JNJ · Q1 2026 Earnings

Bullish

Johnson & Johnson

Reported April 14, 2026

30-second summary

J&J opened FY2026 with $24.06B revenue (+9.9% YoY reported, +6.4% operational) and $2.70 adjusted EPS, with Oncology operational growth at 17.8% (reported +22.8%) and MedTech operational at +4.6% with management noting a 210bps easier-comp dynamic from one-time items in the prior-year base that had inflated Q1 FY2025. Immunology fell 8.8% reported (-11.8% operational) on continued Stelara erosion, partially offset by the Icotide launch — Talbot cited roughly 1,500 patients with prescriptions written and over 1,000 unique customers writing in the first weeks. Management raised FY2026 operational sales guidance to 5.9%–6.9% (from 5.7%–6.7%) and lifted adjusted operational EPS by $0.02 to $11.30–$11.50, with reported adjusted EPS midpoint of $11.55 (+7.1%). Q&A leaned hard into product catalysts (Icotide, Ribravan, Inlexo) and the path to double-digit growth by end of decade.

Headline numbers

EPS

Q1 FY2026

$2.70

Revenue

Q1 FY2026

$24.06B

+9.9% YoY

Gross margin

Q1 FY2026

66.3%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$24.06B	+9.9%	$24.56B	-2.0%
EPS	$2.70	—	$2.46	+9.8%
Gross margin	66.3%	—	67.6%	-130bps

Guidance

No forward guidance provided this quarter; prior quarter guidance for Q1 FY2026 cannot be evaluated due to missing prior guidance data.

Segment KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Innovative Medicine	$15.426B	+11.2%
MedTech	$8.636B	+7.7%
Oncology	$6.973B	+22.8%
Immunology	$3.38B	-8.8%
Innovative Medicine Operational Growth	7.4%	—
MedTech Operational Growth	4.6%	—

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
U.S.	$13.33B	+8.3%
Europe	$5.848B	+14.5%
Western Hemisphere excluding U.S.	$1.293B	+10.8%
Asia-Pacific, Africa	$3.591B	+8.5%
Adjusted Net Earnings Per Share (Diluted)	$2.70	—
Effective Tax Rate (Adjusted)	15.4%	—
Operational Sales Growth (Adjusted)	6.4%	—
International Operational Growth	3.9%	—
U.S. Operational Growth	8.3%	—
Gross Margin	66.3%	—

Management tone

Q2 FY2025: growth through LOE → Q3 FY2025: "powerful new era of growth" → Q4 FY2025: 2026 pre-signal converted to formal guide → Q1 FY2026: catalyst-by-catalyst defense of double-digit ambition, with the FY2026 guide already raised one quarter in.

The conversation has shifted from "can J&J grow through Stelara" (settled) to "how does J&J get from ~6% to double-digit by end of decade on a $100B+ base." Asad Haider asked it directly, and Duato's response was the most specific articulation yet: Icotide, Ribravan, Inlexo, next-gen PFA catheters, Impella ECP, Otava robotics, plus ortho separation operating leverage, with Darzalex U.S. royalties rolling off in 2029. Management explicitly stated BD is not assumed in the projections and early-stage deals (e.g. Halda Therapeutics) are preferred over large M&A — a continuation of the "no forced M&A" posture established in Q3 FY2025 but now framed as choice rather than discipline.

Icotide framing escalated from "future blockbuster" to "operating reality" in one quarter. Talbot disclosed roughly 1,500 patients already had prescriptions written running through the Access and Patient Support Service Center, with over 1,000 unique customers writing — live commercial metrics within weeks of approval. Three quarters ago Icotide was a pipeline name; last quarter it was a launch event; this quarter management is citing live commercial metrics. The "one of J&J's largest products ever" framing now has early evidence behind it.

