J&J Q1 Profit Beats Estimates as Darzalex and Tremfya Offset Stelara Decline
Johnson & Johnson reported first-quarter earnings that exceeded analyst expectations, driven by strong sales of its cancer drug Darzalex and psoriasis treatment Tremfya. These gains successfully offset a significant 60% drop in revenue from Stelara, which faces intensifying biosimilar competition following patent expiration. First-quarter revenue rose nearly 10% to $24.1 billion, surpassing the estimated $23.6 billion, while adjusted earnings reached $2.70 per share. Consequently, the healthcare giant raised its full-year 2026 revenue forecast midpoint to approximately $100.8 billion. CFO Joseph Wolk highlighted that many patients are switching to J&J’s newer therapies rather than cheaper biosimilars. The company also noted potential impacts from China’s volume-based procurement program later in the year. Additionally, J&J commented on its agreement with the Trump administration regarding most-favored-nation drug pricing, expressing opposition to codifying these deals into law due to concerns over price controls limiting patient access. Despite a lukewarm immediate market reaction, analysts view the results favorably, citing J&J's successful transition beyond Stelara's loss of exclusivity.
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J&J Q1 Profit Beats Estimates as Darzalex and Tremfya Offset Stelara Decline
Johnson & Johnson reported first-quarter earnings that exceeded analyst expectations, driven by strong sales of its cancer drug Darzalex and psoriasis treatment Tremfya. These gains successfully offset a significant 60% drop in revenue from Stelara, which faces intensifying biosimilar competition following patent expiration. First-quarter revenue rose nearly 10% to $24.1 billion, surpassing the estimated $23.6 billion, while adjusted earnings reached $2.70 per share. Consequently, the healthcare giant raised its full-year 2026 revenue forecast midpoint to approximately $100.8 billion. CFO Joseph Wolk highlighted that many patients are switching to J&J’s newer therapies rather than cheaper biosimilars. The company also noted potential impacts from China’s volume-based procurement program later in the year. Additionally, J&J commented on its agreement with the Trump administration regarding most-favored-nation drug pricing, expressing opposition to codifying these deals into law due to concerns over price controls limiting patient access. Despite a lukewarm immediate market reaction, analysts view the results favorably, citing J&J's successful transition beyond Stelara's loss of exclusivity.
reuters