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J&J's Oncology Sales Surge So Far in 2026: What Lies Ahead?
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Key Takeaways
J&J's oncology sales rose 16.8% to $22 billion in the first nine months of 2026
Darzalex, Carvykti, Tecvayli and solid-tumor drugs are driving growth, despite declining Imbruvica sales.
J&J targets over $50 billion in oncology sales by 2030, backed by new launches and pipeline advances.
Johnson & Johnson (JNJ - Free Report) has established a dominant presence in the oncology market, backed by a diversified portfolio of therapies targeting hematologic malignancies and solid tumors. The company maintains a leadership position in multiple myeloma, primarily driven by its blockbuster drug Darzalex, which is a standard-of-care treatment and remains J&J's top-selling pharmaceutical product.
J&J offers multiple treatment options across different lines of therapy for multiple myeloma. Per the company, approximately 80% of multiple myeloma patients receive at least one of its therapies during their treatment journey. Beyond Darzalex, newer treatments like Carvykti, Tecvayli and Talvey are strengthening its multiple myeloma franchise. In solid tumors, J&J is witnessing robust demand for prostate cancer drug Erleada and lung cancer treatments Rybrevant and Lazcluze, further supporting its oncology growth trajectory.
Darzalex and Newer Therapies Drive J&J's Oncology Growth
Oncology remains a key growth driver for J&J, contributing approximately 30% of total revenues and 45% of Innovative Medicine sales. In the first nine months of 2026, oncology sales surged 16.8% on an operational basis to around $22 billion, driven by sustained momentum for Darzalex, growing adoption of Carvykti and Tecvayli and strong uptake of Rybrevant/Lazcluze and Erleada. However, declining sales of Imbruvica partially offset the growth.
J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze are contributing significantly to top-line growth, driven by market share gains. Combined, they generated $4.1 billion in sales in the first nine months of 2026.
The company claims that it is on track to be the #1 oncology company by 2030, with sales projected to exceed $50 billion. Though quite bullish, J&J seems quite confident that it can meet the target, citing strong growth in its marketed cancer drugs and new launches like Rybrevant and Inlexzo.
J&J’s newly launched therapy, Inlexzo, generated year-to-date sales of approximately $200 million, including slightly more than $90 million in the third quarter, reflecting sequential growth. The launch continued to gain momentum in the United States, supported by permanent J-code reimbursement, with one in three eligible patients now starting an Inlexzo regimen.
J&J believes its new cancer drugs, Talvey, Tecvayli, Inlexzo and Rybrevant/Lazcluze, have the potential to deliver peak sales of $5 billion.
J&J Advances Oncology Pipeline Across Multiple Cancer Types
J&J has also significantly strengthened its oncology pipeline in recent years. J&J's oncology pipeline is increasingly focused on advancing multiple myeloma treatments into earlier lines, expanding its solid-tumor portfolio, and developing next-generation immunotherapies and targeted treatments. Carvykti is being studied in phase III for frontline use. Erleada is in phase III studies for localized and high-risk prostate cancer. J&J is also evaluating Rybrevant for cancers other than the approved lung cancer indication, like colorectal cancer and advanced head and neck cancer. Last week, it gained FDA approval for Rybrevant Faspro for certain patients with recurrent or metastatic head and neck cancer.
New data from a phase III study, announced in July, demonstrated that the combination of Tecvayli plus Talvey reduced the risk of disease progression or death by 89% as early as the second line of treatment, which, if approved, can support expanded use. Last month, J&J announced a 75% tumor response rate in advanced prostate cancer with JNJ-6143, its investigational first-in-class, once-daily oral therapy for metastatic castration-resistant prostate cancer. An important data readout expected later this year is pasritamig, a first-in-class bispecific antibody in patients with advanced prostate cancer who have progressed after multiple lines of therapy. Other promising late-stage pipeline candidates include bleximenib for acute myeloid leukemia and ramantamig for multiple myeloma.
J&J is also expanding its oncology portfolio through acquisitions. It recently completed the acquisition of Firefly Bio, which added a next-generation antibody platform.
Oncology sales comprise around 27% of Pfizer’s total revenues. Its oncology revenues grew 10% in the third quarter of 2026, driven by higher sales of drugs like Lorbrena, the Braftovi-Mektovi combination and Padcev, which made up for the soft performance of Ibrance, Xtandi and others. Pfizer also has a robust pipeline of cancer candidates with a focus on multiple modalities, including small molecules, antibody drug conjugates or ADCs and immuno-oncology biologics.
Oncology sales now comprise around 47% of AstraZeneca’s total product revenues. Sales in its oncology segment rose 17% at constant exchange rate (CER) to $7.8 billion in the third quarter of 2026. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are PD-L1 inhibitor Keytruda and PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for more than 55% of the company’s pharmaceutical sales. CombinedKeytruda and Keytruda Qlex sales increased 6% to $8.60 billion in the third quarter.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry so far this year. The stock has risen 36.2% this year compared with 22.5% 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 24.55 forward earnings, higher than 19.38 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 declined from $11.32 to $11.12 over the past 30 days, while that for 2027 earnings has declined from $12.40 per share to $11.55 over the same time frame.
