Healthcare earnings impress with 86% beat rate, yet sector lags: Earnings Scorecard

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Out of 22 S&P 500 healthcare companies that reported results this week, 19 beat earnings expectations and 15 posted year-over-year EPS growth. All 22 companies recorded year-over-year revenue increases, with only two missing Wall Street estimates on the top line.

Despite the strong results, the Health Care Select Sector SPDR Fund (XLV [https://seekingalpha.com/symbol/XLV]) is down 6.2% year to date, lagging the S&P 500, which is up 5.6%.

EARNINGS RECAP

* AbbVie (ABBV [https://seekingalpha.com/symbol/ABBV]): missed by $0.02; EPS up $0.19 Y/Y
* Merck & Co. (MRK [https://seekingalpha.com/symbol/MRK]): beat by $0.19; EPS down $3.50 Y/Y
* Eli Lilly and Company (LLY [https://seekingalpha.com/symbol/LLY]): beat by $1.76; EPS up $5.21 Y/Y
* Bristol-Myers Squibb (BMY [https://seekingalpha.com/symbol/BMY]): beat by $0.16; EPS down $0.22 Y/Y
* Amgen (AMGN [https://seekingalpha.com/symbol/AMGN]): beat by $0.38; EPS up $0.25 Y/Y
* Moderna (MRNA [https://seekingalpha.com/symbol/MRNA]): beat by $0.48; EPS down $0.88 Y/Y
* Incyte (INCY [https://seekingalpha.com/symbol/INCY]): beat by $0.47; EPS up $0.65 Y/Y
* Regeneron Pharmaceuticals (REGN [https://seekingalpha.com/symbol/REGN]): beat by $0.57; EPS up $1.25 Y/Y
* Biogen Inc. (BIIB [https://seekingalpha.com/symbol/BIIB]): beat by $0.68; EPS up $0.55 Y/Y
* Cardinal Health, Inc. (CAH [https://seekingalpha.com/symbol/CAH]): beat by $0.38; EPS up $0.82 Y/Y
* Stryker Corporation (SYK [https://seekingalpha.com/symbol/SYK]): missed by $0.38; EPS down $0.24 Y/Y
* Centene Corporation (CNC [https://seekingalpha.com/symbol/CNC]): beat by $1.24; EPS up $0.47 Y/Y
* The Cigna Group (CI [https://seekingalpha.com/symbol/CI]): beat by $0.18; EPS up $1.05 Y/Y
* DexCom, Inc. (DXCM [https://seekingalpha.com/symbol/DXCM]): beat by $0.09; EPS up $0.24 Y/Y
* Humana Inc. (HUM [https://seekingalpha.com/symbol/HUM]): beat by $0.11; EPS down $1.27 Y/Y
* Baxter International (BAX [https://seekingalpha.com/symbol/BAX]): beat by $0.05; EPS down $0.19 Y/Y
* Align Technology (ALGN [https://seekingalpha.com/symbol/ALGN]): beat by $0.29; EPS up $0.45 Y/Y
* GE HealthCare Technologies (GEHC [https://seekingalpha.com/symbol/GEHC]): missed by $0.06; EPS down $0.02 Y/Y
* Zimmer Biomet (ZBH [https://seekingalpha.com/symbol/ZBH]): beat by $0.23; EPS up $0.28 Y/Y
* ResMed (RMD [https://seekingalpha.com/symbol/RMD]): beat by $0.06; EPS up $0.49 Y/Y
* Labcorp (LH [https://seekingalpha.com/symbol/LH]): beat by $0.13; EPS up $0.57 Y/Y
* Universal Health Services (UHS [https://seekingalpha.com/symbol/UHS]): beat by $0.16; EPS up $0.78 Y/Y

ABBVIE (ABBV [https://seekingalpha.com/symbol/ABBV]) reported Q1 revenue of roughly $15B, up about 12% year over year and ahead of estimates by $280M. Skyrizi generated $4.5B in global sales (up ~31% YoY), while Rinvoq contributed $2.1B (up ~23% YoY), driving the topline beat. Humira, once the world’s best-selling medication, generated $688M with a ~39% YoY decline as its off-patent versions hurt its sales. Adjusted diluted EPS stood at $2.65 with ~8% Y/Y growth but was missing the consensus by $0.02.

MERCK (MRK [https://seekingalpha.com/symbol/MRK]) beat top- and bottom-line estimates for Q1 and issued a narrowed outlook for 2026. The drugmaker incurred an adjusted loss per share of -$1.28, better than the -$1.47 analysts expected. Global sales rose nearly 5% in Q1 to $16.3B, beating estimates by $440M. The Rahway, New Jersey–based company adjusted its guidance for the year to between $65.8B and $67B in revenue, with the low-end narrower than the previous $65.5B. It expects adjusted EPS between $5.04 and $5.16, up from the previous outlook of $5-$5.15.

ELI LILLY (LLY [https://seekingalpha.com/symbol/LLY]) posted better-than-expected Q1 financials driven by its GLP-1 franchise. The company reported $19.8B in revenue for the quarter, indicating ~56% YoY growth, exceeding the consensus by $2B, as volume gains offset the impact from lower prices for its GLP-1 products Mounjaro and Zepbound. As for the bottom line, the company recorded $8.55 of adjusted earnings per share, indicating ~156% YoY growth and beating the consensus by $1.76.

BRISTOL-MYERS SQUIBB (BMY [https://seekingalpha.com/symbol/BMY]) reported better-than-expected Q1 financials as its growth portfolio continued to offset a slump in demand for its legacy products. The company recorded $11.5B in revenue with a ~3% YoY growth, beating the consensus by $580M, while its adjusted earnings per share stood at $1.58 with a ~12% YoY decline amid a $0.03 hit attributed to acquired R&D and related charges.

AMGEN (AMGN [https://seekingalpha.com/symbol/AMGN]) reported Q1 financial results that beat on both lines. Q1 non-GAAP EPS of $5.15 compares to $4.90 in the year-ago period and beat estimates by $0.38. Revenue rose nearly 6% Y/Y to $8.62B, topping estimates by $50M. Amgen was helped in the period by strong growth in its top-selling medicine, the cholesterol-lowering drug Repatha (evolocumab), with sales growing 34% year-over-year to $876M.

UPCOMING EARNINGS

Next week will see 20 S&P 500 healthcare firms report earnings, including PFIZER (PFE [https://seekingalpha.com/symbol/PFE]), GILEAD SCIENCES (GILD [https://seekingalpha.com/symbol/GILD]), VIATRIS (VTRS [https://seekingalpha.com/symbol/VTRS]), CVS HEALTH (CVS [https://seekingalpha.com/symbol/CVS]), and VERTEX PHARMA (VRTX [https://seekingalpha.com/symbol/VRTX]).

Analysts see Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) delivering Q1 EPS of $0.72 on $13.8B in revenue. Gilead (GILD [https://seekingalpha.com/symbol/GILD]) is seen delivering Q1 EPS of ~$1.91 on $6.92B in revenue, while Viatris (VTRS [https://seekingalpha.com/symbol/VTRS]) is expected to post $0.50 EPS on $3.36B revenue.

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