Johnson & Johnson’s Q1 2025 report surpassed expectations. The shares have been trading within a sideways range since 2022, and the management’s upbeat forecast for 2025 could prompt a breakout above the upper boundary of this range.
Johnson & Johnson (NYSE: JNJ) reported a 2.4% increase in sales in Q1 2025 to 21.9 billion USD, with operational growth of 4.2%. Earnings per share rose to 2.77 USD, surpassing Wall Street forecasts. The company raised its full-year 2025 operational sales guidance, reflecting confidence stemming from the acquisition of Intra-Cellular Therapies and progress in drug development, such as the approval of TREMFYA for the treatment of Crohn’s disease. Despite the strong earnings beat, investor reaction on the first trading day was mixed, with shares rising by 0.89% in pre-market trading. Still, they ended the session down 0.5%, possibly reflecting concerns over tariff-related expenses and share dilution linked to the acquisition. However, market sentiment had shifted to optimism, and JNJ shares began to rise.
This article presents reports for Q2, Q3 and Q4 2024, as well as Q1 2025, and includes a technical analysis of JNJ shares, which forms the basis for the Johnson & Johnson stock forecast for 2025. It also examines the company’s business model, revenue sources, and expert projections for Johnson & Johnson stock in 2025.
Founded in 1886 in the US, Johnson & Johnson manufactures medical products, pharmaceuticals, and health-related items, including personal care products and medical devices. J&J is renowned for its well-known brands, such as Band-Aid, Neutrogena, Tylenol, and others. The company went public in 1944 and is now one of the largest healthcare corporations in the world.
Image of the Johnson & Johnson company nameJohnson & Johnson is one of the world’s largest companies, engaged in the healthcare and consumer goods sector. It has a diversified business model and sells its products in three main segments:
Johnson & Johnson’s business model is based on diversifying revenues across three segments, enabling the company to earn not only from pharmaceuticals but also from the production and sale of medical equipment.
The consumer segment is also a significant area for revenue diversification as it covers products sold outside medical centres that do not require prescriptions.
Johnson & Johnson published its Q2 2024 report on 17 July 2024. In addition to the key financial metrics, the company disclosed segmental data for Innovative Medicine (including pharmaceuticals, health products, and personal care items) and MedTech (comprising medical devices and equipment). Below are the figures compared to the same period last year:
Johnson & Johnson’s management described its Q2 2024 results as strong. In particular, Chairman and CEO Joaquin Duato highlighted that the second-quarter figures reflect the company’s ongoing focus on advancing the next wave of medical innovations, which has driven significant sales growth and an adjustment in operating earnings per share. With a robust product portfolio, the integration of Shockwave, and the continued expansion of its pharmaceutical range, the company has a solid foundation for both short- and long-term growth.
Johnson & Johnson issued an upbeat outlook for 2024, expecting continued growth across its core segments – Innovative Medicine and MedTech.
The company projected full-year revenue between 89.30 and 90.30 billion USD, being a year-on-year increase of 4.0-5.0%. Earnings per share (EPS) were forecasted to range from 10.70 to 10.80 USD, marking a 2.5-3.5% increase compared to 2023.
Johnson & Johnson’s management emphasised that the company is well-positioned for long-term growth, supported by its diversified product portfolio and active investments in innovation.
On 15 October 2024, Johnson & Johnson released its Q3 2024 results, showing revenues again exceeded those of the same period in 2023. Below are the key figures compared to Q3 2023:
Joaquin Duato stated that J&J’s Q3 2024 results reflect the distinct diversity of the company’s business model and J&J’s commitment to innovation in healthcare. He highlighted the progress in advancing treatments for diseases with high unmet needs, positioning J&J for sustainable growth.
The earnings commentary emphasised noteworthy progress in expanding the product portfolio, including regulatory approvals for TREMFYA in ulcerative colitis and combining RYBREVANT with LAZCLUZE for treating non-small cell lung cancer. It also mentioned the submission of an application for exclusive rights related to the development of the OTTAVA general-purpose robotic surgery system.
