JNJ Q3 2026 Earnings Review
Johnson & Johnson announced on Tuesday that sales in its MedTech sector missed Wall Street projections for the second consecutive quarter due to geopolitical factors, including the war in the Middle East. As a result, the company’s shares declined by more than 6%.
Key Takeaways:
Medtech sales reported below forecasts for the second consecutive quarter. Sales increased by 2.5%, totaling $8.6 billion, below analysts’ $8.71 billion. International sales were flat, contributing to the shortfall.
Political and economic factors pressured the company, according to the company. He cited the war in the Middle East, austerity measures in Europe, and prices in China.
The war damped regional revenues, not costs, he said. Fuel prices were rising, but that has not impacted Johnson & Johnson, said CFO Joe Wolk. However, the company’s regional budget is being reallocated from health care to defense.
The company is expressing confidence that it will improve its results. The chief of MedTech, Tim Schmid, said that the outcome was below expectations and those of investors, and the company is working to improve its results for the fourth quarter.
The stock dropped more than six percent following the announcement.
Johnson & Johnson’s MedTech business area had another quarter of sales growth that disappointed investors, sending its shares down more than 6 percent, since the company came short of forecasts for the second consecutive year. The company’s Chief Financial Officer Joe Wolk said the company’s international sales slowdown in the third quarter was due to Middle East unrest, austerity measures in Europe, and pricing pressures in China.
While the conflict in the Middle East has not significantly increased Johnson & Johnson’s expenses, it has adversely affected the company’s sales in the region, as the countries involved, including Kuwait, the United Arab Emirates, and Saudi Arabia, shift some of their spending to fund the war. According to Wolk, the companies are still willing to pay for quality care despite the financial strain.
MedTech Sales Shortfall Puts Hips-and-Knees Business in Focus
The company is considering spinning off its hips-and-knees business, according to CFO Joseph Wolk, who said a direct separation now appears to offer the most value to shareholders. The company had also explored selling the business to private-equity firm Apollo Global Management, in a deal valued at about $20 billion, according to The Wall Street Journal.
The comments came as J&J reported quarterly sales rose 5.9% to $25.4 billion and raised its full-year outlook. Prescription-drug sales drove the results, while the medical-device business grew more slowly. J&J acknowledged that the unit needs improvement but said it remains on track to exceed $100 billion in annual sales.
J&J is often seen as a bellwether for the industry. Its results suggest that demand for medical care will continue to outpace the consumers spending.
Analysts Expectation
An analyst from Wells Fargo maintained J&J at ’overweight’ with a price target of $275.00 from a prior price target of $282.20.
An analyst from BofA Securities maintained J&J at ’neutral’ with a price target of $275.00 from a prior price target of $262.00.
SHARIAH Compliance Metrics
JNJ qualifies all three Musaffa Shariah screening parameters based on AAOIFI methodology as of October 2026.
Business Activity 97.73% Halal, Doubtful is 0.00%, and non-Halal is 2.27%.
Interest-bearing securities and assets = 4.89% (Shariah-complaint is < 30%).
Interest-bearing debt = 11.55% (Shariah-complaint is < 30%).
https://musaffa.com/stock/JNJ/ a more detailed view.