Johnson and Johnson posted first-quarter 2026 revenue of $24.06 billion, up 9.9% from a year earlier and $450 million above what analysts had expected. Non-GAAP earnings per share came in at $2.70, beating the consensus estimate of $2.68.
Why it matters: J&J’s raised guidance puts it on track to become the first healthcare company to reach $100 billion in annual sales, a milestone that reflects the growing dominance of its obesity and immunology drug portfolios.
Both divisions deliver
The Innovative Medicine segment generated $15.4 billion in sales, an 11.2% increase driven by strong demand for immunology and oncology treatments. MedTech revenue reached $8.6 billion, up 7.7%, with surgical robotics and orthopaedics leading the gains.
Operational sales growth, which strips out the effect of currency movements, came in at 6.4% across the company.
Guidance raised
Management lifted its full-year 2026 sales outlook to between $100.3 billion and $101.3 billion, up from previous guidance. Adjusted earnings per share are now expected between $11.45 and $11.65, implying roughly 7% growth at the midpoint.
The raised outlook signals confidence that demand for J&J’s key products will hold even as the broader economy faces uncertainty from elevated energy costs and geopolitical tension.
Dividend streak continues
The board approved a 3.1% increase in the quarterly dividend, from $1.30 to $1.34 per share. The increase marks J&J’s 64th consecutive year of dividend growth, one of the longest streaks among publicly traded companies.
Shares rose on the results, adding to gains from the Novo Nordisk-OpenAI drug discovery partnership announced the same day, which lifted sentiment across the pharmaceutical sector.