The third-quarter 2026 reporting cycle for the Medical sector is in full swing, with most companies having already reported their results and several others scheduled to release this week. The earnings season for the drug and biotech sector kicked off around mid-October when pharma bellwether Johnson & Johnson reported third-quarter results. While it beat earnings estimates, sales fell slightly short. J&J consequently raised its sales expectations for 2026 to reflect a strong operational performance so far this year.
Last week, Merck reported strong third-quarter results, beating estimates for both earnings and sales as Keytruda and newer products continued to drive growth. The company also raised its 2026 earnings outlook.
Also, last week, French pharma giant Sanofi reported strong third-quarter results, beating estimates for both earnings and sales. Higher sales of its blockbuster drug Dupixent and contributions from newer products like Altuviiio and Ayvakit continued to drive top-line growth, offsetting lower vaccine sales.
Per the Zacks classification, the pharma/biotech industry falls under the broader Medical sector, comprising pharma/biotech and generic companies, and medical device companies.
Per the Earnings Trends report, as of Oct. 28, 26.7% of the companies in the Medical sector — representing 33.1% of the sector's market capitalization — reported quarterly earnings. Out of these, 81.3% surpassed earnings estimates, while 93.8% beat the same for revenues. Earnings increased 8.1% year over year, while revenues rose 2.7%. Overall, third-quarter earnings of the Medical sector are expected to decrease 0.9%, while sales are projected to rise 5% from the year-ago quarter.
AmgenAMGN, PfizerPFE, ModernaMRNA, Novo NordiskNVO and ViatrisVTRS are all slated to release their quarterly results this week.
Amgen
Amgen exceeded earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 11.28%, on average. In the last reported quarter, AMGN delivered a positive earnings surprise of 12.32%.
The Zacks Consensus Estimate for sales and earnings for the third quarter is pegged at $9.95 billion and $5.74 per share, respectively.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Amgen has an Earnings ESP of -1.82% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
In the third quarter, Amgen's product sales are expected to have been driven by strong volume growth of products like Repatha, Evenity, Tezspire, Uplizna, partially offset by biosimilar erosion for Prolia and Xgeva and weakness in mature brands like Otezla and Enbrel.
Amgen is scheduled to report third-quarter 2026 results on Nov. 3, after market close.
Amgen Inc. Price and EPS Surprise
Amgen Inc. price-eps-surprise | Amgen Inc. Quote
Pfizer
Pfizer's performance has been solid, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 16.62%, on average. In the last reported quarter, PFE delivered an earnings surprise of 13.24%.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $16.13 billion, while the same for earnings currently stands at 72 cents per share.
PFE has an Earnings ESP of +3.53% and a Zacks Rank #3, indicating a likely positive earnings surprise this time around.
Pfizer's top-line growth in the third quarter is likely to have been driven by the Vyndaqel family, Eliquis, Padcev and Lorbrena. Among the newer products, sales of Nurtec ODT/Vydura, Cibinqo and the RSV vaccine, Abrysvo, are expected to have risen. However, sales of some other key products like Enbrel are likely to have declined.
PFE is set to report its third-quarter 2026 earnings on Nov. 3, before market open.
Pfizer Inc. Price and EPS Surprise
Pfizer Inc. price-eps-surprise | Pfizer Inc. Quote
Moderna
Moderna's earnings beat estimates in three of the trailing four quarters and matched the same on the remaining occasion, delivering an average surprise of 39.02%. In the last reported quarter, MRNA's earnings matched expectations.
The Zacks Consensus Estimate for the top line is pinned at $888.8 million, while that for the bottom line is pegged at a loss of $1.37 per share.
Moderna has an Earnings ESP of -71.32% and a Zacks Rank #3.
Moderna's revenues in the third quarter are likely to have been boosted by sales of its respiratory portfolio, which includes vaccines for COVID-19 (Spikevax and mNexspike), influenza (mFlusiva) and RSV (mResvia). COVID-19 vaccines are likely to have accounted for the bulk of product sales in the to-be-reported quarter.
MRNA is scheduled to report third-quarter 2026 earnings on Nov. 6, before market open.
Moderna, Inc. Price and EPS Surprise
Moderna, Inc. price-eps-surprise | Moderna, Inc. Quote
Novo Nordisk
Novo Nordisk has an impressive performance history over the trailing four quarters, with earnings beating estimates each time. On average, it registered an earnings surprise of 20.05% in the trailing four quarters. In the last reported quarter, NVO delivered an earnings surprise of 17.07%.
The Zacks Consensus Estimate for revenues in the third quarter is pegged at $11.39 billion, while the same for earnings is pinned at 81 cents per share.
Novo Nordisk has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
NVO's third-quarter revenues are expected to have been driven by higher sales of its diabetes and obesity treatments, particularly semaglutide-based (GLP-1) drugs — Ozempic (for type II diabetes [T2D]) and Wegovy (for obesity).
NVO is scheduled to report its third-quarter 2026 results on Nov. 4, before the opening bell.
Novo Nordisk A/S Price and EPS Surprise
Novo Nordisk A/S price-eps-surprise | Novo Nordisk A/S Quote
Viatris
Viatris' performance has been excellent, with earnings beating estimates in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 10.18%, on average. In the last reported quarter, VTRS earnings beat expectations by 11.29%.
The Zacks Consensus Estimate for third-quarter sales and earnings stands at $3.78 billion and 64 cents per share, respectively.
VTRS has an Earnings ESP of +0.31% and a Zacks Rank #3, indicating a likely positive earnings surprise this time around.
Growth in Developed Markets, driven by brands, likely boosted Viatris' sales from this segment and offset the decline in the Emerging Markets during the third quarter. Sales in Greater China are likely to have surged in the reported quarter, reflecting continued strength across the company's brand portfolio.
Viatris will report third-quarter 2026 results on Nov. 5, before market open.
Viatris Inc. Price and EPS Surprise
Viatris Inc. price-eps-surprise | Viatris Inc. Quote
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This article originally published on Zacks Investment Research (zacks.com).
