MW J&J raises guidance for 2026 on strong start to the year
By Jaimy Lee
The healthcare giant saw sales of medications, which include Darzalex and Tremfya, increase 11% in the first three months of the year
Johnson & Johnson said its pharmaceutical sales rose 11.2% in the first quarter of 2026. (Photo by Jeff Schear/Getty Images for Johnson & Johnson)
Johnson & Johnson's immunology bet is paying off as the drugmaker gears up to market an innovative new psoriasis pill and had stronger-than-expected performance of another drug.
J&J spent the last few years slimming down its business to focus on six categories, one of which is immunology drugs. It's also making plans to spin off its medical devices unit after the success of divesting Kenvue, its consumer health division that is being acquired by Kimberly-Clark $(KMB)$.
On Tuesday, the healthcare giant reported a 10% increase in sales in the first quarter, a period of time that is usually slow for drugmakers due to resetting deductibles for U.S. patients, among other factors. J&J also said it increased guidance for the year and now expects sales of $100.8 billion (compared to a previous estimate of $100.5 billion) and adjusted earnings per share of $11.55 (compared to $11.03).
Its stock $(JNJ)$ was flat in premarket trade.
The company said total sales rose 11.2% to $24.1 billion in the first quarter of 2026, up from $21.9 billion in the same quarter last year and beating the FactSet estimate of $23.6 billion. The bulk of that revenue came from its pharmaceuticals business, which generated $15.4 billion in sales for the quarter, compared to $13.9 billion a year ago. The average analyst estimate compiled by FactSet was $15.2 billion.
Key to J&J's future is Tremfya, an IL-23 inhibitor that is used to treat several autoimmune conditions like plaque psoriasis. The Food and Drug Administration last September approved a subcutaneous form of the drug for people with ulcerative colitis and Crohn's disease, making it the first drug of its kind that can be administered at home for these conditions.
That means it has an advantage over AbbVie's $(ABBV)$ Skyrizi, AbbVie's top-selling drug and one that requires patients to go to a clinic for an infusion when they start treatment.
Tremfya had $1.6 billion in sales in the first quarter, up from $956 million a year ago. The FactSet consensus was $1.4 billion.
J&J also received FDA approval last month for a new IL-23 inhibitor pill called Icotyde for plaque psoriasis. That drug was developed out of a licensing deal it made with Protagonist Therapeutics $(PTGX)$ back in 2017. Icotyde could have peak sales of about $10 billion, according to Truist Securities analyst Srikripa Devarakonda. The company did not disclose any sales figures for Icotyde.
"This is going to be a transformational change for the treatment of these diseases," J&J CEO Joaquin Duato told investors in January.
Darzalex, which is J&J's multiple myeloma drug and top-selling product, brought in about $4.0 billion in revenue, up from $3.2 billion in the same three months last year. The FactSet estimate was $3.9 billion. The company wants its cancer drugs, led by Darzalex, to bring in $50 billion in sales by 2030.
J&J's medical devices unit had $8.6 billion in sales, same as the FactSet estimate of $8.6 billion.
Johnson & Johnson reported net income of $5.2 billion, which came in lower than the FactSet estimate of $6.5 billion. It also reported lower-than-expected net profit in the fourth quarter.
Adjusted earnings per share was $2.70. The FactSet estimate was $2.68.
J&J's stock has gained 15% so far this year, while the S&P 500 SPX is up 1%.
-Jaimy Lee
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(END) Dow Jones Newswires
April 14, 2026 06:55 ET (10:55 GMT)
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