Johnson & JohnsonJNJ
NYSE•Healthcare•Drug Manufacturers - General
Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of a range of products in the healthcare field worldwide. It operates in two segments, Innovative Medicine and MedTech. The Innovative Medicine segment offers products for various therapeutic areas, such as oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism distributed through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. The MedTech segment provides a portfolio of products used in the surgery, orthopedic, cardiovascular, and vision fields distributed through wholesalers, hospitals and retailers, and used in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics. This segment also offers products and enabling technologies that support joint reconstruction, trauma, spine, sports related injuries, and others, as well as open, laparoscopic, and robotic surgical procedures; instrumentation, energy devices, stapling systems, wound closure, biosurgery products, and digital and robotic technologies; breast aesthetics and reconstruction; contact lenses under the ACUVUE brand; intraocular lenses for cataract surgery, and other products used in cataract and refractive procedures under the TECNIS brand. The company was founded in 1886 and is based in New Brunswick, New Jersey.
Johnson & Johnson (JNJ) reported trailing twelve months revenue of $96.36B as of March 2026, a 7.9% increase year-over-year. Quarterly revenue reached $24.06B, reflecting continued top-line momentum.
Johnson & Johnson generated $21.04B in TTM net income, with quarterly EBITDA of $8.41B. The operating margin contracted from 27.9% to 26.6%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (26.6%) and net margin (21.8%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 50.2% a year ago, reflecting increased costs or interest expense.
JNJ trades at a P/E of 27.5x (in line with broad market averages) and a P/S of 6.0x. The price-to-book ratio of 7.1x indicates a significant premium over book value.
The company generated $1.47B in free cash flow over the trailing twelve months, a 56.6% decrease year-over-year, indicating cash generation ability. The balance sheet shows $200.89B in total assets with $37.53B in long-term debt against $81.19B in stockholders equity for a debt-to-equity ratio of 0.5, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~25.1%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 30.1% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~22.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~26.6% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation