Free cash flow remains volatile, ranging from 6.1% to 34.9% over the last ten quarters, reflecting significant capital deployment toward M&A and ongoing legal accruals.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Jan'23 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 22.87B | 24.53B | 24.27B | 22.79B | 21.19B | 23.41B | 23.54B | 23.42B | 22.2B | 21.06B | 18.77B | 19.28B | 18.47B | 17.41B | 15.4B | 14.3B | 16.39B | 16.57B | 14.97B | 15.25B | 14.25B | 11.88B | 11.13B | 10.6B | 8.18B | 8.86B | 6.56B | 5.68B | 4.89B | 4.34B | 3.89B |
| Operating CF Margin % | - | 26.04% | 27.32% | 26.76% | 26.5% | 29.73% | 28.5% | 28.54% | 27.21% | 27.54% | 26.11% | 27.51% | 24.85% | 24.42% | 22.9% | 21.99% | 26.6% | 26.77% | 23.49% | 24.96% | 26.72% | 23.51% | 23.51% | 25.31% | 22.52% | 27.43% | 22.5% | 20.27% | 20.36% | 19.19% | 18% |
| Operating CF Growth % | -51.54% | 1.09% | 6.47% | 7.54% | -9.47% | -0.54% | 0.51% | 5.47% | 5.44% | 12.2% | -2.66% | 4.37% | 6.07% | 13.11% | 7.68% | -12.74% | -1.12% | 10.68% | -1.82% | 7.03% | 19.96% | 6.7% | 5.06% | 29.59% | -7.76% | 35.06% | 15.61% | 16.19% | 12.5% | 11.62% | 15.05% |
| Net Income | 21.04B | 26.8B | 14.07B | 13.33B | 17.94B | 20.88B | 14.71B | 15.12B | 15.3B | 1.3B | 16.54B | 15.41B | 16.32B | 13.83B | 10.51B | 9.67B | 13.33B | 12.27B | 12.95B | 10.58B | 11.05B | 10.41B | 8.51B | 7.2B | 6.6B | 5.67B | 4.8B | 4.17B | 3.06B | 3.3B | 2.89B |
| Depreciation & Amortization | 7.74B | 7.5B | 7.34B | 7.49B | 6.97B | 7.39B | 7.23B | 7.01B | 6.93B | 5.64B | 3.75B | 3.75B | 3.9B | 4.1B | 3.67B | 3.16B | 2.94B | 2.77B | 2.83B | 2.78B | 2.18B | 2.09B | 2.12B | 1.87B | 1.66B | 1.6B | 1.51B | 1.44B | 1.25B | 1.07B | 1.01B |
| Stock-Based Compensation | 1.37B | 1.35B | 1.18B | 1.16B | 1.14B | 1.14B | 1B | 977M | 978M | 962M | 878M | 874M | 792M | 728M | 662M | 621M | 614M | 628M | 627M | 698M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -475M | 1.54B | -2.18B | -4.19B | -1.66B | -2.08B | -1.14B | -2.48B | -1.02B | 2.41B | -341M | -270M | 441M | -607M | -39M | -836M | 356M | -436M | 22M | -1.76B | -1.17B | -46M | -498M | -720M | -74M | -106M | -167M | -7M | -239M | -121M | -3M |
| Other Non-Cash Items | 124M | 49M | 2.03B | 2.5B | 819M | 324M | -963M | -1.08B | 10M | -495M | -291M | -1.82B | -1.91B | 299M | 2.56B | 32M | 12M | 58M | 267M | 1.51B | 1.2B | 331M | 21M | 924M | 183M | 204M | 87M | 11M | 164M | 0 | 0 |
| Working Capital Changes | -6.92B | -12.72B | 1.84B | 2.51B | -4.01B | -4.24B | 2.69B | 3.87B | 3M | 11.24B | -1.77B | 1.34B | -1.07B | -941M | -1.97B | 1.65B | -870M | 1.28B | -1.73B | 1.45B | 982M | -912M | 975M | 1.32B | -192M | 1.49B | 328M | 62M | 656M | 94M | -2M |
| Change in Receivables | -1.45B | -1.78B | -406M | -624M | -1.29B | -2.4B | 774M | -289M | -1.19B | -633M | -1.06B | -433M | -247M | -632M | -9M | -915M | -207M | 453M | -736M | -416M | -699M | -568M | -111M | -691M | -510M | -258M | 0 | 0 | 0 | -318M | -306M |
| Change in Inventory | -1.74B | -1.45B | -1.13B | -1.32B | -2.53B | -1.25B | -265M | -277M | -644M | 581M | -249M | -449M | -1.12B | -622M | -1M | -715M | -196M | 95M | -101M | 14M | -210M | -396M | 11M | 39M | -109M | -167M | 125M | -333M | -80M | -175M | -242M |
