Johnson & Johnson (JNJ) Stock Analysis

September 7, 2026

This is a peer-relative look at Johnson & Johnson (JNJ): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Johnson & Johnson (JNJ)
Profile Item	JNJ
Name	Johnson & Johnson
Country/Region	United States
GICS Sector	Health Care
GICS Industry Group	Pharmaceuticals, Biotechnology & Life Sciences
GICS Industry	Pharmaceuticals
GICS Sub-Industry	Pharmaceuticals
Market Capitalization	663.28 billion USD
Currency	USD
Exchange	NYSE
Listing Date	January 2, 1962
Security Type	Common Stock

Price Performance

Cumulative Growth

JNJ

GSPC

Johnson & Johnson (JNJ) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Johnson & Johnson (JNJ) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Johnson & Johnson (JNJ) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
Total Return (1Y)	57.44%	48.26%
Total Return (3Y, Annualized)	23.15%	12.46%
Total Return (5Y, Annualized)	12.57%	-4.88%

Risk Profile

Drawdown History

JNJ

GSPC

Johnson & Johnson (JNJ) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Johnson & Johnson (JNJ) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
Volatility (1Y, Annualized)	19.01%	67.21%
Beta (5Y)	0.21	0.93
Max Drawdown (5Y)	-18.41%	-82.64%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. JNJ is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
Sharpe Ratio (1Y)	2.80	0.78
Sortino Ratio (1Y)	4.59	1.30

Profitability

ROE (TTM)

Johnson & Johnson (JNJ) posts ROE of 25.74%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

25.74%

Group distribution

Max: 102.29%
JNJ: 25.74%
Q3: 3.16%
Median: -32.34%
Q1: -64.79%
Min: -157.61%

Largest peers

LLY: 102.29%
AMGN: 91.47%
NVS: 30.35%
JNJ: 25.74%
AZN: 21.97%
MRK: 6.96%
ABBV: --

Where Johnson & Johnson (JNJ) stands on ROE within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Johnson & Johnson (JNJ) keeps 21.48% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

21.48%

Group distribution

JNJ: 21.48%
Max: 12.02%
Q3: 2.44%
Median: 0.00%
Q1: -4.89%
Min: -13.51%

Largest peers

LLY: 33.53%
AMGN: 22.95%
NVS: 22.50%
JNJ: 21.48%
AZN: 17.02%
ABBV: 9.80%
MRK: 4.77%

Where Johnson & Johnson (JNJ) stands on net margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Johnson & Johnson (JNJ) turns 29.19% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

29.19%

Group distribution

Max: 76.04%
JNJ: 29.19%
Q3: 10.45%
Median: 0.00%
Q1: -120.32%
Min: -308.66%

Largest peers

LLY: 54.22%
ABBV: 40.04%
AMGN: 35.55%
NVS: 34.62%
JNJ: 29.19%
AZN: 23.46%
MRK: -0.24%

Where Johnson & Johnson (JNJ) stands on operating margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
ROE (TTM)	25.74%	-32.34%
ROA (TTM)	8.60%	-14.69%
Net Margin (TTM)	21.48%	0.00%
Operating Margin (TTM)	29.19%	0.00%
Gross Margin (TTM)	68.14%	33.96%

Growth

Revenue Growth

Johnson & Johnson (JNJ) grew revenue 6.05%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Johnson & Johnson (JNJ): Revenue Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

EPS Growth

Johnson & Johnson (JNJ) grew earnings per share 90.50%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

Johnson & Johnson (JNJ): EPS Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

Growth Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
Revenue Growth (YoY)	6.05%	10.61%
Revenue Growth (3Y CAGR)	5.60%	10.96%
EPS Growth (YoY)	90.50%	3.16%
EPS Growth (3Y CAGR)	17.90%	3.62%

Financial Strength

Current Ratio (MRQ)

Johnson & Johnson (JNJ) has current ratio of 1.09, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.09

Group distribution

Max: 26.10
Q3: 12.34
Median: 5.72
Q1: 2.80
JNJ: 1.09
Min: 0.10

Largest peers

AMGN: 1.37
LLY: 1.36
MRK: 1.32
JNJ: 1.09
AZN: 0.89
NVS: 0.86
ABBV: 0.81

Where Johnson & Johnson (JNJ) stands on current ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Johnson & Johnson (JNJ) has debt-to-equity ratio of 0.58, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.58

Group distribution

Max: 1.56
Q3: 0.64
JNJ: 0.58
Median: 0.14
Q1: 0.02
Min: 0.00

Largest peers

AMGN: 4.90
LLY: 1.62
MRK: 1.28
NVS: 1.17
AZN: 0.64
JNJ: 0.58
ABBV: --

Where Johnson & Johnson (JNJ) stands on debt-to-equity ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
Current Ratio (MRQ)	1.09	5.72
Debt / Equity (MRQ)	0.58	0.14
Net Debt / EBITDA	0.81	1.15

Dividends

Dividend Yield (TTM)

Johnson & Johnson (JNJ) has dividend yield of 1.88%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.88%

Group distribution

JNJ: 1.88%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

NVS: 2.86%
ABBV: 2.62%
AMGN: 2.21%
MRK: 2.18%
AZN: 1.96%
JNJ: 1.88%
LLY: 0.56%

Where Johnson & Johnson (JNJ) stands on dividend yield within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Johnson & Johnson (JNJ) has payout ratio of 60.79%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

60.79%

Group distribution

JNJ: 60.79%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MRK: 268.80%
ABBV: 190.40%
NVS: 71.60%
AMGN: 60.87%
JNJ: 60.79%
AZN: 47.41%
LLY: 21.69%

Where Johnson & Johnson (JNJ) stands on payout ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
Dividend Yield (TTM)	1.88%	0.00%
Dividend Payout Ratio (TTM)	60.79%	0.00%

Valuation

P/E Ratio (TTM)

Johnson & Johnson (JNJ) trades at P/E ratio of 31.97, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

31.97

Group distribution

Max: 83.73
Q3: 44.68
JNJ: 31.97
Median: 28.50
Q1: 15.51
Min: 0.14

Largest peers

MRK: 120.26
ABBV: 72.45
LLY: 38.61
JNJ: 31.97
AMGN: 27.17
AZN: 24.32
NVS: 24.17

Where Johnson & Johnson (JNJ) stands on P/E ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Johnson & Johnson (JNJ) trades at 6.77 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.77

Group distribution

Max: 65.27
Q3: 29.50
Median: 7.31
JNJ: 6.77
Q1: 3.49
Min: 0.01

Largest peers

LLY: 12.86
ABBV: 7.04
JNJ: 6.77
AMGN: 6.21
MRK: 5.57
NVS: 5.36
AZN: 4.11

Where Johnson & Johnson (JNJ) stands on P/S ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Johnson & Johnson (JNJ) trades at 7.80 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

7.80

Group distribution

Max: 15.46
JNJ: 7.80
Q3: 7.32
Median: 4.02
Q1: 1.90
Min: -5.81

Largest peers

LLY: 30.24
AMGN: 20.22
MRK: 8.85
JNJ: 7.80
NVS: 7.32
AZN: 5.02
ABBV: -76.35

Where Johnson & Johnson (JNJ) stands on P/B ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Johnson & Johnson (JNJ) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
Metric	Current stock: JNJ	Industry group median
P/E Ratio (TTM)	31.97	28.50
P/S Ratio (TTM)	6.77	7.31
P/B Ratio (MRQ)	7.80	4.02
Free Cash Flow Yield (TTM)	2.55%	-1.84%