Johnson & Johnson (JNJ) Q1 2026 earnings summary

Executive summary

• Q1 2026 reported sales grew 9.9% year-over-year to $24.1B, with operational growth of 6.4% and strong performance across all key businesses, especially Innovative Medicine and MedTech.

• Adjusted EPS was $2.70, down 2.5% year-over-year; reported EPS was $2.14, reflecting the prior year's talc reserve reversal.

• Multiple new product approvals and launches, including ICOTYDE for plaque psoriasis and VARIPULSE Pro in Europe, are expected to drive future growth.

• Portfolio includes 28 platforms/products generating at least $1B annually, with plans to add more.

• Raised full-year 2026 guidance: midpoint reported sales of $100.8B (+7.0%) and adjusted EPS of $11.55 (+7.1%).

Financial highlights

• Worldwide Q1 sales reached $24.1B, up 9.9% year-over-year (6.4% operational); U.S. sales grew 8.3%, international 11.9%.

• Net earnings were $5.2B, down 52.4% year-over-year due to prior-year special items; adjusted net earnings $6.6B, down 1.4%.

• Gross profit margin was 66.3%, nearly flat year-over-year.

• Free cash flow was ~$1.5B for the quarter.

• Net debt stood at ~$33B; cash and marketable securities at $22B.

Outlook and guidance

• Raised 2026 operational sales guidance to 5.9%-6.9% (midpoint $100.2B); reported sales growth expected at 6.5%-7.5% (midpoint $100.8B).

• Adjusted operational EPS guidance increased to $11.30-$11.50 (midpoint $11.40), up 5.7%; reported adjusted EPS midpoint $11.55, up 7.1%.

• Pre-tax operating margin expected to improve by at least 50 bps in 2026.

• Free cash flow outlook for the year remains at ~$21B.

• Guidance excludes impact of legal proceedings, acquisition-related expenses, and other special items.