JNJ
The good news: the growth engine is still revving
Johnson & Johnson just got a sunny read from RBC Capital Markets after a strong second quarter. Analyst Shagun Singh kept an Outperform rating and left the price target at $287, arguing that the company’s Innovative Medicine business is building momentum into 2027.
What’s getting the analyst excited? A lot, actually:
- ex-Stelara growth topped 14% year over year
- eight brands posted double-digit growth
- Tremfya logged its first $2 billion quarter
- Tecvayli sales jumped 56%
- INLEXZO’s new patient insertions rose 75% sequentially
That’s the kind of lineup that makes a bull case sound less like hopium and more like a spreadsheet with a gym membership.
The not-so-perfect part
There was one wrinkle: MedTech came in softer, especially on cardio. That helped explain why the stock initially sagged after earnings, even though the broader quarter looked solid. J&J is still working through the usual large-cap reality: one business line can be flexing while another is doing the corporate version of a shrug.
Why investors should care
For JNJ holders, the real question isn’t whether this quarter was good — it was. The question is whether the company can keep turning its Innovative Medicine portfolio into a long runway of growth while MedTech gets back on its feet in the second half of 2026.
Big picture: the bullish thesis here is no longer just about stability and dividends. It’s about whether J&J can quietly morph into a growth story again, and the market is absolutely watching that makeover unfold.