Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company's Innovative Medicine segment offers products for various therapeutic areas, such as immunology, including rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; infectious diseases comprising HIV/AIDS; neuroscience, consisting of mood disorders, neurodegenerative disorders, and schizophrenia; oncology, such as prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; cardiovascular and metabolism, including thrombosis, diabetes, and macular degeneration; and pulmonary hypertension comprising pulmonary arterial hypertension through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. Its MedTech segment provides Interventional Solutions, including electrophysiology products to treat heart rhythm disorders; the heart recovery portfolio, which includes technologies to treat severe coronary artery disease requiring high-risk PCI or AMI cardiogenic shock; and neurovascular care that treats hemorrhagic and ischemic stroke. this segment also offers an orthopaedics portfolio that includes products and enabling technologies that support hips, knees, trauma, spine, sports, and other; surgery portfolios comprising advanced and general surgery technologies, as well as solutions for breast aesthetics, ear, nose, and throat procedures; contact lenses under the ACUVUE Brand; and TECNIS intraocular lenses for cataract surgery. It distributes its products to wholesalers, hospitals, and retailers, as well as physicians, nurses, hospitals, eye care professionals, and clinics. Johnson & Johnson was founded in 1886 and is based in New Brunswick, New Jersey.

Johnson & Johnson’s fundamental picture remains strong, but the current valuation already looks demanding relative to future growth. On valuation multiples, the company trades noticeably above the industry median: P/E, P/S, P/B, and P/FCF all carry a premium, which usually implies limited room for further multiple expansion without an acceleration in earnings and free cash flow. At the same time, the recent trend in multiples does not, overall, provide a strong signal of downward revaluation, but it also does not confirm clear undervaluation. JNJ’s profitability is strong: ROE, ROA, ROI, net margin, and operating margin are above industry benchmarks, supporting a premium to the market. However, year over year there is some weakening: ROE, ROA, ROI, and operating margin have declined from the higher levels seen at the end of 2025, and EBITDA and operating profit also look less robust than at their peak. Revenue and gross profit remain large and relatively stable, but growth rates do not appear strong enough to justify the high multiples. The balance sheet is generally acceptable: debt/equity is moderate, debt does not look critical, but current and quick ratios are below the industry median, which adds caution. Dividend yield in the latest data has fallen to zero, so the dividend factor currently does not support the investment case in the way one would normally expect from a defensive company. Equity and assets are large and stable, confirming the scale and resilience of the business, but the absolute size of the base alone does not resolve the question of whether the stock is expensive. Overall, this is a profile of a high-quality, profitable, and financially resilient business that is already priced at a noticeable premium. For an investor, this means the base forecast should be adjusted slightly downward: strong operating metrics keep the stock from a deeper correction, but the high relative valuation and deterioration in some trends limit upside potential. Therefore, a moderately conservative adjustment appears to be the most realistic.

Johnson & Johnson

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно упал. Рынок на стороне быков.

Medium index, significantly down. The market is on the bulls' side.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

JNJ remains a high-quality and profitable business, but its high valuation, weakening of some trends, and low liquidity limit the potential for re-rating.

(RTTNews) - Johnson & Johnson (JNJ) on Thursday announced a strategic collaboration with Sail Biomedicines to develop in-vivo CAR-T cell therapies for immune-mediated diseases.
The collaboration will leverage Sail's AI-driven Endless RNA (eRNA) platform and targeted nanoparticle platform along with other leading product engines, to expand and advance it's in vivo CAR-T platform across additional therapeutic targets.
Sail Biomedicines' eRNA platform uses circular RNA and targeted lipid nanoparticles to generate CAR-T cells directly inside the patient's body, eliminating the need for ex vivo cell engineering. The technology is designed to simplify CAR-T manufacturing and support off-the-shelf treatments for autoimmune diseases.
Johnson & Johnson deemed the collaboration as an expansion in its cell and gene therapies into next-generation treatments for autoimmune diseases. The company stated that the deal would broaden the potential use of Sail's in vivo CAR-T platform across a range of complex diseases.
Financial Terms
Johnson & Johnson will make an upfront payment of $785 million, including a $465 million equity investment in Sail.
In addition, Sail is eligible to receive contingent payments of up to $140 million following specified development milestone achievements.
Johnson & Johnson also holds an exercise option to acquire Sail Biomedicines for $2.58 billion, subject to regulatory approvals and other closing conditions.
Revised Full Year 2026 Guidance
The company expects full-year earnings per share to be reduced by $0.64 in 2026, resulting in a projected range of $10.96 to $11.11, with a midpoint of $11.04.
JNJ closed Thursday at $265.53, down 0.45%. In the overnight market, JNJ is trading down 1.27% at $262.17.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

J&J Strikes $3.51 Bln Deal With Sail To Develop In-Vivo CAR-T Therapies For Immune Diseases

