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J&J Innovative Medicine Drives Q1 Strength: Key to Long-Term Growth?
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Key Takeaways
J&J Innovative Medicine sales rose 7.4% to $15.43B, marking four straight quarters above $15B.
JNJ growth driven by Darzalex, Tremfya, Erleada and new drugs, offsetting Stelara's 62% sales drop.
JNJ expects 2026 growth from key brands and launches despite rising generic and biosimilar pressure.
Johnson & Johnson (JNJ - Free Report) , via its Innovative Medicine segment, markets a broad portfolio of blockbuster therapies across key areas including neuroscience, cardiovascular and metabolic diseases, immunology, oncology, pulmonary hypertension and infectious diseases.
J&J’s Innovative Medicine segment’s sales rose 7.4% on an operational basis (excluding the impact of currency) to $15.43 billion in the first quarter of 2026. On an organic basis, sales rose 5.6% despite the loss of exclusivity (“LOE”) of the multi-billion-dollar product, Stelara. In the quarter, J&J’s 11 key brands delivered double-digit growth.
J&J’s Innovative Medicine Segment’s Q1 Performance
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by a steeper-than-expected decline in sales of Stelara due to biosimilar erosion and lower sales of Imbruvica.
Sales of blockbuster multiple myeloma treatment, Darzalex, rose 22.5% year over year to $3.96 billion in the quarter. Erleada generated sales of $949.0 million in the quarter, up 23.1% year over year, while Tremfya recorded sales of $1.61 billion in the quarter, up 68.3%.
Stelara’s sales declined 62% in the first quarter, which was steeper than expected. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 920 basis points and total revenues by 540 basis points in the first quarter.
J&J lost U.S. patent exclusivity of Stelara in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025.
J&J’s Innovative Medicine segment recorded four consecutive quarters of sales of more than $15 billion despite the LOE of Stelara.
J&J’s Innovative Medicine Segment’s Outlook for 2026 and Beyond
In 2026, J&J expects accelerated growth in the Innovative Medicine segment despite Stelara LOE. The growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato, Carvykti and Erleada, as well as increased contribution from new launches like Icotyde, Rybrevant and Inlexzo. J&J expects a more pronounced impact from new products in 2026 than in 2025.
However, as regards generic impact, in 2026, J&J expects the Stelara LOE impact to be more pronounced. In addition, J&J expects generic impact for both Simponi and Opsumit to begin in 2026 as the drugs lose patent protection.
J&J expects to generate $100 billion in revenues in 2026. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. In fact, the company is already demonstrating this momentum—excluding Stelara, its total revenue grew at a double-digit rate in the first quarter.
Though J&J expects accelerated growth in both the Innovative Medicine and MedTech segments in 2026, the Innovative Medicine segment should be a critical franchise for driving company-wide top-line growth and profitability despite the Stelara LOE.
Overall, J&J’s Innovative Medicine segment remains resilient, with strong growth from key drugs and new launches offsetting Stelara’s LOE impact. Despite near-term biosimilar and patent headwinds, the segment is well-positioned to drive sustained long-term growth.
J&J Key Competitors
Immunology and oncology are J&J’s key areas. Other large drugmakers with a strong presence in the oncology market include Novartis, AstraZeneca (AZN - Free Report) , AbbVie (ABBV - Free Report) , Amgen, Merck, Bristol-Myers, Roche and Pfizer. In immunology, AbbVie, Amgen, Sanofi, AstraZeneca and Pfizer hold a strong position.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry over the past year. The stock has risen 43.4% in the past year compared with 17.5% appreciation of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 19.04 forward earnings, higher than 16.84 for the industry. The stock is also trading above its five-year mean of 15.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has risen from $11.54 to $11.57 over the past 30 days, while that for 2027 earnings has gone up from $12.44 per share to $12.57 over the same time frame.
View the Zacks #1 Rank List
Image: Bigstock
J&J Innovative Medicine Drives Q1 Strength: Key to Long-Term Growth?
Key Takeaways
Johnson & Johnson (JNJ - Free Report) , via its Innovative Medicine segment, markets a broad portfolio of blockbuster therapies across key areas including neuroscience, cardiovascular and metabolic diseases, immunology, oncology, pulmonary hypertension and infectious diseases.
J&J’s Innovative Medicine segment’s sales rose 7.4% on an operational basis
(excluding the impact of currency) to $15.43 billion in the first quarter of 2026. On an organic basis, sales rose 5.6% despite the loss of exclusivity (“LOE”) of the multi-billion-dollar product, Stelara. In the quarter, J&J’s 11 key brands delivered double-digit growth.
J&J’s Innovative Medicine Segment’s Q1 Performance
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by a steeper-than-expected decline in sales of Stelara due to biosimilar erosion and lower sales of Imbruvica.
Sales of blockbuster multiple myeloma treatment, Darzalex, rose 22.5% year over year to $3.96 billion in the quarter. Erleada generated sales of $949.0 million in the quarter, up 23.1% year over year, while Tremfya recorded sales of $1.61 billion in the quarter, up 68.3%.
Stelara’s sales declined 62% in the first quarter, which was steeper than expected. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 920 basis points and total revenues by 540 basis points in the first quarter.
J&J lost U.S. patent exclusivity of Stelara in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025.
J&J’s Innovative Medicine segment recorded four consecutive quarters of sales of more than $15 billion despite the LOE of Stelara.
J&J’s Innovative Medicine Segment’s Outlook for 2026 and Beyond
In 2026, J&J expects accelerated growth in the Innovative Medicine segment despite Stelara LOE. The growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato, Carvykti and Erleada, as well as increased contribution from new launches like Icotyde, Rybrevant and Inlexzo. J&J expects a more pronounced impact from new products in 2026 than in 2025.
However, as regards generic impact, in 2026, J&J expects the Stelara LOE impact to be more pronounced. In addition, J&J expects generic impact for both Simponi and Opsumit to begin in 2026 as the drugs lose patent protection.
J&J expects to generate $100 billion in revenues in 2026. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. In fact, the company is already demonstrating this momentum—excluding Stelara, its total revenue grew at a double-digit rate in the first quarter.
Though J&J expects accelerated growth in both the Innovative Medicine and MedTech segments in 2026, the Innovative Medicine segment should be a critical franchise for driving company-wide top-line growth and profitability despite the Stelara LOE.
Overall, J&J’s Innovative Medicine segment remains resilient, with strong growth from key drugs and new launches offsetting Stelara’s LOE impact. Despite near-term biosimilar and patent headwinds, the segment is well-positioned to drive sustained long-term growth.
J&J Key Competitors
Immunology and oncology are J&J’s key areas. Other large drugmakers with a strong presence in the oncology market include Novartis, AstraZeneca (AZN - Free Report) , AbbVie (ABBV - Free Report) , Amgen, Merck, Bristol-Myers, Roche and Pfizer. In immunology, AbbVie, Amgen, Sanofi, AstraZeneca and Pfizer hold a strong position.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry over the past year. The stock has risen 43.4% in the past year compared with 17.5% appreciation of the industry.
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 19.04 forward earnings, higher than 16.84 for the industry. The stock is also trading above its five-year mean of 15.65.
The Zacks Consensus Estimate for 2026 earnings has risen from $11.54 to $11.57 over the past 30 days, while that for 2027 earnings has gone up from $12.44 per share to $12.57 over the same time frame.
J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.