The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how branded pharmaceuticals stocks fared in Q1, starting with Collegium Pharmaceutical (NASDAQ: COLL).

Looking ahead, the branded pharmaceutical industry is positioned for tailwinds from advancements in precision medicine, increasing adoption of AI to enhance drug development efficiency, and growing global demand for treatments addressing chronic and rare diseases. However, headwinds include heightened regulatory scrutiny, pricing pressures from governments and insurers, and the looming patent cliffs for key blockbuster drugs. Patent cliffs bring about competition from generics, forcing branded pharmaceutical companies back to the drawing board to find the next big thing.

The 10 branded pharmaceuticals stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 3.6%.

Thankfully, share prices of the companies have been resilient as they are up 8.8% on average since the latest earnings results.

Collegium Pharmaceutical (NASDAQ: COLL)

Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ: COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.

Collegium Pharmaceutical reported revenues of $193.5 million, up 8.9% year on year. This print exceeded analysts’ expectations by 4.9%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.

“In the first quarter, we made meaningful progress on our 2026 strategic priorities, including delivering strong performance for JORNAY PM and continued durability from our pain portfolio” said Vikram Karnani, President and Chief Executive Officer.

Collegium Pharmaceutical delivered the weakest full-year guidance update in the group. The market seems disappointed with the results as the stock is down 2.5% since reporting and currently trades at $35.61.

Is now the time to buy Collegium Pharmaceutical? Access our full analysis of the earnings results here, it’s free.

Best Q1: Eli Lilly (NYSE: LLY)

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Eli Lilly reported revenues of $19.8 billion, up 55.5% year on year, outperforming analysts’ expectations by 13.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

Eli Lilly achieved the biggest analyst estimate beat and fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 38.9% since reporting. It currently trades at $1,183.

Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Zoetis (NYSE: ZTS)

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Zoetis reported revenues of $2.26 billion, up 2.9% year on year, falling short of analysts’ expectations by 2.1%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 33% since the results and currently trades at $74.56.

Read our full analysis of Zoetis’s results here.

Bristol-Myers Squibb (NYSE: BMY)

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Bristol-Myers Squibb reported revenues of $11.49 billion, up 2.5% year on year. This print surpassed analysts’ expectations by 7.4%. Aside from that, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

The stock is up 7.2% since reporting and currently trades at $61.76.

Read our full, actionable report on Bristol-Myers Squibb here, it’s free.

Merck (NYSE: MRK)

With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE: MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.

Merck reported revenues of $16.29 billion, up 4.9% year on year. This number beat analysts’ expectations by 3%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates.

The stock is up 17.8% since reporting and currently trades at $130.71.

Read our full, actionable report on Merck here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.