Key Points
Revolution Medicines has a promising cancer drug in development.
Even with this medicine's prospects, the stock's valuation looks too frothy.
Shares of Revolution Medicines (NASDAQ: RVMD), a clinical-stage drugmaker, have gained 132% this year, easily outpacing the returns of leading pharmaceutical companies such as Eli Lilly (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), and AbbVie (NYSE: ABBV). The question now is whether Revolution Medicines can keep the momentum going. Let's find out whether there is more upside ahead.
The valuation is a stumbling block
First, let's give credit where credit is due. Revolution Medicines is trying to revolutionize the oncology market, and it might just pull it off. The company is developing drugs that target cancer-driving proteins once considered "undruggable," offering the potential to precisely block the genetic errors that fuel tumors and create new treatment options for patients with hard-to-treat cancers.
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Revolution Medicines' clinical trial results have been outstanding so far, particularly for its leading candidate, daraxonrasib. To give one example, daraxonrasib beat the current standard of care, cytotoxic chemotherapy, in a head-to-head study in patients with metastatic pancreatic cancer. Daraxonrasib posted a median overall survival rate -- an important endpoint in cancer clinical trials -- of 13.2 months, versus 6.7 months with cytotoxic chemotherapy. This medicine appears destined for stardom. It should generate well over $1 billion in sales at its peak. Revolution Medicines has several other promising candidates in the pipeline.
However, one problem with the stock is its valuation. The company is worth $39 billion despite having no products on the market and being consistently unprofitable. The market is pinning significant hopes on Revolution Medicines' oncology prospects, and this may be justified. However, at current levels, I wouldn't buy the stock, as a major clinical or regulatory setback, particularly with daraxonrasib, could sink the share price. The current valuation assumes near-perfect execution, and that makes the stock too risky.
Revolution Medicines may prove me wrong and beat the market from current levels. But I am more than comfortable passing up the chance, considering its risk-reward profile. If the stock dips significantly, I might consider it then.
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Prosper Junior Bakiny has positions in Eli Lilly and Johnson & Johnson. The Motley Fool has positions in and recommends AbbVie and Eli Lilly. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Stock That's Obliterating Eli Lilly, Johnson & Johnson, and AbbVie Right Now

