Johnson & Johnson's (JNJ) Innovative Medicine segment momentum is building into 2027, with the company noting ex-Stelara growth of over 14% year-on-year and eight brands delivering double-digit growth in Q2, RBC Capital Markets said in a Thursday note.

Additionally, the company's MedTech segment is positioned for recovery in H2, with three of four businesses accelerating in Q2 along with procedure volumes intact, according to the note.

Surgery, Vision and Orthopedics have all accelerated and performed above expectations, but Cardio has been a drag on account of China inventory dynamic in Electrophysiology and Abiomed physician caution, RBC said.

RBC further said that the two major robotic launches, the Ottava and Monarch platforms, are expected in 2026, which should provide meaningful growth by the decade's end.

The firm said it expects 2026 Johnson & Johnson sales of $101.16 billion along with EPS of $11.68, and further guided 2027 sales to be $108.17 billion.

RBC maintained its outperform rating on the company's stock with a $287 price target.

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