JNJ Delivers Strong 2026 Guidance Even as Policy Costs Loom

Core Viewpoint - Johnson & Johnson (NYSE: JNJ) has provided a strong 2026 outlook, surpassing Wall Street expectations despite facing significant challenges, including a drug pricing agreement and tariff-related costs [2][3]. Financial Performance - For 2026, Johnson & Johnson anticipates sales between $99.5 billion and $100.5 billion, exceeding analyst projections of approximately $98.9 billion [3]. - The company expects full-year earnings per share to be in the range of $11.43 to $11.63, slightly above the consensus estimate of $11.45 [3]. Management Outlook - CEO Joaquin Duato expressed optimism during the earnings call, indicating that the company expects to achieve faster growth in 2026 compared to 2025 and aims for double-digit growth by the end of the decade [4]. Business Operations - Johnson & Johnson operates across the healthcare sector, developing and selling a diverse range of products, including pharmaceuticals and medical devices [4]. Challenges - The drug pricing agreement with the Trump administration is projected to cost the company "hundreds of millions of dollars," alongside an expected $500 million in tariff-related costs impacting its medical devices segment [2][3].