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JNJ or AZN: Which Pharma Giant is a Better Buy Post Q2 Results?
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Key Takeaways
JNJ beat Q2 estimates and raised 2025 guidance, while AZN met EPS estimates and maintained its outlook.
JNJ's EPS estimate for 2025 rose to $10.86, while that for AZN increased modestly to $4.54.
JNJ offers stronger growth visibility, lower valuation and a 3.2% dividend yield versus AZN's yield of 2.8%.
Johnson & Johnson (JNJ - Free Report) and AstraZeneca (AZN - Free Report) rank among the world’s largest pharmaceutical companies, each with a broad and diversified healthcare portfolio. J&J operates primarily through its pharmaceuticals and medical devices segments. Its pharmaceutical division boasts one of the industry’s most varied revenue streams, spanning areas like neuroscience, cardiovascular and metabolic diseases, immunology, oncology, pulmonary hypertension and infectious diseases.
AstraZeneca, meanwhile, holds a strong leadership position in oncology. Its oncology sales now comprise around 43% of total revenues and rose 16% in the first half of 2025. AstraZeneca also has a solid presence in cardiovascular, respiratory, immunology, rare diseases and vaccines.
Both companies have reported their second-quarter results. While J&J beat Q2 estimates for both earnings and sales, AstraZeneca’s Q2 earnings were in line, while sales beat estimates. While J&J raised its earnings and sales guidance for 2025, AstraZeneca maintained its growth outlook. Though post Q2 results, at first glance, J&J looks like a better investment, we should dive into their fundamentals, growth outlook and potential challenges to see which is a better investment choice.
The Case for J&J
J&J’s biggest strength is its diversified business model, which helps it to withstand economic cycles more effectively. It has more than 275 subsidiaries, indicating that the business is extremely well-diversified. This diversification helps withstand economic cycles more effectively.
J&J’s Innovative Medicine unit is showing a growth trend. The segment’s sales rose 2.4% in the second quarter of 2025 on an organic basis despite the loss of exclusivity (LOE) for Stelara and the negative impact of the Part D redesign. J&J expects continued growth in the second half of 2025 to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey and new indications for Tremfya and Rybrevant.
J&J expects to generate more than $57 billion in sales in the Innovative Medicines segment in 2025. It expects the Innovative Medicine business to grow 5% to 7% from 2025 to 2030.
J&J’s MedTech segment sales rose 6.1% on an operational basis in the second quarter, improving from the first-quarter levels, driven by Cardiovascular, Surgery and Vision, which is likely to drive growth in the second half.
J&J is also rapidly advancing its pipeline, attaining significant clinical and regulatory milestones that will help accelerate growth through the back half of the decade. J&J has also been on an acquisition spree, with the latest acquisition of Intra-Cellular Therapies strengthening its presence in the neurological and psychiatric drug market.
In April, J&J's board authorized a 4.8% increase in its quarterly dividend, marking the company’s 63rd consecutive year of dividend increase.
On the flip side, sales in J&J’s MedTech business are facing continued headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China. J&J expects continued impacts from VBP issues in China in 2025 as the program continues to expand across provinces and products. Competitive pressure is also hurting sales growth in some MedTech businesses.
J&J lost U.S. patent exclusivity of Stelara in 2025. The launch of generics is significantly eroding the drug’s sales and hurting J&J’s sales and profits in 2025. Stelara sales declined 42.7% in the second quarter of 2025. The uncertainty around the talc lawsuits and pharma tariffs lingers.
The Case for AstraZeneca
Headquartered in Cambridge, the United Kingdom, AstraZeneca has 16 blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza, Calquence and Ultomiris. These drugs are driving the company’s top line, backed by increasing demand trends. Almost every new product that has been launched in recent years has done well.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also contributing to top-line growth in 2025. The rare disease business also improved in the second quarter from the first-quarter level. Total revenues of the Rare Disease segment rose 3% in the first half of 2025.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate$80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
AstraZeneca faces its share of challenges. The impact of Part D redesign hurt sales of AZN’s key drugs, Tagrisso and Lynparza, with the negative impact expected to continue through the rest of the year. AstraZeneca expects Farxiga to be included in the VBP plans in China in 2025, which can hurt sales of these drugs in the country.
Pricing and competitive pressure in Europe and generic competition in some emerging markets are expected to hurt drug sales. In 2025, generic/biosimilar competition in the United States is expected to hurt sales of key drugs like Brilinta and Soliris. Generic versions of Brilinta were launched in the United States in 2025. Biosimilar versions of Soliris were launched in the United States in March 2025. Sales in its Rare Disease segment are expected to be slower in 2025 than in 2024.
As regards shareholders' returns, AstraZeneca intends to increase its annual dividend per share to $3.20 per share in 2025. Along with Q2 results, AstraZeneca announced an increase in its interim dividend by 3% to $1.03 per share
How Do Estimates Compare for JNJ & AZN?