GSK plc GSK reported second-quarter 2026 core earnings of $1.36 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.27. Core earnings rose 9% year over year both on a reported basis and at constant exchange rate (CER), driven by higher sales in the quarter.
Quarterly revenues rose 5% on a reported basis at CER to $11.28 billion (£8.41 billion). This upside was attributed to the rising sales of its HIV, Oncology and Respiratory medicines as well as Vaccines. The top line also beat the Zacks Consensus Estimate of $10.79 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
GSK’s Q2 Segmental Discussion
GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines segment increased 14%, the Vaccines segment rose 8%. Sales in the General Medicines segment, however, declined 9% on a year-over-year basis.
GSK’s Specialty Medicines Aid Top Line
HIV Sales
HIV sales rose 10% in the second quarter of 2026, driven by an increase in patient demand for Dovato as well as long-acting medications, Apretude and Cabenuva. Sales in the quarter also benefited from favorable pricing due to channel mix, which offset the impact of the decline in sales of the mature products.
GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising two-drug regimens — Dovato and J&J JNJ – partnered Juluca — and three-drug regimens — Triumeq and Tivicay.
Dovato sales rose 13%, while those of the J&J-partnered Juluca rose 8%.
Tivicay sales declined 6% during the quarter, while those of Triumeq fell 15%.
Sales of Apretude and Cabenuva rose 39% and 33%, respectively. These two long-acting medicines currently account for more than a quarter of HIV sales.
Oncology Sales
Oncology sales rose 17%, driven by strong demand for Jemperli, Ojjaara/Omjjara and Blenrep.
Jemperli sales rose 27% during the second quarter, as strong growth continued in Europe and International, driven by launches and reimbursement expansion across markets. Growth in the United States was slow as new patient starts moderated.
Sales of the blood cancer drug Ojjaara/Omjjara rose 36%, primarily driven by strong patient uptake and continued commercial launches across Europe and international markets. U.S. volume growth was partly offset by ongoing pricing pressures.
Zejula sales plunged 34% in the quarter due to increased competition in Europe and significant volume reduction in the United States.
Blenrep sales rose more than 100% during the second quarter, driven by patient uptake in the United States.
Respiratory, Immunology & Inflammation Sales
Respiratory, Immunology & Inflammation sales increased 19%, driven by Nucala and Exdensur in respiratory and Benlysta in immunology.
Sales of the respiratory drug Nucala were up 23% during the quarter, mainly driven by strong performance across all markets, especially the United States, where the drug recently received label expansion in the COPD indication. This upside was partially offset by continued pricing pressures and channel mix impacts.
Sales of the immuno-inflammation drug Benlysta were up 11% in the quarter, reflecting strong volume growth across all marketed territories.
GSK’s Vaccines Sales Rise
In Vaccines, sales growth was mainly driven by increased uptake of shingles vaccines as well as RSV and Meningitis vaccines.
Sales of the company’s shingles vaccine, Shingrix, rose 3% during the quarter, driven by growth, especially in Europe, which offset lower sales in International. U.S. sales were broadly stable.
In Meningitis vaccines, sales of Bexsero rose 17%, while Menveo sales were up 8%.
Sales of the RSV vaccine, Arexvy, grew more than 100% during the quarter, due to Australian tender deliveries and prior period rebate adjustments in the United States.
Influenza vaccine sales rose 100% during the quarter.
Sales of Other Paediatric & Adult vaccines (previously known as Established vaccines) fell 8%, .
GSK’s General Medicines Fall
In this segment, Anoro Ellipta sales decreased 5%, while sales of Relvar/Breo Ellipta declined 13%. Ventolin sales declined 22%.
While Advair/Seretide sales declined 3%, sales of Flixotide/Flovent plunged 21%.
Trelegy Ellipta sales declined 7% due to Medicare benefit design changes and unfavorable pricing and channel mix in the United States. However, strong volume growth in Europe and international markets was driven by patient demand.
Operating Expenses
Core selling, general and administration costs rose 5% to £2.19 billion, driven by ongoing productivity initiatives and net legal settlements and expenses.
Core research and development expenses rose 13% to £1.72 billion. This uptick highlights the company’s continued investment in pipeline development.
GSK 2026 Guidance
GSK reaffirmed its total revenue guidance for 2026, which it had provided earlier this year. The company continues to expect sales to increase 3-5% during the year.
GSK expects both core operating profit and core EPS to grow in the range of 7-9%, at the upper half of the range.
GSK expects sales of Specialty Medicines to increase by a low double-digit percentage at CER in 2026. However, management forecasts sales across the Vaccines franchise to be broadly stable or increase at a low single-digit percentage, which was previously expected to decline by a low single-digit percentage. General Medicines sales are now expected to decline by a mid-single-digit to low single-digit percentage, which was previously expected to decline by a low single-digit percentage to broadly stable.
Meanwhile, R&D is now expected to increase significantly as part of the company’s Accelerate Growth program, while SG&A is expected to be broadly stable. The adjusted tax rate is expected to be around 17.5%.
GSK Announces Cost-Saving Plan
Alongside its earnings release, GSK announced the three-year Accelerate Growth program, which aims to deliver £1.9 billion ($2.5 billion) in annualized cost savings, to be fully realized by 2029.
Investors appeared to welcome the announcement, sending the stock up 3.3% yesterday.
Year to date, shares of GSK have rallied 11.4% compared with the industry’s rise of 2.9%.
Image Source: Zacks Investment Research
Management plans to reinvest these savings from the above-mentioned program into R&D, particularly to support late-stage pipeline development, as well as other business development activities, while improving operating margins to help offset the anticipated loss of exclusivity for dolutegravir products between 2028 and 2030.
The company now expects to have more than 20 phase III studies underway in 2026, more than double its previous expectation of 10.
GSK also reiterated its outlook for 2031, expecting to generate sales of more than £40 billion with growth expected to accelerate after that
GSK PLC Sponsored ADR Price, Consensus and EPS Surprise
GSK’s Zacks Rank & Stocks to Consider
GSK currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.30, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have lost 4.4% year to date.
Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 151.7% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
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GSK Beats Q2 Earnings & Revenue Estimates, Announces Cost-Saving Plan

