As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at branded pharmaceuticals stocks, starting with Eli Lilly (NYSE: LLY).
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 11 branded pharmaceuticals stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.7%.
In light of this news, share prices of the companies have held steady as they are up 1.1% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 13.7%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
"2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion," said David A. Ricks, Lilly chair and CEO.
Eli Lilly pulled off the biggest analyst estimate beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 32.2% since reporting and currently trades at $1,125.
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, outperforming analysts’ expectations by 8%. The business had a strong quarter with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 44.6% since reporting. It currently trades at $32.39.
Is now the time to buy Phibro Animal Health? 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%. It was a softer quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 29.2% since the results and currently trades at $78.76.
Read our full analysis of Zoetis’s results here.
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 result surpassed analysts’ expectations by 3%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
The stock is up 8.6% since reporting and currently trades at $120.50.
Read our full, actionable report on Merck 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 2.6% year on year. This print topped analysts’ expectations by 7.4%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but a slight miss of analysts’ full-year EPS guidance estimates.
The stock is flat since reporting and currently trades at $57.14.
Read our full, actionable report on Bristol-Myers Squibb here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
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