In its financial report released January 21, 2026, Johnson & Johnson (J&J) set an ambitious target for the upcoming year, projecting sales to reach between $100 billion and $101 billion. Despite the decline of former blockbuster treatments, the pharmaceutical giant is leveraging its oncology and immunology portfolios to drive future growth.
Business Performance and the “Patent Cliff” J&J’s fourth-quarter 2025 sales rose 9.1% to $24.6 billion, surpassing Wall Street estimates. However, the company is navigating significant revenue gaps left by expiring patents:
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Stelara: The autoimmune blockbuster, which earned over $10 billion in 2024, saw a 55% sales drop in the U.S. during Q4 following its loss of exclusivity.
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Darzalex: While this core oncology drug generated $14.4 billion last year, it faces its own patent expiration looming in 2029.
Strategic Pivot to Oncology CEO Joaquin Duato aims to position J&J as the world’s top oncology firm, with a sector revenue goal of $50 billion by 2030. Key growth drivers include:
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Cell Therapy: Carvykti sales surged 66% to $555 million in the final quarter of 2025.
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M&A Activity: The company has invested billions to acquire developers like Intra-Cellular Therapies and Halda Therapeutics to bolster its pipeline.
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Immunology: High expectations are set for a new oral psoriasis medication currently nearing regulatory approval.
Political Landscape and Operating Costs While J&J recently reached an agreement with the White House regarding drug pricing, the company anticipates a sharp rise in tariff-related expenses. These costs are expected to more than double, reaching approximately $500 million in 2026, potentially impacting overall earnings.