The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Merck (NYSE: MRK) and the rest of the branded pharmaceuticals stocks fared in Q1.
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 6.4% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 3%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates.
“We are moving with speed to transform our portfolio to one with a diversified set of growth drivers across a broad set of therapeutic areas,” said Robert M. Davis, chairman and chief executive officer.
Interestingly, the stock is up 12.3% since reporting and currently trades at $124.64.
Is now the time to buy Merck? 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 a solid beat of analysts’ full-year EPS guidance estimates.
Eli Lilly scored 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 34.9% since reporting. It currently trades at $1,149.
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 31.5% since the results and currently trades at $76.24.
Read our full analysis of Zoetis’s results here.
Phibro Animal Health (NASDAQ: PAHC)
With a portfolio of approximately 800 product lines serving farmers and veterinarians in 90 countries, Phibro Animal Health (NASDAQ: PAHC) develops, manufactures, and markets health products for livestock and companion animals, including antibacterials, vaccines, nutritional supplements, and mineral additives.
Phibro Animal Health reported revenues of $383.5 million, up 10.3% year on year. This number surpassed analysts’ expectations by 8%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates.
The stock is down 43.2% since reporting and currently trades at $33.24.
Read our full, actionable report on Phibro Animal Health here, it’s free.
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 topped analysts’ expectations by 7.4%. Zooming out, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.
The stock is up 4.6% since reporting and currently trades at $60.21.
Read our full, actionable report on Bristol-Myers Squibb 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 Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
