CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.

CVS Health appears to be a large and scale-stable business, but with noticeably weak profitability relative to the industry. Revenue exceeds $100 billion and has generally remained at a high level in recent periods, which supports the basic resilience of the valuation. At the same time, net margin, operating margin, ROE, ROA, and ROI are significantly below the sector median, meaning the company is currently generating less profit per dollar of capital and sales than its peers. Especially concerning is the very low return on tangible equity, which effectively does not add to the case for a premium valuation. On the other hand, the gross margin of around 44.7% looks stable and has not deteriorated, suggesting that basic pricing discipline and cost control are being maintained. The P/S and P/FCF multiples are below industry medians, indicating relative cheapness on the basis of revenue and cash flow, but this positive is partly offset by weak operating efficiency. P/B is also below the median, while P/E is noticeably above the industry, which usually signals that the market is already pricing in expectations of earnings recovery. The debt burden looks moderate in absolute terms, but debt/equity is above the median, and both current and quick ratios remain weak, increasing sensitivity to any deterioration in working capital. Long-term debt of about $60 billion, combined with limited margins, leaves less room for error, especially if pressure on earnings persists. Dividend yield has declined compared with last year, so the dividend argument is now weaker than before. Positive factors include the large asset base, high equity, and positive net income, but their quality still does not appear sufficient to justify an aggressive upward revision in valuation. Overall, the fundamentals support a cautious, slightly negative view on the target price: the business is large and inexpensive in terms of assets and cash flow, but weak profitability and liquidity limit re-rating potential.

CVS Health Corporation

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Средний индекс, незначительно упал. Рынок не поддерживает быков.

Medium index, slightly down. The market does not support the bulls.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

CVS is large and inexpensive on a P/S and P/FCF basis, but weak profitability, liquidity, and a high P/E limit its revaluation potential.

Zimmer Biomet ZBH is set to release second-quarter 2026 results on Aug. 5, before the market opens.
In the last reported quarter, the renowned musculoskeletal healthcare company posted adjusted earnings per share (EPS) of $2.09, beating the Zacks Consensus Estimate by 12.37%. Zimmer Biomet topped earnings estimates in each of the past four quarters, delivering an average surprise of 4.92%.
Q2 Estimates for ZBH
The Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $2.13 billion, indicating a 2.5% increase from the year-ago reported figure.
The consensus estimate for second-quarter earnings stands at $2.01 per share, suggesting a 2.9% decline year over year. The estimate has remained unchanged over the past 60 days.
Here’s a quick look at the company’s performance leading up to the announcement.
What to Expect From Zimmer Biomet's Q2 Results?
Within the Knees segment, the U.S. knee franchise is likely to have continued to benefit from strong demand for the Oxford Partial Cementless Knee, which remains the only partial cementless knee on the market. As part of its brand rationalization strategy, Zimmer Biomet had been phasing out its legacy total knee implants such as NexGen and Vanguard, which may have limited the overall growth.
The Zacks Consensus Estimate anticipates total Knees revenues will improve 1.9% year over year.
Within the Hips segment, the U.S. hip franchise is likely to have continued to benefit from the growing traction of Zimmer Biomet’s triple-play of the Z1 Femoral Hip Stem, the OrthoGrid AI-based hip navigation platform and the HAMMR surgical impactor. International results are expected to have benefited from the continued early adoption of the company’s pioneering iodine-coated hip implant in Japan, its second-largest market. The implant is designed to help reduce the risk of periprosthetic joint infection following total joint replacement.
The Zacks Consensus Estimate expects total Hips revenues to grow 1.7% year over year.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
In the second quarter, the S.E.T (Sports Medicine, Upper Extremities, Foot and Ankle; Trauma, Craniomaxillofacial and Thoracic)segment’s performance is expected to have been led by the U.S. Craniomaxillofacial and Thoracic (“CMFT”) and Upper Extremities businesses. U.S. CMFT growth likely continued to be driven by the external closure franchise, which has been performing above the market over the past few quarters. Meanwhile, continued upside momentum in the OsseoFit Stemless Shoulder and the Identity Total Shoulder platform may have favored U.S. Upper Extremities results.
The Paragon 28 acquisition also may have supported S.E.T. results. The deal, completed in 2025, strengthened Zimmer Biomet’s foothold in the foot and ankle segment, one of the highest growth specialties in musculoskeletal care. Paragon 28’s first-quarter growth accelerated around 200 basis points sequentially, trending back toward double-digit growth performance. We expect the positive momentum to have continued in the second quarter,
However, continued challenges in restorative therapies and in the trauma business may have limited the overall growth.
The Zacks Consensus Estimate indicates total S.E.T revenues will grow 4.5% year over year.
In the Technology & Data, Bone Cement and Surgical segment, Zimmer Biomet is delivering strong returns from its strategy of offering a comprehensive suite of technology solutions. Performance in the second quarter is expected to have been driven by strength in the flagship ROSA Robotics portfolio and the TMINI Miniature Robotic System.
The Zacks Consensus Estimate expects revenues to improve 5.7% year over year.
What Our Model Unveils for ZBH
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see below.
Earnings ESP: Zimmer Biomet has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks Rank #1 stocks here.
Key MedTech Picks
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
CVS Health CVS has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 5.
CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.79%. The Zacks Consensus Estimate expects the company’s second-quarter EPS to increase 3.3% from the year-ago quarter’s figure.
Labcorp LH has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on July 30.
LH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for a rise of 10.1% from the year-ago quarter’s figure.
Cencora, Inc. COR has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is slated to release third-quarter fiscal 2026 results on Aug. 5.
COR’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 1.59%. The Zacks Consensus Estimate anticipates the company’s third-quarter EPS will increase 9.3% from the year-ago quarter’s figure.
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Zimmer Biomet Set to Report Q2 Earnings: What's in the Cards?

