The company has demonstrated structural pricing power, achieving a peak gross margin of 71.5% in 2026Q1 while scaling operating margins to 26.6%.
| 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 |
|---|
| Sales/Revenue | 96.36B | 94.19B | 88.82B | 85.16B | 79.99B | 78.74B | 82.58B | 82.06B | 81.58B | 76.45B | 71.89B | 70.07B | 74.33B | 71.31B | 67.22B | 65.03B | 61.59B | 61.9B | 63.75B | 61.09B | 53.32B | 50.51B | 47.35B | 41.86B | 36.3B | 32.32B | 29.17B | 28.01B | 24B | 22.63B | 21.62B |
| Revenue Growth % | 7.87% | 6.05% | 4.3% | 6.46% | 1.59% | -4.65% | 0.64% | 0.59% | 6.71% | 6.34% | 2.59% | -5.73% | 4.23% | 6.08% | 3.37% | 5.59% | -0.5% | -2.9% | 4.34% | 14.57% | 5.56% | 6.69% | 13.11% | 15.33% | 12.32% | 10.78% | 4.16% | 16.72% | 6.04% | 4.67% | 14.74% |
| Cost of Goods Sold | 29.76B | 25.64B | 27.47B | 26.55B | 24.6B | 23.4B | 28.43B | 27.56B | 27.09B | 25.44B | 21.79B | 21.54B | 22.75B | 22.34B | 21.66B | 20.36B | 18.79B | 18.45B | 18.51B | 17.75B | 15.06B | 14.01B | 13.47B | 12.18B | 10.45B | 9.58B | 8.96B | 8.5B | 6.32B | 6.08B | 6.01B |
| COGS % of Revenue | - | 27.22% | 30.93% | 31.18% | 30.75% | 29.72% | 34.42% | 33.58% | 33.21% | 33.28% | 30.31% | 30.73% | 30.6% | 31.33% | 32.22% | 31.31% | 30.51% | 29.8% | 29.04% | 29.05% | 28.24% | 27.73% | 28.46% | 29.09% | 28.78% | 29.65% | 30.7% | 30.34% | 26.33% | 26.89% | 27.79% |
| Gross Profit | 66.6B | 68.56B | 61.35B | 58.61B | 55.39B | 55.34B | 54.16B | 54.5B | 54.49B | 51.01B | 50.1B | 48.54B | 51.59B | 48.97B | 45.57B | 44.67B | 42.8B | 43.45B | 45.24B | 43.34B | 38.27B | 36.5B | 33.87B | 29.69B | 25.85B | 22.74B | 20.21B | 19.51B | 17.68B | 16.54B | 15.61B |
| Gross Margin % | 69.12% | 72.78% | 69.07% | 68.82% | 69.25% | 70.28% | 65.58% | 66.42% | 66.79% | 66.72% | 69.69% | 69.27% | 69.4% | 68.67% | 67.78% | 68.69% | 69.49% | 70.2% | 70.96% | 70.95% | 71.76% | 72.27% | 71.54% | 70.91% | 71.22% | 70.35% | 69.3% | 69.66% | 73.67% | 73.11% | 72.21% |
| Gross Profit Growth % | - | 11.75% | 4.68% | 5.8% | 0.1% | 2.18% | -0.63% | 0.02% | 6.82% | 1.82% | 3.22% | -5.91% | 5.34% | 7.47% | 2.01% | 4.38% | -1.51% | -3.95% | 4.37% | 13.27% | 4.83% | 7.76% | 14.11% | 14.84% | 13.7% | 12.47% | 3.62% | 10.37% | 6.84% | 5.98% | 15.95% |
| Operating Expenses | 40.71B | 42.96B | 39.2B | 35.2B | 34.38B | 34.4B | 34.42B | 33.53B | 33.31B | 32.11B | 29.21B | 30.25B | 30.45B | 30.01B | 28.53B | 28.52B | 26.27B | 26.79B | 29.07B | 28.13B | 24.56B | 23.67B | 21.52B | 18.82B | 16.17B | 14.85B | 13.6B | 13.52B | 12.65B | 11.92B | 11.31B |
| OpEx % of Revenue | - | 45.61% | 44.13% | 41.33% | 42.98% | 43.68% | 41.68% | 40.86% | 40.84% | 42.01% | 40.63% | 43.17% | 40.96% | 42.09% | 42.45% | 43.85% | 42.65% | 43.28% | 45.6% | 46.04% | 46.05% | 46.86% | 45.45% | 44.95% | 44.56% | 45.95% | 46.62% | 48.29% | 52.71% | 52.68% | 52.3% |
| Selling, General & Admin | 24.5B | 23.68B | 21.97B | 20.11B | 20.25B | 20.12B | 22.08B | 22.18B | 22.54B | 21.52B | 20.07B | 21.2B | 21.95B | 21.83B | 20.87B | 20.97B | 19.42B | 19.8B | 21.49B | 20.45B | 17.43B | 17.21B | 16.17B | 14.13B | 12.22B | 11.26B | 10.49B | 10.76B | 9.03B | 8.71B | 10.3B |