| Change in Payables | 583M | 2.38B | 1.62B | 2.35B | 1.1B | 2.44B | 5.14B | 4.06B | -12.97B | 2.73B | -39.2B | -3M | -33.92B | -30.42B | -23.81B | 493M | 20M | -507M | -272M | 2.64B | 1.75B | -911M | 607M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -24.33B | -23.59B | -18.6B | 878M | -12.37B | -8.68B | -20.82B | -6.19B | -3.17B | -14.87B | -4.76B | -7.74B | -12.3B | -5.1B | -4.51B | -4.61B | -7.85B | -7.6B | -4.19B | -6.14B | -20.29B | -279M | -2.35B | -4.53B | -2.2B | -4.09B | -2.37B | -2.94B | -5.64B | -1.61B | -1.69B |
| Capital Expenditures | -5.09B | -4.83B | -4.42B | -4.54B | -4.01B | -3.65B | -3.35B | -3.5B | -3.67B | -3.28B | -3.23B | -3.46B | -3.71B | -3.6B | -2.93B | -2.89B | -2.38B | -2.37B | -3.07B | -3.31B | -2.74B | -2.63B | -2.17B | -2.26B | -2.1B | -1.73B | -1.65B | -2B | -4.94B | -1.39B | -1.37B |
| CapEx % of Revenue | 5.28% | 5.13% | 4.98% | 5.33% | 5.01% | 4.64% | 4.05% | 4.26% | 4.5% | 4.29% | 4.49% | 4.94% | 5% | 5.04% | 4.36% | 4.45% | 3.87% | 3.82% | 4.81% | 5.42% | 5.13% | 5.21% | 4.59% | 5.4% | 5.78% | 5.36% | 5.64% | 7.14% | 20.59% | 6.15% | 6.35% |
| Acquisitions | -17.51B | -17.54B | -15.15B | 358M | -17.65B | -60M | -7.32B | -5.81B | -899M | -35.15B | -4.51B | -954M | -2.13B | -835M | -4.49B | -2.8B | -1.27B | -2.47B | -1.21B | -1.39B | -18.02B | -987M | -580M | -2.81B | -478M | -225M | -68M | 35M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.57B | -1.96B | 235M | -3.42B | 65M | 417M | -1.2B | 3.31B | 2.74B | 1.6B | 1.14B | 3.36B | 4.33B | 192M | 1.55B | 564M | 486M | 45M | 702M | 230M | 511M | -187M | -36M | 76M | -50M | 84M | 59M | -257M | 71M | -111M | -196M |
| Cash from Financing | -15.43B | -5.54B | -3.13B | -15.82B | -8.87B | -14.05B | -6.12B | -18.02B | -18.51B | -7.67B | -8.55B | -10.85B | -12.26B | -6.09B | -20.56B | -4.45B | -4.98B | -4.09B | -7.46B | -5.7B | -6.11B | -4.52B | -5.15B | -3.86B | -6.95B | -5.25B | -3.1B | -2.29B | -98M | -1.92B | -1.37B |
| Debt Issued (Net) | 1.8B | 9.64B | 10.05B | -2.73B | 7.45B | -990M | 7.09B | -2.88B | -3.95B | 6.75B | 7.88B | 1.38B | 850M | 2.03B | -3.67B | 2.98B | 2.4B | 2.48B | 2.73B | 3.02B | 3.75B | 293M | -1.16B | -245M | 1.58B | -1.15B | -115M | -249M | 2.26B | -379M | -131M |
| Equity Issued (Net) | -3.71B | -5.95B | -2.43B | -813M | -6.04B | -3.46B | -3.22B | -6.75B | -5.87B | -6.36B | -8.98B | -4B | -7.12B | -3.54B | -10.2B | -2.52B | -2.8B | -2.13B | -6.65B | -5.61B | -5.59B | -1.02B | -700M | -872M | -6.15B | -2.06B | -586M | -619M | -752M | -403M | -263M |
| Dividends Paid | -12.52B | -12.38B | -11.82B | -11.77B | -11.68B | -11.03B | -10.48B | -9.92B | -9.49B | -8.94B | -8.62B | -8.17B | -7.77B | -7.29B | -6.61B | -6.16B | -5.8B | -5.33B | -5.02B | -4.67B | -4.27B | -3.79B | -3.25B | -2.75B | -2.38B | -2.05B | -1.72B | -1.48B | -1.3B | -1.14B | -974M |
