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J&J Stock Soars: Buy the Healthcare Giant Now?
20 Jul
Summary
- J&J's stock gained 22% in the first half of the year.
- Spun off consumer health as Kenvue to focus on growth.
- Key drugs Darzalex and Tremfya drove revenue growth.
Johnson & Johnson (J&J) has emerged as a top-performing stock, with a 22% gain in the first half of 2026 driven by investor flight to safety. The healthcare giant's consistent earnings growth and strong market position attracted investors concerned about geopolitical uncertainties and AI market risks.
In a strategic move, J&J spun off its consumer health business, Kenvue, to sharpen its focus on the higher-growth pharmaceutical and medtech sectors. This maneuver came just as the company faced the loss of exclusivity for its significant immunology drug, Stelara, which previously generated over $10 billion annually.
Despite Stelara's decline, J&J's latest earnings report demonstrated resilience. Strong performance from its immunology drug Tremfya and the leading multiple myeloma treatment Darzalex compensated for the loss, contributing to over 6% revenue growth and $25 billion in total revenue for the quarter. Darzalex sales rose 18% to over $4.2 billion, while Tremfya saw a remarkable 72% surge to $2 billion.
A recent headwind for the medtech division involved a slowdown in Abiomed heart pump sales, prompted by a study questioning their use in certain high-risk procedures. J&J anticipates releasing data in the first half of 2027 to address these concerns, confident in its 28 billion-dollar revenue products and platforms that fuel ongoing growth.
