Why Johnson & Johnson Rallied Today
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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...
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July 16, 2025
02:38 PM
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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.
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