Johnson & Johnson (NYSE:JNJ) is scheduled to report its third-quarter fiscal 2027 results on Nov. 12. Bank of America Securities analyst Jason Gerberry expects the company to report sales in line with consensus estimates and earnings below consensus.
The Johnson & Johnson Analyst: Gerberry maintained a Neutral rating and raised the price target from $263 to $278.
The Johnson & Johnson Thesis: The company had disclosed earnings dilution from IPR&D (in-process research and development) of 64 cents per share for 2026, most of which would be realized in the third quarter and consensus "may not fully reflect that impact," Gerberry said in the note.
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The analyst expects Johnson & Johnson to generate revenue growth of 6% year-on-year, with:
- Pharma at 7%
- MedTech at 4%
He noted that the focus is likely to be on:
- The Icotyde (psoriasis) launch
- Key oncology launches – Inlexzo and Tecvayli
- Talc
Following BofA’s physician dermatology survey, the analyst raised the Icotyde (oral IL-23) peak PsO (psoriasis) sales to $4.5 billion, reflecting an 18% share, from the earlier projection of $2.4 billion, reflecting a 10% share.
Gerberry projects Johnson & Johnson’s third quarter and 2026 sales at $70 million and $220 million, broadly in line with consensus estimates of $76 million and $233 million, respectively.
In the third quarter, the company completed the acquisition of Firefly Bio and entered a collaboration/option agreement with Sail Biomedicines, the analyst noted.
Johnson & Johnson expects earnings dilution to rise from its estimated 64 cents per share in 2026 to $1.36 per share in 2027, Gerberry said. "We raise 2026E R&D $1.5bn ($1.3bn upfront 3Q26), raise 3Q26 effective tax, and lower interest income," he further wrote.
JNJ Price Action: Shares of Johnson & Johnson had declined by 1.97% to $266.62 at the time of publication on Tuesday.
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