Johnson & Johnson (JNJ) Is Up 5.4% After Raising 2025 Sales Outlook and Affirming Dividend - What's Changed

• Johnson & Johnson recently reported second quarter 2025 results with sales of US$23.74 billion and net income of US$5.54 billion, alongside a raised full-year operational sales guidance to US$92.7 billion–US$93.1 billion and a third-quarter dividend affirmation.
• In addition to robust financial performance, the company also submitted a supplemental New Drug Application for CAPLYTA®, aiming to expand its mental health treatment portfolio amid an ongoing focus on next-generation therapies.
• We'll explore how Johnson & Johnson's upwardly revised sales outlook could influence its investment narrative and future revenue expectations.

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Johnson & Johnson Investment Narrative Recap

To own Johnson & Johnson, you have to believe in its ability to grow earnings despite sector headwinds such as biosimilar competition for key drugs and ongoing litigation risks. The company’s raised sales outlook after a strong second quarter provides short-term support for the narrative that pipeline execution and operational scale remain its biggest catalysts, while the impact of these results on risk from product exclusivity loss appears limited for now.

Among recent announcements, the submission of a supplemental New Drug Application for CAPLYTA® stands out as especially relevant, as it signals Johnson & Johnson’s ongoing investment in next-generation mental health treatments. This effort ties directly into pipeline growth as a counterbalance to exposures elsewhere, reflecting management’s focus on long-term innovation while hedging near-term revenue risks.

However, even with strong performance in core segments, investors should be aware that...

Read the full narrative on Johnson & Johnson (it's free!)

Johnson & Johnson's outlook anticipates $99.6 billion in revenue and $22.9 billion in earnings by 2028. This is based on a 3.7% annual revenue growth rate and an increase of $1.1 billion in earnings from the current level of $21.8 billion.

Uncover how Johnson & Johnson's forecasts yield a $169.96 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Twenty-three fair value estimates from the Simply Wall St Community range widely between US$133 and US$265 per share. While opinions contrast sharply, the company’s focus on developing next-generation therapies remains a meaningful influence on future prospects, see how different perspectives shape expectations for Johnson & Johnson’s value.

Explore 23 other fair value estimates on Johnson & Johnson - why the stock might be worth as much as 61% more than the current price!

Build Your Own Johnson & Johnson Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Johnson & Johnson research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Johnson & Johnson research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Johnson & Johnson's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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