Key Points
Eli Lilly currently displays stronger upward momentum in top-line growth, whereas Johnson & Johnson maintains a higher but flatter overall baseline.
Over roughly the last eight quarters, the two companies experienced diverging patterns, with Johnson & Johnson staying mostly stable quarter over quarter and Eli Lilly posting consistent sequential increases.
Investors should watch whether the closing revenue gap between the two companies continues to narrow or stabilizes in upcoming quarters.
Johnson & Johnson: A Stable Baseline
Johnson & Johnson (NYSE:JNJ) is a holding company that generates revenue by researching, developing, and manufacturing products across its innovative medicine and medical technology segments.
The company recently entered a definitive agreement to acquire Firefly Bio, and it reported about a 22% net income margin for the quarter ended June 28, 2026.
Eli Lilly: Scaling Rapidly
Eli Lilly (NYSE:LLY) is a global pharmaceutical company that earns its revenue by developing and commercializing human medicines, offering a comprehensive suite of diabetes and oncology medications.
It completed the acquisition of Centessa Pharmaceuticals and recorded about a 37% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail Investors
Revenue here refers to the data provider's standardized income-statement revenue line item, and it serves as a fundamental starting point for investors to evaluate a company's ability to attract customers and grow its core operations.
Quarterly Revenue for Johnson & Johnson and Eli Lilly
Quarter (Period End)
Johnson & Johnson Revenue
Eli Lilly Revenue
Q3 2024 (period ended Sept. 2024)
$22.5 billion
$11.4 billion
Q4 2024 (period ended Dec. 2024)
$22.5 billion
$13.5 billion
Q1 2025 (period ended March 2025)
$21.9 billion
$12.7 billion
Q2 2025 (period ended June 2025)
$23.7 billion
$15.6 billion
Q3 2025 (period ended Sept. 2025)
$24.0 billion
$17.6 billion
Q4 2025 (period ended Dec. 2025)
$24.6 billion
$19.3 billion
Q1 2026 (period ended March 2026)
$24.1 billion
$19.8 billion
Q2 2026 (period ended June 2026)
$25.3 billion
Not yet reported
Foolish Take
Johnson & Johnson has long been considered a blue chip stock — a giant company with a long history of success, steady revenue, and financial strength. These types of stocks can be foundational for a diverse portfolio, offering reliable income in the form of dividends (J&J currently pays out about a 2% dividend yield), but they’re not usually very exciting in terms of growth. Indeed, the chart above shows that Johnson & Johnson is still growing its revenue, albeit slowly, largely due to its portfolio of pharmaceutical products.
But Eli Lilly is closing the gap. It competes with Johnson & Johnson in the immunology and oncology segment of the market, but its recent success has been propelled by its leading position in obesity and diabetes, anchored by top performers Mounjaro and Zepbound.
Both companies continue to make strategic acquisitions to grow their product offerings, and while Eli Lilly is still in growth mode, it does pay a modest dividend. Both companies also boast solid net income margins, which is typical of giants in healthcare and pharmaceuticals that benefit from patent protections, high barriers to entry, and pricing protections. These are also the things interested investors should keep an eye on. The possibility of patent expiration and increased competition means it’s important for a company not to lean too heavily on one blockbuster drug. Eli Lilly could very well continue to narrow the gap with Johnson & Johnson on its parabolic ride higher, but it’s also competing against Johnson & Johnson’s more diversified and stable business.
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Sarah Sidlow has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Johnson & Johnson vs. Eli Lilly: Reliable Stability vs. Rapid Revenue Growth

The 2026 Q2 earnings cycle continues to roll along, with the reporting docket remaining stacked in the coming days and weeks. The period has been another one of positivity so far, with several companies, including Abbott Laboratories ABT, Taiwan Semiconductor TSM, and Johnson & Johnson JNJ all reporting record-breaking results in one way or another.
ABT Shares Bounce Back
Abbott Laboratories posted a double-beat relative to our consensus expectations while also lifting its adjusted EPS guidance. Sales of $12.6 billion reflected an all-time high for the company, growing by a double-digit 13% year-over-year.
The stock has bounced back by 15% over the past month following a weak start in the first half of the year, with the recent set of quarterly results injecting positivity. The post-earnings reaction was the first one of positivity that we’ve seen in recent periods, with the recent earnings upgrade likely to keep momentum positive for the near-term.
Keep in mind that the stock also offers a nice dividend payout, with shares currently yielding 2.4% annually. Payouts have also grown consistently over its history, with ABT not only a Dividend Aristocrat but a Dividend King as well.
TSM Shares Face Volatility
Taiwan Semiconductor, a current Zacks Rank #2 (Buy), has been caught up in the recent weakness we’ve seen among many leading AI-related names, down 14% over the last month overall. It manufactures the powerful chips needed to run next-generation AI technologies.
Sales of $40.2 billion in its recent release grew 33% YoY and reflected a new record, with the company also raising its full-year revenue growth forecast to roughly 40%. TSM’s revenue has melted higher as of late, with the recent $40.2 billion in quarterly sales reported nearly doubling since 2024 Q2.
JNJ Quietly Outperforms
Johnson & Johnson shares have quietly delivered a huge gain in 2026 so far, up nearly 30%. The 3.2% gain over the last month has similarly shown nice outperformance relative to the S&P 500, with the recent results leading to positive momentum post-earnings.
Sales of $25.3 billion reflected a new quarterly record for the company, growing by a solid 6.6% year-over-year. It also increased both its current fiscal year sales and adjusted EPS guidance, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.
Bottom Line
The 2026 Q2 earnings season continues to roll along, and results have been positive for many companies, including Abbott Laboratories ABT, Taiwan Semiconductor TSM, and Johnson & Johnson JNJ. Not all companies have seen great post-earnings reactions, but the overall earnings landscape remains one of strength.
The 2026 Q2 earnings season continues to roll along, and results have been positive for many companies, including Abbott Laboratories, Taiwan Semiconductor, and Johnson & Johnson. Not all companies have seen great post-earnings reactions, but the overall earnings landscape remains one of strength.
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These 3 Companies Reported Record Results and Raised Guidance

