Johnson & Johnson’s stock surged approximately 6–7% following the healthcare giant’s announcement that it had sharply reduced its projected tariff-related costs and raised its full-year profit guidance. The company now estimates it will face around $200 million in tariff expenses for 2025, down from its earlier forecast of $400 million. This revision reflects a temporary suspension of key tariffs, including those affecting imports from China and select North American suppliers.
The revised forecast came alongside stronger-than-expected second-quarter earnings. Johnson & Johnson reported adjusted earnings per share of $2.77, surpassing Wall Street estimates. Revenue for the quarter rose to $23.74 billion, marking a 5.8% increase from the same period a year ago. The company credited the robust performance to continued growth in its oncology segment—driven by the cancer drug Darzalex—as well as expansion in its medical device business.
Chief Executive Officer Joaquin Duato and Chief Financial Officer Joe Wolk highlighted that the lowered tariff costs would enable the company to ramp up investments in research and development and launch new product lines. Duato also reaffirmed Johnson & Johnson’s commitment to bolstering U.S. manufacturing, citing plans to invest more than $55 billion domestically over the next four years. While acknowledging that tariffs pose operational challenges, Duato emphasized that broader tax reforms hold greater potential for fostering industrial growth.
Market analysts pointed to positive technical indicators that reinforced investor confidence. The company’s stock recently broke above both its 50-week and 200-week moving averages, a signal many traders interpret as a bullish momentum shift. With shares approaching resistance levels near $168, some analysts see room for further upside if current trends continue.
This corporate performance comes amid broader signs of stabilization in U.S. financial markets. Earlier in the week, President Trump helped ease market jitters by stating that it was “highly unlikely” he would remove Federal Reserve Chair Jerome Powell. The reassurance helped calm volatility seen in Thursday’s session and underscored the extent to which central bank leadership speculation can influence investor sentiment.
In summary, Johnson & Johnson’s combination of reduced tariff exposure, robust quarterly earnings, and optimistic forward guidance has given its stock a notable lift. As markets digest the broader implications of trade policy and monetary direction, investors will be closely monitoring how the company leverages its cost savings to fuel innovation and sustain growth momentum in an evolving economic landscape.
