Erste Group Bank Has Bearish Outlook for JNJ FY2027 Earnings

Johnson & Johnson (NYSE:JNJ) – Equities researchers at Erste Group Bank dropped their FY2027 earnings estimates for shares of Johnson & Johnson in a note issued to investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now anticipates that the company will post earnings per share of $12.65 for the year, down from their previous estimate of $12.83. The consensus estimate for Johnson & Johnson’s current full-year earnings is $11.09 per share.

Several other equities analysts have also recently issued reports on the company. Scotiabank restated an “outperform” rating and issued a $305.00 price target on shares of Johnson & Johnson in a research report on Thursday, July 16th. Raymond James Financial set a $280.00 price objective on Johnson & Johnson in a research note on Monday, August 3rd. Royal Bank Of Canada increased their price objective on Johnson & Johnson from $287.00 to $290.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 6th. Bank of America reiterated a “neutral” rating and issued a $278.00 target price on shares of Johnson & Johnson in a research note on Tuesday, September 29th. Finally, Morgan Stanley boosted their target price on Johnson & Johnson from $284.00 to $294.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Johnson & Johnson currently has a consensus rating of “Moderate Buy” and a consensus price target of $276.22.

Johnson & Johnson Price Performance

Shares of JNJ opened at $248.90 on Wednesday. Johnson & Johnson has a fifty-two week low of $184.66 and a fifty-two week high of $281.07. The company has a market capitalization of $599.83 billion, a price-to-earnings ratio of 28.84, a price-to-earnings-growth ratio of 2.70 and a beta of 0.21. The firm has a 50-day simple moving average of $265.89 and a 200-day simple moving average of $249.37. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.81 and a current ratio of 1.09.

Johnson & Johnson (NYSE:JNJ) last posted its quarterly earnings data on Tuesday, October 13th. The company reported $2.59 EPS for the quarter, beating analysts’ consensus estimates of $2.53 by $0.06. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The company had revenue of $25.40 billion for the quarter, compared to analyst estimates of $25.38 billion. During the same period in the previous year, the business posted $2.80 earnings per share. Johnson & Johnson’s quarterly revenue was up 5.9% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.050-11.150 EPS.

Johnson & Johnson Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Tuesday, November 24th will be paid a dividend of $1.34 per share. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Tuesday, November 24th. Johnson & Johnson’s payout ratio is 62.11%.

Insider Activity

In related news, EVP Timothy Schmid sold 33,597 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $274.74, for a total transaction of $9,230,439.78. Following the completion of the transaction, the executive vice president directly owned 25,447 shares of the company’s stock, valued at $6,991,308.78. This represents a 56.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Jennifer Taubert sold 15,000 shares of the firm’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $263.36, for a total transaction of $3,950,400.00. Following the completion of the sale, the executive vice president owned 194,451 shares of the company’s stock, valued at approximately $51,210,615.36. The trade was a 7.16% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 87,569 shares of company stock valued at $23,064,544. Company insiders own 0.16% of the company’s stock.

Hedge Funds Weigh In On Johnson & Johnson

Large investors have recently modified their holdings of the business. Silver Coast Investments LLC increased its stake in shares of Johnson & Johnson by 3.8% in the second quarter. Silver Coast Investments LLC now owns 1,066 shares of the company’s stock worth $271,000 after purchasing an additional 39 shares in the last quarter. Townsend Asset Management Corp NC ADV raised its position in shares of Johnson & Johnson by 0.6% during the 2nd quarter. Townsend Asset Management Corp NC ADV now owns 6,418 shares of the company’s stock valued at $1,630,000 after purchasing an additional 39 shares during the period. Triumph Capital Management lifted its stake in shares of Johnson & Johnson by 1.6% during the 2nd quarter. Triumph Capital Management now owns 2,531 shares of the company’s stock valued at $643,000 after buying an additional 39 shares in the last quarter. Kwmg LLC boosted its holdings in Johnson & Johnson by 1.7% in the 3rd quarter. Kwmg LLC now owns 2,383 shares of the company’s stock worth $631,000 after buying an additional 39 shares during the period. Finally, Denali Advisors LLC increased its stake in Johnson & Johnson by 1.2% in the 2nd quarter. Denali Advisors LLC now owns 3,305 shares of the company’s stock worth $839,000 after buying an additional 40 shares in the last quarter. 69.55% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Johnson & Johnson

Here are the key news stories impacting Johnson & Johnson this week:

• Positive Sentiment: Johnson & Johnson reported adjusted third-quarter EPS of $2.59, above the $2.53 analyst consensus, while revenue rose 5.9% year over year to $25.4 billion. Innovative Medicine led growth, including strong oncology demand and a 68% increase in TREMFYA sales to approximately $2.4 billion. Johnson & Johnson reports Q3 2026 results and raises guidance
• Positive Sentiment: Management raised its 2026 outlook to adjusted EPS of $11.05–$11.15 and revenue of $101.0–$101.4 billion. The guidance midpoint is broadly in line with current analyst expectations and signals continued confidence in pharmaceutical growth. Johnson & Johnson raises 2026 guidance as quarterly sales climb
• Positive Sentiment: The board declared a quarterly dividend of $1.34 per share, or $5.36 annualized, supporting JNJ’s income-investment appeal. Johnson & Johnson announces quarterly dividend
• Neutral Sentiment: Johnson & Johnson is leaning toward spinning off its hips-and-knees orthopedics business. The move could sharpen the company’s focus and unlock value, but execution details and timing remain uncertain. J&J is leaning toward spinning out its hips-and-knees business
• Negative Sentiment: MedTech grew operationally by only about 2.5% and missed expectations, with weakness in Surgery and Cardiovascular markets outside the United States. Middle East-related budget pressure also weighed on medical-device sales, raising concerns about the segment’s near-term growth.
• Negative Sentiment: Reported net income fell sharply to $210 million, or $0.09 per share, because of special charges tied primarily to the proposed talc litigation resolution, the Firefly Bio acquisition and the Sail Biomedicines collaboration. These charges overshadowed the adjusted earnings beat. Johnson & Johnson falls after quarterly report despite higher outlook
• Negative Sentiment: Erste Group Bank lowered its FY2027 EPS estimate to $12.65 from $12.83, reflecting concerns about future costs from business-development activity and ongoing operational headwinds. Johnson & Johnson analyst estimate update

About Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is a global healthcare company that develops, manufactures and markets products through two primary business segments: Innovative Medicine and MedTech. Its operations serve patients, healthcare professionals and consumers in markets around the world.

The Innovative Medicine segment focuses on prescription medicines in areas including immunology, oncology, neuroscience, cardiovascular and metabolic disease, infectious diseases, and pulmonary hypertension.