EARNINGS RESULTS · Q2 2026

Johnson & Johnson Q2 2026: Revenue Up 6.6%, Operating Margin 28.21%

Results for the quarter ended 2026-06-28 bring the business drivers and cash after investment into focus. Quarterly free cash flow was $7.3 bn. The dated assessment on 2026-10-08 was avoid at a reference price of $258.45.

Johnson & Johnson · JNJPublished October 8, 2026Quarter ended June 28, 2026

Q2 2026: What the Quarter Delivered

Revenue: $25.31 bn
Revenue growth YoY: 6.6%
Operating income: $7.14 bn
Operating margin: 28.2%
Diluted EPS, GAAP: $2.27

Johnson & Johnson reported $25.31 bn of revenue in Q2 2026. Revenue rose 6.6% from the comparable prior-year quarter. Operating profit was $7.14 bn, with an operating margin of 28.21%. Reported diluted EPS was $2.27.

The latest reported quarter reinforces the operating case: revenue increased against the comparable fiscal period, and operating profit grew faster than sales.

How Revenue Reached Operating Profit

The quarter's revenue and operating result imply an operating margin of 28.21%: $28.21 of operating profit for every $100 of revenue, before interest and tax.

Durable shareholder value requires research and commercial spending to support growth without steadily consuming more of each sales dollar.

What the Reported Earnings Include

Other non-operating income: -$0.33 bn
GAAP net income: $5.53 bn
Diluted weighted-average shares: 2.44 bn shares

Q2 2026 GAAP net income was $5.53 bn. Other non-operating income was -$0.33 bn.

Our normalized operating-earnings approach starts with consolidated operating economics and applies subjective financing and tax assumptions. Those assumptions are not reported tax results, adjusted company earnings or management guidance, and normalized earnings should not be confused with free cash flow.

Cash Left After Investment

Operating cash flow: $27.61 bn
OCF less cash PPE purchases, plus PPE sales: $22.71 bn
Quarterly operating cash flow: $8.62 bn
Quarterly cash CapEx: $1.32 bn
Quarterly OCF less cash PPE purchases: $7.3 bn

In Q2 2026, operating cash flow of $8.62 bn less cash capital expenditure of $1.32 bn left $7.3 bn of free cash flow. Operations funded cash investment and left cash after that spending.

Across the trailing reported period, operating cash flow comfortably exceeded cash investment in property, plant and equipment, leaving substantial resources for financial obligations and portfolio renewal.

The quarterly free-cash-flow series subtracts cash PPE purchases from operating cash flow. The separately presented trailing measure also includes proceeds from PPE sales, so these measures should remain distinct rather than be used interchangeably.

The Verdict Recorded on 2026-10-08

Verdict Invest recorded avoid on 2026-10-08, using a reference price of $258.45 dated 2026-10-07. This assessment relates to the Q2 2026 results, with a 12-month horizon and stated validity through 2026-11-07.

Confirmation to watch: Continued same-period revenue growth accompanied by durable operating margins.
Confirmation to watch: Progress integrating Halda and completing the announced Firefly acquisition, followed by evidence that their development platforms are advancing.
Confirmation to watch: Greater clarity on litigation exposure and more consistent cash conversion.
Risk to this assessment: Sustained margin erosion from competition, research costs or regulatory requirements.
Risk to this assessment: Acquired development programs fail to advance while acquisition spending weakens financial flexibility.
Risk to this assessment: Adverse litigation or rebate revisions materially impair earnings and cash generation.