Johnson & Johnson Outshines Defensives in 2026 With 35% Stock Surge

Johnson & Johnson (JNJ) has dominated this year among classic defensive blue chips, outperforming Coca-Cola and Procter & Gamble. The company's stock rose by 35% through Friday's close, compared to a 28% increase for Coca-Cola and just 4% for Procter & Gamble.

The Invesco S&P 500 Low Volatility ETF (SPLV) returned only 6%, while the SPDR S&P 500 ETF Trust (SPY) gained 13%. Despite this, JNJ and KO both outperformed the broad market, showing that defensive stocks can provide some protection from volatility.

JNJ's success is largely due to its innovative medicine portfolio. In Q2 2026, worldwide sales at Johnson & Johnson reached $25.3 billion with operational growth of 5.6%, and management raised full-year adjusted operational EPS guidance to $11.50 to $11.65.

Coca-Cola's rise was driven by execution rather than a single event. Q2 2026 organic revenue at Coca-Cola grew 6% and unit case volume grew 5%. The company also raised full-year comparable EPS growth guidance to 9% to 10% and free cash flow guidance to $12.4 billion.

Procter & Gamble's underperformance can't be tied to one specific catalyst. Fiscal Q4 2026 delivered core EPS at Procter & Gamble of $1.43 against flat organic sales and a revenue miss, and fiscal 2027 guidance flagged roughly $1 billion after-tax in commodity, energy, and transport headwinds.