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The third-quarter 2025 reporting cycle for the Medical sector is about to pick up pace this week, as most firms are slated to share their earnings results over the next two weeks. The sector mainly comprises pharma/biotech and medical device companies. The earnings season for the drug and biotech sector kicked off around mid-October when bellwether Johnson & Johnson reported strong third-quarter results, beating estimates for earnings and sales. J&J consequently raised its sales expectations for 2025 to reflect a strong operational performance so far this year.
While most of the pharma bigwigs are slated to report their earnings results later this week, Roche posted solid growth in the first nine months of 2025 as high demand for key drugs like Phesgo (breast cancer), Xolair (food allergies), Hemlibra (hemophilia A), Vabysmo (severe eye diseases) and Ocrevus (multiple sclerosis) offset the decline in sales of legacy drugs. Consequently, Roche now expects higher earnings per share growth in 2025.
Per the Earnings Trends report, as of Oct. 22, 13.3% of the companies in the Medical sector — representing 26.8% of the sector’s market capitalization — reported quarterly earnings. Of these, 87.5% exceeded earnings estimates, while an equal share also topped revenue expectations. Earnings increased 7.4% year over year, while revenues increased 9.8%. Overall, third-quarter earnings of the Medical sector are expected to decrease 4.3%, while sales are projected to rise 8.1% from the year-ago quarter.
Eli Lilly LLY, Merck MRK, AbbVie ABBV, Bristol Myers BMY and Gilead Sciences GILD are all slated to release theirquarterly results this week. Let us examine how these biotech/pharma companies are likely to have performed in the soon-to-be-reported quarter.
Lilly’s performance has been mixed, with the company exceeding earnings expectations in two of the trailing four quarters and missing the same on the other two occasions. It delivered a four-quarter negative earnings surprise of 2.31%, on average. In the last reported quarter, LLY delivered an earnings surprise of 12.48%.
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’re reported with our Earnings ESP Filter.
Lilly has an Earnings ESP of -0.66% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for sales and earnings for the third quarter is pegged at $16.01 billion and $6.02 per share, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lilly is expected to deliver another strong quarter, driven by robust demand for its blockbuster GLP-1 drugs (Mounjaro and Zepbound), improved supply, deeper U.S. market penetration and expanding international launches. Beyond its cardiometabolic portfolio, LLY’s oncology and immunology drugs, including Verzenio, Taltz, and newer launches like Omvoh, Ebglyss and Jaypirca, are also expected to have supported steady top-line expansion in the third quarter.
Lilly is scheduled to release its quarterly earnings results before the opening bell on Oct. 30.
Eli Lilly and Company price-consensus-chart | Eli Lilly and Company Quote
Merck has an encouraging earnings track record. It beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 3.92%. In the last reported quarter, MRK beat earnings estimates by 5.97%.
Merck has an Earnings ESP of -0.09% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for sales and earnings for the third quarter is pegged at $17.06 billion and $2.36 per share, respectively.
Merck’s top-line growth in the third quarter is likely to have been driven by higher sales of its blockbuster cancer drug Keytruda, attributable to additional indications and patient demand.
Merck is scheduled to release its quarterly earnings results before the opening bell on Oct. 30.
Merck & Co., Inc. price-consensus-chart | Merck & Co., Inc. Quote
AbbVie has an impeccable earnings track record to date. ABBV’s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 2.46%. In the last reported quarter, AbbVie’s earnings beat estimates by 2.77%.
For the quarter to be reported, AbbVie has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. The Zacks Consensus Estimate for sales and earnings for the third quarter is pegged at $15.59 billion and $1.80 per share, respectively.
AbbVie’s top line is expected to have been driven by robust sales of key drugs Rinvoq, Skyrizi, Venclexta and Vraylar, coupled with significant contributions from newer drugs, namely Ubrelvy, Epkinly, Qulipta and Vyalev.
ABBV is scheduled to report its quarterly earnings results on Oct. 31, before the opening bell.
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Bristol Myers has an excellent earnings track record. BMY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 22.71%. In the last reported quarter, Bristol Myers’ earnings surpassed estimates by 36.45%.
Bristol Myers has an Earnings ESP of -1.03% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for sales and earnings for the third quarter is pegged at $11.83 billion and $1.51 per share, respectively.
Bristol Myers’ revenues in the third quarter of 2025 are likely to have been positively impacted by an increase in growth portfolio sales. The growth portfolio primarily comprises Opdivo, Orencia, Yervoy, Reblozyl, Opdualag, Abecma, Zeposia, Breyanzi, Camzyos, Sotyku, Krazati and others. However, total quarterly revenues are likely to have been adversely affected by a decline in sales from the legacy portfolio, which includes Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, among others.
Bristol Myers is slated to release its quarterly earnings results before the opening bell on Oct. 30.
Bristol Myers Squibb Company price-consensus-chart | Bristol Myers Squibb Company Quote
Gilead has an encouraging earnings track record so far. It beat earnings estimates in three of the last four quarters, missing the mark on the remaining occasion, delivering an average surprise of 11.04%. In the last reported quarter, GILD beat earnings estimates by 3.08%.
For the third quarter of 2025, Gilead has an Earnings ESP of -1.34% and a Zacks Rank #3. The Zacks Consensus Estimate for sales and earnings for the third quarter is pegged at $7.46 billion and $2.15 per share, respectively.
Gilead’s flagship HIV therapies — Biktarvy and Descovy — are likely to have boosted the company’s top line. However, the company’s revenues are likely to have been impacted by the new Medicare Part D model, which increases manufacturer discount obligations during the initial coverage and catastrophic phases and offers additional discounts for people who qualify for the low-income subsidy program, a group significantly affected by HIV.
Gilead is slated to report its third-quarter 2025 earnings results on Oct. 30, after market close.
Gilead Sciences, Inc. price-consensus-chart | Gilead Sciences, Inc. Quote
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This article originally published on Zacks Investment Research (zacks.com).
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