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Why Johnson & Johnson Rallied Today

Why This Matters

S of Johnson & Johnson (JNJ 6. Meanwhile, 21%) rallied 6, amid ongoing market uncertainty. 1% on Wednesday as of 1:18 p. However, The pharmaceutical and medical equipment giant reported...

July 16, 2025
02:38 PM
3 min read
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S of Johnson & Johnson (JNJ 6. Meanwhile, 21%) rallied 6, amid market uncertainty. 1% on Wednesday as of 1:18 p.

However, The pharmaceutical and medical equipment giant reported earnings today, which not only beat expectations, but also saw management lifting full-year guidance.

Nevertheless, As such, the stock continued to brush off tariff-related fears from the first half of the year.

Second-quarter highlights include lower-than-expected tariffs and contributions from Caplyta In the second quarter, Johnson & Johnson grew revenue 5, given the current landscape.

At the same time, 7 billion, beating expectations. While adjusted (non-GAAP) earnings per of $2. Meanwhile, 77 declined by 1 (which is quite significant).

Additionally, 8% relative to the prior year, that was also ahead of analysts' expectations.

What the re reveals is decline in earnings had to do with Johnson & Johnson's cost of goods sold, which included some acquisition-related amortization stemming from the company's $14, in light of current trends.

Additionally, Meanwhile, 6 billion acquisition of neuroscience-oriented Intra-Cellular Therapies, which closed on April 2.

On the other hand, Interest expense also increased from new debt used for the acquisition.

Management also noted that it expects a $200 million impact from tariffs this year, though that was down from $400 million in April before U.

-China tariffs were ratcheted back down on May 12 (which is quite significant). Still, Intra-Cellular helped the company's Neuroscience unit grow 14 (something worth watching).

4% year over year in constant currency, which was the second-fastest segment behind oncology, which grew a solid 22.

Management also upped its guidance for the year and now jects $93 (fascinating analysis). 2 billion to $93. 6 billion in revenue, and $10.

Moreover, 90 in adjusted earnings per (EPS), relative to last quarter's guidance of $91 billion to $91. 8 billion and $10. 70, respectively (an important development). Image source: Getty Images.

JNJ remains as blue chip as ever Johnson & Johnson's solid results cement it as the premier blue chip pharmaceutical and med company in dividend-oriented portfolios, in today's financial world.

Moreover, the stock is still inexpensive, even after today, at just 15 times this year's new earnings guidance, with a dividend of 3.

Thus, the stock remains a solid buy or hold for income-oriented, conservative investors. At the same time, Billy Duberstein and/or his clients have no position in any of the stocks mentioned.

The Motley Fool recommends Johnson & Johnson (noteworthy indeed). The Motley Fool has a disclosure policy.

FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • Earnings performance can signal broader sector health and future investment opportunities
  • Merger activity often signals industry consolidation and potential valuation re-rating for similar companies
  • Financial sector news can impact lending conditions and capital availability for businesses

Questions to Consider

  • Could this earnings performance indicate broader sector trends or company-specific factors?
  • Does this M&A activity signal industry consolidation or strategic repositioning?
  • Could this financial sector news affect lending conditions and capital availability?

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