Henry Schein, Inc. HSIC is scheduled to release second-quarter 2026 results on Aug. 4, before the opening bell.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $1.32, which surpassed the Zacks Consensus Estimate by 10%. Henry Schein’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.74%.
Q2 Estimates for HSIC
The Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $3.36 billion, which suggests an increase of 3.8% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.22, indicating a year-over-year improvement of 10.9%. The estimate has remained constant in the past 30 days.
Here’s a quick overview of the company’s performance leading up to this announcement.
Key Factors Likely to Have Driven HSIC’s Q2 Performance
Global Distribution and Value-Added Services
Within this segment, U.S. dental merchandise sales have likely remained solid, reflecting continued volume growth driven by sales initiatives introduced last year. Earlier Henry Schein One eClaims trends pointed to modest U.S. procedure growth, which may have continued in the second quarter, while patient traffic is expected to have remained stable to slightly positive. Solid sales volume growth may have also translated into continued market share gains. Internationally, Henry Schein’s dental merchandise sales are likely to have benefited from continued strength in the United Kingdom, Italy and Brazil.
U.S. dental equipment sales in the second quarter of 2026 may have gained from ongoing demand for traditional equipment, particularly from dental support organizations (DSOs), as they continued to invest in their practices. Henry Schein is likely to have benefited from exclusive supplier-initiated opportunities, with suppliers continuing to view the company as a strategic channel for market share expansion. However, softness in sales of Intraoral scanners and 3D printers from lower average selling prices from new market entrants may have persisted, putting pressure on digital equipment sales.
Henry Schein, Inc. Price and EPS Surprise
However, lower average selling prices from new market entrants are likely to have continued to weigh on intraoral scanner and 3D printer sales, putting pressure on digital equipment sales.
In the second quarter, International dental equipment sales may have seen robust performance in traditional equipment. Equipment sales growth was especially good in Germany, the U.K., Canada, Australia and New Zealand.
The performance of the U.S. Medical distribution business may have benefited from strong growth in Home Solutions and dialysis. Henry Schein’s Global Value-Added Services may have also contributed favorably, driven by continued momentum in the international business solutions business.
Our model projects Henry Schein’s Global Distribution and Value-Added Services revenues to increase 2.9% year over year in the second quarter.
Global Specialty Products
The segment is likely to have witnessed a robust performance due to the solid demand for implants and biomaterials. As seen in the prior quarter, value implants growth, led by Henry Schein’s SIN and Biotech Dental businesses, may have continued to outpace growth in premium implants. Europe is also likely to have continued to outperform the United States, with strong clinical engagement supporting demand for premium implants.
The Endodontics business may have continued to benefit from expanded commercial reach through Henry Schein’s U.S. distribution team as well as select international channels.
We also expect favorable contribution from the Orthodontics business, aided by continued sales through the company’s U.S. dental distribution channel. In April 2026, the business announced the U.S. availability of Froggymouth, a myofunctional device manufactured by Biotech Dental Smiler designed to support the management of orofacial dysfunctions. This development may have also boosted the segment’s top line in the second quarter.
Going by our model, Global Specialty Products’ revenues are expected to increase 7.1% year over year.
Global Technology
In the second quarter, the segment may have continued to benefit from strong demand for its cloud-based software technology solutions. The ongoing integration of AI solutions into the global suite of practice management software solutions may have been a tailwind. Similar to the previous quarter, U.S. performance is expected to have been driven by the Dentrix Ascend practice management platform, while continued momentum in the Dentally cloud-based platform may have boosted international sales.
Henry Schein One also launched the Next Generation Clinical Workflow, a voice-driven, AI-enabled advancement embedded within the Dentrix Ascend platform. Built in collaboration with Amazon Web Services, it brings imaging, charting, diagnostics and treatment planning into a single, continuous experience, enabling practices to complete more tasks during a single patient visit. The launch is likely to have led to more customer adoption, aiding the company’s revenues.
Our model estimates indicate Global Technology revenues will grow 2% year over year.
What Our Model Suggests for HSIC
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. This is exactly the case here, as you can see below:
Earnings ESP: Henry Schein has an Earnings ESP of +0.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.
Other Key MedTech Picks
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
CVS Health CVS has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 5.
CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.79%. The Zacks Consensus Estimate expects the company’s second-quarter EPS to increase 3.3% from the year-ago quarter’s figure.
Labcorp LH has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on July 30.
LH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for a rise of 10.1% from the year-ago quarter’s figure.
Cencora, Inc. COR has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is slated to release third-quarter fiscal 2026 results on Aug. 5.
COR’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 1.59%. The Zacks Consensus Estimate anticipates the company’s third-quarter EPS will increase 9.3% from the year-ago quarter’s figure.
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Henry Schein Prepares to Report Q2 Earnings: What's in the Cards?

