Johnson & Johnson

Q2 FY2026 EarningsQ2 FY26 results presented a top-line beat but a significant bottom-line miss relative to consensus: revenue $25.31B vs. $25.06B expected (+1.0%), while Diluted GAAP EPS of $2.27 missed the $2.43 mean estimate by 6.6%. The primary headwind was a sharp gross margin contraction to 68.2% vs. the 73.2% consensus, driven by unfavorable product mix from the STELARA biosimilar erosion and MedTech tariffs. Innovative Medicine performed well with Oncology up 17.3% YoY, though this was offset by a 55.2% decline in STELARA sales and $0.4B in unallocated talc-related charges.