Johnson & Johnson

J&J's new launch portfolio — including INLEXZO, ICOTYDE, and RYBREVANT — is driving operational revenue growth ex-STELARA at around 17% in Q1 2026, far exceeding the 5–8% growth consensus estimates price in. Leerink Partners upgraded the stock to outperform, calling these drugs key underappreciated growth levers.

The mean analyst price target of around $258 implies only ~1% upside from current levels, signaling that the broader analyst community remains skeptical that new drug launches can consistently outperform expectations or sustain elevated growth rates going forward.

J&J raised its full-year 2026 revenue guidance to $100.3–$101.3 billion, driven by oncology drug strength. The expanding cancer pipeline, including Tecvayli, Darzalex SC, and the Firefly Bio acquisition, positions the Innovative Medicine segment to offset STELARA headwinds with durable new growth drivers.

Biosimilar competition against STELARA remains a significant risk that could suppress Innovative Medicine revenue and weigh on overall earnings growth. Analysts are closely watching Q2 2026 results, where biosimilar pressure could offset newer drug momentum and keep cautious investors on the sidelines.

J&J's device segment gained a positive catalyst with the European launch of its Dual-Energy THERMOCOOL SMARTTOUCH SF cardiac ablation platform, reinforcing the company's footprint in high-value medical technology and supporting longer-term diversified revenue growth beyond pharmaceuticals.

J&J's stock declined following disappointing demand for medical devices in mid-2026, raising concerns about the segment's near-term contribution to overall revenue. Stifel maintained a Hold rating with a relatively modest price target of $260, reflecting restrained expectations for the devices business.