For Immediate Release
Chicago, IL – July 28, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CVS Health Corp. CVS, Cardinal Health, Inc. CAH, Humana Inc. HUM and ACADIA Pharmaceuticals Inc. ACAD.
Here are highlights from Monday’s Analyst Blog:
4 Medical Stocks with the Right Setup for Q2 Earnings Beats
The second-quarter 2026 earnings season is picking up pace for the Medical sector, and the first wave of results points to a mixed but encouraging backdrop. Companies across managed care, hospitals, medical devices and healthcare technology are benefiting from better pricing discipline, improving control over medical costs, healthy patient demand and continued investment in technology. At the same time, these tailwinds are being partially offset by policy uncertainty, cost inflation, tariff impacts, cautious guidance and high investor expectations.
Against this backdrop, our research highlights four companies that look well positioned heading into earnings: CVS Health Corp., Cardinal Health, Inc., Humana Inc. and ACADIA Pharmaceuticals Inc. Each has favorable earnings indicators and business trends that could support results above consensus expectations.
According to the latest Earnings Trends report, the medical sector (one of the 16 broad Zacks sectors within the Zacks Industry) is projected to experience a 12.3% decline in earnings for the second quarter, even as revenues are anticipated to rise by 4.9%. The disconnect reflects ongoing margin pressure rather than weakening demand.
Factors at Play for Medical Stocks in Q2
The medical sector spans a wide and tightly linked network of businesses, from hospitals and physician groups to nursing care facilities, insurers, drugmakers, device companies, and outpatient and home care providers. Demand remained resilient during the quarter, supported by an aging population, greater use of medical services and continued need for prescription drugs and healthcare products.
Margins, however, remained under pressure. Companies continued investing in digital platforms, automation and AI-enabled tools to improve efficiency and patient care, but those investments increased near-term expenses. Labor costs also stayed elevated, particularly for hospitals and other provider organizations that rely heavily on skilled workers.
Health insurers faced another challenging quarter as elevated medical utilization, reimbursement constraints and regulatory changes continued to weigh on profitability. Even so, stronger pricing discipline, premium increases, scaling back less attractive products and tighter cost management helped offset part of the pressure and supported gradual margin improvement for some companies.
Hospitals and healthcare facilities continued to benefit from steady patient volumes, while higher revenue per admission provided an additional lift where pricing remained favorable. Even so, rising labor and supply costs limited the pace of margin expansion.
Steady prescription utilization and favorable branded drug trends supported pharmaceutical companies and distributors during the quarter. Across the sector, wider adoption of AI, analytics and automation remained a key long-term growth driver, improving workflows, supporting clinical decisions and creating opportunities for greater operating efficiency.
How to Identify Potential Outperformers?
Spotting healthcare stocks poised for an earnings beat is not easy in today’s crowded market. But our proprietary methodology cuts through the noise, pinpointing companies with strong potential to outperform. Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our Picks in the Medical Sector
One can start with Humana, which is one of the largest health care plan providers in the United States. Headquartered in Louisville, KY, the company’s second-quarter earnings are expected to have benefited from higher premiums (25.6% year-over-year growth expected), insurance and specialty membership and strength in the CenterWell unit.
The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The consensus estimate for Humana’s second-quarter earnings is pegged at $6.22 per share, which improved by 5 cents over the past month. The consensus mark for revenues of $40.65 billion indicates a 25.5% increase. HUM has an Earnings ESP of +1.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
It beat earnings estimates in three of the past four quarters and missed once, with an average of 3.8%.
You may also watch CVS Health, which is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. Headquartered in Woonsocket, RI, the company’s second-quarter earnings are expected to have benefited from increased net investment income (3.3% growth expected).
The Zacks Consensus Estimate for products revenues indicates 2.8% year-over-year growth. The consensus estimate for CVS Health’s second-quarter earnings is pegged at $1.87 per share, which indicates 3.3% year-over-year growth. The consensus mark for revenues of $100.18 billion predicts a 1.3% increase. CVS has an Earnings ESP of +1.42% and a Zacks Rank #2.
It beat earnings estimates in all the past four quarters, with an average of 16.8%.
Dublin, OH-based Cardinal Health is one of the world’s largest healthcare services and products providers. It is witnessing brand and specialty pharmaceutical sales growth from existing customers and Cardinal Health brand growth. It has an Earnings ESP of +1.24% and a Zacks Rank #2.
The consensus mark for fourth-quarter fiscal 2026 revenues is pegged at $65.61 billion, indicating 9.1% year-over-year growth. The EPS estimate of $2.42 signals a 16.4% year-over-year jump. The Zacks Consensus Estimate for the fiscal fourth-quarter Pharmaceutical and Specialty Solutions revenues indicates 10.1% year-over-year growth. The same for Global Medical Products and Distribution signals a 2% increase.
It beat earnings estimates in each of the past four quarters, the average surprise being 10.3%.
Finally, we have San Diego, CA-based ACADIA Pharmaceuticals, a biopharmaceutical company developing innovative medicines to address central nervous system (CNS) disorders and rare diseases. Its second quarter results are expected to have been driven by contributions from Daybue and continued growth in Nuplazid's market share.
The consensus estimate for Daybue product sales suggests a 15.8% increase from a year ago. The same for Nuplazid signals a 77% increase. The Zacks Consensus Estimate for ACADIA Pharmaceuticals’ bottom line for the to-be-reported quarter is pegged at 6 cents per share, which improved by a penny over the past week. The consensus mark for revenues is pegged at $293.82 million. ACAD has an Earnings ESP of +25.00% and a Zacks Rank #2.
It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 20.8%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
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The Zacks Analyst Blog Highlights CVS Health, Cardinal Health, Humana and ACADIA Pharmaceuticals

