JNJ · Q2 FY2026
JOHNSON & JOHNSON Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $25.31B | $23.74B (yr ago) | Beat |
| EPS | $2.27 | $2.29 (yr ago) | Miss |
| Free Cash Flow | $7.29B | $2.83B (yr ago) | Beat |
| Gross Margin | 68.2% | 67.9% (yr ago) | Beat |
| Operating Margin | 26.7% | 27.3% (yr ago) | Miss |
What changed
Q2 FY2026 revenue increased 6.6% year over year to $25.31 billion, while free cash flow rose to $7.29 billion from $2.83 billion. Gross margin improved 0.3 percentage points, but operating margin declined 0.6 points and EPS slipped 0.9% to $2.27, leaving the quarter operationally mixed.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We initiate fair value at $216 per share: the stronger revenue and cash conversion support the operating thesis, but the lower EPS and operating margin do not justify the 30.9x current P/E.