Johnson & Johnson raises full-year guidance – stock still falls

Despite the solid quarterly figures and the raised guidance, investors initially reacted cautiously: in pre-market trading on the New York Stock Exchange, the Johnson & Johnson share lost up to 1.99 percent at one point, falling to 248.80 US dollars. The stock thus continued its short-term downward trend, even though it is still up more than 60 percent over a twelve-month view.

Medical technology and Stelara act as a drag

One reason for the caution was the medical technology segment, whose business fell short of expert forecasts. Sales were also weaker for the blockbuster drug Stelara, an immunosuppressant for severe chronic inflammatory diseases such as psoriasis and arthritis, after its patent protection expired last year. Group CEO Joaquin Duato nevertheless spoke of a strong quarter and reaffirmed his confidence in the full year.

Growth was driven primarily by the multiple myeloma drug Darzalex as well as the lung cancer drugs Rybrevant and Lazcluze. These three products contributed the essential part of the revenue increase and were able to partly offset the weaker Stelara sales.

Hopeful products Icotyde and Caplyta

Johnson & Johnson is also placing great hopes in the new tablet-form psoriasis drug marketed under the name Icotyde/Icoytde. It was the first full quarter in which the company booked revenue with the product. Chief Financial Officer Joseph Wolk told Bloomberg: „Es könnte eines der erfolgreichsten Medikamente von Johnson & Johnson werden". He estimated that Icotyde could generate several billion US dollars per year going forward.

Looking at the full year 2026, Johnson & Johnson now expects adjusted earnings of 11.60 to 11.75 US dollars per share, compared with a previous forecast of 11.45 to 11.65 US dollars. Revenue is now expected to reach up to 101.4 billion US dollars, compared with a prior figure of up to 101.3 billion US dollars. Group CEO Duato spoke of another raise to the full-year guidance.

Outlook: raised full-year targets

In addition to oncology, Johnson & Johnson is expanding its portfolio in the area of mental illnesses. Last year, the group took over Caplyta, a drug for schizophrenia and bipolar depression. With this acquisition and the new tablets for psoriasis, the group aims to compensate for declining Stelara business and at the same time tap into new growth areas.

Overall, the quarterly report illustrates the group's strategy of offsetting declining revenue from older blockbusters with a wave of new products and targeted acquisitions. Whether the raise to the full-year targets and the market launch of Icotyde can reverse the stock's recently subdued market reaction will become clear in the coming quarters.