Johnson & Johnson rose 2.1% after earnings beat and guidance raise

What happened

Johnson & Johnson (JNJ) rose 2.1% on October 14, 2026, because third-quarter results beat estimates and the company raised its full-year guidance. The company reported earnings per share of $2.59 on October 13, 2026, against $2.52 expected, 2.8% above estimates, part of three consecutive quarters beating estimates. News outlets including Yahoo Finance and Benzinga reported the beat-and-raise and noted that MedTech weakness had earlier pressured the stock.

How big was the move

The stock closed at $253.91, a session rise of 2.1%, while the S&P 500 fell 1.1% and the Healthcare sector median fell 0.8%. Trading volume was 1.3 times its 20-day average, and the move was 1.4 times a typical daily move for this stock. Compared with its sector, the stock was 3.0 percentage points better than the sector median. Over the last five sessions the stock fell 1.8%, while the S&P 500 over five sessions fell 1.1%.

The technical picture

The stock traded 3.4% below its 20-day moving average and 4.3% below its 50-day moving average, while it was 4.2% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 315 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 41, in a neutral range between 30 and 70. The shares were 9.7% below the 52-week high. Shorter-term returns showed the stock fell 5.0% over one month and rose 1.6% over three months, while it rose 33.0% over one year, 17.0 percentage points ahead of the S&P 500. Volatility was 23% annualized over 60 days, higher than 91% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, Johnson & Johnson reported revenue of $99.33 billion, which grew 7.8% from a year earlier and followed a revenue growth one quarter earlier of 8.1%. Diluted earnings per share for that period were $6.60, with earnings per share growth from a year earlier falling 36.3%. Gross margin was 68.8% (a year earlier: 68.1%), and operating margin was 25.7% (a year earlier: 26.1%). Return on invested capital was 13.9%. Share count over one year increased by 0.8%.

Valuation metrics showed a price to trailing earnings of 38.5 times trailing earnings and a price to forward earnings of 22.5 times expected earnings. The price to trailing earnings was higher than 95% of its own readings over the past five years (five-year median: 24.0 times earnings). PromtFinance scores placed the company at 53 for Value (Neutral), 34 for Growth (Weak), 100 for Quality (Exceptional), 73 for Momentum (Positive), 23 for Revisions (Very weak), and 100 for Stability (Exceptional).

Those figures present a contrast: strong margins and exceptionally high Stability and Quality scores sit alongside a stretched trailing valuation and weak Revisions. Investors rewarding near-term momentum and quality may find the metrics supportive, while those focused on valuation or earnings revisions face a less favorable picture.

Earnings and analyst expectations

The last report on October 13, 2026, showed earnings per share of $2.59 against $2.52 expected, 2.8% above estimates. The company has three consecutive quarters beating estimates and an average surprise over the last four reports of 1.3% above estimates. Typical two-day reactions after recent reports have seen the stock fell 0.5%. The next scheduled report is January 20, 2027. Analysts’ consensus price target was $286.53, 12.8% above the closing price, based on 40 analysts with a consensus rating of Buy and 52% of ratings at Buy.

Market commentary around the quarter highlighted that pharmaceuticals drove the beat and guided higher, while MedTech performance lagged. That split helped explain why the stock rose on the headline beat-and-raise even as some investors remained cautious about the sector-specific pressures flagged by management. A separate notice reported by PRNewsWire flagged a pending investor inquiry citing China pricing and European budget cuts as factors behind the MedTech shortfall.

What to watch

• October 13, 2026: last report — earnings per share of $2.59 against $2.52 expected, 2.8% above estimates
• January 20, 2027: next scheduled earnings report
• Revenue for the four quarters through September 30, 2026: $99.33 billion, grew 7.8% year-over-year
• Price to trailing earnings: 38.5 times trailing earnings, higher than 95% of its five-year readings
• Trading volume: 1.3 times its 20-day average on October 14, 2026