J&J brushes off tariff headwinds with raised forecast, oncology surge

Title

Johnson & Johnson Lifts Sales Forecast Despite Tariffs, Fueled by Oncology Surge

Keywords

Johnson & Johnson
J&J
2025 sales forecast
oncology growth
cancer drugs
Caplyta acquisition
Intra-Cellular Therapies
tariffs
medtech tariffs
Trump administration
Stelara
Darzalex
Carvykti
biosimilars
innovative medicines

Key Facts

- Raised Sales Outlook:
Johnson & Johnson increased its 2025 operational sales forecast by $700 million, now projecting revenue between $91.6 billion and $92.4 billion, reflecting confidence despite new tariff pressures4 8.

- Oncology Surge:
The company’s oncology division reported approximately 20% sales growth in the first quarter of 2025, with notable strength from cancer blockbusters like Darzalex and the CAR-T therapy Carvykti. Eleven major pharma brands delivered double-digit sales growth during the period4 7.

- Acquisitions Drive Expansion:
The raised outlook follows J&J’s $14.6 billion acquisition of Intra-Cellular Therapies, bringing the bipolar and schizophrenia drug Caplyta into its portfolio. Caplyta is also pending approval for major depressive disorder, considered a lucrative new indication4 8.

- Tariff Impact Managed:
J&J expects a $400 million impact from escalating global tariffs, mainly affecting its medical device exports to China. Executives stress that while this is a significant headwind, the company’s diversified business and manufacturing investments in the U.S. help cushion the blow8.

- Immunology and Competitive Dynamics:
Sales of older blockbuster Stelara continue to decline due to biosimilar competition and U.S. policy changes, but pipeline drugs like Tremfya and continued growth in oncology are offsetting these pressures4 7.

- Strategic U.S. Investment:
J&J announced plans to invest over $55 billion in U.S. manufacturing over the next four years, aiming to produce nearly all advanced medicines for the U.S. market domestically, partly in response to shifting trade and tax policy4 8.

- Stock Forecasts Stable to Bullish:
Analyst and algorithmic price forecasts for J&J stock in 2025 generally show modest upside, with price targets ranging from $154 to $185 and potential 5–12% gains over the year1 2 3 5.

- Innovation in Oncology:
J&J maintains a bold vision to eliminate cancer, driving advances in both solid and hematologic tumors, and has brought 14 new oncology medicines to market since 20116 10.

- Broader Pharma Strength:
Beyond oncology, cardiovascular-metabolic and immunology drugs posted double-digit sales increases in early 2025, underlining strength across the innovative medicines portfolio4.

- Industry Positioning:
Despite medtech and tariff headwinds, J&J’s focus on pharmaceuticals—particularly oncology—has allowed it to lift guidance at a time when many global manufacturers face increased uncertainty from trade policies4 8.