J&J lifts outlook after strong Q1 oncology drug sales

(Sharecast News) - Pharmaceutical and medical tech group Johnson & Johnson raised its 2026 outlook on Tuesday after first-quarter results marginally beat Wall Street estimates on the back of strong growth from its oncology drug portfolio. The company is now guiding to full-year sales of $100.3bn-101.3bn, raising its January estimate by $300m, representing 7.0% growth on last year at the mid-point of the range.

The mid-point of the adjusted earnings per share guidance range was lifted by 2 cents to $11.55, which should mark a 7.1% increase year-on-year.

First-quarter sales totalled $24.06bn, up 9.9% on a reported basis, with 11.2% growth seen in the Innovative Medicine division, which accounts for two-thirds of revenues, and 7.7% growth in MedTech. The consensus forecast was for group sales of $23.62bn.

Strong sales of oncology drugs Darzalex, Carvykti, Erleada and Rybrevant/Lazcluze helped to offset a 59.7% slump in sales of last year's best-selling immunology treatment Stelara after J&J lost patent protection.

Adjusted EPS fell 2.5% year-on-year to $2.70, coming in 2 cents ahead of the market forecasts.

"Johnson & Johnson had a strong start to 2026 and is delivefring on its promise for a year of accelerated growth and impact," said chair and chief executive Joaquin Duato.

He said results were helped by "multiple game-changing approvals" during the quarter, including plaque psoriasis treatment Icotyde in the US and catheter ablation product Varipulse Pro in Europe.

"These advancements have the potential to transform patient outcomes and create sustainable, long-term value for shareholders," Duato said.

The stock was down 1.0% in pre-market trading at $235.50 after a 15% surge so far this year.