| Share Repurchases | -7.85B | -5.95B | -2.43B | -5.05B | -6.04B | -3.46B | -3.22B | -6.75B | -5.87B | -6.36B | -8.98B | -5.29B | -7.12B | -3.54B | -12.92B | -2.52B | -2.8B | -2.13B | -6.65B | -5.61B | -6.72B | -1.72B | -1.38B | -1.18B | -6.54B | -2.57B | -973M | -840M | -930M | -628M | -412M |
| Other Financing | -994M | 3.16B | 1.07B | -508M | 1.39B | 1.43B | 487M | 1.53B | 801M | 874M | 1.17B | 948M | 1.54B | 2.71B | -83M | 1.25B | 1.23B | 882M | 1.49B | 1.56B | 0 | 78M | -42M | 0 | 0 | 0 | -675M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -16.79B | -4.4B | 2.25B | 7.73B | -360M | 502M | -3.32B | -802M | 283M | -1.15B | 5.24B | -791M | -6.4B | 6.02B | -9.63B | 5.19B | 3.54B | 5.04B | 3B | 3.69B | -11.97B | 6.85B | 3.83B | 2.48B | -864M | -520M | 1.05B | 369M | -826M | 742M | 810M |
| Free Cash Flow | 17.8B | 19.7B | 19.84B | 18.25B | 17.18B | 19.76B | 20.19B | 19.92B | 18.53B | 17.78B | 15.54B | 15.82B | 14.76B | 13.82B | 12.46B | 11.4B | 14B | 14.21B | 11.91B | 11.94B | 11.51B | 9.24B | 8.96B | 8.33B | 6.08B | 7.13B | 4.92B | 3.68B | -55M | 2.95B | 2.52B |
| FCF Margin % | 18.47% | 20.91% | 22.34% | 21.43% | 21.48% | 25.09% | 24.45% | 24.27% | 22.71% | 23.25% | 21.62% | 22.57% | 19.85% | 19.38% | 18.54% | 17.54% | 22.73% | 22.95% | 18.68% | 19.54% | 21.58% | 18.3% | 18.92% | 19.91% | 16.74% | 22.07% | 16.86% | 13.13% | -0.23% | 13.05% | 11.65% |
| FCF Growth % | -4.25% | -0.73% | 8.74% | 6.19% | -13.02% | -2.13% | 1.36% | 7.48% | 4.24% | 14.39% | -1.74% | 7.18% | 6.79% | 10.89% | 9.27% | -18.54% | -1.44% | 19.32% | -0.28% | 3.73% | 24.5% | 3.23% | 7.48% | 37.12% | -14.8% | 45.07% | 33.69% | 6787.27% | -101.86% | 17.24% | 18.44% |
| FCF per Share | 7.28 | 8.11 | 8.17 | 7.13 | 6.45 | 7.39 | 7.56 | 7.42 | 6.79 | 6.48 | 5.57 | 5.62 | 5.15 | 4.80 | 4.43 | 4.11 | 5.02 | 5.09 | 4.20 | 4.10 | 3.88 | 3.08 | 3.00 | 2.65 | 1.99 | 2.32 | 1.59 | 1.20 | -0.02 | 1.08 | 0.92 |
| FCF Conversion (FCF/Net Income) | 0.85x | 0.92x | 1.73x | 0.65x | 1.18x | 1.12x | 1.60x | 1.55x | 1.45x | 16.20x | 1.13x | 1.25x | 1.13x | 1.26x | 1.42x | 1.48x | 1.23x | 1.35x | 1.16x | 1.44x | 1.29x | 1.18x | 1.36x | 1.47x | 1.24x | 1.56x | 1.33x | 1.33x | 1.63x | 1.31x | 1.35x |
| Interest Paid | 0 | 0 | 1.91B | 1.77B | 933M | 941M | 841M | 995M | 1.05B | 960M | 730M | 515M | 603M | 596M | 616M | 576M | 491M | 533M | 525M | 314M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 6.71B | 8.57B | 5.22B | 4.77B | 4.62B | 4.19B | 4.57B | 3.31B | 2.84B | -2.87B | 3.54B | 3.15B | 2.51B | 2.97B | 2.44B | 2.36B | 4.07B | 4.1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Litigation-Driven Cash Volatility
As reported in recent financial statements, the OCF/NI ratio has fluctuated significantly, reaching a low of 0.38 in 2025Q1, which suggests that reported net income is frequently decoupled from actual cash generation due to non-recurring legal accruals and tax-related adjustments following the Kenvue separation.
The wide variance between net income and operating cash flow indicates that investors should exercise caution when using GAAP earnings as a proxy for liquidity. This divergence appears to be driven by the company's complex legal strategy, which necessitates large, non-cash accruals that distort the underlying cash conversion efficiency.
