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J&J Sees Continued MedTech Improvement in Q1, Eyes Better 2026
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Key Takeaways
JNJ's MedTech sales rose 4.6% to $8.64B in Q1 2026, led by Cardiovascular, Surgery and Vision gains.
Cardiovascular jumped 13%, fueled by Abiomed, Shockwave and strong electrophysiology growth.
JNJ sees stronger 2026 growth from new products, but China VBP pressures remain a key drag.
Johnson & Johnson's (JNJ - Free Report) medical devices segment, known as MedTech, offers products in the orthopedics, surgery, cardiovascular and vision markets. The MedTech segment accounts for around 36% of J&J’s total revenues.
In the MedTech segment, J&J is successfully shifting its portfolio to high innovation, high growth markets, particularly in Cardiovascular. With the acquisitions of Shockwave in 2024 and Abiomed in 2022, J&J has become a category leader in four of the largest and highest-growth cardiovascular intervention MedTech markets. J&J is the market leader in heart recovery, circulatory restoration and electrophysiology.
The MedTech business has improved in the last four quarters, driven by strong performance in three focus areas: Cardiovascular, Surgery and Vision. However, the company continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China.
In the first quarter of 2026, J&J delivered nearly $8.64 billion in sales in its MedTech segment, showing growth of 4.6% on an operational basis.
Cardiovascular sales rose 13% to $2.38 billion in the first quarter, driven by strong growth in electrophysiology and higher sales of Abiomed and Shockwave. The electrophysiology business has improved significantly in recent quarters, driven by new product launches, including Varipulse and better commercial execution.
Worldwide Surgery rose 4.8% to $2.51 billion as growth in wound closure and biosurgery offset the impact of competitive pressure in energy and endocutters and VBP issues in China. Worldwide orthopedics rose 6.3% to $2.38 billion, driven by new product launches and strong commercial execution. Worldwide Vision rose 6.7% to $1.37 billion, driven primarily by higher growth in contact lenses and Surgical Vision, partially offset by competitive pressures in some categories in Surgical Vision.
In 2026, J&J expects better growth in the MedTech business than 2025 levels, driven by increased adoption of newly launched products across Cardiovascular, Surgery and Vision portfolios. However, J&J expects continued impacts from VBP issues in China in 2026, mainly in the second half.
Moreover, the potential separation of its Orthopaedics franchise into a standalone orthopedics-focused company, called DePuy Synthes, should improve its MedTech unit’s growth and margins. The Orthopaedics franchise has been a slow-growth business for J&J.
J&J’s Key Competitors in the Medical Devices Market
J&J’s MedTech unit faces strong competition from several major players in the medical device industry, like Medtronic (MDT - Free Report) , Abbott, Stryker (SYK - Free Report) and Boston Scientific (BSX - Free Report) .
While Medtronic has a strong presence in cardiovascular, neuroscience and surgical technologies, Stryker is a major player in orthopedics and surgical equipment. Boston Scientific markets products for cardiovascular, endoscopy, urology and neuromodulation. Abbott is known for its medical device products across cardiovascular, diagnostics and diabetes care.
J&J Stock Price, Valuation and Estimates
J&J’s shares have outperformed the industry over the past year. The stock has risen 45.1% in the past year compared with 9.6% 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 18.95 forward earnings, higher than 16.43 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 Sees Continued MedTech Improvement in Q1, Eyes Better 2026
Key Takeaways
Johnson & Johnson's (JNJ - Free Report) medical devices segment, known as MedTech, offers products in the orthopedics, surgery, cardiovascular and vision markets. The MedTech segment accounts for around 36% of J&J’s total revenues.
In the MedTech segment, J&J is successfully shifting its portfolio to high innovation, high growth markets, particularly in Cardiovascular. With the acquisitions of Shockwave in 2024 and Abiomed in 2022, J&J has become a category leader in four of the largest and highest-growth cardiovascular intervention MedTech markets. J&J is the market leader in heart recovery, circulatory restoration and electrophysiology.
The MedTech business has improved in the last four quarters, driven by strong performance in three focus areas: Cardiovascular, Surgery and Vision. However, the company continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China.
In the first quarter of 2026, J&J delivered nearly $8.64 billion in sales in its MedTech segment, showing growth of 4.6% on an operational basis.
Cardiovascular sales rose 13% to $2.38 billion in the first quarter, driven by strong growth in electrophysiology and higher sales of Abiomed and Shockwave. The electrophysiology business has improved significantly in recent quarters, driven by new product launches, including Varipulse and better commercial execution.
Worldwide Surgery rose 4.8% to $2.51 billion as growth in wound closure and biosurgery offset the impact of competitive pressure in energy and endocutters and VBP issues in China. Worldwide orthopedics rose 6.3% to $2.38 billion, driven by new product launches and strong commercial execution. Worldwide Vision rose 6.7% to $1.37 billion, driven primarily by higher growth in contact lenses and Surgical Vision, partially offset by competitive pressures in some categories in Surgical Vision.
In 2026, J&J expects better growth in the MedTech business than 2025 levels, driven by increased adoption of newly launched products across Cardiovascular, Surgery and Vision portfolios. However, J&J expects continued impacts from VBP issues in China in 2026, mainly in the second half.
Moreover, the potential separation of its Orthopaedics franchise into a standalone orthopedics-focused company, called DePuy Synthes, should improve its MedTech unit’s growth and margins. The Orthopaedics franchise has been a slow-growth business for J&J.
J&J’s Key Competitors in the Medical Devices Market
J&J’s MedTech unit faces strong competition from several major players in the medical device industry, like Medtronic (MDT - Free Report) , Abbott, Stryker (SYK - Free Report) and Boston Scientific (BSX - Free Report) .
While Medtronic has a strong presence in cardiovascular, neuroscience and surgical technologies, Stryker is a major player in orthopedics and surgical equipment. Boston Scientific markets products for cardiovascular, endoscopy, urology and neuromodulation. Abbott is known for its medical device products across cardiovascular, diagnostics and diabetes care.
J&J Stock Price, Valuation and Estimates
J&J’s shares have outperformed the industry over the past year. The stock has risen 45.1% in the past year compared with 9.6% 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 18.95 forward earnings, higher than 16.43 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.