01—Abstract
Summary
Summary of the 8-K filed April 14, 2026. Cited figures are marked; the original filing is the authoritative source.
Johnson & Johnson reported first-quarter 2026 results on April 14, 2026, with reported sales up 9.9% to $24.1 billiona (6.4% operational growth, 5.3% adjusted operational growth).
Growth was led by Innovative Medicine, up 11.2%b reported, driven by DARZALEX, CARVYKTI, ERLEADA, TREMFYA, and SPRAVATO, partly offset by a roughly 920 basis point drag from STELARA and a decline in IMBRUVICA. MedTech grew 7.7% reported, led by electrophysiology, Abiomed, and Shockwave. Currency contributed 3.5 points of reported growth, so underlying growth is more modest than the headline figure.
GAAP net earnings fell 52.4% to $5.2 billionc ($2.14 per diluted share) from $11.0 billion a year earlier, a comparison distorted by a large prior-year litigation-related gain of about $7.0 billion. On an adjusted basis, EPS was $2.70, down 2.5% from $2.77. Adjusted net earnings declined 1.4%, and free cash flow was roughly $1.5 billion versus $3.4 billion in the prior year.
Management raised full-year 2026 guidance: estimated reported sales of $100.8 billiond at the midpoint (up 7.0%) and adjusted EPS of $11.55 at the midpoint (up 7.1%), both up roughly half a point from January. The company also declared a 3.1% quarterly dividend increase to $1.34 per share, its 64th consecutive annual increase, with an ex-dividend date of May 26, 2026.
Management highlighted regulatory approvals including ICOTYDE for plaque psoriasis, TECVAYLI plus DARZALEX FASPRO for relapsed/refractory multiple myeloma, and TECNIS PureSee, and announced an Enterprise Business Review for December 8, 2026. The filing also references the planned separation of the Orthopaedics business.
02—Key points
Key Highlights
- Reported Q1 2026 sales rose 9.9% to $24.06 billion; operational growth was 6.4% and adjusted operational growth was 5.3%, with currency contributing 3.5 points.
- GAAP EPS fell 52.9% to $2.14 from $4.54, largely because Q1 2025 included a roughly $7.0 billion litigation-related benefit; adjusted EPS was $2.70, down 2.5%.
- Innovative Medicine sales grew 11.2% reported (7.4% operational), led by DARZALEX, CARVYKTI, TREMFYA, and CAPLYTA, offset by a sharp STELARA decline (down 59.7%, reflecting biosimilar erosion).
- MedTech sales grew 7.7% reported (4.6% operational), led by electrophysiology (+12.6% reported), Abiomed, and Shockwave.
- Full-year 2026 guidance raised: reported sales of $100.3–101.3B (midpoint $100.8B, up 7.0%) and adjusted EPS of $11.45–11.65 (midpoint $11.55, up 7.1%), both about $0.3–0.5 higher than January's guidance.
- Free cash flow fell to roughly $1.5 billion from $3.4 billion, a decline investors should monitor as the company funds growth and litigation-related payments.
- Quarterly dividend increased 3.1% to $1.34 per share ($5.36 annualized), with a May 26, 2026 record and ex-dividend date and a June 9, 2026 payment date.
03—Questions
Frequently Asked Questions
Did Johnson & Johnson's earnings really decline in Q1 2026?
On a GAAP basis, yes: net earnings fell 52.4% to $5.2 billion, and EPS fell to $2.14 from $4.54. The comparison is distorted by a large litigation-related benefit of about $7.0 billion in Q1 2025. On an adjusted basis, which excludes intangible amortization and special items, EPS declined a more modest 2.5% to $2.70.
What drove the revenue growth, and how much came from currency?
Reported sales grew 9.9%, but only 6.4% came from operational growth and 3.5 points from favorable currency translation. Adjusted operational growth, which also excludes acquisitions and divestitures, was 5.3%. Innovative Medicine was the main driver, with DARZALEX, CARVYKTI, ERLEADA, TREMFYA, and SPRAVATO leading, while STELARA's erosion was a significant drag.
Did the company change its 2026 outlook?
Yes, modestly upward. The midpoint for reported sales rose to $100.8 billion (7.0% growth) from $100.5 billion, and the adjusted EPS midpoint rose to $11.55 from $11.53. Guidance ranges shifted up by about $0.3–0.5 billion for sales and $0.02 per share for EPS, with the EPS change largely reflecting currency assumptions.
Is the dividend safe, and what are the key dates?
The board raised the quarterly dividend 3.1% to $1.34 per share, extending a 64-year streak of annual increases. The payout is supported by adjusted EPS of $2.70 in the quarter, though free cash flow of about $1.5 billion was well below the prior year. The ex-dividend and record date is May 26, 2026, and payment is June 9, 2026.
What should investors watch beyond this quarter?
Key items include the STELARA erosion trajectory, the ramp of ICOTYDE in plaque psoriasis, multiple myeloma launches such as TECVAYLI plus DARZALEX FASPRO, the planned separation of the Orthopaedics business, and the Enterprise Business Review scheduled for December 8, 2026. Litigation developments and free cash flow normalization also remain important.
04—Continue