Here’s Why Johnson & Johnson (JNJ) Surged in Q3

Core Insights - The Meridian Hedged Equity Fund reported a return of 1.67% in Q3 2025, underperforming the S&P 500 Index which returned 8.13% and the CBOE S&P 500 BuyWrite Index which returned 3.53% [1] Company Overview - Johnson & Johnson (NYSE: JNJ) is a major player in the healthcare sector, focusing on innovative pharmaceuticals and medical devices [3] - The company has a market capitalization of $495.785 billion, with its stock closing at $205.78 per share on December 23, 2025 [2] Performance Metrics - Johnson & Johnson's stock experienced a one-month return of -0.43% but gained 41.09% over the last 52 weeks [2] Strategic Developments - Johnson & Johnson is facing a critical transition as sales from its blockbuster drug Stelara decline due to patent expiration, but it is countering this with a strong pipeline of new drugs, particularly in oncology and immunology [3] - The company secured FDA approval for Inlexzo, a new bladder cancer treatment, and its lung cancer drug Rybrevant is moving closer to broader adoption following positive trial data [3] - Strong sales momentum from other key drugs has compensated for the decline in Stelara, and favorable legal developments have eased concerns regarding ongoing talc litigation [3] Investment Sentiment - Johnson & Johnson was held by 103 hedge fund portfolios at the end of Q3 2025, an increase from 95 in the previous quarter [4] - Despite its potential, some analysts believe that certain AI stocks may offer greater upside potential and less downside risk compared to Johnson & Johnson [4]