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Johnson & Johnson Crushes Q2 Earnings: Tap These Top ETFs for Growth

HomeJohnson & Johnson Crushes Q2 Earnings: Tap These Top ETFs for Growth

Johnson & Johnson Crushes Q2 Earnings: Tap These Top ETFs for Growth

Johnson & Johnson Crushes Q2 Earnings: Tap These Top ETFs for Growth

Johnson & Johnson JNJ Beats Earnings and Revenue Estimates, Boosts Dividend

Johnson & Johnson, the world's largest healthcare products maker, has reported stronger-than-expected second-quarter 2025 results. The company has continued its long streak of earnings beat and exceeded revenue estimates, further solidifying its position as a leader in the industry. As a result, shares of JNJ rallied 6.1% following the earnings announcement.

Investors' Reaction to JNJ's Earnings

The impressive earnings report has sent shockwaves through the financial markets, with investors taking notice of the company's growth prospects. To tap into these opportunities, investors can consider using ETFs (Exchange-Traded Funds) that have the largest allocation to this diversified drug maker. Some popular options include:

iShares U.S. Pharmaceuticals ETF (IHE) VanEck Vectors Pharmaceutical ETF (PPH) Health Care Select Sector SPDR Fund (XLV) iShares U.S. Healthcare ETF (IYH) First Trust Nasdaq Pharmaceuticals ETF (FTXH)

These ETFs offer exposure to companies involved in pharmaceutical research and development, production, marketing, and sales of prescription or over-the-counter drugs or vaccines.

JNJ's Second-Quarter Earnings

Johnson & Johnson's second-quarter 2025 earnings per share came in at $2.77, surpassing the Zacks Consensus Estimate of $2.66 by a margin of 4.2%. This represents a decline of 1.8% from the year-ago earnings. The company's revenue grew 5.8% year over year to $23.74 billion, outpacing the Zacks Consensus Estimate of $22.80 billion.

Segment Performance

The company's innovative medicines segment saw sales advance 4.9%, while MedTech devices sales jumped 7.3%. Notably, sales of JNJ's top-selling blood cancer treatment, Darzalex, soared 23% to $3.5 billion, and Xarelto generated $621 million in sales, up 5.6% year over year.

Segment Performance (continued)

However, the company experienced a decline in sales for certain products, including:

  • Stelara, a psoriasis drug, which saw a 42.7% drop to $1.65 billion due to the launch of several biosimilar versions.
  • Invega Sustenna, whose sales dropped 5.9% to $992 million.

Revenue Guidance and Dividend

In light of its strong second-quarter results, Johnson & Johnson has raised its revenue guidance for fiscal 2025 to $93.2-$93.6 billion from $91.0-$91.8 billion, indicating year-over-year growth of 5.1%-5.6% versus the prior expectation of 2.6%-3.6%. The company also lifted its adjusted earnings per share guidance to $10.80-$10.90 from $10.50-$10.70.

The drugmaker now anticipates a $200 million tariff impact in 2025, down from its previous estimate of $400 million. This reduced tariff burden is expected to contribute to the company's improved profitability.

Price Target and Dividend

Following the upbeat earnings report, Stifel has raised its price target on Johnson & Johnson to $165.00 from $155.00, citing multiple new product launches as a key driver of the company's confidence.

Johnson & Johnson also lifted its quarterly dividend to $1.30 per share from $1.24, marking its 63rd consecutive annual increase. At this new rate, the annual dividend totals $5.20 per share, up from $4.96.

ETFs in Focus

Investors seeking to tap into JNJ's growth prospects can consider using the following ETFs:

  • iShares U.S. Pharmaceuticals ETF (IHE)
  • VanEck Vectors Pharmaceutical ETF (PPH)
  • Health Care Select Sector SPDR Fund (XLV)
  • iShares U.S. Healthcare ETF (IYH)
  • First Trust Nasdaq Pharmaceuticals ETF (FTXH)

These ETFs offer exposure to companies involved in pharmaceutical research and development, production, marketing, and sales of prescription or over-the-counter drugs or vaccines.

Conclusion

Johnson & Johnson's strong second-quarter 2025 results have sent a positive signal to investors, with the company continuing its long streak of earnings beat. The impressive revenue growth, combined with the raised revenue guidance and dividend, solidifies JNJ's position as a leader in the industry. As such, investors can consider using ETFs that have the largest allocation to this diversified drug maker to tap into these opportunities.

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