Johnson & Johnson's (J & J) stock fell 0.4% in premarket trade on Tuesday as investors positioned ahead of the healthcare giant's quarterly results due Tuesday, with focus on its medical devices business, drug pipeline, and tariff exposure.

The company is expected to post revenue of $23.76 billion, nearly flat from last year's $23.74 billion, according to estimates from Koyfin. Adjusted EPS is expected to be $2.76, down from $2.77 a year ago. EBITDA is expected to come in 0.6% lower at $8.58 billion, while EBIT is expected to tick up 0.5% to $8 billion.

J & J shares trade near $190.90, close to their 12-month average price target of $187.49, implying limited near-term upside. Analysts maintain a broadly positive stance, with 10 rating it a 'Buy,' 11 a 'Hold,' and two a 'Strong Buy.'

In July, J & J cut its tariff-related cost forecast for the year to $200 million, down from $400 million, citing lower-than-expected impact on its medical devices business after the Trump administration paused some China and EU duties. CFO Joe Wolk said the company absorbed the costs while still raising its profit outlook, describing the tariff effect as“minimal.”

Growth in the medtech unit is expected to be a bright spot, driven by sales from cardiovascular products such as Varipulse and Trupulse, and Abiomed's Impella heart pumps. J & J said in July that robotic surgery and cardiovascular devices will be the key engines of growth for its medtech unit.

Attention will also be on Carvykti, J & J's blood cancer therapy developed with Legend Biotech, which recently received a U.S. FDA label update adding a black box warning for a rare intestinal inflammation. Regulators said the therapy's benefits still outweigh risks, highlighting longer patient survival versus standard treatments.

In immunology, the company faces renewed pressure from biosimilar competition to its top-selling drug Stelara. To offset potential declines, J & J has been pursuing acquisitions, including reported talks to acquire Protagonist Therapeutics, its partner on an oral therapy for plaque psoriasis and ulcerative colitis. A deal would add late-stage drug Rusfertide, seen as complementary to J & J's immunology and oncology portfolios.

Legal overhangs persist after a $966 million jury verdict in California earlier this month tied to talc-related cancer claims, which J & J plans to appeal. The company maintains that its products are safe and asbestos-free.

On Stocktwits, retail sentiment for J & J was 'extremely bullish' amid a  2,200% surge in 24-hour message volume.

One user predicted that J & J shares could climb to the $196–$200 range after earnings, while others speculated the biotech might announce an Altimmune acquisition during Tuesday's earnings call.

J & J's stock has risen 35% so far in 2025.

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