ETFs to Buy Post JNJ's Q2 Earnings Beat & Bullish 2026 Outlook

Notably, JNJ has gained 3.5% since reporting its second-quarter results a week ago. The stock is now up more than 20% year to date, comfortably outperforming the S&P 500's 9.3% return.

Against this backdrop, for investors looking to capitalize on JNJ's raised earnings outlook for the year, backed by its dominant position in the Pharma and MedTech industries, healthcare exchange-traded funds (ETFs) offer a lower-risk entry point to gain exposure to this healthcare giant before the next major rally, particularly for those seeking to avoid single-stock idiosyncratic risk. 

But before suggesting a few such healthcare ETFs that deserve a place in your portfolio, let us take a look at JNJ's overall second-quarter performance.

A Brief Look at JNJ's Q2 Results

JNJ's second-quarter earnings per share (EPS) of $2.90 beat the Zacks Consensus Estimate by 2.1%, while sales outpaced the consensus mark by 0.5%. 

The combination of TALVEY and DARZALEX delivered deep and durable responses with more than 80% of patients progression-free at 2 years and overall survival up to 89%, as per the second-quarter data.

In solid tumors, JNJ continued to see strong performance from ERLEADA and RYBREVANT. In bladder cancer, nearly one in three eligible patients started on an INLEXZO regimen and new patient insertions grew approximately 75% in the second quarter versus the prior quarter. 

In Immunology, JNJ’s TREMFYA remained the fastest-growing advanced therapy in both Crohn's disease and ulcerative colitis, delivering exceptional overall sales growth of 71%. In Neuroscience, both SPRAVATO and CAPLYTA delivered strong performance in the second quarter, with CAPLYTA's new patient starts surging 122% year over year.

In Cardiovascular, VARIPULSE, JNJ’s pulsed-field ablation platform for atrial fibrillation, showed strong momentum with more than 85,000 patients now treated worldwide.  

JNJ debuted its CARTOSOUND SONATA, bringing new AI-powered imaging and mapping capabilities to electrophysiology. The company also received FDA authorization for its dual-energy THERMOCOOL SMARTTOUCH SF platform, which integrates pulsed-field and radiofrequency energy in a single system to give physicians greater flexibility in tailoring ablation treatments for patients.

In Circulatory Restoration, JNJ’s global launch of Shockwave C2 Aero expanded the healthcare giant’s ability to treat more complex coronary disease and broadened the reach of its intravascular lithotripsy platform. 

J&J's management expects to receive FDA regulatory approval for IMAAVY as the first-ever treatment for patients with warm autoimmune hemolytic anemia, a rare and serious autoantibody disease, in the second half of 2026.

The company also projects FDA approval for its OTTAVA robotic surgical system and the EMEA launch of ETHICON 4000 this year. 

JNJ’s planned acquisition of Firefly Bio, expected to be closed in the third quarter of 2026, should add a proprietary platform designed to target KRAS-driven solid tumors, which are typically more difficult to treat, thereby further diversifying the company’s oncology pipeline.  

Market Reaction Post Q2 Earnings

Following J&J's upbeat Q2 results, Bernstein raised its price target for the pharma giant to $261 from $251 while maintaining a Market Perform rating, citing solid underlying medical technology trends to drive the stock's performance (as cited in Investing.com).

JNJ-Heavy ETFs to Buy

iShares U.S. Pharmaceuticals ETF IHE  

This fund, with net assets worth $1.44 billion, provides exposure to 56 U.S. domestic drug manufacturers and vaccine producers. Of these, Johnson and Johnson takes the first spot, accounting for a 21.72% share. 

IHE has rallied 18.7% year to date and charges 38 basis points (bps) in fees. IHE holds a Zacks Rank #2 (Buy) and traded at a volume of 0.13 million shares in the last trading session.  

State Street Health Care Select Sector SPDR ETF XLV  

This fund, with assets under management (AUM) of $41.69 billion, provides exposure to 60 companies across pharmaceuticals, biotechnology, health care equipment and supplies, health care providers and services, life sciences tools and services, and health care technology industries. Of these, Johnson and Johnson takes the second spot, accounting for a 10.42% share. 

XLV has risen 3% year to date and charges 8 bps in fees. It traded in a heavy volume of around 5.60 million shares in the last trading session. XLV sports a Zacks Rank #1 (Strong Buy).   

Vanguard Health Care ETF VHT 

This fund, with net assets worth $20.4 billion, provides exposure to 423 companies that manufacture health care equipment and supplies or that provide health care-related services, and companies that are primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products. Of these, Johnson and Johnson takes the second spot, accounting for an 8.87% share.

VHT has risen 4.2% year to date and charges 9 bps in fees. It traded in a volume of around 0.28 million shares in the last trading session. VHT sports a Zacks Rank #1.

Boost Your Portfolio with Our Top ETF Insights

Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

Don’t miss out on this valuable resource. It’s free!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research