Johnson & Johnson (JNJ)
Health Care · $649B market cap · SEC CIK 0000200406
fundamentals score out of 100
Next reports on Oct 13, 2026, with analysts expecting $2.59 in earnings per share.
The case for JNJ
- Earns 26% back on shareholder equity.
- Generated $19.7B of free cash flow in FY2025, 21% of revenue.
- 21% of revenue drops through to net profit.
- Revenue growing 8.1% year over year.
- Pays a 3.1% dividend while you wait.
- Gross margin of 68% absorbs cost shocks.
The case against
- Pricey at 30.9× earnings, against a long-run market average nearer 20×.
- Earnings per share fell 7.8%.
- Priced at 6.6× sales with revenue growing only 8.1%.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 38 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 26 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 74 |
| Momentumhow the price has behaved lately | 86 |
| Stabilityhow violently it moves, what it owes and what it pays you | 82 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 30.9× |
|---|---|
| Price / book | 7.32× |
| Price / sales | 6.6× |
| Revenue growth (YoY) | +8.1% |
| EPS growth (YoY) | -7.8% |
| Gross margin | 68% |
| Operating margin | 26% |
| Net margin | 21% |
| Return on equity | 26% |
| Debt / equity | 0.58× |
| Current ratio | 1.09 |
| Dividend yield | 3.12% |
| Beta | 0.21 |
| 52-week range | $173.33 – $281.07 |
| Position in that range | 89% of the way up |
| 3-month return | +18.0% |
| 1-year return | +52.9% |
Five years of financials, as filed
Pulled from Johnson & Johnson's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $94.2B | $88.8B | $85.2B | $80.0B | $78.7B |
| Gross profit | $63.9B | $61.4B | $58.6B | $55.4B | $55.3B |
| Net income | $26.8B | $14.1B | $35.2B | $17.9B | $20.9B |
| Operating cash flow | $24.5B | $24.3B | $22.8B | $21.2B | $23.4B |
| Capital expenditure | $4.8B | $4.4B | $4.5B | $4.0B | $3.7B |
| Total assets | $199B | $180B | $168B | $187B | $182B |
| Total liabilities | $118B | $109B | $98.8B | $111B | $108B |
| Shareholder equity | $81.5B | $71.5B | $68.8B | $76.8B | — |
| Cash | $19.7B | $24.1B | $21.9B | $12.9B | $14.5B |
| Long-term debt | $39.4B | $30.7B | $25.9B | $26.9B | $30.0B |
| Free cash flow | $19.7B | $19.8B | $18.2B | $17.2B | $19.8B |
| Gross margin | 67.9% | 69.1% | 68.8% | 69.3% | 70.3% |
| Net margin | 28.5% | 15.8% | 41.3% | 22.4% | 26.5% |
| Diluted shares | 2.4B | 2.4B | 2.6B | 2.7B | 2.7B |
Share count is down 9.1% over 4 years. Buybacks have been shrinking the pie.
What Johnson & Johnson says it does
Johnson & Johnson and its subsidiaries (the Company) have approximately 138,200 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the healthcare field. Johnson & Johnson is a holding company, with operating companies conducting business in virtually all countries of the world. The Company’s primary focus is products related to human health and well-being. Johnson & Johnson was incorporated in the State of New Jersey in 1887. The Chief Operating Decision Maker (CODM) is the Company's Chief Executive Officer (Principal Executive Officer). The Executive Committee is Johnson & Johnson’s senior leadership team responsible for setting the strategy and priorities of the Company and driving accountability at all levels. Within the strategic parameters provided by the Executive Committee, senior management groups at U.S. and international operating companies are each responsible…
Risk factors JNJ lists in its 10-K
- Risks related to our business, industry and operations
- The Company’s businesses operate in highly competitive product markets and competitive pressures could adversely affect the Company’s earnings
- Interruptions and delays in manufacturing operations could adversely affect the Company’s business, sales and reputation
- Counterfeit versions of our products could harm our patients and have a negative impact on our revenues, earnings, reputation and business
- Global health crises, pandemics, epidemics, or other outbreaks could adversely disrupt or impact certain aspects of the Company’s business, results of operations and financial condition
- Risks related to government regulation and legal proceedings
- Global sales in the Company’s Innovative Medicine and MedTech segments may be negatively impacted by healthcare reforms and increasing pricing pressures
- The Company is subject to significant legal proceedings that can result in significant expenses, fines and reputational damage
- Product reliability, safety and effectiveness concerns can have significant negative impacts on sales and results of operations, lead to litigation and cause reputational damage
- The Company faces significant regulatory scrutiny, which imposes significant compliance costs and exposes the Company to government investigations, legal actions and penalties
- Changes in tax laws or exposures to additional tax liabilities could negatively impact the Company’s operating results
- Risks related to our intellectual property
- The Company faces increased challenges to intellectual property rights central to its business
- Risks related to product development, regulatory approval and commercialization