JNJ Stock: Sales Grew, So Why Did Earnings Fall? — Q3 2026

Johnson & Johnson (JNJ) Q3 2026 — JNJ fell 5.73% on October 13, from the prior close to the release-day close. The separate October 15 intraday reference is $253.62.

Johnson & Johnson grew sales while adjusted earnings fell. The litigation charge dominates GAAP profit, but the cash and portfolio questions reach beyond that one adjustment.

THE CALL: HOLD (3/5, MEDIUM) — Three-route fair-value anchor ~$235 vs ~$253.62 October 15 intraday snapshot.

KEY METRICS:

- Q3 revenue $25.399B, +5.9%; adjusted EPS $2.59, −7.5%

- GAAP net income $210M; adjusted net $6.339B

- Litigation adjustment $5.519B; cash timing and participation conditions remain

- Management estimates Q3 FCF above $6B and FY2026 FCF approximately $21B

- Three valuation routes: $223 cash, $249 earnings, $230 dividend

- HOLD; fair-value anchor $235; scenario-weighted value $236.25

What to watch: A 20% discount to the $235 anchor implies $188 with the thesis intact. Watch adjusted EPS growth, approximately $21B full-year FCF, legal participation and 2027 deal dilution.

Full research packet: https://chargedalpha.com/research/jnj-q3-2026