Shares of UnitedHealth Group Incorporated UNH touched a new 52-week high on July 16, following its upbeat second-quarter release, before experiencing a modest pullback in the following days. The stock has lost 1.7% since July 17.
This sell-off for America’s largest medical insurer came despite its solid headline numbers, as short-term traders earned profits following the stock's strong run-up into the release.
For long-term investors, such temporary dips in high-quality industry leaders often open up compelling entry points, particularly when backed by solid operational fundamentals. The company’s raised profit outlook for the full year may further encourage them to do so.
However, membership losses due to rising healthcare costs and continued margin pressure at its Medicaid business, thanks to major funding cuts by the U.S. government in Medicaid funding, remain some major headwinds for this stock.
Against this backdrop, diversified healthcare exchange-traded funds (ETFs) offer a strategic alternative. By holding funds with prominent UNH allocations alongside heavyweights across pharmaceuticals, biotech, and medical technology, investors can capture UNH's operational upside while cushioning their portfolios against single-stock Medicaid headwinds.
Before exploring the top ETFs, let's take a closer look at UnitedHealth's second-quarter results and analyst reactions to better understand the current healthcare sector.
A Brief Analysis of UNH’s Q2 Results
UnitedHealth’s fourth-quarter adjusted earnings per share (EPS) of $6.38 beat the Zacks Consensus Estimate by 1.4%, while its revenues surpassed the consensus mark by 1.7%.
UnitedHealth’s medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — improved from 89.4% in the second quarter of 2025 to 86.7%. The improvement was a result of benefit design and pricing discipline, member mix and medical cost management initiatives.
However, its operating cost ratio of 12.7% deteriorated year over year, owing to incremental investments in technology, processes and people to improve care delivery and customer experiences and advance community health.
As of July 2026, UNH’s OptumHealth reached nearly 90% of U.S. counties, conducting approximately 2.5 million rural patient home visits annually. The insurer aims to expand these programs across its OptumHealth footprint by the end of 2026.
Patient experience in UNH’s care delivery sites went up approximately 5% year over year during the second quarter, whereas patient access expanded by nearly 200,000 more patient-facing hours.
UNH expects to complete total share repurchases of at least $5 billion in 2026, higher than its initial guidance of $2.5 billion.
The company also raised its earnings expectation for 2026 to the range of $19.50-$20.00 per share from the prior outlook of $17.75.
Although its membership retention was better than previously anticipated, UNH expects its 2026 Medicare Advantage enrollment to decline approximately 1.1 million.
Analysts’ Reaction
Following UNH’s second-quarter results, Morgan Stanley raised the stock’s price targets from $468.00 to $529.00. In a similar move, UBS Group increased its price target on shares of UnitedHealth Group from $460.00 to $490.00 (as cited in MarketBeat).
UNH-Heavy ETFs to Watch
iShares U.S. Healthcare Providers ETF IHF
This fund, with net assets worth $1.21 billion, provides exposure to 59 U.S. companies that provide health insurance, diagnostics, and specialized treatment services. Of these, UnitedHealth Group takes the first spot, accounting for a 21.79% share. CVS Health CVS (15.14%) and Elevance Health (6.84%) hold the second and third positions in this fund, respectively.
IHF has gained 23.6% over the past six months and charges 38 basis points (bps) in fees.
Health Care Select Sector SPDR Fund XLV
This fund, with assets under management worth $42.54 billion, provides exposure to 60 companies from pharmaceuticals; health care equipment and supplies, health care providers and services, biotechnology; life sciences tools and services, and health care technology industries. Of these, UnitedHealth Group takes the fourth spot, accounting for a 6.59% share. Pharma giants Eli Lily LLY (16.08%), Johnson & Johnson JNJ (10.70%) and AbbVie ABBV (7.78%) hold the top three spots in this fund.
XLV has surged 5.4% over the past six months and charges 8 bps in fees.
iShares U.S. Healthcare ETF IYH
This fund, with net assets worth $3.37 billion, provides exposure to 100 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies. Of these, UnitedHealth Group takes the fourth spot, accounting for a 6.25% share. LLY (15.71%), JNJ (10.44%) and ABBV (7.55%) hold the top three spots in this fund.
IYH has risen 5.5% over the past six months and charges 38 bps in fees.
Vanguard Health Care ETF VHT
With net assets of $17.8 billion, this fund provides exposure to 423 companies engaged in health care equipment manufacturing, health care services, and the research, development, and marketing of pharmaceuticals and biotechnology products. Of these, UnitedHealth Group takes the fourth spot, accounting for a 5.55% share. LLY (14.16%), JNJ (8.87%) and ABBV (6.54%) hold the top three spots in this fund.
VHT has rallied 6.3% over the past six months and charges 9 bps in fees.
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iShares U.S. Healthcare ETF (IYH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealth Pulls Back Post 52-Week High: Healthcare ETFs to Watch