AbbVie ABBV is set to report second-quarter 2026 earnings on July 31, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s sales is pinned at $16.81 billion, while earnings per share (EPS) are estimated at $3.66. Both metrics indicate an increase from the year-ago period.
Over the past 30 days, the Zacks Consensus Estimate for 2026 EPS has declined from $14.27 to $14.18, while the 2027 estimate has risen from $16.14 to $16.19. The near-term decline is attributed to the impact of acquired IPR&D and milestone expense worth $291 million, which is expected to have been recorded in the second quarter of 2026, as mentioned in an SEC filing released by the company earlier this month.
ABBV’s Earnings Surprise History
AbbVie’s performance has been impressive, with its earnings exceeding expectations in each of the trailing four quarters. It has delivered a trailing four-quarter average earnings surprise of 2.72%. In the last reported quarter, the pharma giant delivered an earnings surprise of 1.15%.
What Our Model Predicts for ABBV
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AbbVie currently has an Earnings ESP of -1.01% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape AbbVie’s Upcoming Results
For the second quarter of 2026, AbbVie expects adjusted earnings to be in the range of $3.57-$3.61 per share. The company expects net revenues of approximately $16.7 billion. Currency is expected to have a positive impact of around 0.6% on sales.
AbbVie’s top-line growth in the second quarter is likely to have been driven by higher sales of immunology drugs, Skyrizi and Rinvoq. We expect both drugs to continue expanding their market share across all approved indications. The Zacks Consensus Estimate for Skyrizi sales is pegged at $5.52 billion, while the same for Rinvoq is pinned at $2.49 billion.
Sales of the company’s flagship drug Humira are likely to have continued their downward trend due to biosimilar erosion. The Zacks Consensus Estimate for the drug’s sales is pegged at $730 million.
In the oncology franchise, we expect J&J JNJ-partnered Imbruvica sales to continue their downward trajectory. The drug’s sales have been declining over the past few years due to rising competitive pressure from novel oral therapies. This trend is expected to have intensified in the to-be-reported quarter as IRA-driven pricing changes, which came into effect at the start of 2026, are likely to have a further impact on sales. The Zacks Consensus Estimate for the J&J-partnered drug’s sales is pegged at about $533 million.
Roche RHHBY-partnered Venclexta sales are likely to have risen during the second quarter, driven by continued demand in the chronic lymphocytic leukemia (CLL) indication due to its combination use with BTK inhibitors. The Zacks Consensus Estimate for the Roche-partnered drug’s sales is pegged at $764 million.
We expect AbbVie to record modest revenues from the recently approved rare blood cancer therapy Decnupaz.
The Zacks Consensus Estimate for overall oncology revenues is pegged at $1.62 billion, suggesting a slight decline from the year-ago period.
Sales of the neuroscience franchise have shown strong growth in recent quarters. The growth is likely to have been driven by higher sales of Botox Therapeutic, depression drug Vraylar and migraine drugs — Ubrelvy and Qulipta. We also expect the Parkinson’s disease drug Vyalev to have contributed to the franchise’s growth during the second quarter. The Zacks Consensus Estimate for neuroscience product sales is pegged at about $3.09 billion.
In the aesthetics franchise, we expect overall sales to have started recovering from the sluggish sales of Botox and Juvederm fillers, as experienced in the past few quarters. The improvement is likely to have been driven by stabilizing demand in the facial injectable market in the United States and easing macroeconomic pressures, which is expected to have improved consumer sentiment. The Zacks Consensus Estimate for aesthetics product sales is pegged at $1.27 billion.
Nonetheless, a single quarter’s results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold the stock at present.
ABBV’s Stock Price Performance & Valuation
Shares of the company have slightly underperformed the industry year to date, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie is trading at a discount to the industry. Based on the price/earnings (P/E) ratio, the shares currently trade at 16.76 times forward earnings, lower than the industry’s average of 19.07.
Image Source: Zacks Investment Research
Our Investment Thesis on ABBV Stock
Through the launches of Skyrizi and Rinvoq, AbbVie has successfully fended off its biggest headwind so far — Humira biosimilar erosion — quite well. While both drugs are approved across major Humira indications as well as newer areas like atopic dermatitis, label expansions in newer indications are likely to drive higher topline growth.
Looking ahead, AbbVie expects another strong year for 2026, guiding for about 10% year-over-year growth in revenues. This is likely to be driven by continued momentum in Skyrizi and Rinvoq, a meaningful ramp-up of Vyalev and sustained double-digit growth in its migraine portfolio. These gains are expected to be partially offset by continued Humira erosion and pressure on Imbruvica sales.
Beyond 2026, AbbVie projects high single-digit revenue growth through 2029, supported by the absence of significant loss-of-exclusivity events and continued expansion of its product portfolio. The company is also strengthening its long-term growth outlook through targeted business development, including the recently announced $10.9 billion acquisition of clinical-stage biotech Apogee Therapeutics. The deal not only further expands AbbVie's immunology pipeline but could also be viewed as an attempt to position the company for the next phase of growth in the therapeutic area.
However, competition remains a key concern. J&J recently secured FDA approval for Icotyde, the first oral IL-23 inhibitor for plaque psoriasis, which could pose a long-term threat to Skyrizi if it secures approvals in additional immunology indications. Nevertheless, we believe Skyrizi's strong commercial momentum, broad label and established market position, coupled with AbbVie's continued pipeline expansion, should enable the company to sustain its growth trajectory despite increasing competition.
Stay Invested in ABBV Stock
Despite the recent decline in near-term earnings estimates, we believe AbbVie's long-term growth story remains intact. The decline is primarily due to higher IPR&D expenses, which reflect the company's sustained efforts to strengthen its long-term prospects. Any meaningful decline in the company’s share price could present an opportunity for long-term investors to add the stock to their portfolio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy, Hold or Sell ABBV Stock Ahead of Q2 Earnings?