| SG&A % of Revenue | - | 25.14% | 24.73% | 23.62% | 25.31% | 25.55% | 26.74% | 27.03% | 27.63% | 28.15% | 27.91% | 30.26% | 29.54% | 30.61% | 31.04% | 32.25% | 31.54% | 31.99% | 33.71% | 33.47% | 32.69% | 34.07% | 34.16% | 33.76% | 33.65% | 34.84% | 35.98% | 38.4% | 37.62% | 38.51% | 47.64% |
| Research & Development | 14.97B | 14.66B | 17.23B | 15.09B | 14.13B | 14.28B | 12.34B | 11.36B | 10.78B | 10.59B | 9.14B | 9.05B | 8.49B | 8.18B | 7.67B | 7.55B | 6.84B | 6.99B | 7.58B | 7.68B | 7.13B | 6.46B | 5.34B | 4.68B | 3.96B | 3.59B | 3.1B | 2.77B | 2.34B | 2.14B | 0 |
| R&D % of Revenue | - | 15.57% | 19.4% | 17.71% | 17.67% | 18.13% | 14.94% | 13.84% | 13.21% | 13.86% | 12.72% | 12.91% | 11.43% | 11.47% | 11.4% | 11.61% | 11.11% | 11.29% | 11.89% | 12.57% | 13.36% | 12.79% | 11.29% | 11.19% | 10.9% | 11.11% | 10.64% | 9.88% | 9.74% | 9.46% | - |
| Other Operating Expenses | 1000K | 4.62B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.28B | 1.07B | 1.01B |
| Operating Income | 25.89B | 25.6B | 22.15B | 23.41B | 21.01B | 20.94B | 19.73B | 20.97B | 21.18B | 18.9B | 20.89B | 18.29B | 21.14B | 18.96B | 17.03B | 16.15B | 16.53B | 16.66B | 16.17B | 15.21B | 13.71B | 12.83B | 12.36B | 10.87B | 9.68B | 7.88B | 6.62B | 5.99B | 5.03B | 4.62B | 4.3B |
| Operating Margin % | 26.87% | 27.17% | 24.94% | 27.49% | 26.27% | 26.6% | 23.89% | 25.55% | 25.96% | 24.72% | 29.06% | 26.1% | 28.44% | 26.58% | 25.34% | 24.84% | 26.84% | 26.92% | 25.36% | 24.9% | 25.71% | 25.4% | 26.1% | 25.97% | 26.66% | 24.4% | 22.68% | 21.37% | 20.95% | 20.43% | 19.9% |
| Operating Income Growth % | - | 15.56% | -5.38% | 11.4% | 0.33% | 6.13% | -5.9% | -0.97% | 12.05% | -9.54% | 14.23% | -13.47% | 11.5% | 11.3% | 5.44% | -2.26% | -0.82% | 3.06% | 6.28% | 10.97% | 6.84% | 3.84% | 13.66% | 12.33% | 22.74% | 19.2% | 10.53% | 19.03% | 8.78% | 7.41% | 22.56% |
| EBITDA | 33.63B | 33.1B | 29.49B | 30.89B | 27.98B | 28.33B | 26.96B | 27.98B | 28.1B | 24.54B | 24.64B | 22.04B | 25.03B | 23.06B | 20.7B | 19.31B | 19.47B | 19.44B | 19B | 17.99B | 15.89B | 14.92B | 14.48B | 12.74B | 11.34B | 9.49B | 8.21B | 7.5B | 6.31B | 5.69B | 5.31B |
| EBITDA Margin % | 34.9% | 35.14% | 33.2% | 36.28% | 34.98% | 35.98% | 32.65% | 34.1% | 34.45% | 32.1% | 34.28% | 31.45% | 33.68% | 32.34% | 30.79% | 29.7% | 31.61% | 31.4% | 29.81% | 29.45% | 29.79% | 29.54% | 30.58% | 30.43% | 31.24% | 29.37% | 28.13% | 26.76% | 26.31% | 25.14% | 24.57% |
| EBITDA Growth % | 14.49% | 12.25% | -4.55% | 10.41% | -1.24% | 5.08% | -3.63% | -0.44% | 14.53% | -0.43% | 11.84% | -11.97% | 8.55% | 11.42% | 7.18% | -0.8% | 0.15% | 2.29% | 5.62% | 13.24% | 6.45% | 3.07% | 13.66% | 12.35% | 19.49% | 15.63% | 9.5% | 18.72% | 10.97% | 7.1% | 21.61% |
| D&A (Non-Cash Add-back) | 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 | 1.59B | 1.51B | 1.28B | 1.07B | 1.01B |