The second-quarter 2026 earnings season is picking up pace for the Medical sector, and the first wave of results points to a mixed but encouraging backdrop. Companies across managed care, hospitals, medical devices and healthcare technology are benefiting from better pricing discipline, improving control over medical costs, healthy patient demand and continued investment in technology. At the same time, these tailwinds are being partially offset by policy uncertainty, cost inflation, tariff impacts, cautious guidance and high investor expectations.
Against this backdrop, our research highlights four companies that look well positioned heading into earnings: CVS Health Corporation CVS, Cardinal Health, Inc. CAH, Humana Inc. HUM and ACADIA Pharmaceuticals Inc. ACAD. Each has favorable earnings indicators and business trends that could support results above consensus expectations.
According to the latest Earnings Trends report, the medical sector (one of the 16 broad Zacks sectors within the Zacks Industry) is projected to experience a 12.3% decline in earnings for the second quarter, even as revenues are anticipated to rise by 4.9%. The disconnect reflects ongoing margin pressure rather than weakening demand.
Factors at Play for Medical Stocks in Q2
The medical sector spans a wide and tightly linked network of businesses, from hospitals and physician groups to nursing care facilities, insurers, drugmakers, device companies, and outpatient and home care providers. Demand remained resilient during the quarter, supported by an aging population, greater use of medical services and continued need for prescription drugs and healthcare products.
Margins, however, remained under pressure. Companies continued investing in digital platforms, automation and AI-enabled tools to improve efficiency and patient care, but those investments increased near-term expenses. Labor costs also stayed elevated, particularly for hospitals and other provider organizations that rely heavily on skilled workers.
Health insurers faced another challenging quarter as elevated medical utilization, reimbursement constraints and regulatory changes continued to weigh on profitability. Even so, stronger pricing discipline, premium increases, scaling back less attractive products and tighter cost management helped offset part of the pressure and supported gradual margin improvement for some companies.
Hospitals and healthcare facilities continued to benefit from steady patient volumes, while higher revenue per admission provided an additional lift where pricing remained favorable. Even so, rising labor and supply costs limited the pace of margin expansion.
Steady prescription utilization and favorable branded drug trends supported pharmaceutical companies and distributors during the quarter. Across the sector, wider adoption of AI, analytics and automation remained a key long-term growth driver, improving workflows, supporting clinical decisions and creating opportunities for greater operating efficiency.
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Spotting healthcare stocks poised for an earnings beat is not easy in today’s crowded market. But our proprietary methodology cuts through the noise, pinpointing companies with strong potential to outperform. Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our Picks in the Medical Sector
One can start with Humana, which is one of the largest health care plan providers in the United States. Headquartered in Louisville, KY, the company’s second-quarter earnings are expected to have benefited from higher premiums (25.6% year-over-year growth expected), insurance and specialty membership and strength in the CenterWell unit.
The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The consensus estimate for Humana’s second-quarter earnings is pegged at $6.22 per share, which improved by 5 cents over the past month. The consensus mark for revenues of $40.65 billion indicates a 25.5% increase. HUM has an Earnings ESP of +1.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
It beat earnings estimates in three of the past four quarters and missed once, with an average of 3.8%.
Humana Inc. Price and EPS Surprise
You may also watch CVS Health, which is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. Headquartered in Woonsocket, RI, the company’s second-quarter earnings are expected to have benefited from increased net investment income (3.3% growth expected).
The Zacks Consensus Estimate for products revenues indicates 2.8% year-over-year growth. The consensus estimate for CVS Health’s second-quarter earnings is pegged at $1.87 per share, which indicates 3.3% year-over-year growth. The consensus mark for revenues of $100.18 billion predicts a 1.3% increase. CVS has an Earnings ESP of +1.42% and a Zacks Rank #2.
It beat earnings estimates in all the past four quarters, with an average of 16.8%.
CVS Health Corporation Price and EPS Surprise
Dublin, OH-based Cardinal Health is one of the world’s largest healthcare services and products providers. It is witnessing brand and specialty pharmaceutical sales growth from existing customers and Cardinal Health brand growth. It has an Earnings ESP of +1.24% and a Zacks Rank #2.
The consensus mark for fourth-quarter fiscal 2026 revenues is pegged at $65.61 billion, indicating 9.1% year-over-year growth. The EPS estimate of $2.42 signals a 16.4% year-over-year jump. The Zacks Consensus Estimate for the fiscal fourth-quarter Pharmaceutical and Specialty Solutions revenues indicates 10.1% year-over-year growth. The same for Global Medical Products and Distribution signals a 2% increase.
It beat earnings estimates in each of the past four quarters, the average surprise being 10.3%.
Cardinal Health, Inc. Price and EPS Surprise
Finally, we have San Diego, CA-based ACADIA Pharmaceuticals, a biopharmaceutical company developing innovative medicines to address central nervous system (CNS) disorders and rare diseases. Its second quarter results are expected to have been driven by contributions from Daybue and continued growth in Nuplazid's market share.
The consensus estimate for Daybue product sales suggests a 15.8% increase from a year ago. The same for Nuplazid signals a 77% increase. The Zacks Consensus Estimate for ACADIA Pharmaceuticals’ bottom line for the to-be-reported quarter is pegged at 6 cents per share, which improved by a penny over the past week. The consensus mark for revenues is pegged at $293.82 million. ACAD has an Earnings ESP of +25.00% and a Zacks Rank #2.
It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 20.8%.
ACADIA Pharmaceuticals Inc. Price and EPS Surprise
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4 Medical Stocks With the Right Setup for Q2 Earnings Beats

