By Mackenzie Tatananni

There's no question about it -- 2025 was a blowout year for Johnson & Johnson.

Shares of the multinational pharmaceutical giant rose 43% in 2025, against a roughly 16% gain for the S&P 500, marking the stock's best yearly performance since 1995, according to Dow Jones Market Data.

The company is set to report fourth-quarter earnings on Wednesday, and the Street has high expectations. Analysts polled by FactSet are looking for fourth-quarter adjusted earnings of $2.42 a share and sales of $24.1 billion, up from $22.5 billion in the same period last year.

For the full year, analysts project earnings of $10.83 a share and sales of $93.8 billion. Johnson & Johnson logged $88.8 billion in sales last year.

Historically, the company's pharmaceutical arm has been a significant contributor to total sales. In the third quarter, the business brought in $15.6 billion, up 5.3% on an operational basis year-over-year.

Speaking at the JPMorgan Healthcare Conference last week, CEO Joaquin Duato indicated the company's multiple myeloma franchise, which includes products such as Darzalex and Tecvayli, is becoming an increasingly important part of its portfolio.

The franchise could bring in $25 billion by 2030, Duato said, while noting that the number may be a conservative estimate. Johnson & Johnson is currently testing a combination of Tecvayli and Darzalex that has led to "perhaps the most impressive data ever seen in multiple myeloma," the CEO added.

The company's medical technology segment is also growing. Worldwide operational sales increased 5.6% year-over-year in the third quarter, fueled by electrophysiology and wound closure products. Acquired businesses Abiomed and Shockwave were also cited as drivers of growth.

Earlier this month, the company became the latest pharma giant to strike a deal with the White House to lower the price of certain medications, clearing up a point of uncertainty that had been weighing on the stock.

The company is planning to build two new manufacturing facilities in the U.S. as part of a $55 billion investment push. Additional investments will be unveiled later in 2026, the company said.

Also on the horizon are the thousands of ongoing lawsuits related to Johnson & Johnson's talcum powder products. Around 3,000 claimants in the U.K. have accused the company of knowingly selling baby powder that was contaminated with cancer-causing asbestos.

The lawsuit, filed in mid-October, also takes aim at Kenvue, which was spun off in 2023. Johnson & Johnson asserted that Kenvue "retained the responsibility and any purported liability for talc-related litigation outside of the US and Canada." Kenvue has denied any wrongdoing.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 20, 2026 16:30 ET (21:30 GMT)

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