Johnson & Johnson (NYSE:JNJ) reported its first-quarter results ahead of expectations, with the beat driven by higher sales from its Innovative Medicine segment.

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The latest results "set the stage for greater potential upside ahead," as the company’s revenue and earnings growth are likely to accelerate through the year and the back half of the decade, according to Guggenheim Securities.

The Johnson & Johnson Analyst: Analyst Vamil Divan maintained a Buy rating on the stock.

The Johnson & Johnson Thesis: The company reported total sales of $24.06 billion and earnings of $2.70 per share, beating consensus estimates of $23.61 billion and $2.68 per share, respectively, Divan said in the note.

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"The slight beat versus our estimates was driven primarily by Tremfya, Invega, Xarelto and Darzalex, largely offset by lower sales from Stelara, Spravato, and Medtech," he wrote.

Johnson & Johnson raised its 2026 sales guidance from $100-$101 billion to $100.3-$101.3 billion, the analyst stated. Of the $300 million increase in guidance at the midpoint, $200 million came from improved operations and $100 million from currency fluctuations, he added.

Management also lifted its earnings guidance from $11.43-$11.63 per share to $11.45-$11.65 per share, citing increased operational earnings, Divan mentioned in the note.

"Johnson & Johnson delivered a solid quarter while advancing our portfolio and investing in our new launches to accelerate growth over the long term," CFO Joe Wolk said. He added that the company would continue investing in "innovative science and technology."

The company raised the annual dividend from $5.20 per share to $5.36 per share.

"We continue to see JNJ as one of our Top Picks in large cap biopharma," Divan further wrote.

JNJ Price Action: Shares of Johnson & Johnson had declined by 1.03% to $237.61 at the time of publication on Wednesday.

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