Key Points
Krystal Biotech is posting strong sales thanks to a breakthrough in an underserved therapeutic area.
Exelixis has carved out a niche in the cancer-drug market, which much larger companies typically dominate.
CVS Health is righting the ship, and there may be even more progress ahead.
If you had invested in Krystal Biotech (NASDAQ: KRYS), Exelixis (NASDAQ: EXEL), or CVS Health (NYSE: CVS) at the beginning of the year, you'd be sitting pretty. All three companies have outpaced the market, which has itself proved resilient amid macroeconomic problems, fears of a recession, and other problems. However, all three of these healthcare stocks have important catalysts ahead that may allow them to maintain their momentum for much longer and continue delivering market-beating returns. Here's why these stocks are still worth serious consideration.
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1. Krystal Biotech
Krystal Biotech, a drugmaker that focuses on developing medicines for rare diseases, is performing well thanks to its only approved product, Vyjuvek. This therapy treats a condition called dystrophic epidermolysis bullosa (DEB), which causes the skin to blister and tear very easily, often from minor rubbing or bumps. Vyjuvek, a topical gel applied directly onto wounds, helps patients' cells produce a protein that strengthens and repairs fragile skin. Krystal Biotech is posting strong financial results thanks to Vyjuvek, with the company's revenue and profits growing at a good clip in recent years.
Krystal Biotech has earned approval for Vyjuvek in other regions, notably Europe and Japan. The company making headway in these regions will help drive sales even higher. Krystal Biotech is also developing several pipeline candidates for other rare diseases, including cystic fibrosis. Clinical and regulatory progress over the next few years could jolt the stock.
Krystal Biotech could have a much larger portfolio of approved products by the end of the decade while still delivering consistent top and bottom-line growth. There is some risk, particularly if the company encounters commercial setbacks with Vyjuvek, as biotech stocks sometimes do. But given the medicine's position in this small, high-unmet-need area, the company should continue riding this tailwind over the medium term. That's why there may be plenty more upside potential.
2. Exelixis
Exelixis is on the verge of entering a new era. The company's current crown jewel, Cabometyx, a cancer medicine, has received approval across multiple indications and has been highly successful. But the biotech is close to launching a new therapy called zanzalintinib, which could earn approval by the end of the year for treating metastatic colorectal cancer. Once Cabometyx starts facing generic competition in the U.S., probably in 2030, zanzalintinib should be ready to take over.
Here are two reasons why. First, it targets an area with a significant need. Colorectal cancer is the second-leading cause of cancer death in the world, despite having high five-year survival rates when caught early. So, there should be a large market for patients with stage 4 colorectal cancer.
Second, zanzalintinib should earn important label expansions beyond this area. The medicine is being investigated across meningioma, some forms of kidney cancer, and more. Zanzalintinib appears to have pipeline-in-a-drug potential, just like Cabometyx. In the meantime, Exelixis' revenue and earnings should continue growing at a good clip. And beyond zanzalintinib, the company is also working on other oncology candidates that are in the early stages of development. The company's medium-term prospects look bright.
3. CVS Health
CVS Health's rebound continues. After lagging the market for a few years, it has been performing well since 2025. But the company may not be done yet. CVS Health has worked hard to stabilize expenses in its health insurance business, and we are still seeing the results of these efforts, which could continue to drive higher profits and margins for the company. It is also pursuing initiatives that could boost sales.
For instance, CVS Health recently announced a platform that will help patients access GLP-1 medicines more easily while benefiting from support from healthcare professionals on their weight-loss journey. Anti-obesity drugs have risen in popularity, but they remain hard to access for many patients because of their high prices and spotty insurance coverage. CVS Health could help fill this need, potentially leading to meaningfully higher sales within its pharmacy segment. The company has other projects that may also boost revenue and earnings over the medium term. And that's before we factor in its strong dividend program, all of which suggests that CVS Health could perform well over the next five years.
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Prosper Junior Bakiny has positions in Exelixis. The Motley Fool has positions in and recommends Exelixis and Krystal Biotech. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

These 3 Healthcare Stocks Have Crushed the Market This Year. Here's Why There's More Upside Ahead