(RTTNews) - Kymera Therapeutics, Inc. (KYMR), a clinical-stage biopharmaceutical company, on Monday announced the appointment of Terence Rooney as Chief Medical Officer (CMO), following the retirement of Jared Gollob on July 27, 2026.
Gollob joined Kymera Therapeutics in 2018 as CMO. Prior to that, he served as Vice President of Clinical development and Global Vice President of Medical affairs at Alnylam Pharmaceuticals, Inc. (ALNY). The company said that Gollob would remain on as an advisor through the end of the year.
Rooney brings experience in immunology drug development and commercialisation to the position. In his new role, he is expected to lead Kymera's global clinical development strategy and advance its oral immunology pipeline across multiple immuno-inflammatory diseases.
Recently, Rooney served as Senior Vice President, Portfolio and Asset Management Leader, Immunology, at Johnson & Johnson (JNJ), where he led global immunology development and portfolio strategy. He previously held senior immunology R&D roles at Eli Lilly and Company (LLY) and Roche Holding AG (RHHBY) and has contributed to the development and regulatory approvals of medicines including ICOTYDE, IMAAVY, OLUMIANT, STELARA and TREMFYA.
KYMR closed Monday's trade at $110.05, down 0.47%. In the after-hours, KYMR is trading down 1.86% at $108.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kymera Appoints Rooney As CMO Following Gollob's Retirement

(RTTNews) - Johnson & Johnson (JNJ) on Monday announced that it has reached an agreement to resolve the remaining talc litigation with the plaintiff firms leading the federal Multi-District Litigation (MDL) and related state court proceedings.
The resolution includes a $5.5 billion commitment to settle the remaining ovarian cancer claims and making the first payment of up to $3 billion in 2027, with the rest beginning in 2028.
For more than 15 years, tens of thousands of people sued Johnson & Johnson, alleging that its talc-based baby powder caused ovarian cancer. Meanwhile, Johnson & Johnson has consistently denied these claims, saying its products are safe and do not cause cancer.
However, the settlement is conditioned on lead plaintiff firms representing the people suing Johnson & Johnson agreeing to it, and those law firms representing at least 95% of all the remaining lawsuits pending both in state and federal court.
J&J said the settlement covers about 76,000 claims. The company still maintains that these claims lack scientific merit and calls it a "meritless 15-year litigation".
Commenting on the proposed settlement, Erik Haas, Worldwide Vice President of Litigation, Johnson & Johnson, said: "In a watershed moment, the court thereafter ordered plaintiffs to show why the remaining claims should not be dismissed, confirming what we have maintained for years: that these claims lack scientific merit and were sustained only by unreliable expert opinions that could not survive rigorous judicial review."
JNJ has traded between $164.23 and $269.43 over the last year. JNJ closed Monday's trade at $265.95, up 0.97%.
In the overnight market, JNJ is up 0.96% to $268.50.
For more biotechstock news visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Johnson & Johnson Strikes $5.5 Bln Talc Settlement Deal, Subject To 95% Claimant Approval

