Operating margin at a 6-year high.27% in 2025, the best of the last 6 years.
Johnson & Johnson kept 27% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.
Profit is backed by cash. Free cash flow is 106% of reported profit.
Johnson & Johnson's free cash flow is 106% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins.Operating margin 29% (12 months to Jun 2026) vs a peer median of 7.0%.Operating margin 29% vs peers 7.0%.
Johnson & Johnson keeps 29% of revenue as operating profit, more than 92% of peers (median 7.0%).
Steadier share price. Beta 0.23: tends to move less than the market.
Johnson & Johnson's shares have swung less with the market than most peers' (beta 0.23, below the market's 1.0).
Since last quarter: No major changeValuation also moves with the share price every day.
Why it changed since the Sep 30, 2026 close: Score 59 → 60
Share price -2.4%+1
Each step re-scores the company against its peers as they were on Oct 1, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.
Return on invested capital, operating margin, and return on assets.
Operating margin29.2%
Yahoo Finance fallback · SEC operating income not reported in standard form · trailing 12 monthsReported value33% base weight · Z-score 1.82Sector median: 0.0704 · MAD: 0.1216
Return on assets10.5%
SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.64Sector median: 0.0162 · MAD: 0.0539
Return on invested capital19.9%
Yahoo Finance fallback · SEC operating income or invested capital unavailable · trailing 12 monthsReported value33% base weight · Z-score 1.52Sector median: 0.0468 · MAD: 0.1007
Other data (not scored)
Gross margin67.9%
SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.4697 · MAD: 0.2310
Return on equity24.8%
SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0321 · MAD: 0.1230
Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.
Latest filing: what changed
Quarter ended Jun 28, 2026 · filed Jul 23, 2026 · compared with the quarter ended Mar 29, 2026
No major changes
Previous quarter
Latest quarter
Change
Revenue (12 months)
96.4B USD
97.9B USD
+1.6%
Net income (12 months)
21.0B USD
21.0B USD
−0.0%
Free cash flow (12 months)
17.8B USD
22.2B USD
+25.1%
Debt
55.0B USD
49.0B USD
−10.8%
Cash
21.7B USD
20.4B USD
−5.8%
Shares outstanding
2.41B
2.41B
+0.1%
From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.
Industry valuation context
Sector: Healthcare · 301 companies
Valuations in Healthcare are within their usual range since 2016.
52% of months since 2016 were valued lower than now.
19% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +8% and earnings +24% (medians): earnings grew faster than prices.
Median price-to-sales is +63% vs the whole market, against a usual +119%.
2016Shaded: most expensive fifth of its range2026
Shown for Healthcare: too few Drug Manufacturers - General companies have a long enough history of their own.
Earnings-based measures are left out for now because many companies in Healthcare are losing money.
Describes valuations since 2016; it does not predict prices. US companies worth $1B+, from SEC filings and month-end prices, as of Aug 2026. Today's companies and industry labels are used throughout. Measured on sales and free cash flow yields. How this works
Financials
Fiscal years from SEC annual filings · change vs the prior year
Key ratios
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
Change
Gross margin
70.3%
69.3%
68.8%
69.1%
67.9%
▼ 1.2 pts
Operating margin
25.0%
25.2%
25.5%
24.1%
26.9%
▲ 2.9 pts
Net margin
26.5%
22.4%
41.3%
15.8%
28.5%
▲ 13 pts
Return on assets (ROA)
11.5%
9.6%
21.0%
7.8%
13.5%
▲ 5.6 pts
Return on equity (ROE)
28.2%
23.4%
51.1%
19.7%
32.9%
▲ 13 pts
Free cash flow margin
25.1%
21.5%
21.4%
22.3%
20.9%
▼ 1.4 pts
Current ratio
1.35×
0.99×
1.16×
1.11×
1.03×
▼ 7.5%
Quick ratio
1.12×
0.81×
0.91×
0.86×
0.77×
▼ 11%
Debt to equity
0.48×
0.54×
0.45×
0.54×
0.61×
▲ 14%
Interest coverage
107.67×
73.08×
28.10×
28.32×
26.13×
▼ 7.7%
JNJ price history
Price history is added with the daily price update and will appear after the next one.