Is Johnson & Johnson a Buy, Sell, or Hold in 2026?

By Prosper Junior Bakiny – Feb 10, 2026 at 9:45PM ESTKey PointsJohnson & Johnson has crushed the market over the past year.The healthcare giant faces some challenges that could harm its results.However, Johnson & Johnson's business looks strong enough to overcome them.We’re bullish on these 10 stocks ›NYSE: JNJJohnson & JohnsonMarket Cap$575BToday's Changeangle-down(-0.12%) $0.29Current Price$238.35Price as of February 10, 2026 at 4:00 PM ETThis reliable dividend payer may be just what the doctor ordered.While artificial intelligence (AI) stocks are dominating debates and headlines on Wall Street, companies in other sectors can offer something that high-growth AI-focused corporations can't: stability in an otherwise volatile market. Consider a healthcare giant like Johnson & Johnson (JNJ 0.12%). Over the past year, it has quietly outperformed most members of the Magnificent Seven, with its shares rising 53% over the trailing 12-month period. But is the pharmaceutical leader still attractive after this run? Let's find out whether Johnson & Johnson is a buy, hold, or sell in 2026. Image source: Getty Images. Why Johnson & Johnson might run into headwinds Despite strong recent performances, some will point to multiple challenges Johnson & Johnson is facing. First, several of its medicines have been targeted by government-led drug price negotiations. This will likely lead to lower sales for these therapies than the company would have generated otherwise. There is also the threat of patent cliffs. Last year, Johnson & Johnson lost patent exclusivity in the U.S. for Stelara, an immunology drug, forcing the company to compete with biosimilars. Even beyond patent cliffs, Johnson & Johnson faces stiff competition for some products whose sales are moving in the wrong direction as a result. One such example is Imbruvica, a cancer drug. Lastly, Johnson & Johnson is still dealing with thousands of lawsuits from plaintiffs who claim that its talc-based products gave them cancer. Can Johnson & Johnson perform well amid these challenges? ExpandNYSE: JNJJohnson & JohnsonToday's Change(-0.12%) $-0.29Current Price$238.35Key Data PointsMarket Cap$575BDay's Range$237.88 - $240.5052wk Range$141.50 - $240.94Volume6.7MAvg Vol9.1MGross Margin75.27%Dividend Yield2.15% A resilient business One of Johnson & Johnson's best assets is its vast portfolio of medicines across many therapeutic areas. That ensures that, even with competition -- from biosimilars or otherwise -- its sales and earnings generally move in the right direction. That's what happened last year, even with declining revenue from Stelara, Imbruvica, and others, Johnson & Johnson posted strong results. And the company's guidance for the fiscal year 2026 implies it will perform well, too. Johnson & Johnson's diversification, including within its medical device division, where it is close to launching a robotic-assisted surgery device that will create more growth opportunities, is also a powerful hedge against drug price negotiations. Further, the company has a rock-solid balance sheet, with the highest credit rating available, evidence that it can survive its legal troubles. Finally, Johnson & Johnson is an excellent income stock. With 63 consecutive years of dividend increases, the company is a Dividend King (meaning it has raised its dividends for at least 50 consecutive years). So, is Johnson & Johnson a buy, sell, or hold? For long-term income seekers, the company is a solid buy.Read NextFeb 8, 2026 •By Matt DiLalloWhat is Considered a Good Stock Dividend? 2 Healthcare Stocks That Fit the Bill.Feb 4, 2026 •By David Jagielski, CPAJohnson & Johnson's Getting Back to Double-Digit Growth. Has the Stock Become a Bargain Buy?Jan 30, 2026 •By Prosper Junior BakinyThis Top Dividend Stock Could Achieve a Major Milestone This Year. Is It a Buy?Jan 23, 2026 •By Prosper Junior Bakiny2 Soaring Stocks to Hold for the Next 20 YearsJan 23, 2026 •By Keith SpeightsIs This Dividend King a Screaming Buy?Jan 22, 2026 •By Matt DiLalloThis 2.4%-Yielding Dividend King Remains As Healthy As EverAbout the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.

Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyStocks MentionedJohnson & JohnsonNYSE: JNJ$238.35 (0.12%) $0.29*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.