Johnson & Johnson (NYSE:JNJ) shares rose in early trading on Thursday, after the company reported upbeat second-quarter results.
• Johnson & Johnson stock is trading at elevated levels. What’s next for JNJ stock?
With ex-Stelara growth of more than 14% year-on-year and eight brands delivering double-digit growth in the second quarter, the company’s Innovative Medicine (IM) momentum is "building into 2027, according to RBC Capital Markets.
The Johnson & Johnson Analyst: Analyst Shagun Singh maintained an Outperform rating and price target of $287.
The Johnson & Johnson Thesis: The company delivered better-than-expected sales and earnings, driven by IM strength, while MedTech missed on cardio weakness, Singh said in the note.
Check out other analyst stock ratings.
Johnson & Johnson delivered another quarter of mid-teens ex-Stelara IM growth, he added.
Stelara now contributes only 4% of IM sales, while the remaining 96% grew more than 14% year-on-year in the quarter, "highlighting the durability of JNJ’s growth engine," the analyst stated.
He highlighted:
- Icotyde reached 11,000 patients
- Tremfya delivered its first quarter of $2 billion in sales, up 71% year-on-year
- Tecvayli sales grew 56% year-on-year
- INLEXZO’s new patient insertions rose 75% sequentially, outperforming all recent competitive launches
"We believe the breadth of IM’s launch portfolio provides strong visibility into 2027+ acceleration and supports JNJ’s path to becoming the number one oncology company by 2030 as well as progress towards double-digit growth by decade’s end," Singh wrote.
While the stock declined following the earnings release due to the underperformance of MedTech, this business is positioned for a recovery in the back half of 2026, "with three of four businesses accelerating in Q2’26 and procedure volumes intact," he further stated.
JNJ Price Action: Shares of Johnson & Johnson had risen by 0.84% to $249.09 at the time of publication on Thursday.