Johnson & Johnson shares fell 1.1% to $237.45 during Monday's session, underperforming a resilient broader market. The healthcare giant retreated from an intraday high of $240.74, with trading volume reaching approximately 3.2 million shares.
The decline contrasted with gains in major indices, as the SPDR S&P 500 ETF advanced 0.6% and the Invesco QQQ Trust added 0.9%. Johnson & Johnson typically serves as a defensive holding for investors seeking dividend stability rather than dramatic price movements.
Sector peers experienced steeper losses, with Merck dropping 3.6% and Amgen declining 2.9%. The Health Care Select Sector SPDR Fund, which tracks major U.S. healthcare companies, slid nearly 1%.
The pullback follows substantial recent gains. According to market data, Johnson & Johnson shares surged 17.42% over the past month, with total returns reaching 61.53% year-to-date. Such significant appreciation often prompts profit-taking when sector momentum falters.
Company leadership recently projected 2026 sales between $99.5 billion and $100.5 billion, with anticipated earnings per share of $11.43 to $11.63. CEO Joaquin Duato expressed confidence that 2026 growth would outpace 2025 performance, while CFO Joseph Wolk estimated potential "hundreds of millions of dollars" in costs from U.S. drug-pricing negotiations.
Investors await key economic indicators, including Wednesday's January employment report and Friday's Consumer Price Index data. These releases could influence defensive and dividend-oriented stocks throughout the week.
The company continues to face legal challenges, with over 67,500 lawsuits alleging its talc products caused cancer. Recent court developments saw a New Jersey appeals court bar a plaintiffs' firm from state cases due to ethics violations, a decision the firm plans to appeal.
Johnson & Johnson's board approved a first-quarter dividend of $1.30 per share, payable March 10 to shareholders of record as of February 24. February 24 also serves as the ex-dividend date.