The Zacks Consensus Estimate for J&J’s 2025 sales and EPS implies a year-over-year increase of 5.17% and 8.82%, respectively. The Zacks Consensus Estimate for 2025 earnings has risen from $10.60 per share to $10.86 over the past 30 days, while that for 2026 has risen from $10.98 to $11.36 over the same timeframe.
JNJ Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AstraZeneca’s 2025 sales and EPS implies a year-over-year increase of 7.24% and 10.46%, respectively. The Zacks Consensus Estimate for 2025 earnings has risen from $4.50 per share to $4.54 over the past 30 days, while that for 2026 has risen from $5.07 per share to $5.09 over the same timeframe.
AZN Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of J&J & PFE
Year to date, J&J’s stock has risen 15.8%, while AstraZeneca’s stock has risen 13.1% against the industry’s decrease of 2.8%
Image Source: Zacks Investment Research
J&J looks slightly more attractive than AstraZeneca from a valuation standpoint. Going by the price/earnings ratio, J&J’s shares currently trade at 14.80 forward earnings, slightly lower than 15.11 for AstraZeneca. However, both J&J and AstraZeneca are trading above the industry.
Image Source: Zacks Investment Research
Johnson & Johnson's dividend yield is 3.2%, while AstraZeneca’s is 2.8%.
Image Source: Zacks Investment Research
AZN or JNJ: Which is a Better Pick?
Both J&J and AstraZeneca have done well in the first half of 2025 and look optimistic for continued growth in the second half.
For AstraZeneca, while the top-line growth momentum of the first half is likely to continue in the second half, Brilinta LOE, Soliris biosimilar and uncertainty regarding Farxiga will remain top-line headwinds in the second half. AstraZeneca has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, J&J, with its Zacks Rank #2 (Buy), improving growth prospects, rising estimates, recent price appreciation and a slightly better valuation, may prove to be a better pick than AstraZeneca. J&J has shown steady revenue and EPS growth for years. Despite the Stelara patent cliff, the potential impact of Part D redesign and MedTech China issues, J&J looks quite confident that it will be able to navigate these challenges.
J&J considers 2025 to be a “catalyst year,” positioning the company for growth in the second half of the decade. J&J expects operational sales growth in both the Innovative Medicine and MedTech segments to be higher in the second half than in the first. While newly launched products should drive growth in the Innovative Medicines segment in the second half, the MedTech segment may benefit from new products and easier comps. J&J expects growth to accelerate from 2026 onward.
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JNJ or AZN: Which Pharma Giant is a Better Buy Post Q2 Results?
Key Takeaways
Johnson & Johnson (JNJ - Free Report) and AstraZeneca (AZN - Free Report) rank among the world’s largest pharmaceutical companies, each with a broad and diversified healthcare portfolio. J&J operates primarily through its pharmaceuticals and medical devices segments. Its pharmaceutical division boasts one of the industry’s most varied revenue streams, spanning areas like neuroscience, cardiovascular and metabolic diseases, immunology, oncology, pulmonary hypertension and infectious diseases.
AstraZeneca, meanwhile, holds a strong leadership position in oncology. Its oncology sales now comprise around 43% of total revenues and rose 16% in the first half of 2025. AstraZeneca also has a solid presence in cardiovascular, respiratory, immunology, rare diseases and vaccines.
Both companies have reported their second-quarter results. While J&J beat Q2 estimates for both earnings and sales, AstraZeneca’s Q2 earnings were in line, while sales beat estimates. While J&J raised its earnings and sales guidance for 2025, AstraZeneca maintained its growth outlook. Though post Q2 results, at first glance, J&J looks like a better investment, we should dive into their fundamentals, growth outlook and potential challenges to see which is a better investment choice.
The Case for J&J
J&J’s biggest strength is its diversified business model, which helps it to withstand economic cycles more effectively. It has more than 275 subsidiaries, indicating that the business is extremely well-diversified. This diversification helps withstand economic cycles more effectively.
J&J’s Innovative Medicine unit is showing a growth trend. The segment’s sales rose 2.4% in the second quarter of 2025 on an organic basis despite the loss of exclusivity (LOE) for Stelara and the negative impact of the Part D redesign. J&J expects continued growth in the second half of 2025 to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey and new indications for Tremfya and Rybrevant.
J&J expects to generate more than $57 billion in sales in the Innovative Medicines segment in 2025. It expects the Innovative Medicine business to grow 5% to 7% from 2025 to 2030.
J&J’s MedTech segment sales rose 6.1% on an operational basis in the second quarter, improving from the first-quarter levels, driven by Cardiovascular, Surgery and Vision, which is likely to drive growth in the second half.