View the Zacks #1 Rank List
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J&J's Oncology Sales Surge So Far in 2026: What Lies Ahead?
Key Takeaways
Johnson & Johnson (JNJ - Free Report) has established a dominant presence in the oncology market, backed by a diversified portfolio of therapies targeting hematologic malignancies and solid tumors. The company maintains a leadership position in multiple myeloma, primarily driven by its blockbuster drug Darzalex, which is a standard-of-care treatment and remains J&J's top-selling pharmaceutical product.
J&J offers multiple treatment options across different lines of therapy for multiple myeloma. Per the company, approximately 80% of multiple myeloma patients receive at least one of its therapies during their treatment journey. Beyond Darzalex, newer treatments like Carvykti, Tecvayli and Talvey are strengthening its multiple myeloma franchise. In solid tumors, J&J is witnessing robust demand for prostate cancer drug Erleada and lung cancer treatments Rybrevant and Lazcluze, further supporting its oncology growth trajectory.
Darzalex and Newer Therapies Drive J&J's Oncology Growth
Oncology remains a key growth driver for J&J, contributing approximately 30% of total revenues and 45% of Innovative Medicine sales. In the first nine months of 2026, oncology sales surged 16.8% on an operational basis to around $22 billion, driven by sustained momentum for Darzalex, growing adoption of Carvykti and Tecvayli and strong uptake of Rybrevant/Lazcluze and Erleada. However, declining sales of Imbruvica partially offset the growth.
J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze are contributing significantly to top-line growth, driven by market share gains. Combined, they generated $4.1 billion in sales in the first nine months of 2026.
The company claims that it is on track to be the #1 oncology company by 2030, with sales projected to exceed $50 billion. Though quite bullish, J&J seems quite confident that it can meet the target, citing strong growth in its marketed cancer drugs and new launches like Rybrevant and Inlexzo.
J&J’s newly launched therapy, Inlexzo, generated year-to-date sales of approximately $200 million, including slightly more than $90 million in the third quarter, reflecting sequential growth. The launch continued to gain momentum in the United States, supported by permanent J-code reimbursement, with one in three eligible patients now starting an Inlexzo regimen.
J&J believes its new cancer drugs, Talvey, Tecvayli, Inlexzo and Rybrevant/Lazcluze, have the potential to deliver peak sales of $5 billion.
J&J Advances Oncology Pipeline Across Multiple Cancer Types
J&J has also significantly strengthened its oncology pipeline in recent years. J&J's oncology pipeline is increasingly focused on advancing multiple myeloma treatments into earlier lines, expanding its solid-tumor portfolio, and developing next-generation immunotherapies and targeted treatments. Carvykti is being studied in phase III for frontline use. Erleada is in phase III studies for localized and high-risk prostate cancer. J&J is also evaluating Rybrevant for cancers other than the approved lung cancer indication, like colorectal cancer and advanced head and neck cancer. Last week, it gained FDA approval for Rybrevant Faspro for certain patients with recurrent or metastatic head and neck cancer.
New data from a phase III study, announced in July, demonstrated that the combination of Tecvayli plus Talvey reduced the risk of disease progression or death by 89% as early as the second line of treatment, which, if approved, can support expanded use. Last month, J&J announced a 75% tumor response rate in advanced prostate cancer with JNJ-6143, its investigational first-in-class, once-daily oral therapy for metastatic castration-resistant prostate cancer. An important data readout expected later this year is pasritamig, a first-in-class bispecific antibody in patients with advanced prostate cancer who have progressed after multiple lines of therapy. Other promising late-stage pipeline candidates include bleximenib for acute myeloid leukemia and ramantamig for multiple myeloma.
J&J is also expanding its oncology portfolio through acquisitions. It recently completed the acquisition of Firefly Bio, which added a next-generation antibody platform.
Competition in the Oncology Space
Other large players in the oncology space are Pfizer (PFE - Free Report) , AstraZeneca (AZN - Free Report) , Merck (MRK - Free Report) , among others.
Oncology sales comprise around 27% of Pfizer’s total revenues. Its oncology revenues grew 10% in the third quarter of 2026, driven by higher sales of drugs like Lorbrena, the Braftovi-Mektovi combination and Padcev, which made up for the soft performance of Ibrance, Xtandi and others. Pfizer also has a robust pipeline of cancer candidates with a focus on multiple modalities, including small molecules, antibody drug conjugates or ADCs and immuno-oncology biologics.
Oncology sales now comprise around 47% of AstraZeneca’s total product revenues. Sales in its oncology segment rose 17% at constant exchange rate (CER) to $7.8 billion in the third quarter of 2026. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are PD-L1 inhibitor Keytruda and PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for more than 55% of the company’s pharmaceutical sales. CombinedKeytruda and Keytruda Qlex sales increased 6% to $8.60 billion in the third quarter.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry so far this year. The stock has risen 36.2% this year compared with 22.5% 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 24.55 forward earnings, higher than 19.38 for the industry. The stock is also trading above its five-year mean of 15.65.
The Zacks Consensus Estimate for 2026 earnings has declined from $11.32 to $11.12 over the past 30 days, while that for 2027 earnings has declined from $12.40 per share to $11.55 over the same time frame.
J&J has a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.