Johnson and Johnson Q1 profit beats estimates, Stelara erosion continues

WASHINGTON: Johnson and Johnson reported stronger-than-expected first-quarter earnings on Tuesday, as robust demand for its cancer drug Darzalex and psoriasis treatment Tremfya helped offset a steep decline in sales of its blockbuster autoimmune drug Stelara.

The company posted adjusted earnings of $2.70 per share, above estimates of $2.66, while revenue rose nearly 10 per cent year-on-year to $24.1 billion, beating expectations of $23.6 billion.

However, Stelara continued to face significant pressure following patent expiry and biosimilar competition, with sales falling about 60 per cent to $656 million.

Growth was supported by strong performance from Darzalex, which generated $4 billion in quarterly sales, and Tremfya, which brought in $1.6 billion, both exceeding analyst forecasts.

Stelara’s decline was partially offset by newer pipeline strength, including the recently approved oral psoriasis drug Icotyde, which the company said has seen early uptake with around 1,500 prescriptions in just a few weeks.

The company also raised its full-year 2026 revenue and earnings outlook slightly, reflecting steady demand across its core portfolio, while maintaining cautious expectations amid pricing pressures and evolving competition.