Two Paths to Growth: Johnson & Johnson vs AbbVie

Johnson & Johnson reported $24.06 billion in revenue (+9.9% YoY) and adjusted EPS of $2.70, marking a fourth consecutive beat. Innovative Medicine grew 11.2%, driven by DARZALEX at $3.96 billion (+22.5%) and TREMFYA rising 68.3% as it absorbs STELARA patients. MedTech Cardiovascular increased 13%, with Shockwave up 18.5%, and the company raised FY26 revenue guidance to a midpoint of $100.8 billion. AbbVie posted $15 billion in revenue (+12.4%) and adjusted EPS of $2.65, narrowly missing consensus after a $744 million IPR&D charge. Skyrizi reached $4.48 billion (+30.9%) and Rinvoq added $2.12 billion (+23.3%), offsetting Humira’s 38.6% decline. Both companies face biosimilar headwinds while pursuing different strategies to outgrow them.

"JNJ delivered revenue of $24.06 billion (+9.9% YoY) and adjusted EPS of $2.70, a fourth straight beat. Innovative Medicine led with 11.2% growth, powered by DARZALEX at $3.96 billion (+22.5%) and TREMFYA leaping 68.3% as it absorbs STELARA patients. MedTech Cardiovascular climbed 13%, with Shockwave up 18.5%. CEO Joaquin Duato called the quarter “a strong start to 2026”, and the company raised its FY26 revenue outlook to a midpoint of $100.8 billion."

"AbbVie reported $15 billion in revenue (+12.4%), but adjusted EPS of $2.65 narrowly missed consensus after a $744 million IPR&D charge clipped earnings by $0.41. Skyrizi reached $4.48 billion (+30.9%) and Rinvoq added $2.12 billion (+23.3%), more than offsetting Humira's 38.6% decline. CEO Robert Michael said the firm is “off to an excellent start in 2026”."

"The strategic split is meaningful. JNJ is sharpening focus by spinning off DePuy Synthes Orthopaedics and pouring over $1 billion into Pennsylvania cell therapy manufacturing. AbbVie is going the opposite way, broadening into obesity through ABBV-295, a non-incretin candidate showing weight reduction in Phase 1, while committing $1.4 billion to a North Carolina campus."

"JNJ's $330 million in litigation charges and 55.4% drop in free cash flow are real overhangs. AbbVie's 32.9% GAAP tax rate and trenibotE Complete Response Letter add their own friction. The Next Test Is Pipeline Conversion I am watching whether TREMFYA can sustain that 68% growth trajectory while DARZALEX FASPRO"

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