JNJ Profit Margins
Gross, Operating & Net Margin Analysis for Johnson & Johnson
Margin Quality
Unknown
Current Profit Margins
Gross Margin
67.9%
$63.94B gross profit
Operating Margin
0.0%
$0.00 operating income
Net Profit Margin
28.5%
$26.80B net income
5-Year Margin Trends
What Margins Indicate About JNJ
Business Quality
High gross margins above 50% suggest Johnson & Johnson has strong pricing power and competitive advantages that allow premium pricing.
Operational Efficiency
Stable operating margins suggest consistent execution and predictable business operations.
Profitability
Net margins above 15% demonstrate excellent profitability and suggest strong competitive positioning.
Investment Implications
Expanding margins across the board suggest improving business fundamentals, which often supports stock price appreciation.
Understanding Profit Margins
Gross Margin
(Revenue - Cost of Goods Sold) / Revenue. Measures pricing power and production efficiency before operating expenses.
Operating Margin
Operating Income / Revenue. Shows profitability from core operations after all operating expenses but before interest and taxes.
Net Profit Margin
Net Income / Revenue. The bottom line - shows how much profit the company keeps from each dollar of revenue after all expenses.
Analyze JNJ Profitability
Get complete financial analysis with profitability trends, ROE, ROIC, and more
Frequently Asked Questions
What is JNJ's profit margin?
JNJ (Johnson & Johnson) has a net profit margin of 28.5%, meaning the company keeps $0.2845646704107524 in profit for every dollar of revenue. This represents an improvement from the previous year's net margin of 15.8%.
What is JNJ's gross margin?
JNJ's gross margin is 67.9%. Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold. A high gross margin like this indicates strong pricing power and efficient production.
What is JNJ's operating margin?
JNJ has an operating margin of 0.0%. Operating margin shows profitability after operating expenses but before interest and taxes. This metric helps investors understand how efficiently Johnson & Johnson manages its operations.
Are JNJ's profit margins good?
JNJ's margins are considered unknown. When evaluating margins, it's important to compare against Pharmaceuticals peers, as different sectors have structurally different margin profiles.
How do profit margins affect JNJ stock?
Profit margins are a key indicator of JNJ's business quality and competitive position. High margins suggest strong competitive advantages and pricing power, which typically support premium valuations. Expanding margins often lead to stock price appreciation, while contracting margins can signal competitive pressures.
What drives JNJ's profit margins?
JNJ's profit margins are influenced by several factors: pricing power vs competitors, operational efficiency, scale advantages, input costs (materials, labor), Pharmaceuticals-specific dynamics, and management execution. The significant expansion in gross margin suggests changes in these underlying drivers.
Disclaimer: Margin analysis is based on reported financial statements and should be compared to industry peers for context. Different sectors have structurally different margin profiles. This information is for educational purposes only and should not be considered financial advice.