Is JNJ (Johnson & Johnson) Halal or Haram?

Based on our AAOIFI-standard shariah screening, JNJ is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (8.09% vs ≤33% threshold), interest income ratio (0.09% vs ≤5% threshold), and cash & securities ratio (3.39% vs ≤33% threshold).

Johnson & Johnson is a global healthcare giant that has recently transformed its business model by spinning off its consumer brands into Kenvue Inc. The company now focuses exclusively on two high-growth sectors: Innovative Medicine, which develops treatments for oncology and immunology, and MedTech, which provides surgical and orthopaedic technologies. This strategic shift allows JNJ to concentrate its resources on solving complex medical challenges rather than selling everyday consumer staples like Band-Aids. For Muslim investors, JNJ represents a compliant investment opportunity, having passed all four AAOIFI screening criteria. The company 's business activities are fundamentally aligned with Shariah principles, as the development of life-saving drugs and medical devices falls under the noble pursuit of healing. Its 'Halal' status indicates that its core operations are permissible and it does not derive significant income from prohibited sources like gambling or alcohol. Financially, JNJ demonstrates strong discipline that appeals to conservative Islamic investors. The company maintains a very healthy balance sheet with a debt-to-market cap ratio of only 8.1 %, well below the 33% threshold allowed by AAOIFI standards. Furthermore, its interest-bearing securities and cash holdings are minimal relative to its size, ensuring that investors are buying into a productive asset rather than a cash-hoarding entity . While the stock is currently compliant, investors should continue to monitor the company's financial health post-spinoff. As J NJ invests heavily in R&D for new pharmaceutical pipelines, debt levels could fluctuate, though they currently remain well within safe limits. For now, JNJ stands as a robust, compliant option for those seeking exposure to the global healthcare sector. Johnson & Johnson operates in the Healthcare sector under the Drug Manufacturers - General industry and is headquartered in New Brunswick, NJ, US. The company is led by CEO Joaquin Duato and employs approximately 138,100 people.

JNJ was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. JNJ passed 4 of these 4 screens.

Although JNJ passes all shariah screens, it does earn $85.0M in interest income (0.09% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.09 to purify the income.

JNJ was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.