HCA Healthcare, Inc. HCA reported second-quarter 2026 adjusted earnings per share (EPS) of $7.59, which beat the Zacks Consensus Estimate of $7.57. The bottom line advanced 11% year over year.
Revenues rose 8.7% year over year to $20.2 billion. The top line was in line with the Zacks Consensus Estimate.
The quarterly results benefited from higher same-facility admissions, strong revenue per equivalent admission and solid emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA’s Q2 Details
Same-facility equivalent admissions grew 2.7% year over year in the second quarter, beating our growth estimate of 2%. Meanwhile, same-facility admissions increased 2.5%, also surpassing our growth estimate of 1.8%.
Same-facility revenue per equivalent admission rose 6.4% year over year but came in higher than our growth estimate of 4.2%.
Same-facility inpatient surgeries fell 2.3% year over year, while same-facility outpatient surgeries dipped 3.4%. Same-facility emergency room visits inched up 3.6% year over year in the quarter.
Salaries and benefits, supplies and other operating expenses increased 9.8% year over year to $16.2 billion. The metric came in higher than our estimate of $15.4 billion.
Adjusted EBITDA of $4 billion advanced 4.6% year over year, which marginally beat our estimate of $3.9 billion.
HCA Healthcare operated 190 hospitals and roughly 2,600 ambulatory sites of care across 19 states and the United Kingdom as of June 30, 2026.
HCA’s Q2 Financial Update
HCA Healthcare exited the second quarter with approximately $1 billion in cash and cash equivalents, down 2.6% from the 2025-end level. It had approximately $3.1 billion of available capacity under its credit facilities at the end of the reported quarter.
Total assets of $63.3 billion increased 4.2% from 2025-end figure.
Long-term debt, excluding debt issuance costs and discounts, was $43.5 billion, up 4.4% from the figure as of Dec. 31, 2025. Short-term borrowings and long-term debt due within a year totaled $6.3 billion.
Capital expenditures, excluding acquisitions, amounted to $1.2 billion during the quarter.
HCA’s Cash Flow
Cash flows from operating activities declined 44.5% year over year to $2.3 billion in the second quarter of 2026.
HCA Healthcare’s Capital Deployment Update
HCA bought back shares worth approximately $2.1 billion in the second quarter. It had about $7.2 billion remaining under its share repurchase authorization as of June 30, 2026. The board also declared a quarterly cash dividend of 78 cents per share, payable on Sept. 30, 2026, to shareholders of record as of Sept. 16, 2026.
HCA Revises 2026 Guidance
Revenue guidance has been revised to $77.0-$79.5 billion from the previous $76.5-$80.0 billion, raising the lower end by $0.5 billion and lowering the upper end by $0.5 billion. The midpoint of the revised range implies 3.5% growth from the 2025 reported figure.
Adjusted EBITDA guidance has been narrowed to $15.4-$16.1 billion from $15.55-$16.45 billion. The midpoint suggests about 1.2% growth from the 2025 reported figure.
Net income guidance was lowered to $6.3-$6.7 billion from $6.495-$7.035 billion. The midpoint implies about a 4.2% decline from the 2025 reported figure.
Diluted EPS guidance was lowered to $28.70-$30.50 from $29.10-$31.50. The midpoint implies about 4.5% growth from the 2025 reported figure.
Capital expenditures, excluding acquisitions, remain projected in the range of $5.0-$5.5 billion.
HCA’s Zacks Rank & Key Picks
HCA currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Medical space are Charles River Laboratories International, Inc. CRL, CVS Health Corporation CVS and Cencora, Inc. COR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Charles River is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $2.72 per share, which has witnessed one upward revision and one downward revision over the past 30 days. The company beat on earnings in each of the trailing four quarters, with the average surprise being 9.3%. The consensus estimate for Charles River’s second-quarter revenues is pinned at $970.77 million.
CVS Health is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, indicating a 3.3% year-over-year increase. The company beat on earnings in each of the trailing four quarters, with the average surprise being 16.8%. The consensus estimate for CVS Health’s second-quarter revenues is pinned at $100.18 billion, indicating a 1.3% year-over-year increase.
Cencora is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $4.37 per share, indicating a 9.3% year-over-year increase. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 1.6%. The consensus estimate for Cencora’s second-quarter revenues is pinned at $84.89 billion, indicating a 5.2% year-over-year increase.
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HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
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HCA Q2 Earnings Beat on Strong Admissions, 2026 Outlook Revised

Molina Healthcare, Inc. MOH reported second-quarter 2026 adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate by 10.2%. The bottom line declined 72.4% from the year-ago period's level.
Revenues amounted to $10.9 billion, which decreased 4.8% year over year. The top line marginally missed the consensus mark by 0.08%.
Second-quarter earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
MOH’s Q2 Operational Update
Premium revenues of $10.2 billion decreased 5.7% year over year and missed the Zacks Consensus Estimate by 1.8%. The decline primarily reflected lower membership levels, partially offset by pricing actions.
As of June 30, 2026, total membership decreased 14.3% year over year to around 4.9 million and missed the Zacks Consensus Estimate by 1.6%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income declined 4.7% year over year to $101 million. The figure beat the Zacks Consensus Estimate by 1.8%.
Total operating expenses were $10.7 billion, down 2.9% year over year and slightly below our model estimate of $11 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.5% from 6.1% a year ago. Interest expense increased 12.5% year over year to $54 million.
The consolidated MCR (medical costs as a percentage of premium revenues) was 92.2% in the reported quarter. It rose from 90.4% a year ago but was marginally below the Zacks Consensus Estimate of 92.5%.
Molina Healthcare’s adjusted net income decreased 73.8% year over year to $77 million.
MOH’s Q2 Financial Update
Molina Healthcare exited the second quarter with cash and cash equivalents of $5 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16 billion rose from $15.6 billion as of 2025-end.
Long-term debt totaled $3.8 billion, which remained unchanged from the 2025-end level.
Total stockholders’ equity of $4.2 billion inched up from $4.1 billion at the end of 2025.
Net cash provided by operating activities was $788 million compared to net cash used in operating activities of $112 million in the prior-year period.
MOH’s 2026 Guidance
The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025.
Management expects 2026 GAAP earnings of at least $2.15 per diluted share, up from its previous guidance of at least $1.90. It also raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share.
MOH raised its 2026 adjusted net income guidance to $268 million from $256 million. It also increased its GAAP net income guidance to $110 million from the previous estimate of $97 million.
MOH’s Zacks Rank & Key Picks
Molina currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are Humana Inc. HUM, currently sporting a Zacks Rank #1 (Strong Buy), and CVS Health Corporation CVS and Cencora, Inc. COR, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Humana is set to report second-quarter 2026 results on July 29, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $6.22 per share, which has witnessed three upward revisions over the past 60 days, with no movement in the opposite direction. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 3.8%. The consensus estimate for Humana’s second-quarter revenues is pinned at $40.65 billion, indicating a 25.5% year-over-year increase.
CVS Health is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, indicating a 3.3% year-over-year increase. The company beat on earnings in each of the trailing four quarters, with the average surprise being 16.8%. The consensus estimate for CVS Health’s second-quarter revenues is pinned at $100.18 billion, indicating a 1.3% year-over-year increase.
Cencora is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $4.37 per share, indicating a 9.3% year-over-year increase. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 1.6%. The consensus estimate for Cencora’s second-quarter revenues is pinned at $84.89 billion, indicating a 5.2% year-over-year increase.
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MOH Q2 Earnings Beat on Lower Operating Expenses, 2026 EPS View Raised

