4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 117
Supplied Share-Price Snapshot: $277.68, down 1.10%
Healthcare Scale Comes With a Complicated Earnings Picture
Johnson & Johnson (NYSE: JNJ) combines two substantial healthcare businesses: Innovative Medicine and MedTech. The structure gives investors exposure to pharmaceutical treatments and medical technologies across several specialties, with different commercial drivers operating within the same company. The supplied material showed a 1.1% November share-price gain through November 6, 2026, although the latest earnings report presented a more complicated picture than sales growth alone suggested.
Third-quarter 2026 revenue increased 5.9% year over year to $25.4 billion. Innovative Medicine sales rose 7.7% to $16.757 billion, while MedTech revenue increased 2.5% to $8.642 billion. However, GAAP diluted earnings per share fell to $0.09 from $2.12. The company identified a one-time special charge associated with its proposed talc litigation resolution, together with acquisition and collaboration expenses, among the factors affecting reported results.
Adjusted diluted earnings per share also declined, falling to $2.59 from $2.80. That distinction matters because the quarter’s profitability pressure cannot be explained solely by the difference between GAAP and adjusted accounting. Meanwhile, market authorization for the OTTAVA robotic surgical system added a potential growth avenue within MedTech. Commercial adoption and the economics of bringing new technologies to market will determine its eventual contribution. For investors considering diversified healthcare stocks, the company offers considerable operating scale, but litigation costs, investment spending, and earnings conversion remain central to the assessment.
Ranking Rationale
Johnson & Johnson (NYSE: JNJ) takes fourth place with 117 hedge fund holders. Its pharmaceutical and medical technology businesses provide a broad operating foundation, while weaker adjusted earnings and the financial effects of litigation prevent revenue growth from telling the full investment story.