Shares of UnitedHealth Group Incorporated UNH touched a new 52-week high on July 16, following its upbeat second-quarter release, before experiencing a modest pullback in the following days. The stock has lost 1.7% since July 17.
This sell-off for America’s largest medical insurer came despite its solid headline numbers, as short-term traders earned profits following the stock's strong run-up into the release.
For long-term investors, such temporary dips in high-quality industry leaders often open up compelling entry points, particularly when backed by solid operational fundamentals. The company’s raised profit outlook for the full year may further encourage them to do so.
However, membership losses due to rising healthcare costs and continued margin pressure at its Medicaid business, thanks to major funding cuts by the U.S. government in Medicaid funding, remain some major headwinds for this stock.
Against this backdrop, diversified healthcare exchange-traded funds (ETFs) offer a strategic alternative. By holding funds with prominent UNH allocations alongside heavyweights across pharmaceuticals, biotech, and medical technology, investors can capture UNH's operational upside while cushioning their portfolios against single-stock Medicaid headwinds.
Before exploring the top ETFs, let's take a closer look at UnitedHealth's second-quarter results and analyst reactions to better understand the current healthcare sector.
A Brief Analysis of UNH’s Q2 Results
UnitedHealth’s fourth-quarter adjusted earnings per share (EPS) of $6.38 beat the Zacks Consensus Estimate by 1.4%, while its revenues surpassed the consensus mark by 1.7%.
UnitedHealth’s medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — improved from 89.4% in the second quarter of 2025 to 86.7%. The improvement was a result of benefit design and pricing discipline, member mix and medical cost management initiatives.
However, its operating cost ratio of 12.7% deteriorated year over year, owing to incremental investments in technology, processes and people to improve care delivery and customer experiences and advance community health.
As of July 2026, UNH’s OptumHealth reached nearly 90% of U.S. counties, conducting approximately 2.5 million rural patient home visits annually. The insurer aims to expand these programs across its OptumHealth footprint by the end of 2026.
Patient experience in UNH’s care delivery sites went up approximately 5% year over year during the second quarter, whereas patient access expanded by nearly 200,000 more patient-facing hours.
UNH expects to complete total share repurchases of at least $5 billion in 2026, higher than its initial guidance of $2.5 billion.
The company also raised its earnings expectation for 2026 to the range of $19.50-$20.00 per share from the prior outlook of $17.75.
Although its membership retention was better than previously anticipated, UNH expects its 2026 Medicare Advantage enrollment to decline approximately 1.1 million.
Analysts’ Reaction
Following UNH’s second-quarter results, Morgan Stanley raised the stock’s price targets from $468.00 to $529.00. In a similar move, UBS Group increased its price target on shares of UnitedHealth Group from $460.00 to $490.00 (as cited in MarketBeat).
UNH-Heavy ETFs to Watch
iShares U.S. Healthcare Providers ETF IHF
This fund, with net assets worth $1.21 billion, provides exposure to 59 U.S. companies that provide health insurance, diagnostics, and specialized treatment services. Of these, UnitedHealth Group takes the first spot, accounting for a 21.79% share. CVS Health CVS (15.14%) and Elevance Health (6.84%) hold the second and third positions in this fund, respectively.
IHF has gained 23.6% over the past six months and charges 38 basis points (bps) in fees.
Health Care Select Sector SPDR Fund XLV
This fund, with assets under management worth $42.54 billion, provides exposure to 60 companies from pharmaceuticals; health care equipment and supplies, health care providers and services, biotechnology; life sciences tools and services, and health care technology industries. Of these, UnitedHealth Group takes the fourth spot, accounting for a 6.59% share. Pharma giants Eli Lily LLY (16.08%), Johnson & Johnson JNJ (10.70%) and AbbVie ABBV (7.78%) hold the top three spots in this fund.
XLV has surged 5.4% over the past six months and charges 8 bps in fees.
iShares U.S. Healthcare ETF IYH
This fund, with net assets worth $3.37 billion, provides exposure to 100 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies. Of these, UnitedHealth Group takes the fourth spot, accounting for a 6.25% share. LLY (15.71%), JNJ (10.44%) and ABBV (7.55%) hold the top three spots in this fund.
IYH has risen 5.5% over the past six months and charges 38 bps in fees.
Vanguard Health Care ETF VHT
With net assets of $17.8 billion, this fund provides exposure to 423 companies engaged in health care equipment manufacturing, health care services, and the research, development, and marketing of pharmaceuticals and biotechnology products. Of these, UnitedHealth Group takes the fourth spot, accounting for a 5.55% share. LLY (14.16%), JNJ (8.87%) and ABBV (6.54%) hold the top three spots in this fund.
VHT has rallied 6.3% over the past six months and charges 9 bps in fees.
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iShares U.S. Healthcare ETF (IYH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealth Pulls Back Post 52-Week High: Healthcare ETFs to Watch

