Johnson & Johnson has filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $99.33 billion, which rose 7.8% on the year before. That growth rate was down 0.3 percentage points on the rate a quarter earlier.
Profitability
The trailing gross margin was 67.6%, while the trailing net margin stood at 16.2%. Net income over the twelve months was $16.09 billion, which fell 35.9% on the year before.
Cash flow
Operating cash flow over the twelve months was $26.16 billion, up 8.1% on the year before. Capital spending was $5.57 billion, or 5.6% of revenue. Free cash flow, defined as operating cash flow less capital spending, was $20.59 billion, up 5.1% on the year before. The free-cash-flow margin, calculated as free cash flow as a percentage of revenue, was 20.7%, down 0.5 percentage points from a year earlier.
Share count
The average diluted share count rose 0.7% over the year.
Against its own history
Today’s free-cash-flow margin of 20.7% is higher than 14% of the company’s own past quarterly readings, which have ranged from 17.7% to 27.3%. Today’s twelve-month revenue growth rate of 7.8% is higher than 81% of the company’s own past quarterly readings, which have ranged from −23.6% to 19.9%.
Guidance
The company provided its guidance for estimated restructuring program costs for Innovative Medicine, specifically the supply chain restructuring program, by the end of fiscal year 2029 at $650.0 million to $750.0 million.
What it means for value
In our model, growth 5 percentage points lower would lower the value by 26.3%, and 5 percentage points higher would raise it by 34.2%. A free-cash-flow margin 1 percentage point lower would lower the value by 4.9%.
What to watch
The next filing will reveal whether the recent decline in revenue growth rate continues or stabilizes relative to the previous quarter’s pace. It will also show if the net margin contraction persists alongside the changes in operating cash flow and capital spending.