The company attributed the decline in net profit to one-off research and development expenses associated with the acquisition of M-Wave’s research outcomes.
On 22 January 2025, Johnson & Johnson released its Q4 2024 results, which exceeded expectations, although the key indicator dynamics were mixed:
Joaquin Duato described 2024 as a "year of transformation" for Johnson & Johnson, highlighting robust growth and accelerated progress in the company’s product portfolio. J&J achieved annual sales of 88.80 billion USD and an EPS of 9.98 USD, representing growth compared to 2023, but was slightly below the forecast it provided in its Q2 2024 earnings commentary.
The decline in net profit was attributed to increased costs related to acquisitions, operating activities, adverse foreign exchange movements, and legal settlement expenses.
For 2025, the company provided a cautious outlook, expecting sales to range between 89.20 billion USD and 90.00 billion USD, below analysts’ expectations of 91.04 billion USD. The adjusted EPS forecast was set at 10.50-10.70 USD per market expectations.
Following the earnings release, J&J’s stock price declined, likely due to the conservative 2025 sales forecast.
On 15 April 2025, Johnson & Johnson released its Q1 2025 results, which exceeded expectations. The key figures are presented below, compared to Q1 2024:
The company delivered strong results, beating Wall Street estimates for both earnings per share and revenue. This performance was supported by steady growth in the Innovative Medicine and MedTech segments. Johnson & Johnson’s ability to maintain robust performance despite challenges, such as biosimilar competition for Stelara and macroeconomic pressures in key markets, underscores its strategic resilience and operational effectiveness.
Johnson & Johnson continues to enhance its portfolio through strategic acquisitions. The 14.6 billion USD deal to acquire Intra-Cellular Therapies is nearing completion, strengthening J&J’s position in neurology. Progress in product development – including the approval of TREMFYA for the treatment of Crohn’s disease and positive clinical results for RYBREVANT in lung cancer therapy – reaffirms the company’s commitment to innovation. Additionally, the launch of clinical trials for the OTTAVA surgical robotic system positions J&J as a potential competitor to leading players in the medical technology sector, such as Intuitive Surgical.
From a financial perspective, Johnson & Johnson remains highly resilient. The company increased its quarterly dividend to 1.30 USD per share,
marking the 63rd consecutive year of dividend growth. It also raised its full-year 2025 revenue forecast to 91.0-91.8 billion USD, reflecting anticipated tariffs of around 400 million USD and the expected impact of the pending Intra-Cellular Therapies acquisition.
Nevertheless, certain challenges remain. The company continues to face legal risks related to talc-based product litigation and declining Stelara sales due to intensifying competition from biosimilars.
The combination of financial stability, innovative capability, and strategic acquisitions makes Johnson & Johnson shares an attractive investment. For those focused on short-term positions, caution is advised until there is greater clarity regarding the impact of tariffs and legal risks. Overall, the Q1 results confirm that Johnson & Johnson continues to strengthen its position by executing strategic initiatives to ensure sustained growth.
None of the experts recommended selling Johnson & Johnson shares.
Expert forecasts for Johnson & Johnson shares for 2025On the weekly timeframe, Johnson & Johnson shares are trading within an upward channel. In May 2022, a correction of the long-term uptrend began, unfolding as a sideways movement bounded by the 170 and 140 USD levels. A breakout above the upper boundary of this range – the 170 USD level – would signal the end of the prolonged correction, which has lasted for nearly three years, and indicate a further rise in JNJ’s share price. Based on the current dynamics of Johnson & Johnson shares, the potential price movements in 2025 are as follows:
The optimistic Johnson & Johnson stock price forecast assumes a breakout above the 170 USD resistance level, followed by a rise towards the upper boundary of the channel at 200 USD. This scenario is supported by the company’s positive revenue guidance for 2025.
The pessimistic Johnson & Johnson share price forecast assumes a break below the 140 USD support level, followed by a breach of the trendline. In this case, JNJ’s share price could fall to 100 USD.
Johnson & Johnson stock analysis and forecast for 2025Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.