Revenue Growth Across the Business
JNJ grew total revenue 6.0% year-over-year to $94.2B in FY2025, up from $88.8B in the prior year, reflecting continued strength in its pharmaceutical and MedTech segments.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
JNJ delivered strong FY2025 results with revenue rising 6.0% to $94.2B and net income nearly doubling to $26.8B (+90.6%), driven by significant non-recurring gains, though gross margin compressed slightly and long-term debt surged 27.9%.
Revenue
$94.19B
+6.05% YoY
EPS (Diluted)
$11.03
+90.50% YoY
Gross Margin
67.9%
-1.2 pts YoY
Source: SEC XBRL
Johnson & Johnson (JNJ) reported FY2025 revenue of $94.19B, up 6.0% year over year. Operating cash flow was $24.53B, up 1.1% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.90 | 2.87 | Beat +0.9% |
| Mar 2026 | 2.70 | 2.69 | Beat +0.3% |
| Dec 2025This filing | 2.46 | 2.46 | Miss -0.1% |
| Sep 2025 | 2.80 | 2.78 | Beat +0.5% |
Reported EPS of $2.46 versus the $2.46 analyst consensus — a -0.1% miss for Dec 2025.
Compiled by AI from this SEC filing
JNJ grew total revenue 6.0% year-over-year to $94.2B in FY2025, up from $88.8B in the prior year, reflecting continued strength in its pharmaceutical and MedTech segments.
Source: 10-K Income Statement
Net income surged 90.6% to $26.8B ($11.13 basic EPS), compared to $14.1B ($5.84 basic EPS) in the prior year. This dramatic increase is likely attributable to significant non-recurring gains or divestitures rather than purely operational improvement, as operating fundamentals showed more modest progress.
Source: 10-K Income Statement
R&D expense fell 94.1% to just $109M from $1.84B in the prior year, a dramatic reduction that may reflect reclassification of R&D costs, a one-time prior-year charge, or a change in accounting treatment following a major corporate restructuring.
Source: 10-K Income Statement
Gross margin declined 120 basis points to 67.9% from 69.1%, as cost of revenue grew 10.1%—outpacing revenue growth of 6.0%—indicating input cost pressures or a shift in product mix toward lower-margin offerings.
Source: 10-K Income Statement & Key Ratios
JNJ deployed $23.6B in investing activities and repurchased $5.95B in shares (+144.8% YoY), while long-term debt rose 27.9% to $41.4B, suggesting major acquisitions or investments were funded partly through debt. Cash & equivalents declined 18.2% to $19.7B.
Source: 10-K Cash Flow Statement & Balance Sheet
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Long-term debt increased 27.9% to $41.4B in FY2025, significantly raising JNJ's financial leverage. This could constrain future financial flexibility and increase interest expense, particularly in a higher-for-longer interest rate environment. The current ratio of just 1.03 indicates limited short-term liquidity buffer.
Source: 10-K Balance Sheet
The 90.6% surge in net income to $26.8B appears driven by non-recurring items rather than sustainable operational gains, as revenue grew only 6.0% and gross profit grew 4.2%. Investors relying on headline net income may overestimate the company's recurring earnings power.
Source: 10-K Income Statement
Gross margin declined from 69.1% to 67.9%, with cost of revenue growing 10.1% versus revenue growth of 6.0%. Sustained cost inflation or unfavorable product mix shifts could further compress margins and reduce profitability in future periods.
Source: 10-K Income Statement & Key Ratios
R&D expense collapsed 94.1% to $109M from $1.84B, which—if not due to reclassification—could signal a reduced pipeline investment that may impair long-term innovation and competitive positioning in pharmaceuticals and MedTech.
Source: 10-K Income Statement
Cash and equivalents fell 18.2% to $19.7B while investing cash outflows reached $23.6B, a 26.8% increase year-over-year. Continued heavy capital deployment without proportional cash generation could pressure liquidity over time.
Source: 10-K Cash Flow Statement & Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 94.19 $B | 88.82 $B | +6.05% |
Cost of Revenue $B | 30.26 $B | 27.47 $B | +10.14% |
Gross Profit $B | 63.94 $B | 61.35 $B | +4.22% |
Net Income $B | 26.80 $B | 14.07 $B | +90.56% |
EPS (Basic) $ | 11.13 $ | 5.84 $ | +90.58% |
EPS (Diluted) $ | 11.03 $ | 5.79 $ | +90.50% |
R&D Expense $B | 0.11 $B | 1.84 $B | -94.08% |
SG&A Expense $B | 23.68 $B | 22.87 $B | +3.53% |
Answers draw on this SEC filing and the data on this page
JNJ reported Q2 FY2026 revenue of $25.3B, up 6.6% year over year on 5.6% operational growth, while net income was essentially flat at $5.5B as STELARA biosimilar pressure, higher commercial spending, restructuring, and litigation-related charges offset broad product and MedTech growth. Source: 10-Q Item 2 MD&A, pp.32, 38-42; 10-Q Income Statement (XBRL).
JNJ delivered strong Q1 FY2026 revenue growth of 9.9% to $24.1B, but net income fell 52.4% to $5.2B, likely driven by elevated SG&A (+18.0%) and one-time charges, while cash and equivalents dropped sharply by 43.6%.
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