-- Johnson & Johnson (JNJ) outlined strong pipeline catalysts across Innovative Medicine and MedTech, reinforcing its long-term double-digit growth outlook after delivering a Q1 2026 earnings beat and raising full-year guidance, with its growth acceleration thesis remaining intact, RBC Capital said in a Tuesday note.
RBC highlighted strength in key growth drivers including Tremfya, Carvykti, and newly launched Icotyde, which management said could become one of its largest future products, while MedTech growth remains steady with expectations to reach high single-digit growth by the end of the decade.
Management modestly raised 2026 guidance to about 6.1% operational sales growth and $11.55 in adjusted earnings per share at the midpoint, while also reporting an estimated around 2% sales beat and 1% EPS beat, according to the report.
The company highlighted pipeline opportunities across oncology, cardiovascular, and bladder cancer therapies, along with device innovation, supporting mid- to high-single-digit growth acceleration through the end of the decade, RBC added.
RBC maintained its outperform rating on the stock and raised its price target to $265 from $255.
Shares of Johnson & Johnson were down 0.7% in Wednesday trading.
Price: $238.44, Change: $-1.66, Percent Change: -0.69%