On Wednesday, Johnson & Johnson (NYSE:JNJ) reported a fourth-quarter adjusted EPS of $2.04, down 10.9% year over year, beating the consensus of $2.01.

The pharmaceutical giant reported sales of $22.52 billion, up 5.3% year over year and beating the consensus of $22.44 billion.

Operational growth was 6.7%, and adjusted operational growth was 5.7%.

Raymond James noted that the company’s initial 2025 EPS guidance was slightly better than anticipated, despite facing foreign exchange (FX) challenges. However, the MedTech segment remains weak, with Johnson & Johnson defending its position in key franchises.

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Raymond James analyst Jayson Bedford wrote that increased M&A activity could support long-term growth, but near-term challenges include soft electrophysiology (EP) performance and the impact of Stelara's loss of exclusivity. The analyst maintained an Outperform rating.

BofA Securities viewed Johnson & Johnson as fairly valued, noting its above-average price-to-earnings (P/E) ratio but only average long-term growth prospects based on their analysis.

Potential upside could depend on the outcome of talc litigation expected in the first half of the year, and results from late-stage clinical trials for Johnson & Johnson’s pipeline drugs.

BofA analyst Tim Anderson slightly reduced the price forecast from $160 to $159 with a Neutral rating.

Stifel noted Johnson & Johnson started the fourth-quarter 2024 MedTech earnings season on a generally positive note. However, the MedTech division faced challenges from increased competition in PFA catheter adoption and China's volume-based procurement (VBP) policies. While these pressures are expected to persist, the division’s overall outlook remains optimistic.

MedTech growth was anticipated to pick up in the second half of 2025 as the business moves past tougher year-over-year comparisons in the first quarter and benefits from momentum gained by newly launched products throughout the year.

Stifel analyst Rick Wise maintained a Hold rating on Johnson & Johnson shares, and suggested there may be better opportunities to invest based on timing and valuation.

Goldman Sachs analyst Chris Shibutani said the oncology segment, once again headlined by the very strong multiple myeloma franchise, delivered yet again amid high expectations.

The challenges unsurprisingly percolate within immunology, where some turbulence for Tremfya added to the burden of responsibility for the product ahead of key IBD launches.

JNJ Price Action: Johnson & Johnson stock was up 1% at $146.80 at last publication Thursday.

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