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%, driven by strong performance in Innovative Medicine and MedTech segments.

• Adjusted EPS was $2.70, down 2.5% year-over-year; reported EPS was $2.14.

• 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

• Net earnings were $5.2B, down 52.4% year-over-year, mainly due to special items in the prior year.

• Adjusted net earnings were $6.6B, down 1.4% year-over-year.

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

• Free cash flow was ~$1.5B for the quarter, below run rate due to timing of U.S. rebate payments and capex.

• Effective tax rate decreased to 12.6% from 19.3% in the prior year.

Outlook and guidance

• 2026 operational sales guidance midpoint increased to 6.4%, with reported sales growth at 7.0% midpoint.

• Adjusted operational EPS guidance increased to $11.30–$11.50 (midpoint $11.40), 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.