Johnson & Johnson beat expectations in the third quarter, though shares fell 4%

Johnson & Johnson has published its third-quarter financial results, which exceeded analysts' expectations. The company also raised its full-year 2026 financial guidance, though its share price fell by about 4% at the opening of trading following the release of the report.

The company's adjusted earnings per share came in at $2.59, compared with the analysts' consensus forecast of $2.53. Revenue reached $25.4 billion, slightly above the expected $25.38 billion. In the same quarter last year, the company's revenue stood at $24 billion, representing year-over-year growth of 5.9%.

Johnson & Johnson also raised its adjusted earnings guidance for 2026, now expecting $11.05–$11.15 per share. The analysts' consensus estimate is $11.08. According to the company's updated guidance, annual revenue will reach $101–$101.4 billion.

According to the company's Chairman and CEO, Joaquin Duato, the strong third-quarter results and improving quarter-over-quarter growth rates point to growing momentum across the company's core business segments.

The Innovative Medicine division made a significant contribution to the company's growth. The segment's sales reached $16.8 billion, up 7.7% compared with the same period last year.

The results were driven by strong sales of several drugs, including TREMFYA, DARZALEX, CARVYKTI, and TECVAYLI.

The MedTech segment's revenue reached $8.6 billion, up 2.5% year-over-year. Growth was driven by sales of electrophysiology products and Shockwave's results in the cardiovascular segment.

By region, sales in the US grew 9.1%, reaching $15 billion. Growth in international markets was comparatively more moderate at 1.5%, with revenue of $10.4 billion.

Why did the share price fall?

Despite Johnson & Johnson beating earnings and revenue forecasts, investor reaction turned out to be negative. According to Raymond James analyst Jason Bedford, the results were largely in line with expectations overall: earnings per share beat forecasts, but organic revenue growth was weaker than anticipated.

According to Bedford, investors had expected a more significant beat from the company in recent times. This may explain why the positive financial results failed to serve as a basis for share price growth.

Thus, although the company's core financial metrics show growth and its 2026 guidance has also improved, the market reaction suggests that merely meeting forecasts is not enough for investors — they need stronger signs of growth as well.