MW J&J wants to be the leader in the cancer fight. Its strategy is starting to pay off as oncology sales top $25 billion in 2025.
By Jaimy Lee
The healthcare giant reported 9% growth in revenue in the fourth quarter, though it missed on earnings
Johnson & Johnson now expects to bring in $100 billion in revenue in 2026. (Photo by Mario Tama/Getty Images)
Johnson & Johnson had another strong quarter, driven by revenue growth of two important cancer drugs, but it also reported lower-than-expected net profit.
J&J reported steady revenue performance in the fourth quarter as its new strategy comes into play. The company is making major changes to its business model under Chief Executive Joaquin Duato, in part to offset declining sales of autoimmune drug Stelara, which lost patent protection. That includes spinning off its orthopedic device business, which makes up about 10% of its total revenue, by mid-2027 and its narrowed focus on six key areas like oncology.
The company reported $24.6 billion in revenue in the fourth quarter, up 9% from $22.5 billion in the same three months of last year. The FactSet consensus was for revenue of $24.1 billion.
Most of that growth was driven by the performance of its multiple myeloma treatments Darzalex aand Carvykti.
Darzalex is by far the company's top-selling drug, bringing in $3.9 billion sales in the fourth quarter, up from $3.1 billion last year and against a FactSet consensus of $3.7 billion.
J&J has publicly declared its intention to be the world's top cancer drugmaker by 2030. It aims to generate $50 billion in oncology sales, half of which it expects from Darzalex, by then. It generated $25.4 billion in sales from its cancer drugs in 2025.
"Our goal is to have about four out of five patients that have myeloma with one Johnson & Johnson product in the regimen that they use," Duato told investors at the J.P. Morgan Healthcare Conference earlier this month.
Within its "innovative medicine" portfolio, J&J is now focused on oncology, immunology and neuroscience drugs, while its medical-technology business will hold on to its cardiovascular, surgical and vision care device businesses. During the investor call, Duato noted that the company has 28 products or platforms that each deliver at least $1 billion in revenue.
"We have line of sight to double-digit growth by the end of the decade," he said.
The company reported net income of $5.1 billion in the fourth quarter, up from $3.4 billion in the same quarter last year but lower than the average analyst estimate compiled by FactSet of $5.9 billion. J&J shares $(JNJ)$ were down about 2% on Wednesday.
But adjusted earnings per share for the quarter, which excludes nonrecurring items and takes into account J&J's recent acquisition of cancer biotech Halda Therapeutics, came in at $2.46, matching the FactSet consensus.
Looking ahead, J&J now expects $100.5 billion in revenue and adjusted EPS of $11.53 in 2026. It reported $94.2 billion in total revenue for 2025 and adjusted EPS of $11.03. The FactSet consensus for 2026 is for revenue of $98.94 billion and EPS of $11.48.
J&J's stock, which closed at a record $219.57 on Jan. 15, has gained 47% over the past year, while the S&P 500 SPX has advanced 12%.
-Jaimy Lee
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(END) Dow Jones Newswires
January 21, 2026 10:14 ET (15:14 GMT)
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