Johnson & Johnson's $10 Billion Test: 2026 Outlook Could Make Or Break JNJ Heading Into Q4 - Johnson & Johnson (NYSE:JNJ)

Core Insights - Johnson & Johnson is facing a significant transition as it prepares to report its fourth-quarter results, with a focus on replacing revenue lost from its former leading immunology product, Stelara [1] Group 1: Revenue and Sales Performance - Stelara, which generated nearly $10 billion annually at its peak, is experiencing a decline due to the introduction of biosimilars in the U.S. market, leading to a reported 42% year-over-year sales decline in the third quarter [2] - The company is optimistic about newer therapies, including Oncology drug Darzalex, immunology medicine Tremfya, and depression treatment Spravato, which are expected to help offset the revenue loss from Stelara [3] Group 2: Growth Areas and Acquisitions - The MedTech division is highlighted as a key growth area, with recent acquisitions like Abiomed and Shockwave Medical enhancing the company's offerings and providing resilience against patent cliffs [4] - The company is focusing on a long-term capital deployment strategy rather than pursuing M&A deals out of desperation to replace lost revenue [5] Group 3: Market Performance and Analyst Sentiment - Despite concerns regarding revenue loss, Johnson & Johnson's stock reached an all-time high of $220.11, reflecting a 5.45% increase year-to-date and a 47.59% rise over the past year [7] - Analyst consensus remains bearish, with an average price target of $198.82, indicating a potential downside of 9.07% from current stock levels [7]