Key Takeaways
Johnson & Johnson and AbbVie Inc. both delivered first-quarter revenue that topped analyst estimates and resulted in raised full-year guidance, but the two pharmaceutical giants are taking divergent paths to secure growth against the backdrop of biosimilar competition.
“A strong start to 2026,” Johnson & Johnson CEO Joaquin Duato said of the quarter, while AbbVie CEO Robert Michael said his firm is “off to an excellent start.”
JNJ posted revenue of $24.06 billion, a 9.9 percent year-over-year increase, fueled by strong performance in its Innovative Medicine and MedTech segments. AbbVie reported revenue of $15 billion, up 12.4 percent from the prior year, as its top immunology drugs continued to offset the declining sales of its former blockbuster Humira.
The results underscore a strategic split between the two health-care titans. JNJ is sharpening its focus through divestitures and targeted investments in high-growth areas like cell therapy. In contrast, AbbVie is broadening its portfolio, making a significant push into the lucrative obesity market while doubling down on its successful immunology franchise.
Johnson & Johnson’s growth was broad-based. The Innovative Medicine division grew 11.2 percent, powered by a 68.3 percent surge in immunology treatment TREMFYA and a 22.5 percent climb in cancer drug DARZALEX to $3.96 billion. The company's partnership with Legend Biotech on the CAR-T therapy CARVYKTI also continues to scale, with Legend reporting net trade sales of approximately $597 million for the therapy in the first quarter. JNJ’s MedTech unit also saw its Cardiovascular division climb 13 percent.
Reflecting its strong performance, JNJ raised its full-year 2026 revenue outlook to a midpoint of $100.8 billion. The company is moving to streamline its business by spinning off its DePuy Synthes Orthopaedics unit while investing over $1 billion in cell therapy manufacturing in Pennsylvania.
AbbVie’s growth rests heavily on its next-generation immunology drugs, Skyrizi and Rinvoq. Sales for the duo reached $4.48 billion and $2.12 billion, respectively, more than compensating for Humira’s 38.6 percent sales decline following its loss of exclusivity. The company’s adjusted earnings per share of $2.65 narrowly missed consensus by two cents, which it attributed to a $744 million charge for in-process research and development (IPR&D).
Despite the EPS miss, AbbVie raised its full-year adjusted EPS guidance to a range of $14.08 to $14.28 and now expects net revenues of approximately $67.3 billion for the year. The company is also expanding, committing $1.4 billion to a new campus in North Carolina and advancing its own obesity candidate, ABBV-295.
Notably, some analysts see significant value in the company’s shares. One discounted cash flow analysis identified AbbVie as potentially undervalued by nearly 50 percent, with an estimated fair value of $423 against a current price of around $212.
This article is for informational purposes only and does not constitute investment advice.
