Johnson & Johnson Returns 58% on Slower Growth Than Eli Lilly

Johnson & Johnson stock has returned 58% over the past twelve months, second best among six large health care companies, despite ranking only fourth of the six in revenue growth. Three peers grew faster and returned less. Eli Lilly is one of them.

The gap is stark. Lilly's revenue grew 49.6% over the last twelve months, roughly six times Johnson & Johnson's 8.1%. Lilly's stock still returned 54%, less than Johnson & Johnson's 58%.

The pattern holds across the group. AbbVie and Medtronic also grew faster than Johnson & Johnson, and neither stock returned even half as much. Only Merck returned more, on slower growth.

The Numbers Behind the Rally

Market cap for the six companies spans a wide range: Lilly leads at $1,035.2 billion, Johnson & Johnson sits second at $652.9 billion, followed by AbbVie at $467.9 billion, Merck at $365.0 billion, Pfizer at $165.4 billion and Medtronic at $117.4 billion.

Johnson & Johnson trades at 31.0 times earnings, against 38.8 times for Lilly. Lilly costs only about a quarter more for far faster growth. The market is paying for something the trailing revenue does not show.

Other metrics show the same divergence. Lilly posted a 49.7% operating margin over the last twelve months; Johnson & Johnson recorded 26.8%, slightly ahead of Pfizer's 26.7%. Merck managed 10.5%. On twelve-month returns, Merck leads the group at 88.8%, Medtronic sits at the bottom at -0.9%, and Pfizer and AbbVie returned 22.9% and 22.8% respectively.

What Is Hiding Inside That Revenue Growth

Part of the answer is STELARA, an immunology drug losing share to biosimilars. Its sales fell 55.7% in the second quarter of 2026. Management says that excluding STELARA, company sales grew at a double-digit pace in that quarter. The peer ranking counts twelve months of total revenue with STELARA inside it, so the rally is a bet on the business without it.

Other medicines are growing fast. TREMFYA, an immunology drug used in psoriasis as well as Crohn's disease and ulcerative colitis, grew sales 71% in the second quarter of 2026. DARZALEX, a multiple myeloma drug and the company's largest product, grew close to 18% in the quarter. More than 10,000 patients have begun ICOTYDE, a once-daily psoriasis pill.

The MedTech segment tells a weaker story. The division, home to heart devices, surgical tools and ACUVUE contact lenses, grew sales only 3.6% in the second quarter. The CFO called its cardiovascular results below the company's standards.

Can New Medicines Outrun a Slower MedTech Arm

Johnson & Johnson guides 2026 reported sales to a midpoint of $101.1 billion. That would be its first year above $100 billion.

Two things muddy that target. The 2026 calendar includes a 53rd week, which management says adds about 100 basis points of growth. And sales at Abiomed, its heart recovery business, fell 2% in the second quarter as physicians grew more selective after an external clinical trial.

The stock's premium therefore rests on execution: TREMFYA, DARZALEX and ICOTYDE need to keep outrunning both the STELARA decline and a MedTech arm whose cardiovascular business the CFO admits falls short of company standards.