Johnson & Johnson (JNJ) shares ended Friday in the red, dropping 1.77% to $226.71 as part of a broader market selloff that dragged the S&P 500 down 1.24%. Despite the pullback, the healthcare giant managed to close the week with a gain of approximately 2.4%, recovering from Monday's open at $221.43 to a high of $230.80 on Thursday before Friday's decline.
The Friday retreat was not isolated to J&J. Peers Pfizer (PFE) and Merck (MRK) also fell, losing 1.63% and 1.79%, respectively, according to MarketWatch data. The synchronized decline suggests the move was driven more by index-level pressure than company-specific news, leaving investors to question whether the pullback signals a broader rotation out of healthcare or merely a temporary setback.
Looking ahead, the focus shifts away from earnings and toward pipeline depth. J&J has announced that 18 neuropsychiatry abstracts will be presented at the American Psychiatric Association meeting in San Francisco (May 16-20) and the American Society of Clinical Psychopharmacology meeting in Miami (May 26-29). These presentations include data on CAPLYTA for schizophrenia and seltorexant for major depressive disorder with insomnia symptoms. Jane Tiller, global head of development for neuroscience at J&J's Innovative Medicine unit, emphasized the company's commitment to addressing residual symptoms that standard treatments often miss.
On the medtech front, J&J launched its Shockwave C2 Aero Coronary IVL Catheter globally on May 12. This device uses intravascular lithotripsy (IVL) to crack hardened calcium in arteries using acoustic pressure waves, facilitating blood flow restoration. Dr. Margaret McEntegart of Columbia University Medical Center noted the catheter's ability to navigate tortuous coronary anatomy. Isaac Zacharias, president of Shockwave Medical at J&J MedTech, stated the company is redefining standards for coronary IVL as competitors prepare to enter the market.
The earnings backdrop remains supportive. J&J reported first-quarter sales of $24.1 billion in April, up nearly 10% year-over-year, and raised its 2026 outlook to estimated reported sales of $100.8 billion and adjusted EPS of $11.55 at the midpoint. CEO Joaquin Duato described the quarter as a strong start to 2026.
However, challenges persist. Stelara, once a blockbuster autoimmune drug, saw sales fall approximately 60% to $656 million in the first quarter after losing patent protection and facing biosimilar competition. CFO Joseph Wolk told Reuters that many patients are choosing alternatives like Tremfya instead of biosimilars, while Jennifer Taubert, executive vice president, noted that the newly approved psoriasis drug Icotyde is off to a very fast start and could become one of J&J's biggest products.
J&J's dividend remains a key support. The company raised its quarterly dividend by 3.1% in April to $1.34 per share, marking its 64th consecutive year of increases. The next dividend is payable June 9 to holders of record on May 26.
