Johnson & Johnson (NYSE: $JNJ), a major multinational that produces medical devices and pharmaceuticals, released its first-quarter fiscal 2025 results on Tuesday, April 15, 2025, before markets opened. Here is a deep dive into the results.
Johnson & Johnson Q1 Results
In the first quarter of fiscal 2025, Johnson & Johnson reported revenue of $21.9 billion, a 2.4% YoY increase, with 4.2% YoY operational growth and 3.3% adjusted operational growth. Revenue beat estimates of $21.56 billion by 1.5%.
Earnings per share came in at $4.54, while adjusted earnings per share was $2.77, a 2.2% YoY increase and above estimates of $2.58 by 7.3%. The company ended Q1 with a free cash flow of around $3.4 billion compared to $2.85 billion in the same period last year.
Other Q1 Highlights
Johnson & Johnson announced major product line progress, including the approval of Crohn’s disease treatment TREMFYA. Additionally, data for RYBREVANT/LAZCLUZE overall survival in non-small cell lung cancer, icotrokinra in plaque psoriasis, and initiation of the clinical trial for a general surgery robotic system, OTTAVA.
Full-Year Guidance
For fiscal 2025, it expects revenue of $92 billion at the midpoint, up from the previous forecast of $91.3 billion, representing an YoY increase of 3.8%. it expects an adjusted EPS of $10.60 at the midpoint, unchanged form the January forecast, and a 6.2% YoY increase.
Since its initial forecast, the company has closed a nearly $15 billion acquisition of Intra-Cellular Therapies. It has also announced plans to increase its Us investment to over $55 billion over the next four years.
Shareholder Returns
The company announced a 4.8% YoY increase in its quarterly dividend to $1.30 per share, making this the 63rd consecutive year of increases. At this new rate, shareholders will receive $5.20 per share on an annual basis.
Johnson & Johnson (JNJ) Market Performance
Despite the revenue and earnings beat, JNJ shares dipped 0.43% during the early morning trading session to $153.70 as of 9:50 AM EDT on April 15, 2025. Year to date, the stock is up 6.28%, while over the past six months, it has dipped 6.34%. Meanwhile, the stock has risen 4.14% in the past 12 months. Its current price is below both its 50 and 200-day moving average of $159.57, and $156.61, respectively.
Analysts remain optimistic about the future of JNJ, giving the stock a moderate buy rating. They forecast an average price of $168.79, which is a 10.06% upside based on the most recent price. The analysts give a wide range of forecasts for the stock, with a high of $185, and a low of $155.
Is Now The Time To Invest In JNJ?
JNJ is renowned as a dividend stock, increasing dividends every year for the past 63 years. The recent results gave a reasonable outlook, which is especially impressive considering how cash flow has become king in the current macroeconomic environment where interest rates remain high.
As such, investors favor income-generating assets, with dividend being a reliable means of doing so. Consequently, adding JNJ to your portfolio could potentially deliver positive results in the medium and long term. It is a potentially great option for dividend investors looking for consistency and growth in payouts.
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