• Johnson & Johnson is set to release its quarterly earnings with an estimated EPS of $2.78 and projected revenue of $23.7 billion.
• The company's stock has increased by 31% this year, outperforming the S&P 500's 14% rise.
• JNJ has a history of outperforming earnings estimates, with an average earnings surprise of 5.96% over the last two quarters.

Johnson & Johnson (NYSE:JNJ) is a leading global healthcare company known for its wide range of products, including pharmaceuticals, medical devices, and consumer health goods. As the largest producer of healthcare products, JNJ has a strong market presence and competes with other industry giants like Pfizer and Merck. The company is set to release its quarterly earnings on Tuesday, October 14, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $2.78 and projected revenue of approximately $23.7 billion.

Goldman Sachs anticipates that JNJ will continue its strong performance in the upcoming earnings report. The company's stock has already increased by 31% this year, significantly outperforming the S&P 500's 14% rise. This growth is largely due to the effective execution in its Innovative Medicines segment, which has boosted sales and earnings estimates compared to its peers. Goldman Sachs expects JNJ to exceed consensus expectations in key products such as Tremfya, Darzalex, Carvykti, and Spravato.

Johnson & Johnson has a history of outperforming earnings estimates, with an average earnings surprise of 5.96% over the last two quarters. In the most recent quarter, the company reported earnings of $2.66 per share, surpassing the anticipated $2.77 per share, resulting in a 4.14% surprise. In the previous quarter, JNJ reported $2.77 per share against a consensus of $2.57, marking a 7.78% surprise. This track record has led to upward trends in recent earnings estimates.

The company's financial metrics reflect its strong market position. JNJ has a price-to-earnings (P/E) ratio of approximately 20.25, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 5.04, and the enterprise value to sales ratio is around 5.40, showing the company's total value relative to its sales. The enterprise value to operating cash flow ratio is approximately 21.24, highlighting the company's valuation in relation to its cash flow from operations.

Johnson & Johnson's financial health is further supported by an earnings yield of about 4.94%, representing the return on investment for shareholders. The debt-to-equity ratio is approximately 0.65, indicating a balanced use of debt and equity to finance its assets. Additionally, the current ratio is around 1.01, suggesting the company's ability to cover its short-term liabilities with its short-term assets. These metrics underscore JNJ's robust financial standing as it prepares for its upcoming earnings announcement.