Quarterly results and topline
Johnson & Johnson reported first-quarter revenue of $24.1 billion, an increase of nearly 10% year over year, and well above analysts' estimates of $23.6 billion, according to LSEG data. Adjusted earnings came to $2.70 per share, surpassing the consensus forecast of $2.66.
Product performance
J&J's results were supported by strong sales of several key medicines. Darzalex, the company's blood cancer therapy introduced in 2015, generated $4.0 billion in sales for the quarter, comfortably outpacing analysts' expectations of $3.4 billion. Tremfya, used to treat psoriasis and inflammatory bowel diseases, produced $1.6 billion in revenue for the period, above the $1.2 billion analysts had forecast.
Those gains helped offset a sharp contraction in sales of Stelara, the company's once-blockbuster autoimmune therapy. Stelara, which exceeded $10 billion in annual sales at its peak, lost patent protection last year and faced biosimilar competition in the quarter. Sales of Stelara declined by about 60% from a year earlier to $656 million.
Medical technology and overall business
The company's medical technology segment reported quarterly sales of $8.6 billion, a 7.7% increase that was in line with analyst expectations.
Management commentary on patient choice and new launches
Chief Financial Officer Joseph Wolk said in an interview that many patients have not switched to biosimilars following Stelara's loss of exclusivity, and instead have chosen alternative treatments such as Tremfya. "We are seeing increased share in Tremfya and we anticipate we’ll see something similar in the new oral offering," Wolk said, referring to the newly approved oral drug Icotyde.
Guidance and outlook
The company raised its full-year 2026 revenue forecast range, setting a new midpoint of about $100.8 billion, slightly above Wall Street's estimate of $100.6 billion. J&J also lifted its adjusted earnings outlook to $11.55 per share at the midpoint, which was roughly in line with prevailing expectations.
Policy stance and pricing deals
J&J is among several top global drugmakers that have entered so-called most-favored-nation drug pricing agreements with the Trump administration, under which the companies agreed to lower U.S. drug prices to match those charged in other developed countries in exchange for tariff relief. President Donald Trump has asked Congress to codify the most-favored-nation deals into law. Wolk said the company opposes such codification. "We’re not a fan of codifying" MFN, he said. "It’s really kind of a back door to price controls and we’ve seen what happens in countries with price controls - patients have less access to the most important medicines and innovation goes down."
Market reaction
Shares of the company, which have risen 15% so far this year, were marginally down in premarket trading.
Bottom line
Johnson & Johnson reported better-than-expected first-quarter results, driven by Darzalex and Tremfya, while navigating a steep decline in Stelara sales following biosimilar entry. Management raised full-year revenue and earnings guidance and reiterated opposition to legislative codification of most-favored-nation pricing.