| EBIT | 25.75B | 33.55B | 17.44B | 15.83B | 19.64B | 19.36B | 16.7B | 17.65B | 19B | 18.61B | 20.53B | 19.75B | 21.1B | 15.95B | 14.31B | 12.93B | 17.4B | 16.21B | 17.36B | 13.58B | 13.71B | 12.83B | 12.36B | 10.87B | 9.68B | 7.88B | 6.62B | 5.99B | 5.03B | 4.62B | 4.3B |
| Net Interest Income | -86M | 85M | 577M | 489M | 214M | -130M | -90M | 39M | -394M | -549M | -358M | -424M | -466M | -408M | -468M | -480M | -348M | -361M | -74M | 156M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 953M | 1.06B | 1.33B | 1.26B | 490M | 53M | 111M | 357M | 611M | 385M | 368M | 128M | 67M | 74M | 64M | 91M | 107M | 90M | 361M | 452M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.04B | 971M | 755M | 772M | 276M | 183M | 201M | 318M | 1B | 934M | 726M | 552M | 533M | 482M | 532M | 571M | 455M | 451M | 435M | 296M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -952M | 6.99B | -5.46B | -8.35B | -1.65B | -1.76B | -3.24B | -3.64B | -3.18B | -1.22B | -1.09B | 907M | -574M | -3.49B | -3.26B | -3.79B | 420M | -908M | 760M | -1.93B | 878M | 285M | -25M | -563M | -387M | 13M | 253M | -108M | -846M | -46M | -270M |
| Pretax Income | 24.94B | 32.58B | 16.69B | 15.06B | 19.36B | 19.18B | 16.5B | 17.33B | 18B | 17.67B | 19.8B | 19.2B | 20.56B | 15.47B | 13.78B | 12.36B | 16.95B | 15.76B | 16.93B | 13.28B | 14.59B | 13.12B | 12.33B | 10.31B | 9.29B | 7.9B | 6.87B | 5.88B | 4.18B | 4.58B | 4.03B |
| Pretax Margin % | 25.88% | 34.59% | 18.79% | 17.69% | 24.2% | 24.36% | 19.98% | 21.12% | 22.06% | 23.12% | 27.55% | 27.39% | 27.66% | 21.69% | 20.49% | 19.01% | 27.52% | 25.45% | 26.56% | 21.74% | 27.36% | 25.97% | 26.04% | 24.62% | 25.6% | 24.44% | 23.54% | 20.98% | 17.43% | 20.22% | 18.65% |
| Income Tax | 3.9B | 5.78B | 2.62B | 1.74B | 2.99B | 1.38B | 1.78B | 2.21B | 2.7B | 16.37B | 3.26B | 3.79B | 4.24B | 1.64B | 3.26B | 2.69B | 3.61B | 3.49B | 3.98B | 2.71B | 3.53B | 3.06B | 4.15B | 3.11B | 2.69B | 2.23B | 1.92B | 1.6B | 1.18B | 1.27B | 1.15B |
| Effective Tax Rate % | 15.64% | 17.73% | 15.71% | 11.53% | 15.44% | 7.18% | 10.81% | 12.75% | 15.01% | 92.64% | 16.48% | 19.73% | 20.62% | 10.6% | 23.67% | 21.75% | 21.32% | 22.15% | 23.51% | 20.38% | 24.23% | 23.3% | 33.66% | 30.18% | 29% | 28.23% | 27.88% | 27.29% | 28.19% | 27.82% | 28.42% |
| Net Income | 21.04B | 26.8B | 14.07B | 35.15B | 17.94B | 20.88B | 14.71B | 15.12B | 15.3B | 1.3B | 16.54B | 15.41B | 16.32B | 13.83B | 10.85B | 9.67B | 13.33B | 12.27B | 12.95B | 10.58B | 11.05B | 10.06B | 8.18B | 7.2B | 6.6B | 5.67B | 4.95B | 4.27B | 3B | 3.3B | 2.89B |
| Net Margin % | 21.83% | 28.46% | 15.84% | 41.28% | 22.43% | 26.52% | 17.82% | 18.42% | 18.75% | 1.7% | 23.01% | 21.99% | 21.96% | 19.4% | 16.14% | 14.87% | 21.65% | 19.82% | 20.31% | 17.31% | 20.73% | 19.92% | 17.28% | 17.19% | 18.17% | 17.54% | 16.98% | 15.26% | 12.52% | 14.6% | 13.35% |
| Net Income Growth % | -3.53% | 90.56% | -59.99% | 95.94% | -14.07% | 41.89% | -2.68% | -1.16% | 1076.69% | -92.14% | 7.34% | -5.6% | 18.02% | 27.44% | 12.21% | -27.46% | 8.71% | -5.27% | 22.44% | -4.32% | 9.87% | 22.98% | 13.66% | 9.1% | 16.39% | 14.44% | 15.91% | 42.29% | -9.08% | 14.41% | 20.14% |
