JNJ Stock Roars Ahead Despite Slowing STELARA Sales
Johnson & Johnson (JNJ) stock has seen significant returns over the past year, outperforming its peers in the healthcare sector. Despite ranking fourth in revenue growth among six health care companies, JNJ's stock has returned 58% over the last twelve months.
This is a remarkable feat considering that three of its competitors grew faster and still lagged behind in returns. Eli Lilly (LLY), for instance, saw revenue grow by 49.6%, but its stock only returned 54%.
The price of JNJ stock seems to be a bet on the company's future growth prospects, specifically excluding the impact of declining STELARA sales. STELARA, an immunology drug, saw a staggering 55.7% decline in sales in the second quarter of 2026. However, management claims that excluding STELARA, company sales grew at a double-digit pace during this period.
New medicines such as TREMFYA and DARZALEX have been driving growth for JNJ, with TREMFYA's sales increasing by 71% in the second quarter of 2026. Additionally, over 10,000 patients have started treatment with ICOTYDE, a once-daily psoriasis pill.
The company is guiding 2026 reported sales to a midpoint of $101.1 billion, which would be its first year above $100 billion. However, the extra week in the calendar adds about 100 basis points of growth, and sales at Abiomed, JNJ's heart recovery business, fell by 2% in the second quarter.