JNJ Stock Surge Hides Modest Growth
Johnson & Johnson (JNJ) stock surged around 52% in the twelve months to May 2025, outperforming the S&P 500's 17% return. A $10,000 investment would have grown to approximately $15,220 over this period.
The company navigated a challenging market due to the loss of exclusivity for STELARA and biosimilar erosion. However, management had already flagged this issue in January 2025, stating that J&J was overcoming these challenges.
JNJ's revenue growth accelerated during this time, with a 5.3% increase in the quarter ending December 2024, followed by a slight dip to 2.4% in March 2025 and then a recovery to 5.8% in June 2025.
The company had also made progress on its newer treatments, including a lung cancer combination that showed promise in studies. However, this news was overshadowed by talc-related headlines in March 2025, causing the stock price to decline over 3% the next trading session.