Financial Wire

Johnson & Johnson Q1 Reinforces Growth Outlook on New Product Cycle, Morgan Stanley Says

-- Johnson & Johnson's (JNJ) Q1 results reinforced Morgan Stanley's confidence in the company's growth trajectory, driven by its new product cycle, including Icotyde.

The company reaffirmed its long-term outlook and sees a path to double-digit revenue growth by 2030. Johnson & Johnson also highlighted key Pharma growth drivers, including Icotyde, Rybrevant and Inlexzo. It further pointed to cardiovascular launches and the Orthopedics separation as tailwinds in MedTech.

Johnson & Johnson posted a Q1 beat and slightly lifted 2026 revenue guidance to $100.3 billion to $101.3 billion. This compares with Morgan Stanley's estimate of $101.1 billion and Street estimate of $100.6 billion. New adjusted EPS guidance was $11.45 to $11.65, versus Morgan Stanley's estimate of $11.82 and consensus of $11.56.

The company expects heavier investment in H1, with stronger earnings growth in H2 as new product launches scale, according to the note Tuesday.

Upcoming catalysts include additional readouts for Icotyde across plaque psoriasis and psoriatic arthritis. The company also expects data from the phase 2 Duet trials in ulcerative colitis and Crohn's disease. Phase 3 readouts of Milvexian in atrial fibrillation and secondary stroke prevention are also expected.

Morgan Stanley maintained an overweight rating on Johnson & Johnson and raised its price target to $283 from $267.

Price: $238.95, Change: $-1.15, Percent Change: -0.48%

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