MedTech tone moderated under questioning. Larry Biegelsen pressed on the Q1 deceleration to +4.6% operational. Schmid's response — that Q1 FY2025 had 210bps of one-time items that lapped, that procedural softness and weather were localized, and that acceleration is expected through Q2 and beyond — is more defensive than Q4's "MedTech 2026 will be better than 2025" commitment. The promise still stands, but the burden of proof now sits in Q2.

Stelara has fully exited the narrative. Immunology -8.8% reported / -11.8% operational is no longer discussed as a problem to manage; in the Haider exchange management instead framed Icotide as the expansion opportunity (70-80% of biologic-eligible patients across autoimmune diseases not currently on them), not the Stelara replacement. The LOE story is closed.

The Enterprise Business Review scheduled for December 8 emerged as a forward signpost — management is reserving the detailed long-term framework for that event rather than incrementally disclosing on quarterly calls.

Q&A highlights

Terrence Flynn · Morgan Stanley

How is Icotide positioned in the market given label details and pricing? What should we expect regarding reimbursement ramp and sampling plans?

Icotide launched day-one with first patient on medication within 24 hours of approval. Already ~1,500 prescriptions written and over 1,000 unique prescribers engaged. Positioned as first-line systemic therapy (oral peptide), complementary to Trenfaya as first-line biologic. Pursuing early and broad payer access with positive ongoing conversations. Has potential to be one of J&J's largest products ever.

1,500 patient prescriptions already writtenOver 1,000 unique prescribersFirst patient treated within 24 hours of March approvalPeak sales potential: one of company's largest products

Asad Haider · Goldman Sachs

How does J&J achieve double-digit growth by end of decade when 2026 base is $100B+? What are key product variances vs. street and how important is BD?

Double-digit growth already happening in Q1 2026 when excluding Stellara (16.6% growth on 96% of business). Growth driven by underestimated potential of: Icotide (psoriasis/PSA/IBD), Ribravan (lung cancer/head-neck/colorectal), Inlexo (bladder cancer), next-gen PFA catheters, Impella ECP, Otava robotics, and ortho separation. U.S. Darzalex royalties roll off in 2029, providing additional operating leverage. BD not assumed in projections; early-stage deals prioritized over large M&A.

Q1 2026 total J&J growth excluding Stellara: 16.6% operationalThree key underestimated products already marketed: Icotide, Ribravan, InlexoU.S. Darzalex royalties roll off 2029Recent BD: Abiomed, Shockwave, Intracellular acquisitions; early-stage Halda Therapeutics deal

Chris Schott · J.P. Morgan

What is early Icotide patient source data (new vs. switching)? Should peak sales be balanced between psoriasis and IBD, or psoriasis-skewed like Trenfaya?

Early data still limited; broad range of prescribers but granular switching data not yet available. Icotide positioned as first-line systemic therapy in psoriasis with significant market expansion potential (many patients stuck on topicals avoid biologics due to needle phobia, safety concerns). IBD opportunity expected to be 'very, very large' but Icotide likely to have more balanced sales across both indications given psoriasis systemic-first-line positioning, unlike Trenfaya's IBD skew.

Broad prescriber base across medical community70-80% of patients eligible for biologics across autoimmune diseases not currently on themMarket expansion opportunity significant in both psoriasis and IBDIcotide expected to be more balanced than Trenfaya (which skewed IBD)

Larry Beagleson · Wells Fargo

What are you seeing in end markets? Q1 growth was slightly below Q4 despite easy comps. How confident are you in remainder of 2026?

Q1 unfolded as expected—seasonally quieter but operationally solid. 4.6% growth reflects solid execution not driven by easy comps. Q1 2025 had 210 bps one-time impact that temporarily depressed year-over-year rates but did not affect underlying dollar sales. Underlying demand solid; some early-quarter procedural softness but no material impact. Severe weather in U.S. late January/early February typical seasonal pattern, localized impact not material. Confident in acceleration through Q2 and remainder of 2026.