| Net Income (Continuing) | 21.04B | 26.8B | 14.07B | 13.33B | 16.37B | 17.8B | 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 | 10.06B | 8.18B | 7.2B | 6.6B | 5.67B | 4.95B | 4.27B | 3B | 3.3B | 2.89B |
| Discontinued Operations | 0 | 0 | 0 | 21.83B | 1.57B | 3.08B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.60 | 11.03 | 5.79 | 13.72 | 6.73 | 7.81 | 5.51 | 5.63 | 5.61 | 0.47 | 5.93 | 5.48 | 5.70 | 4.81 | 3.86 | 3.49 | 4.78 | 4.40 | 4.57 | 3.63 | 3.73 | 3.35 | 2.74 | 2.29 | 2.16 | 1.84 | 1.61 | 1.39 | 1.06 | 1.21 | 1.09 |
| EPS Growth % | -3.78% | 90.5% | -57.8% | 103.86% | -13.83% | 41.74% | -2.13% | 0.36% | 1093.62% | -92.07% | 8.21% | -3.86% | 18.5% | 24.61% | 10.6% | -26.99% | 8.64% | -3.72% | 25.9% | -2.68% | 11.34% | 22.26% | 19.65% | 6.02% | 17.39% | 14.29% | 15.83% | 31.13% | -12.4% | 11.01% | 17.2% |
| EPS (Basic) | - | 11.03 | 5.84 | 13.88 | 6.83 | 7.93 | 5.59 | 5.74 | 5.75 | 0.48 | 6.08 | 5.57 | 5.86 | 4.90 | 3.91 | 3.54 | 4.86 | 4.45 | 4.67 | 3.67 | 3.76 | 3.38 | 2.75 | 2.42 | 2.20 | 1.87 | 1.65 | 1.43 | 1.08 | 1.24 | 1.09 |
| Diluted Shares Outstanding | 2.45B | 2.43B | 2.43B | 2.56B | 2.66B | 2.67B | 2.67B | 2.68B | 2.73B | 2.75B | 2.79B | 2.81B | 2.86B | 2.88B | 2.81B | 2.78B | 2.79B | 2.79B | 2.84B | 2.91B | 2.96B | 3B | 2.99B | 3.14B | 3.05B | 3.08B | 3.1B | 3.07B | 2.83B | 2.74B | 2.73B |
| Basic Shares Outstanding | 2.45B | 2.43B | 2.41B | 2.53B | 2.61B | 2.63B | 2.63B | 2.63B | 2.66B | 2.68B | 2.71B | 2.76B | 2.78B | 2.82B | 2.78B | 2.72B | 2.74B | 2.76B | 2.81B | 2.88B | 2.94B | 2.98B | 2.97B | 2.97B | 3B | 3.03B | 2.99B | 2.99B | 2.78B | 2.67B | 2.66B |
| Dividend Payout Ratio | - | 46.19% | 84.05% | 33.48% | 65.11% | 52.84% | 71.23% | 65.59% | 62.06% | 687.92% | 52.12% | 53.04% | 47.59% | 52.68% | 60.94% | 63.65% | 43.53% | 43.43% | 38.8% | 44.16% | 38.6% | 37.7% | 39.74% | 38.15% | 36.09% | 36.12% | 34.81% | 34.61% | 43.46% | 34.42% | 33.74% |
Litigation and Patent Cliffs
According to recent financial filings, JNJ has demonstrated a clear acceleration in top-line performance, with quarterly revenue growth climbing from 2.3% in 2024Q1 to 9.9% by 2026Q1, suggesting that the strategic pivot toward high-growth MedTech and Innovative Medicine segments is successfully gaining traction.
The consistent quarterly revenue expansion indicates that the company is effectively replacing legacy consumer health contributions with higher-value therapeutic and device revenue. Investors should monitor whether this growth trajectory remains sustainable as the company approaches significant patent cliffs in its core pharmaceutical portfolio.
As reported in quarterly income statements, JNJ has maintained a robust gross margin profile, peaking at 71.5% in 2026Q1, which underscores the company's ability to command premium pricing despite the evolving regulatory landscape and the competitive pressures inherent in the global healthcare market.
