Is Johnson & Johnson Stock Halal?
Johnson & Johnson · JNJ · NYSE
Johnson & Johnson (JNJ) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-29) interest-bearing debt is 3.0% of market cap and cash plus interest-bearing securities 3.8% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETFs SPUS and HLAL, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-03-29 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
Johnson & Johnson is a pure healthcare company since spinning off its consumer-health division (Kenvue) in 2023, and its business activity is squarely permissible. Its fiscal 2025 revenue of $94.2 billion comes from two segments: Innovative Medicine, the pharmaceuticals business ($60.4 billion), and MedTech, the medical-devices business ($33.8 billion). Making and selling medicines and devices does not implicate any prohibited industry, so for Shariah purposes J&J is evaluated on its financial ratios rather than its products.
On that financial screen, the professional evidence is strongly aligned. J&J is held by both major US Shariah ETFs: it is a top-15 position in SPUS at about 1.59% of the fund as of June 11, 2026, and it appears in HLAL's SEC-filed schedule of investments as of February 28, 2026. Two funds applying different index methodologies both including the same stock is robust corroboration that it passes professional screens at those dates, with any incidental interest income and debt within tolerance.
A Muslim investor may still want to weigh non-Shariah ethical factors that are separate from the business-activity screen, such as J&J's long-running talc product-liability litigation; these are matters of conscience rather than riba or prohibited-industry rules and do not change the screening outcome. Overall, J&J currently presents as a screen-passing, clean-business healthcare name across the major methodologies, with the standard reminder that ratio-based compliance is a snapshot worth re-confirming in a live screener.
Business Activity Screen
Johnson & Johnson is a healthcare company operating two segments after the 2023 spinoff of its consumer-health business (Kenvue): Innovative Medicine (pharmaceuticals) and MedTech (medical devices). Per its fiscal 2025 results (year ended December 31, 2025), total worldwide revenue (sales to customers) was $94,193 million: Innovative Medicine $60,401M and MedTech $33,792M.
Developing and selling pharmaceuticals and medical devices is a permissible business with no prohibited product line, which is why J&J is a staple of Islamic equity portfolios. The Shariah inputs are financial: J&J earns interest and investment income on its cash and pays interest on debt, both measured against AAOIFI ratio thresholds (specific 2025 amounts not separately verified here). Non-riba ethical considerations some investors weigh, such as the talc product liability litigation, are reputational/ethical rather than a Shariah business-activity screen issue. J&J is currently held by BOTH SPUS (175,794 shares, ~1.59% of fund as of 2026-06-11, a top-15 position) and HLAL (66,114 shares as of 2026-02-28), indicating it passes both major US Shariah methodologies as of those dates.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 3.0% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.8% | < 30% | Pass |
| Impermissible income / total revenueInterest/investment income $1.06B on $94.19B revenue = 1.1% (FMP as-reported XBRL, investmentincomeinterest). Verify no other impermissible revenue segments in 10-K. | 1.1% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-29 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Johnson & Johnson screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 3.0% | 3.8% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 3.0% | 3.8% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 27.4% | 11.0% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-29) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether Johnson & Johnson is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
Product structures and Shariah-compliance oversight vary by provider. Before applying:
- Verify halal compliance directly with the provider.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Consult a qualified Islamic finance advisor or scholar for guidance on your individual circumstances.
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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