JNJ
Johnson & Johnson
Healthcare · Drug Manufacturers - General · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Exceptional FY2025 profitability — including a 34.6% operating margin and 28.5% net margin — anchored a strong composite score alongside near-perfect financial health.
- Consistent multi-year dividend growth from $4.19 to $5.14 per share and a 90.6% surge in net income contributed meaningfully to the overall score.
- The composite score was moderated by below-midpoint momentum, reflecting flat sequential revenue and volatile quarterly operating income across recent periods.
Why Not Higher
- Quarterly momentum was penalized by inconsistent operating income — dropping sharply to $4.97 billion in 2025Q4 after peaking at $7.49 billion in 2025Q3 — and the absence of clear revenue acceleration.
- The Aging Population theme assignment contributed zero to the model score, and the dividend payout ratio of 46.2% kept the dividend score from reaching the top tier.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $88,821,000,000 to FY2025's $94,193,000,000, a gain of +6.0%. Net income surged from FY2024's $14,066,000,000 to FY2025's $26,804,000,000 (+90.6%), with diluted EPS rising from $5.79 in FY2024 to $11.03 in FY2025 (+90.5%).
The model rewarded the exceptional bottom-line expansion in FY2025, while the more moderate top-line growth of +6.0% likely tempered the score from a perfect mark.
In FY2025, Johnson & Johnson posted a net margin of 28.5%, an operating margin of 34.6%, and a return on assets of 13.5%.
These metrics reflect broad-based profitability strength across the income statement and balance sheet, which the model rewarded with a perfect score.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue across the last four quarters was relatively stable: $23,743,000,000 in 2025Q2, $23,993,000,000 in 2025Q3, $24,564,000,000 in 2025Q4, and $24,062,000,000 in 2026Q1. Net income showed a mild declining trend from $5,537,000,000 in 2025Q2 to $5,116,000,000 in 2025Q4, recovering modestly to $5,235,000,000 in 2026Q1. Operating income was volatile, peaking at $7,493,000,000 in 2025Q3 before dropping to $4,966,000,000 in 2025Q4 and partially recovering to $5,990,000,000 in 2026Q1.
The model appears to have penalized the lack of clear acceleration in revenue and the inconsistency in operating and net income across recent quarters, resulting in a below-midpoint momentum score.
Dividends per share have risen consecutively from $4.19 in FY2022 to $4.70 in FY2023, $4.91 in FY2024, and $5.14 in FY2025. The dividend payout ratio in FY2025 stood at 46.2%.
The model recognized a consistent multi-year dividend growth trend, while the payout ratio of 46.2% in FY2025 suggests a moderate but sustainable distribution level that likely kept the score from reaching the top tier.
Johnson & Johnson is assigned to the Aging Population macro theme.
Although the company carries the Aging Population theme assignment, this alignment did not translate into a score under the model's current methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Johnson & Johnson delivered strong full-year FY2025 results, with revenue rising 6.0% to $94.2 billion and net income nearly doubling to $26.8 billion, driving diluted EPS to $11.03. Profitability metrics were exceptional, with a net margin of 28.5%, an operating margin of 34.6%, and a return on assets of 13.5%. The company also maintained a consistent dividend growth track record, raising dividends per share from $4.19 in FY2022 to $5.14 in FY2025. Near-term momentum has been mixed, with quarterly operating income showing notable volatility and revenue growth relatively flat across recent quarters.
Plain English
Johnson & Johnson is a highly profitable healthcare giant that nearly doubled its profits in 2025 and has steadily raised its dividend every year, though its recent quarter-to-quarter results have been a bit uneven.
Bull Case vs. Bear Case
Bull Case
- Net income surged 90.6% year-over-year to $26.8 billion in FY2025, with diluted EPS rising from $5.79 to $11.03, reflecting exceptional bottom-line expansion.
- FY2025 profitability metrics were outstanding across the board: a 28.5% net margin, 34.6% operating margin, and 13.5% return on assets signal broad-based financial strength.
- Dividends per share have grown consecutively every year from $4.19 in FY2022 to $5.14 in FY2025, demonstrating a reliable and sustained income-return track record.
Bear Case
- Quarterly operating income was highly volatile, swinging from a peak of $7.49 billion in 2025Q3 to just $4.97 billion in 2025Q4, raising questions about earnings consistency.
- Revenue growth of 6.0% in FY2025, while positive, is moderate, and quarterly revenues have been essentially flat ranging from $23.7 billion to $24.6 billion across the last four quarters.
- The theme alignment with Aging Population did not translate into any model score contribution, suggesting the thematic tailwind is not yet reflected in measurable near-term financial momentum.
What Could Change the Picture
Bullish Triggers
- A sustained reacceleration in quarterly operating income above the $7 billion level seen in 2025Q3 would signal that the FY2025 bottom-line surge is durable rather than one-time.
- Continued dividend per share increases beyond $5.14 with a stable or declining payout ratio below 46.2% would reinforce the sustainability of shareholder returns.
Bearish Triggers
- If quarterly net income continues its mild declining trend from $5.54 billion in 2025Q2 toward or below the $5.12 billion seen in 2025Q4, confidence in earnings durability would erode.
- A reversal in the multi-year dividend growth trend or a significant rise in the payout ratio above current levels could signal financial stress and reduce income investor appeal.
Risk Profile
Very Low RiskJohnson & Johnson's total assets of $199.2 billion and high financial health score suggest a robust balance sheet capable of absorbing near-term headwinds. However, the volatility in quarterly operating income — ranging from $4.97 billion to $7.49 billion across recent quarters — represents a source of earnings unpredictability that investors should monitor.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.