J&J is also rapidly advancing its pipeline, attaining significant clinical and regulatory milestones that will help accelerate growth through the back half of the decade. J&J has also been on an acquisition spree, with the latest acquisition of Intra-Cellular Therapies strengthening its presence in the neurological and psychiatric drug market.
In April, J&J's board authorized a 4.8% increase in its quarterly dividend, marking the company’s 63rd consecutive year of dividend increase.
On the flip side, sales in J&J’s MedTech business are facing continued headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China. J&J expects continued impacts from VBP issues in China in 2025 as the program continues to expand across provinces and products. Competitive pressure is also hurting sales growth in some MedTech businesses.
J&J lost U.S. patent exclusivity of Stelara in 2025. The launch of generics is significantly eroding the drug’s sales and hurting J&J’s sales and profits in 2025. Stelara sales declined 42.7% in the second quarter of 2025. The uncertainty around the talc lawsuits and pharma tariffs lingers.
The Case for AstraZeneca
Headquartered in Cambridge, the United Kingdom, AstraZeneca has 16 blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza, Calquence and Ultomiris. These drugs are driving the company’s top line, backed by increasing demand trends. Almost every new product that has been launched in recent years has done well.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also contributing to top-line growth in 2025. The rare disease business also improved in the second quarter from the first-quarter level. Total revenues of the Rare Disease segment rose 3% in the first half of 2025.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate$80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
AstraZeneca faces its share of challenges. The impact of Part D redesign hurt sales of AZN’s key drugs, Tagrisso and Lynparza, with the negative impact expected to continue through the rest of the year. AstraZeneca expects Farxiga to be included in the VBP plans in China in 2025, which can hurt sales of these drugs in the country.
Pricing and competitive pressure in Europe and generic competition in some emerging markets are expected to hurt drug sales. In 2025, generic/biosimilar competition in the United States is expected to hurt sales of key drugs like Brilinta and Soliris. Generic versions of Brilinta were launched in the United States in 2025. Biosimilar versions of Soliris were launched in the United States in March 2025. Sales in its Rare Disease segment are expected to be slower in 2025 than in 2024.
As regards shareholders' returns, AstraZeneca intends to increase its annual dividend per share to $3.20 per share in 2025. Along with Q2 results, AstraZeneca announced an increase in its interim dividend by 3% to $1.03 per share
How Do Estimates Compare for JNJ & AZN?
The Zacks Consensus Estimate for J&J’s 2025 sales and EPS implies a year-over-year increase of 5.17% and 8.82%, respectively. The Zacks Consensus Estimate for 2025 earnings has risen from $10.60 per share to $10.86 over the past 30 days, while that for 2026 has risen from $10.98 to $11.36 over the same timeframe.
JNJ Estimate Movement
The Zacks Consensus Estimate for AstraZeneca’s 2025 sales and EPS implies a year-over-year increase of 7.24% and 10.46%, respectively. The Zacks Consensus Estimate for 2025 earnings has risen from $4.50 per share to $4.54 over the past 30 days, while that for 2026 has risen from $5.07 per share to $5.09 over the same timeframe.
AZN Estimate Movement
Price Performance and Valuation of J&J & PFE
Year to date, J&J’s stock has risen 15.8%, while AstraZeneca’s stock has risen 13.1% against the industry’s decrease of 2.8%
J&J looks slightly more attractive than AstraZeneca from a valuation standpoint. Going by the price/earnings ratio, J&J’s shares currently trade at 14.80 forward earnings, slightly lower than 15.11 for AstraZeneca. However, both J&J and AstraZeneca are trading above the industry.
Johnson & Johnson's dividend yield is 3.2%, while AstraZeneca’s is 2.8%.
AZN or JNJ: Which is a Better Pick?
Both J&J and AstraZeneca have done well in the first half of 2025 and look optimistic for continued growth in the second half.
For AstraZeneca, while the top-line growth momentum of the first half is likely to continue in the second half, Brilinta LOE, Soliris biosimilar and uncertainty regarding Farxiga will remain top-line headwinds in the second half. AstraZeneca has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, J&J, with its Zacks Rank #2 (Buy), improving growth prospects, rising estimates, recent price appreciation and a slightly better valuation, may prove to be a better pick than AstraZeneca. J&J has shown steady revenue and EPS growth for years. Despite the Stelara patent cliff, the potential impact of Part D redesign and MedTech China issues, J&J looks quite confident that it will be able to navigate these challenges.
J&J considers 2025 to be a “catalyst year,” positioning the company for growth in the second half of the decade. J&J expects operational sales growth in both the Innovative Medicine and MedTech segments to be higher in the second half than in the first. While newly launched products should drive growth in the Innovative Medicines segment in the second half, the MedTech segment may benefit from new products and easier comps. J&J expects growth to accelerate from 2026 onward.