4.6% MedTech operational growth in Q1Growth across all three focus areas: cardiovascular, vision, surgeryQ1 2025 had 210 bps one-time items (mostly 2024-related) that lappedU.S. weather impact: localized, not material

Answers to last quarter's watch list

Q1 FY2026 operational sales trajectory — Operational sales growth ran 6.4% in Q1, and management raised the full-year op. sales guide to 5.9%–6.9% (midpoint 6.4%). Innovative Medicine operational +7.4%, MedTech operational +4.6%. Innovative Medicine ex-Stelara grew 16.6%.

Resolved positively

Q1 FY2026 underlying operating EPS quality (tax rate normalization) — Q1 adjusted tax rate ran 15.4%, vs 16.3% in Q1 FY2025. The full-year ETR guide was maintained, implying a higher rate over the balance of the year.

Continue monitoring

MedTech operational acceleration evidence — MedTech operational +4.6% in Q1 decelerated from Q4 FY2025's +5.8%. U.S. EP growth was not separately disclosed in the press release surfaced. Schmid attributed 210bps of the YoY gap to one-time lapping items and reaffirmed H1→H2 acceleration. The print itself doesn't yet validate the "2026 better than 2025" commitment.

Continue monitoring

Stelara erosion curve in H1 FY2026 — Stelara WW fell to $656M, -59.7% reported / -61.7% operational. Erosion is consistent with the prior trajectory; Tremfya at $1.6B (+63.8% operational) is providing the principal offset, and Icotide launch metrics (roughly 1,500 patients with scripts written, 1,000+ unique customers writing) provide an additional forward offset. Status: Resolved (in line with curve).

Ortho separation milestones and stranded-cost quantification — Management reiterated targeting mid-2027 separation under Nomal Nawana, evaluating all separation vehicles, with further updates promised later this year. No refreshed stranded-cost dollar figure.

Continue monitoring

Talc Daubert appeal trajectory — Not addressed in the materials surfaced.

Continue monitoring

Tariff and U.S. pricing agreement impact — Tariff impact cited as a driver of MedTech cost-of-goods deleverage; the announced voluntary agreement with the U.S. government to improve access is factored into pre-tax operating margin guidance.

Continue monitoring

What to watch into next quarter

Q2 FY2026 MedTech operational growth — Schmid committed to acceleration from Q1's +4.6%. Anything below +5.5% operational in Q2 would suggest the H2-loaded acceleration argument is straining; +6.0% or better validates the FY2026 trajectory.

Icotide Q2 commercial proof points — Watch for first quarter of revenue contribution, payer access milestones, and any disclosure of script run-rate trajectory. The "one of J&J's largest products ever" framing now needs dollar evidence within two quarters.

Adjusted tax rate trajectory — Q1 ran 15.4% vs 16.3% in Q1 FY2025, with the full-year ETR guide maintained. Watch whether Q2/Q3 rates step up to support the maintained full-year range.

December 8 Enterprise Business Review — Management explicitly deferred the detailed end-of-decade double-digit framework to this event. Watch for refreshed peak-sales targets on Icotide, Ribravan, Inlexo, and any quantified ortho separation operating-leverage figure.

FY2026 guide refresh cadence — With both the op. sales and adj. op. EPS ranges already raised in Q1, watch whether Q2 brings a second tightening upward or whether management holds to allow H2 catalysts to play out.

Sources

Johnson & Johnson Q1 FY2026 Earnings Press Release (Exhibit 99.2), filed April 14, 2026 — https://www.sec.gov/Archives/edgar/data/200406/000020040626000076/a2026q1exhibit992.htm
Johnson & Johnson Q1 FY2026 Earnings Call prepared remarks and Q&A — exchanges with Terrence Flynn (Morgan Stanley), Larry Biegelsen (Wells Fargo), Asad Haider (Goldman Sachs), and Chris Schott (J.P. Morgan).
Tapebrief Q2, Q3, and Q4 FY2025 briefs for cross-quarter tone and guidance context.

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