Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) and AbbVie (NYSE:ABBV) both posted Q1 2026 results that reshape how income investors should think about big pharma.
JNJ paired a top-line beat with a raised full-year outlook and a 64th consecutive dividend increase. AbbVie beat on revenue, missed on EPS due to a pipeline charge, and leaned harder into immunology. Same quarter, very different playbooks.
Oncology Powers One. Immunology Powers the Other.
JNJ pulled in $24.06 billion in revenue, up 9.9% YoY, with adjusted EPS of $2.70 beating the $2.6773 consensus. Oncology carried the quarter: DARZALEX hit $3.96 billion (+22.5%), CARVYKTI grew 62.1%, and TREMFYA absorbed STELARA share with 68.3% growth.
STELARA itself fell 59.7%, a roughly 920 basis point drag on Innovative Medicine. MedTech added $8.64 billion with cardiovascular up 13.0%. CEO Joaquin Duato called the portfolio and pipeline “unrivaled” after approvals for ICOTYDE and VARIPULSE Pro.
AbbVie posted $15 billion in revenue, up 12.43% YoY, with Skyrizi at $4.48 billion (+30.9%) and Rinvoq at $2.12 billion (+23.3%). Humira slid 38.6%, and adjusted EPS of $2.65 came in a hair below the $2.6676 estimate after a $744 million IPR&D charge shaved $0.41 per share. Neuroscience surprised, growing 26% on Botox Therapeutic, Ubrelvy and Qulipta.
Diversified Compounder vs. Immunology Machine
| Lens | JNJ | ABBV |
| Core Bet | Oncology + MedTech | Skyrizi and Rinvoq scaling past Humira |
| 2026 EPS Guide | $11.45 to $11.65 | $14.08 to $14.28 |
| Forward P/E | 23 | 18 |
| Dividend Yield | 2.01% | 2.65% |
| Key Vulnerability | STELARA biosimilar erosion | Humira erosion, IPR&D lumpiness |
JNJ is running a diversified compounder strategy, funding a planned Orthopaedics separation and a $1+ billion Pennsylvania cell therapy plant while raising its dividend 3.1% to $1.34. AbbVie is pouring $1.4 billion into a Durham, NC campus and pushing the non-incretin ABBV-295 obesity program toward the GLP-1 conversation.
CEO Robert A. Michael said the results were “exceeding our expectations”. Fair enough, but the IPR&D charge is a reminder that AbbVie’s earnings quality can swing more than JNJ’s.
Next Test Arrives July 15 for JNJ
JNJ reports Q2 on July 15, 2026, with Polymarket traders pricing a 92% probability of beating the $2.85 consensus. MedTech is the swing factor: traders cluster around a $9 billion revenue threshold at 71% odds.
For AbbVie, I want cleaner Skyrizi and Rinvoq numbers without another IPR&D surprise, plus early Phase 1 clarity on ABBV-295 before assuming obesity optionality is real.
Why I Split the Two by Investor Type
If I wanted a defensive core position with visible cash return, JNJ fits the profile. The $5.36 annualized dividend, low 0.235 beta, and MedTech optionality earn a steady seat in the portfolio, even after a 73.3% one-year run that has stretched the setup.
If I wanted more growth torque and a fatter yield, AbbVie is the more growth-oriented profile. Skyrizi and Rinvoq are outrunning Humira’s decay, and the 2.65% yield plus 18 forward P/E fits a growth-plus-income buyer. Investors may want to monitor both if IPR&D noise or STELARA erosion accelerates before the next earnings report.
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