Based on the provided cash flow data, free cash flow margins have shown extreme volatility, ranging from 6.1% to 34.9% over the last ten quarters, reflecting the impact of large-scale M&A activity and the ongoing transition toward a pure-play MedTech and Innovative Medicine business model.
While the company maintains a strong ability to generate cash, the inconsistent FCF trajectory suggests that capital allocation priorities are currently prioritized over steady cash flow growth. Analysts should monitor whether FCF stabilizes as the integration of recent acquisitions like Shockwave and Abiomed concludes.
According to quarterly filings, JNJ's CapEx/Revenue ratio has remained relatively disciplined, averaging between 3.7% and 8.2%, which indicates that the company is successfully balancing necessary infrastructure investment with the high-margin requirements of its specialized biopharmaceutical and medical device manufacturing operations.
The consistent investment in capital assets suggests that management is prioritizing the maintenance of its competitive moat in complex biologics and surgical robotics. This level of capital intensity appears appropriate given the need to sustain innovation in high-barrier-to-entry markets.
As evidenced by the data, working capital changes have been highly erratic, with a massive $15.9B inflow in 2025Q3 followed by a $12.7B outflow in 2025Q4, suggesting that inventory management and payables are being utilized as levers to manage short-term cash flow requirements.
These dramatic swings in working capital may indicate aggressive management of the cash conversion cycle or the impact of large, non-recurring settlement payments. Investors should monitor these fluctuations closely, as they may obscure the true operational efficiency of the core business segments.
Based on reported figures, JNJ continues to prioritize shareholder returns through consistent dividend payments of approximately $3B per quarter, even while simultaneously deploying significant capital toward strategic acquisitions like the $14.5B outlay observed in 2024Q2 to bolster its MedTech portfolio.
The company's ability to sustain its 'Dividend King' status while funding large-scale acquisitions underscores the strength of its balance sheet. However, the reliance on external capital or cash reserves for these acquisitions warrants further investigation into the long-term sustainability of this dual-track capital allocation strategy.
Quick answers to the most common questions about buying JNJ stock.
Johnson & Johnson (JNJ) generated $24.53B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Johnson & Johnson (JNJ) generated $19.70B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Johnson & Johnson (JNJ) spent $4.83B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Johnson & Johnson (JNJ) returned $12.38B to shareholders via cash dividends and spent $5.95B on share repurchases. This shows the company's commitment to returning capital to its equity investors.