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Value Factor ETF (Symbol: VLUE) where we have detected an approximate $400.8 million dollar outflow -- that's a 4.1% decrease week over week (from 50,050,000 to 48,000,000). Among the largest underlying components of VLUE, in trading today General Motors Co (Symbol: GM) is off about 3.5%, Ford Motor Co. (Symbol: F) is off about 2.3%, and CVS Health Corporation (Symbol: CVS) is lower by about 0.7%. For a complete list of holdings, visit the VLUE Holdings page » The chart below shows the one year price performance of VLUE, versus its 200 day moving average:
Looking at the chart above, VLUE's low point in its 52 week range is $110.525 per share, with $206.57 as the 52 week high point — that compares with a last trade of $196.48. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further VLUE Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

VLUE, GM, F, CVS: ETF Outflow Alert

Labcorp Holdings Inc. LH, or Labcorp, is slated to report its second-quarter 2026 results on July 30, before the market opens.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $4.25, surpassing the Zacks Consensus Estimate by 3.91%. Labcorp outpaced estimates in each of the trailing four quarters, the average surprise being 3.31%.
Q2 Estimates for LH
The Zacks Consensus Estimate for Labcorp’s second-quarter 2026 revenues is pegged at $3.72 billion. This suggests a 5.4% rise from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter EPS indicates an improvement of 10.1% to $4.79. The estimate has remained unchanged in the past 60 days.
Here's a quick review of the company’s performance leading up to its second-quarter earnings.
What Could Shape Labcorp's Q2 Results?
In the second quarter of 2026, Diagnostics Laboratories’ (Dx) performance is likely to have continued to witness strong organic contribution. Labcorp's ongoing expansion through health system partnerships and acquisitions is expected to have supported testing volumes by broadening its patient and provider network. During the quarter, the company announced a nationwide strategic collaboration with Children's Hospital of Philadelphia to expand access to advanced diagnostics for pediatric patients.
In May, Labcorp launched an expanded DPYD Genotyping test to identify cancer patients at risk for severe chemotherapy side effects. Earlier in March, it acquired the select assets of Crouse Health's Laboratory Alliance of Central New York and executed an agreement to manage Crouse Health’s inpatient laboratories. All these developments are expected to have favorably boosted the quarter’s top line.
Labcorp Holdings Inc. Price and EPS Surprise
The company’s expanding specialty testing portfolio likely remained another tailwind. These tests are focused in the areas spanning oncology, women's health, neurology and autoimmune disease, which are projected to far outpace the broader diagnostics market. In second-quarter 2026, Oncology results are likely to have benefited from the launch of several liquid biopsy tests and expanded access to molecular residual disease (MRD) solutions.
Labcorp further strengthened the portfolio by launching Agilent Technologies' FDA-approved companion diagnostic to identify patients with platinum-resistant ovarian cancer who may be eligible for Merck's KEYTRUDA. The company’s market-leading Alzheimer's testing portfolio may have boosted Neurology revenues.
Beyond the core testing, the company also introduced the first FDA-cleared rapid fentanyl test of its kind made in the United States, delivering results in just 10 minutes. The Labcorp OnDemand platform is also expected to have favorably supported revenues, driven by strong demand across its expanding menu of consumer health tests.
Labcorp may have also benefited from its ongoing use of advanced technologies, including AI and robotics, to enhance customer experiences and productivity. In April, the company expanded its collaboration with Epic, making its full test menu available through the Aura platform. Other recent initiatives include the development of an AI-powered real-world data platform with Amazon Web Services and Datavant to accelerate Alzheimer's research and a strategic collaboration with Optum.ai to streamline laboratory operations. Collectively, all these factors are expected to have positively impacted Labcorp’s second-quarter revenues.
The Zacks Consensus Estimate expects Dx revenues to grow 6.1% year over year.
Within the Biopharma Laboratory Services (“BLS”) segment,Labcorp has likely benefited from the solid performance of Central Laboratories. The company may have also progressed with its strategic actions to streamline the Early Development business, which may have limited overall growth.
The Zacks Consensus Estimate suggests that BLS revenues will grow 2.7% year over year.
Earnings Whispers for Labcorp
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is exactly the case here, as you can see below:
Earnings ESP: Labcorp has an Earnings ESP of +0.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Key MedTech Picks
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
CVS Health CVS has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 5.
CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.79%. The Zacks Consensus Estimate expects the company’s second-quarter EPS to increase 3.3% from the year-ago quarter’s figure.
Henry Schein HSIC has an Earnings ESP of +0.41% and a Zacks Rank #2. The company is expected to release second-quarter 2026 results soon.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.74%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for a rise of 10.9% from the year-ago quarter’s figure.
Alcon ALC has an Earnings ESP of +3.13% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 10.
ALC’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.66%. The Zacks Consensus Estimate anticipates the company’s second-quarter EPS to increase 1.3% from the year-ago quarter’s figure.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.