Johnson & Johnson Net Income Falls 52% to $5.2B in Q1 FY2026

Johnson & Johnson (NYSE: JNJ), a global healthcare and pharmaceutical company, reported net income of $5.24 billion for the quarter ending March 29, 2026, down 52% from $11.0 billion in the year-ago period. Diluted earnings per share fell to $2.14 from $4.54. Read more earnings reports.

Revenue rose 10% to $24.1 billion from $21.9 billion in the first quarter of fiscal 2025. The pharmaceutical segment generated $15.4 billion, up 11% year-over-year, while the medtech division posted $8.6 billion, an increase of 8% from the prior-year quarter.

Cost of goods sold climbed to $8.1 billion from $7.4 billion, resulting in gross profit of $16.0 billion compared to $14.5 billion. Selling, general, and administrative expenses increased to $6.0 billion from $5.1 billion in the same quarter last year.

Income tax expense dropped sharply to $755 million from $2.6 billion in the first quarter of fiscal 2025, reflecting a 71% decline.

Cash generated from operations totaled $2.5 billion for the quarter, down from $4.2 billion in the prior-year period. The company used $1.0 billion in investing activities and generated $530 million from financing activities.

Total assets stood at $200.9 billion as of March 29, 2026, up from $199.2 billion at the end of December 2025. Cash and cash equivalents increased to $21.7 billion from $19.7 billion.

Long-term debt declined to $37.5 billion from $39.4 billion at the end of the prior quarter. Total stockholders' equity edged down to $81.2 billion from $81.5 billion.

The company had 2.41 billion shares outstanding as of March 29, 2026. Weighted average diluted shares for the quarter were 2.45 billion compared to 2.42 billion in the year-ago quarter.