
Despite experiencing a major setback with the loss of patent protection for Stelara, a leading drug that treats skin and gut conditions, J&J’s robust performance in other areas mitigated the impact of this development. Stelara’s sales saw a drastic decline of nearly 48% in the fourth quarter due to the emergence of cheaper alternatives in the market. However, strong performances from newer offerings, such as Darzalex for multiple myeloma, which climbed nearly 27%, and Tremfya for autoimmune conditions, which surged by almost 68%, have bolstered overall sales.
J&J’s Chief Financial Officer, Joseph Wolk, emphasized that the current product pipeline and portfolio are effectively compensating for the downturn in Stelara sales. While the company does face challenges—including anticipated increases in tariff costs and financial impacts from a recent agreement with the Trump administration to lower drug prices—Wolk expressed confidence that these hurdles are manageable. He projected a sales growth outlook of over 6% for 2026, despite the setbacks.
The market has responded positively, with J&J shares rising approximately 48% over the last year, leading to a market capitalization exceeding $500 billion, positioning it second in the industry after Eli Lilly.
In the fourth quarter alone, J&J reported total sales of $24.56 billion, an increase of 9.1% from $22.52 billion, which surpassed the estimates set by Factset. This growth trajectory suggests a resilient outlook for the company, driven by innovations in its drug development and strategic adjustments to market challenges.