Johnson & Johnson (JNJ) Stock Analysis

October 26, 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	635.07 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)	40.15%	15.41%
Total Return (3Y, Annualized)	23.81%	20.64%
Total Return (5Y, Annualized)	13.13%	-3.57%

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)	20.76%	65.47%
Beta (5Y)	0.23	1.01
Max Drawdown (5Y)	-18.41%	-79.98%

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)	1.72	0.17
Sortino Ratio (1Y)	2.64	0.31

Profitability

ROE (TTM)

Johnson & Johnson (JNJ) posts ROE of 20.02%, 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

20.02%

Group distribution

Max: 102.29%
JNJ: 20.02%
Q3: 4.58%
Median: -28.28%
Q1: -61.10%
Min: -157.61%

Largest peers

LLY: 102.29%
NVS: 30.35%
AZN: 21.97%
JNJ: 20.02%
TMO: 13.38%
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 16.20% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

JNJ

Pharmaceuticals, Biotechnology & Life Sciences industry group

16.20%

Group distribution

Max: 18.34%
JNJ: 16.20%
Q3: 3.99%
Median: 0.00%
Q1: -5.61%
Min: -19.33%

Largest peers

LLY: 33.53%
NVS: 22.50%
AZN: 17.02%
JNJ: 16.20%
TMO: 14.94%
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 25.74% 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

25.74%

Group distribution

Max: 83.12%
JNJ: 25.74%
Q3: 12.70%
Median: 0.00%
Q1: -69.09%
Min: -186.13%

Largest peers

LLY: 54.22%
ABBV: 40.04%
NVS: 34.62%
JNJ: 25.74%
AZN: 23.46%
TMO: 20.19%
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)	20.02%	-28.28%
ROA (TTM)	8.46%	-13.26%
Net Margin (TTM)	16.20%	0.00%
Operating Margin (TTM)	25.74%	0.00%
Gross Margin (TTM)	67.78%	35.36%

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%	11.03%
Revenue Growth (3Y CAGR)	5.60%	10.83%
EPS Growth (YoY)	90.50%	3.16%
EPS Growth (3Y CAGR)	17.90%	3.06%

Financial Strength

Current Ratio (MRQ)

Johnson & Johnson (JNJ) has current ratio of 1.02, 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

1.02

Group distribution

Max: 26.10
Q3: 12.26
Median: 5.61
Q1: 2.62
JNJ: 1.02
Min: 0.10

Largest peers

TMO: 1.81
LLY: 1.36
MRK: 1.32
JNJ: 1.02
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 0.55, 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

0.55

Group distribution

Max: 1.62
Q3: 0.66
JNJ: 0.55
Median: 0.15
Q1: 0.02
Min: 0.00

Largest peers

LLY: 1.62
MRK: 1.28
NVS: 1.17
TMO: 0.75
AZN: 0.64
JNJ: 0.55
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)	1.02	5.61
Debt / Equity (MRQ)	0.55	0.15
Net Debt / EBITDA	0.79	1.18

Dividends

Dividend Yield (TTM)

Johnson & Johnson (JNJ) has dividend yield of 1.97%, 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

1.97%

Group distribution

JNJ: 1.97%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

NVS: 2.99%
ABBV: 2.39%
MRK: 2.25%
JNJ: 1.97%
AZN: 1.87%
LLY: 0.49%
TMO: 0.06%

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 80.12%, 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

80.12%

Group distribution

JNJ: 80.12%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MRK: 266.67%
ABBV: 190.40%
JNJ: 80.12%
NVS: 71.60%
AZN: 46.95%
LLY: 21.69%
TMO: 9.69%

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)	1.97%	0.00%
Dividend Payout Ratio (TTM)	80.12%	0.00%

Valuation

P/E Ratio (TTM)

Johnson & Johnson (JNJ) trades at P/E ratio of 40.03, 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

40.03

Group distribution

Max: 97.75
Q3: 50.24
JNJ: 40.03
Median: 31.75
Q1: 15.49
Min: 0.10

Largest peers

MRK: 117.15
ABBV: 80.69
LLY: 42.75
JNJ: 40.03
TMO: 35.54
AZN: 25.79
NVS: 22.83

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 6.39 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

6.39

Group distribution

Max: 54.54
Q3: 24.30
Median: 7.72
JNJ: 6.39
Q1: 3.30
Min: 0.01

Largest peers

LLY: 14.25
ABBV: 7.84
JNJ: 6.39
MRK: 5.38
TMO: 5.26
NVS: 5.07
AZN: 4.33

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 7.79 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

7.79

Group distribution

Max: 14.33
JNJ: 7.79
Q3: 6.89
Median: 3.47
Q1: 1.72
Min: -5.32

Largest peers

LLY: 33.51
MRK: 8.55
JNJ: 7.79
NVS: 6.91
AZN: 5.29
TMO: 4.55
ABBV: -85.04

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)	40.03	31.75
P/S Ratio (TTM)	6.39	7.72
P/B Ratio (MRQ)	7.79	3.47
Free Cash Flow Yield (TTM)	2.91%	-1.66%