# Johnson & Johnson (JNJ)

> Makes prescription medicines and medical devices for cancer, immune disorders, surgery, heart care, joint replacement and vision.

- Exchange: New York Stock Exchange · Sector: Healthcare · Industry: Drug Manufacturers General
- Headquarters: New Brunswick, New Jersey
- Founded: 1887
- Employees: 140,800
- SEC CIK: 0000200406 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000200406))
- Full page: https://inspectstocks.com/stocks/jnj
- Data as of: price 2026-09-29; newest filing used 2026-07-23; latest fiscal period ended 2026-06-28

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $97.9B | $82.3B |
| Revenue growing recently | passed | $97.9B | $94.2B |
| Free cash flow positive | passed | $22.2B |  |
| Free cash flow growing overall | passed | $22.2B | $14.5B |
| Free cash flow growing recently | passed | $22.2B | $19.7B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 21.5% |  |
| Healthy profit margin | passed | 21.5% |  |
| Strong operating margin | passed | 22.2% |  |
| Good return on equity | passed | 25.8% |  |
| Debt under control | passed | 0.63 |  |
| Turns sales into cash | passed | 22.7% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $97.9B |
| Net income, trailing twelve months | $21B |
| Free cash flow, trailing twelve months | $22.2B |
| Net margin | 21.5% |
| Return on equity | 25.8% |
| Debt to equity | 0.63 |
| Diluted EPS, trailing twelve months | $8.62 |
| Share price | $267.55 |
| Market value | $644.8B |
| Price / earnings | 31.0x |
| Price / sales | 6.6x |

## What the business does

Johnson & Johnson develops, makes and sells prescription medicines and medical devices around the world. Its two businesses are Innovative Medicine, which sells medicines for conditions including cancer and immune disorders, and MedTech, which sells products used in heart procedures, surgery, orthopaedics and vision care.

### How it makes money

- **Innovative Medicine** (64.4%) — Revenue comes from selling prescription medicines, including cancer medicines such as DARZALEX and immune-disease medicines such as TREMFYA, through retailers, wholesalers, distributors, hospitals and healthcare professionals.
- **MedTech** (35.6%) — Revenue comes from selling medical products such as heart devices, surgical tools, joint-replacement products and contact lenses to wholesalers, hospitals, clinics and eye-care professionals.

### Products

- **DARZALEX** — A medicine used to treat multiple myeloma, a cancer of plasma cells.
- **TREMFYA** — A medicine for conditions including plaque psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis.
- **CARVYKTI** — A treatment made from a patient’s modified immune cells for multiple myeloma that has returned or has not responded to earlier treatment.
- **VARIPULSE** — A system that uses pulsed electrical energy to treat atrial fibrillation, a disorder that causes an irregular heartbeat.
- **Impella** — A heart pump used to support blood circulation in certain patients with heart failure or during high-risk heart procedures.
- **ACUVUE** — A brand of contact lenses sold for vision correction.

### Customers

- Wholesalers, distributors and retailers that buy medicines and medical products for resale.
- Hospitals and clinics that buy medicines and devices for patient care and procedures.
- Physicians and other healthcare professionals who prescribe medicines or use medical devices in treatment.
- Eye-care professionals and retailers that supply contact lenses and other vision products.

### Competitors

- Merck & Co. (MRK) — Prescription medicines, including cancer treatments.
- AbbVie (ABBV) — Prescription medicines, including treatments for immune disorders and cancer.
- Pfizer (PFE) — Prescription medicines across several treatment areas.
- Medtronic (MDT) — Medical devices used in heart care, surgery and other procedures.
- Abbott Laboratories (ABT) — Medical devices, including products used in heart care, and vision-care products.
- Boston Scientific (BSX) — Medical devices used in heart procedures and other minimally invasive treatments.

### What it depends on

- Some medicines rely on licenses or partnerships with other companies. For example, a subsidiary licenses patent families related to DARZALEX from Genmab, and IMBRUVICA is co-commercialized in the United States with Pharmacyclics, an AbbVie company.
- The company depends on government approvals and ongoing oversight for its medicines and medical devices, including rules on safety, manufacturing, labeling and sales.
- Sales depend partly on health insurers and government programs deciding whether to cover products and how much they will reimburse; U.S. and other governments can also change medicine-pricing rules.
- The company uses third parties to make or supply some products and relies on complex international manufacturing and distribution chains.

### What could go wrong

- Generic and biosimilar competition can reduce sales of medicines when alternatives enter the market. The latest quarterly report describes continuing sales declines for STELARA and says biosimilar competition is also affecting other medicines.
- Government pricing rules, coverage decisions and reimbursement changes can affect what the company receives for medicines and medical devices. The company identifies U.S. drug-pricing measures and tighter regulation across markets as concerns.
- Lawsuits and product-safety claims can lead to substantial costs and affect sales or reputation. The latest quarterly report recorded charges related to talc litigation.

## More on this company

- [Overview](https://inspectstocks.com/stocks/jnj)
- [Financial statements](https://inspectstocks.com/stocks/jnj/financials)
- [Competitors](https://inspectstocks.com/stocks/jnj/peers)
- [Earnings](https://inspectstocks.com/stocks/jnj/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.