Johnson & Johnson's Stock Price Rally: Buy Now for Long-Term Growth

Johnson & Johnson's stock price is in rally mode after years of normalization and the impact of its Kenvue spinoff. Q2 results show growth acceleration expected to continue in the back half of the year. Expected approvals and pipeline progress promise sustained growth over the long term. The company's capital return is safe and will continue to grow. The price action, stochastic and MACD indicators, and moving averages show solid support for the rally thesis.

Johnson & Johnson (JNJ) reported robust second-quarter (Q2) 2025 earnings, with adjusted earnings per share (EPS) of $2.77, surpassing the consensus estimate of $2.66. Revenue rose 5.8% year over year to $23.74 billion, beating analysts' expectations of $22.8 billion [2]. This performance has led to a significant rally in the stock, with shares up over 2% in premarket trading and around 7% year-to-date (YTD) [2].

The company's strong Q2 results were driven by solid performance in both its MedTech and Innovative Medicine segments, with a growing pipeline of therapies poised to drive momentum through the rest of the year. CEO Joaquin Duato highlighted the company's pipeline strength, noting significant progress across oncology, neuroscience, dermatology, and surgery [2]. Recent milestones include the approval of IMAAVY for generalized myasthenia gravis, priority FDA review for TAR-200 in bladder cancer, and positive CARVYKTI survival data for multiple myeloma [2].

In addition to the strong Q2 performance, Johnson & Johnson raised its full-year 2025 sales outlook to $93.2–$93.6 billion and adjusted EPS to $10.80–$10.90, up from the previous range of $91.0–$91.8 billion and $10.50 to $10.70, respectively [2]. This upward revision reflects the company's confidence in its pipeline and the potential for game-changing approvals and submissions in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery, and cardiovascular diseases [4].

Despite the positive earnings report, Johnson & Johnson faces potential tariff pressures on pharmaceutical imports, which the company estimates could cost $400 million in 2025. However, the company has reaffirmed its long-term commitment to U.S. manufacturing, with $55 billion in investments planned over four years [2].

The rally in Johnson & Johnson's stock price is supported by several technical indicators, including stochastic and MACD, which show solid support for the rally thesis. The company's capital return is safe and will continue to grow, providing investors with a sense of security [2].

In conclusion, Johnson & Johnson's Q2 earnings report signals resilience and growth across its diversified business lines. With a strong balance sheet, robust R&D pipeline, and expanded full-year outlook, JNJ continues to prove why it's one of the most stable names in healthcare. Investors appear confident that the second half of 2025 could unlock even more upside, driven by drug approvals and innovation in MedTech [2].

References:
[1] https://seekingalpha.com/news/4468000-jj-leads-big-pharma-higher-q2-beat
[2] https://coincentral.com/johnson-johnson-jnj-stock-q2-earnings-top-estimates-full-year-outlook-raised/
[3] https://www.ainvest.com/news/kenvue-crossroads-leadership-steer-post-spinoff-growth-2507/
[4] https://www.jnj.com/media-center/press-releases/johnson-johnson-reports-q2-2025-results-raises-2025-outlook