The stability of these margins suggests that the company's intellectual property and specialized MedTech offerings retain significant value-based pricing power. However, the potential for margin compression exists if legislative price negotiation provisions under the Inflation Reduction Act begin to impact the Innovative Medicine segment more aggressively than currently anticipated.
Based on the provided income statement data, JNJ has demonstrated an ability to scale operating income effectively, with operating margins reaching 26.6% in 2026Q1, reflecting disciplined management of SG&A expenses relative to the company's expanding revenue base following the Kenvue divestiture.
The company appears to be successfully optimizing its cost structure by streamlining operations post-separation, allowing for more efficient conversion of gross profit into operating income. This trend suggests that the firm is prioritizing operational excellence to offset the high R&D costs required to maintain its competitive pipeline.
Financial statements reveal significant quarterly fluctuations in net income, such as the 50.2% net margin observed in 2025Q1, which appears largely driven by non-operating items and tax treatments related to the Kenvue separation rather than core operational performance shifts.
Analysts should exercise caution when interpreting these headline EPS figures, as they are heavily influenced by one-time accounting adjustments and litigation-related accruals. A normalized view of earnings quality suggests that the underlying business remains highly profitable, though legal contingencies warrant further investigation for potential cash flow impacts.
While the company maintains a strong operational profile, short-term observers may focus on the persistent legal liabilities, as evidenced by the inconsistent net income figures that suggest potential future cash outflows related to talc litigation that could materially impact capital allocation priorities.
The reliance on complex legal maneuvers to manage legacy liabilities creates a layer of uncertainty that may obscure the true long-term earnings power of the firm. Investors should monitor whether these legal costs force a shift in the company's historical dividend policy or limit the capacity for future value-accretive M&A.
Quick answers to the most common questions about buying JNJ stock.
For fiscal year 2025, Johnson & Johnson (JNJ) reported total revenue of $94.19B. This represents a 335.7% increase compared to $21.62B in 1996.
Johnson & Johnson (JNJ) is profitable, generating $26.80B in net income for the fiscal year ending 2025 with a net profit margin of 28.5%.
Johnson & Johnson (JNJ) reported an operating income of $25.60B, resulting in an operating profit margin of 27.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Johnson & Johnson (JNJ) generated $68.56B in gross profit for the year, representing a gross profit margin of 72.8%. This demonstrates the company's core pricing power and production efficiency.