One-glance verdict
Overvalued
$183.99 our estimate vs market $275.23
Wall Street consensus: $275.64 (49.8% higher than our fair-value estimate)
50% above our estimate, beyond the bull case
Fundamentals snapshot
Johnson & Johnson
JNJ · NYQ · Healthcare · Drug Manufacturers - General
Current price
$275.23
52-week range
$173.33 - $281.07
Market cap
$663.28B
Balance sheet
Watch
26.36x Strong cushion
Net debt $28.28B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.0% last year.
- Reward Returns 25.7% on equity, ahead of 50% of its peers.
- Risk Net debt grew 60.3% over 3 years.
- Risk Stock trades 57.1% above its 5-year average P/E.
What this company does
Johnson & Johnson
Johnson & Johnson is a massive healthcare company that operates in two main areas: developing prescription drugs and making medical technology. Their medicines treat serious conditions like cancer and heart disease, while their technology includes everything from joint replacements and surgical tools to ACUVUE contact lenses. The company's sales are generally stable because a large portion of its revenue (the total money a company brings in from sales before any costs are taken out) comes from these essential medical products that people and hospitals need regardless of the economy.
How the company got here
Johnson & Johnson was founded by three brothers in 1886 to create the world's first sterile surgical supplies, like dressings and sutures, which dramatically reduced infections in operating rooms. The company soon expanded by creating iconic consumer products, including the first commercial first aid kits and Johnson's Baby Powder. Over many decades, it grew into a massive global enterprise by acquiring other companies, which brought it into the prescription drug business in the 1950s. A major recent turning point was in 2023, when it spun off its well-known consumer brands like Band-Aid, Tylenol, and Neutrogena into a separate company called Kenvue, allowing Johnson & Johnson to focus purely on pharmaceuticals and medical technology.
What it actually does
Today, Johnson & Johnson is a healthcare giant that operates in two main areas: creating medicines and developing medical technology. While many people remember its baby shampoo and bandages, the company no longer sells those items directly to consumers. Instead, it focuses on developing treatments for complex diseases like cancer and immune disorders. It also creates sophisticated medical devices and equipment that surgeons and doctors use in hospitals for procedures ranging from joint replacements to robotic surgery.
Innovative Medicine
This is the company's largest business segment, making up more than half of its revenue. It focuses on researching and developing prescription drugs for serious illnesses in areas like oncology (cancer), immunology (disorders of the body's defense system), and neuroscience (conditions of the brain and nervous system). Doctors and hospitals are the primary customers, prescribing these advanced medicines to patients fighting complex diseases. This part of the business aims to create breakthrough treatments where there are few other options available.
MedTech
The MedTech segment creates a vast range of medical devices and technologies used by healthcare professionals. This part of the business, which accounts for a significant portion of the company's sales, provides the tools that make modern medicine possible. Its products include surgical instruments used in operating rooms, artificial joints for hip and knee replacements, and advanced technologies for heart conditions and vision care, such as ACUVUE contact lenses. Hospitals, clinics, and doctors' offices buy these products to perform surgeries and treat patient conditions.
What management is betting on now
The company's leadership is focused on accelerating growth in its two core businesses now that the consumer division is separate. A key part of their strategy is to heavily invest in research and development (the process of creating new products) to invent new medicines and medical devices. They are concentrating on high-growth areas like cancer treatments, immunology, and next-generation technologies for heart procedures and robotic surgery. The company is also actively acquiring smaller, innovative companies to bring in new technologies and products to fuel its future success.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$6.96B
FY2024 Q4
$5.37B
FY2025 Q1
$3.38B
FY2025 Q2
$2.83B
FY2025 Q3
$8.01B
FY2025 Q4
$5.47B
FY2026 Q1
$1.47B
FY2026 Q2
$7.29B
Revenue
$25.31B
Net income
$5.53B
Diluted EPS
2.27
Operating cash flow
$8.62B
Free cash flow
$7.29B
Fetching…
Sources
Revenue
$24.06B
Net income
$5.24B
Diluted EPS
2.14
Operating cash flow
$2.51B
Free cash flow
$1.47B
Fetching…
Sources
Revenue
$24.56B
Net income
$5.12B
Diluted EPS
2.08
Operating cash flow
$7.31B
Free cash flow
$5.47B
Fetching…
Sources
Revenue
$23.99B
Net income
$5.15B
Diluted EPS
2.12
Operating cash flow
$9.17B
Free cash flow
$8.01B
Fetching…
Sources
Revenue
$23.74B
Net income
$5.54B
Diluted EPS
2.29
Operating cash flow
$3.88B
Free cash flow
$2.83B
Fetching…
Sources
Revenue
$21.89B
Net income
$11.00B
Diluted EPS
4.54
Operating cash flow
$4.17B
Free cash flow
$3.38B
Fetching…
Sources
Revenue
$22.52B
Net income
$3.43B
Diluted EPS
1.41
Operating cash flow
$6.98B
Free cash flow
$5.37B
Fetching…
Sources
Revenue
$22.47B
Net income
$2.69B
Diluted EPS
1.11
Operating cash flow
$7.99B
Free cash flow
$6.96B
Fetching…
Sources
Is it cheap or expensive?
Fair value $183.99 vs current price $275.23
Wall Street consensus is the average analyst price target: $275.64 (49.8% higher than our fair-value estimate).
Our most-likely fair value is $183.99 a share — about 33.2% below today's price of $275.23, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $28.3B. Interest coverage 26.4x.
Net debt
$28.28B
Interest coverage
26.36x
Johnson & Johnson's profit covers its interest bill about 26.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
JNJ
BASELINE
Johnson & Johnson
Total debt $49.04B Interest coverage 26.36x This is the baseline the peer rows are being compared against.
Total debt $63.48B Interest coverage 6.52x -75% vs JNJ Carries about 4.0x less debt cushion than JNJ.
Total debt $53.91B Interest coverage 16.29x -38% vs JNJ Carries about 1.6x less debt cushion than JNJ.
Total debt $54.91B Interest coverage 38.04x +44% vs JNJ Carries about 1.4x more debt cushion than JNJ.
Total debt $32.72B Interest coverage 16.33x -38% vs JNJ Carries about 1.6x less debt cushion than JNJ.
Total debt $41.16B Interest coverage 13.73x -48% vs JNJ Carries about 1.9x less debt cushion than JNJ.
What you should know
The case for and against JNJ
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.0% last year.
-
Returns 25.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 60.3% over 3 years.
-
Stock trades 57.1% above its 5-year average P/E.
-
Insider ownership is only 0.1% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.97x
Forward P/E
22.36x
P/B
7.80x
P/S
6.77x
EV/EBITDA
19.83x
PEG ratio
4.38x
Profitability
How much profit each dollar creates
Gross margin
68.1%
Operating margin
29.2%
Net margin
21.5%
ROE
25.7%
ROA
8.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.58x
Current ratio
1.09x
Quick ratio
0.72x
Total debt
$49.04B
Total cash
$20.76B
Growth
How the business has been compounding
Revenue TTM
$97.93B
Revenue 5Y CAGR
0.1%
EPS TTM
8.61
EPS 5Y CAGR
17.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$27.61B
Free CF TTM
$19.70B
FCF margin
20.1%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
60.8%
Last ex-div date
2026-08-25