Johnson & Johnson stock tumbled Tuesday even after the company beat earnings forecasts and raised its outlook for 2026, The Motley Fool reported. The shares fell 6.8% through 12:30 p.m. ET.

J&J earned $2.59 per share on an adjusted basis, above the $2.53 analysts expected, The Motley Fool reported. Sales grew 5.9% to $25.4 billion. But adjusted profit was down 7.5% from a year earlier.

Reported profit fell much further. Net earnings dropped 96% to $210 million, or 9 cents per share, from $5.15 billion a year earlier, RTTNews reported. The company blamed a "one-time special charge for the proposed talc litigation resolution, the acquisition of Firefly Bio, Inc., and the strategic collaboration with Sail Biomedicines," The Motley Fool reported.

24/7 Wall St. said the drop in reported profit outweighed the higher targets for now. It also pointed to weaker results in the MedTech business.

The company raised its full-year guidance. It now expects 2026 sales of $101.2 billion, growth of 7.4% at the midpoint, and adjusted earnings of $11.10 per share, up 6 cents, RTTNews reported. Free cash flow rose more than 6% to $15.1 billion, according to The Motley Fool.

U.S. sales grew 9.1%, while international sales rose 1.5%, RTTNews reported. Sales in the Innovative Medicine unit rose 7.7%, and MedTech grew 2.5%.

Chief Financial Officer Joseph Wolk said the talc settlement is trending toward its required participation level, 24/7 Wall St. reported. J&J's board also declared a quarterly dividend of $1.34 per share, payable Dec. 8, RTTNews reported.

What we know: J&J beat adjusted forecasts and raised guidance, but a talc charge and deal costs crushed reported profit.
What we don't: Whether the talc settlement will win enough support to take effect, and when MedTech growth will pick up.