JNJ Raises Outlook on Newer Medicine Growth

Johnson & Johnson (NYSE:JNJ) has raised its full-year 2026 outlook, citing the growth of newer medicines that offset the decline in Stelara sales due to biosimilar competition.

The company reported operational growth of 5.6% for the second quarter of 2026, with net earnings down 0.1% and diluted earnings per share down 0.9%. Adjusted operational EPS guidance was lifted to $11.50 to $11.65, from $11.30 to $11.50 in April.

The company's innovative medicine segment saw a growth of 6.8%, driven by oncology products such as Darzalex and immunology product Tremfya. However, Stelara sales declined due to biosimilar competition, contributing to a headwind of approximately 760 basis points.