Wall Street Cheers J&J’s Outlook: Morgan Stanley, Stifel Raise Targets After Q2 Beat and Guidance Lift

Johnson & Johnson is receiving renewed support from Wall Street after reporting a strong second quarter and boosting its full-year guidance. 

The healthcare company exceeded analyst expectations on both top and bottom lines.

Morgan Stanley nudged its price target on the stock to $176 from $171, citing a strong quarter and optimism about growth through 2026, the Fly reported. 

While the firm kept its ‘Equal Weight’ rating, analyst Terence Flynn flagged a few lingering uncertainties, including how potential pharma-related tariffs and U.S. drug pricing reforms might play out.

Wells Fargo also maintained its ‘Equal Weight’ stance, holding the price target at $170. 

The research firm described the quarter as “solid” and said Johnson & Johnson’s expectations for an acceleration in growth during the second half of the year seem achievable. 

The company also expressed confidence in exceeding the upper end of its 5%–7% sales growth target for the Innovative Medicine segment, a goal outlined during last year’s investor day.

Meanwhile, Stifel raised its target to $165 from $155 but held its ‘Hold’ rating. Analysts at the research firm credited the company’s updated guidance, which factored in currency tailwinds, stronger-than-expected sales, and a less severe impact from tariffs. 

Johnson & Johnson delivered a solid beat in the second quarter, reporting adjusted earnings of $2.77 per share,  ahead of the $2.68 that analysts had expected. 

Revenue hit $23.7 billion, also topping analysts’ forecast of $22.86 billion. 

On the back of that performance, the company raised its full-year outlook, now expecting adjusted earnings of $10.80 to $10.90 per share and 2025 sales in the range of $93.2 billion to $93.6 billion.

CEO Joaquin Duato said the company is building momentum heading into the second half of the year, with key regulatory decisions on the horizon in areas like oncology, mental health, psoriasis, and surgical innovation.

Sales in the Innovative Medicine division rose 3.8%, led by oncology drugs including Darzalex and Carvykti. 

Neuroscience and immunology also contributed to the gains. MedTech posted 6.1% operational growth, helped by demand for heart-related devices from its Abiomed unit and wound care products in general surgery.

The company also revised its estimate for the impact of U.S. tariffs to $200 million, marking a sharp drop from the $400 million forecast it made in April. 

The shift follows a pause in some of the levies under U.S. President Donald Trump’s 

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