AI Takeaway
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).
Revenue
$25.31B
++6.60% YoY
EPS (Basic)
$2.30
0.00% YoY
Gross Margin
68.2%
++0.32% YoY
Filed · Source: SEC EDGAR 10-Q filing
Johnson & Johnson (JNJ) reported Q2 FY2026 revenue of $25.31B, up 6.6% year over year. The company posted net income of $5.53B, down 0.1% from a year earlier, with diluted EPS of $2.27. Gross margin was 68.2%.
Worldwide Q2 FY2026 sales were $25.3B, up 6.6% year over year, consisting of 5.6% operational growth and a 1.0% favorable currency impact. Innovative Medicine sales increased 7.8% to $16.4B, while MedTech sales increased 4.5% to $8.9B; U.S. sales grew 7.3% and international sales grew 5.7%.
Source: Source: 10-Q Item 2 MD&A, p.32, pp.34, 36
Management said the decline in STELARA reduced worldwide operational sales growth by approximately 4.6 percentage points in Q2 FY2026. STELARA sales fell 55.2% year over year to $740M, while the broader Immunology therapeutic area declined 3.7% to $3.8B; management expects STELARA biosimilars to continue negatively affecting sales.
Source: Source: 10-Q Item 2 MD&A, pp.32, 34-35
Oncology sales grew 17.3% to $7.4B in Q2 FY2026, including DARZALEX sales of $4.2B, up 18.9%, and CARVYKTI sales of $657M, up 49.4%. Neuroscience grew 14.0% to $2.3B, supported by SPRAVATO, up 40.8% to $584M, and CAPLYTA, up 70.9% to $361M.
Source: Source: 10-Q Item 2 MD&A, pp.34-35
MedTech Q2 FY2026 sales rose 4.5% to $8.9B, with operational growth in Vision of 5.6% and Orthopaedics of 4.2%. However, MedTech income before tax margin declined to 13.2% from 14.1%, which management attributed principally to Orthopaedics separation costs, higher R&D and commercial investment, and tariffs in cost of products sold.
Source: Source: 10-Q Item 2 MD&A, pp.36-37, 41-42
Fiscal year-to-date operating cash flow was $11.1B, up from $8.1B in the prior-year period. Financing cash outflows of $8.2B included $6.4B of dividends and $4.2B of share repurchases, partly offset by $1.5B of net debt proceeds; management reported cash, cash equivalents, and marketable securities of approximately $20.8B and notes payable plus long-term debt of approximately $49.0B.
Source: Source: 10-Q Item 2 MD&A, pp.43-44
JNJ reported long-term debt of $37.3B and a debt-to-equity ratio of 1.37x. Its current ratio was 1.09x, indicating current assets exceeded current liabilities, but with a relatively limited buffer based solely on the reported balance-sheet amounts.
Source: Source: 10-Q Balance Sheet (XBRL)
Q2 FY2026 revenue rose 6.6% to $25.3B, but net income was essentially unchanged at $5.5B, down 0.1% year over year, and diluted EPS declined 0.9% to $2.27. This divergence indicates that costs and/or charges absorbed much of the period's sales growth.
Source: Source: 10-Q Income Statement (XBRL)
Fiscal year-to-date operating cash flow was $11.1B, while financing cash outflows were $8.2B, including $4.2B of share buybacks, nearly double the $2.1B in the prior-year period. Continued large dividends and repurchases can reduce cash available for debt reduction, acquisitions, or other capital needs.
Source: Source: 10-Q Cash Flow Statement (XBRL)
Management reported that increases in accounts receivable and inventories reduced fiscal year-to-date operating cash flow by $2.9B, while lower accounts payable and accrued liabilities reduced it by another $1.0B. Further unfavorable working-capital changes could constrain cash conversion even if reported earnings remain stable.
Source: Source: 10-Q Item 2 MD&A, p.43
Reported EPS of $2.90 versus the $2.87 analyst consensus — a +0.9% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $25.31B | $23.74B | +6.60% |
Cost of Revenue | $8.05B | $7.63B | +5.55% |
Gross Profit | $17.26B | $16.11B | +7.10% |
Net Income | $5.53B | $5.54B | -0.05% |
EPS (Basic) | $2.30 | $2.30 | 0.00% |
EPS (Diluted) | $2.27 | $2.29 | -0.87% |
SG&A Expense | $6.43B | $5.89B | +9.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $201.06B | $193.39B | +3.97% |
Current Assets | $59.77B | $54.5B | +9.68% |
Total Liabilities | $116.09B | $114.92B | +1.02% |
Current Liabilities | $54.9B | $54.18B | +1.32% |
Stockholders' Equity | $84.97B | $78.47B | +8.28% |
Cash & Equivalents | $20.42B | $18.58B | +9.93% |
Long-Term Debt | $37.34B | $39.23B | -4.82% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $11.13B | $8.05B | +38.23% |
Investing Cash FlowYTD | $-2.15B | $-18.56B | +88.42% |
Financing Cash FlowYTD | $-8.25B | $4.76B | -273.37% |
Share BuybacksYTD | $4.25B | $2.13B | +99.76% |
D&AYTD | $3.96B | $3.71B | +6.68% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 68.2% | 67.9% | +0.32% |
Net Margin | 21.9% | — | — |
ROE | 6.5% | — | — |
ROA | 2.8% | — | — |
Current Ratio | $1.089 | — | — |
Debt to Equity | $1.366 | — | — |
Expected release date, analyst estimates & what to watch
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%.
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%.
Other companies in Pharmaceuticals
Johnson & Johnson reported Q2 FY2026 revenue of $25.3B, up 6.6% from $23.7B a year earlier. Management attributed the increase to 5.6% operational growth and a 1.0% favorable currency effect, with Innovative Medicine up 7.8% and MedTech up 4.5%. Source: 10-Q Item 2 MD&A, pp.32, 34, 36.
Revenue increased 6.6% to $25.3B, but net income was essentially flat at $5.5B and diluted EPS declined 0.9% to $2.27. Strong Oncology, including DARZALEX and CARVYKTI, and growing neuroscience products helped offset sharp STELARA declines from biosimilar competition. Source: 10-Q Income Statement (XBRL); 10-Q Item 2 MD&A, pp.34-35.
STELARA sales declined 55.2% year over year to $740M in Q2 FY2026, primarily because of biosimilar competition, adoption of newer treatment classes, and unfavorable patient mix. Management said the STELARA decline reduced worldwide operational sales growth by approximately 4.6 percentage points and expects continuing pressure from biosimilars. Source: 10-Q Item 2 MD&A, pp.32, 34-35.
JNJ ended Q2 FY2026 with $20.4B of cash and equivalents, $59.8B of current assets, and a 1.09x current ratio. Long-term debt was $37.3B, while fiscal year-to-date operating cash flow was $11.1B, up 38.2% year over year; management also reported approximately $20.8B of cash, equivalents, and marketable securities against approximately $49.0B of notes payable and long-term debt. Source: 10-Q Balance Sheet and Cash Flow Statement (XBRL); 10-Q Item 2 MD&A, pp.43-44.
The supplied filing data reports diluted EPS of $2.27 and net income of $5.5B for Q2 FY2026, but it does not provide analyst consensus estimates. Therefore, whether JNJ beat, met, or missed external earnings estimates cannot be determined from this 10-Q alone. Source: 10-Q Income Statement (XBRL).