Johnson & Johnson (NYSE:JNJ) stock rose 0.90% (As on January 22, 11:35:05 AM UTC-4, Source: Google Finance) after the company forecast 2026 sales and profit ahead of Wall Street estimates, even when including a hit of “hundreds ‍of millions of dollars” from the ‍drug pricing deal it ‍signed with the Trump administration earlier this month. J&J is one of 16 big pharmaceutical companies that have reached agreements to lower U.S. drug prices in exchange for exemptions from Trump-imposed tariffs. J&J also reported a fourth-quarter profit ahead of expectations, buoyed by strong sales of the blood cancer therapy Darzalex, solid growth in psoriasis drug Tremfya and resilience in its medical devices business. The results land a day after a court-appointed special master recommended that expert testimony linking the company’s talc products to ovarian cancer be allowed in court. J&J has been fighting claims over its talc products in both federal and state courts for years, and has said its products are safe and do not cause cancer.

Moreover, Sales in the Innovative Medicine division, its largest, grew 10% to $15.76 billion in the ⁠quarter, beating estimates of $15.37 billion. Quarterly sales ‌for the devices business rose 7.5% to $8.8 billion. The cardiovascular segment has become a growth engine following J&J’s $13.1 billion acquisition of the heart device maker in 2024. On the other hand, the elephant in the room remains Stelara, J&J’s psoriasis and inflammatory bowel disease blockbuster that lost U.S. exclusivity on January 1, 2025. Amgen’s (AMGN) Wezlana biosimilar became the first interchangeable competitor, with Teva (TEVA), Alvotech (ALVO), and Sandoz following close behind. Analysts had modeled significant revenue erosion starting in 2025. Additionally, the company also just secured FDA approval for Caplyta as an add-on treatment for major depressive disorder, expanding its neuroscience franchise. Fresh Phase 3 data released January 16 showed 65% of patients achieved remission in a 6-month extension study.

JNJ in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.46, beating the analysts’ estimates for the adjusted earnings per share of $2.44. The company had reported the adjusted revenue of $24.56 billion in the third quarter of FY26, beating the analysts’ estimates for revenue of $24.16 billion.

The company forecast 2026 operational sales of $99.5 ⁠billion to $100.5 billion, exceeding analysts’ estimates of $98.9 billion, according to LSEG data. J&J sees full-year 2026 profit coming in at $11.43 to $11.63 per share. Analysts have forecast earnings of $11.45 per share.