The healthcare sector has performed fairly well so far in 2026 due to several factors: GLP-1 medications continue to drive new business and interest, while groundbreaking AI applications help enhance and accelerate the drug discovery process. On top of that, potential mergers and acquisitions activity, as big pharmaceutical companies face a major patent cliff, could provide opportunities for new firms to stand out.
Despite some sector-wide risks—besides the patent cliff, the potential for cuts to Medicaid funding and regulatory pressure on drug pricing are among the biggest unknowns—many companies in healthcare have posted strong earnings and have the capacity for noteworthy growth going forward. Two of the firms below have already performed very well this year, and the third has some compelling factors that may help it to mount a comeback in the final months of 2026.