Johnson & Johnson's JNJ medical devices segment, known as MedTech, offers products in the orthopedics, surgery, cardiovascular and vision markets. The MedTech segment accounts for around 36% of J&J’s total revenues. In MedTech, J&J is a global leader in electrophysiology, circulatory restoration and heart recovery.
The MedTech segment delivered a mixed performance in the second quarter of 2026, with growth remaining positive but below the pace seen in its Innovative Medicines business.
Q2 Numbers of J&J’s MedTech Segment
J&J’s MedTech segment underperformed in the second quarter despite overall solid results. Sales rose 4.5% to $8.93 billion, with operational growth of 3.6%, but slightly missed the Zacks Consensus Estimate of $8.96 billion.
The shortfall was largely due to weaker Cardiovascular performance. Operational sales in the Cardiovascular business grew 3.1%. However, the growth was slower than prior trends due to competitive pressure in the electrophysiology business and decline in Abiomed sales, partially offset by continued double-digit growth in Shockwave.
Shockwave revenues rose 14.6% to $335 million. Electrophysiology sales increased 3.1%, supported by procedure growth and new products but were hurt by competitive pulsed field ablation (PFA) pressures and unfavorable China inventory dynamics.
Abiomed sales declined 2% due to slow procedural volumes for the Impella heart pump franchise. Abiomed procedure volumes were hurt by uncertainty among physicians after a U.K. study questioned the benefit of using Impella devices in certain high-risk procedures. J&J believes this led to slower Impella usage as doctors reassessed patient selection for the device. J&J believes this is a temporary issue and is working with physicians to ensure the device is used in the right patients based on its existing clinical evidence. However, Abiomed sales in outside U.S. markets remained strong.
Nonetheless, while J&J’s Cardiovascular sales slowed down in the second quarter due to weakness in Abiomed, its other three businesses, Surgery, Vision and Orthopedics, all accelerated in the quarter and performed above expectations.
Worldwide Surgery grew 3.9%. Worldwide Orthopedics rose 4.9% and Worldwide Vision rose 6.0% in the second quarter.
While Abiomed procedures slowed, J&J claimed that overall procedure volumes were stable and there was no broad-based slowdown in medical procedure volumes across its MedTech business. J&J clarified that although some large U.S. hospitals have reported weaker volumes for certain elective procedures, those trends are not reflected in its own business. J&J also said that the expiration of Affordable Care Act (ACA) subsidies has not had any meaningful impact on procedure volumes so far and is unlikely to affect MedTech demand materially.
The company continues to face headwinds in China from the government's volume-based procurement (VBP) program and expects these pressures to continue through 2026, particularly in the second half.
Outlook for J&J’s MedTech in H2
Reflecting these challenges, J&J tempered its outlook for Abiomed, now expecting only modest growth in the second half of 2026 rather than the stronger rebound it had previously anticipated, with the impact of the U.K. study likely to persist until PROTECT IV study data are presented in 2027. PROTECT IV is a large clinical study of the company’s Impella device in high-risk percutaneous coronary intervention.
Despite the Abiomed challenges, J&J remains optimistic about MedTech's trajectory in the second half of 2026. J&J expects its MedTech business to perform better in the second half of the year than it did in the first half, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular. While the Abiomed softness creates a new overhang, it is only 2% of sales, and J&J has various other top-line drivers to compensate.
The FDA recently approved J&J’s OTTAVA robotic surgical system which is considered a key new product in its portfolio, along with the VARIPULSE pulsed field ablation system for atrial fibrillation. Increased adoption of these newly launched products should contribute to better growth in the second half.
J&J’s Key Competitors in the Medical Devices Market
J&J’s MedTech unit faces strong competition from several major players in the medical device industry like Medtronic MDT, Abbott,Stryker SYK and Boston Scientific BSX.
While Medtronic has a strong presence in cardiovascular, neuroscience and surgical technologies, Stryker is a major player in orthopedics and surgical equipment. Boston Scientific markets products for cardiovascular, endoscopy, urology and neuromodulation. Abbott is known for its medical devices across cardiovascular, diagnostics, and diabetes care.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry so far this year. The stock has risen 28.7% this year compared with a 14.5% appreciation of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.39 forward earnings, higher than 19.06 for the industry. The stock is also trading above its five-year mean of 15.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.65 per share over the past 30 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.
Image Source: Zacks Investment Research
J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	29.41 21.49
Price/Sales	6.40 3.03
P/B	7.52 2.57
P/FCF	33.82 18.61

Indicator	TTM Median
ROE	26.26 19.43
ROA	10.70 6.99
ROI	17.68 9.91
Net Worth	620.71 0.21
Quick Ratio	0.77 1.79
Current Ratio	1.03 2.79

Indicator	TTM Median
Net Profit Margin	21.83 11.32
Operating Margin	25.88 14.11
Gross Margin	67.82 75.26
Return on tangible equity	0.00 44.85

Indicator	TTM Median
EPS	2.90 0.43
EPS Forecast	2.84 0.37
Revenue	24.06B 17.00M
Gross Profit	15.96B —
EBITDA	8.50B —

Johnson & Johnson

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