Published: January 2, 2026 | Category: US Stock Market, Healthcare, Pharma & Biotech
GLP-1 weight loss drugs created MASSIVE healthcare winners in 2025! The obesity drug revolution, led by Eli Lilly’s Mounjaro and Zepbound, has transformed the healthcare investment landscape. In this comprehensive analysis, we dive deep into the top 5 healthcare performers of 2025 and explore their outlook for 2026.
#1. Hims & Hers Health (HIMS)
2025 Performance Analysis
Hims & Hers emerged as the top-performing healthcare stock in 2025, riding the explosive wave of GLP-1 demand. The telehealth platform capitalized on consumer demand for accessible weight loss treatments, offering compounded GLP-1 medications at a fraction of branded drug prices.
The company’s Q3 2025 results showed revenue of $599 million, up 49% year-over-year, beating guidance and analyst expectations. Subscriber base grew 21% to 2.47 million customers, with revenue per subscriber climbing 19% to $80 per month. Customers using personalized subscriptions soared 80% to 1.6 million.
The company announced its weight loss business is projected to generate $725 million in 2025 revenue. Full-year 2025 guidance was raised to $2.3-2.4 billion, representing 56% growth year-over-year. HIMS achieved its first full year of GAAP profitability in 2024 with $126 million net income.
- Revenue: $599 million (+49% YoY)
- Subscribers: 2.47 million (+21% YoY)
- Revenue per Subscriber: $80/month (+19%)
- 2030 Revenue Target: $6.5 billion
2026 Outlook
HIMS faces regulatory headwinds as the FDA declared semaglutide shortage resolved, potentially limiting compounded GLP-1 sales. However, the company is pivoting to personalized dosing, liraglutide generics, and oral weight loss solutions. Management maintains its ambitious $6.5 billion revenue target by 2030. Analysts maintain mixed ratings with an average price target of $44.67, implying 28% upside.
#2. Intuitive Surgical (ISRG)
2025 Performance Analysis
Intuitive Surgical delivered outstanding results driven by the successful launch of its next-generation da Vinci 5 platform. The company reported Q3 2025 revenue of $2.51 billion, up 23% year-over-year, beating analyst estimates of $2.40 billion.
Combined da Vinci and Ion procedures rose 20% year-over-year in Q3 2025. The company placed 427 da Vinci systems in the quarter, up from 379 last year. The installed base reached 10,488 systems worldwide, with 6,087 in the US, 2,006 in Europe, and 1,854 in Asia.
The da Vinci 5 platform showed impressive early momentum with over 32,000 procedures performed and usage across 40 different procedure types by more than 2,500 surgeons. The platform features force feedback instruments and delivers surgical time reductions of more than 20% in some cases.
- Revenue: $2.51 billion (+23% YoY)
- EPS: $2.40 (beat estimate by $0.41)
- Procedure Growth: +20% YoY
- System ASP: $1.5 million (up from $1.44M)
2026 Outlook
Intuitive Surgical continues to benefit from da Vinci 5 adoption and expanding procedure types. The European CE Mark approval opens additional growth opportunities. Analysts maintain a consensus “Buy” rating with average price target of $593, implying modest upside. Key catalysts include Ion endoluminal system growth and international expansion.
#3. Eli Lilly and Company (LLY)
2025 Performance Analysis
Eli Lilly became the undisputed leader in the GLP-1 market, with its Mounjaro and Zepbound franchise capturing approximately 2/3 of the injectable obesity and diabetes market. The company briefly became the first $1 trillion healthcare company.
Q3 2025 results were exceptional: revenue of $17.60 billion, up 54% year-over-year. Mounjaro sales hit $6.52 billion (+109% YoY), while Zepbound generated $3.57 billion (+185% YoY). Combined tirzepatide sales of roughly $10.1 billion now represent more than half of total company revenue, surpassing Merck’s Keytruda as the world’s best-selling drug.
The company raised full-year 2025 guidance to $63.0-63.5 billion in revenue, with adjusted EPS of $23.00-23.70. CEO David Ricks noted Mounjaro’s successful launch in China, Brazil, and India, calling it “really strong international performance.”
- Revenue: $17.60 billion (+54% YoY)
- Mounjaro: $6.52 billion (+109% YoY)
- Zepbound: $3.57 billion (+185% YoY)
- EPS: $7.02 (beat estimate of $5.69)
2026 Outlook
The biggest catalyst for 2026 is orforglipron, Eli Lilly’s oral GLP-1 pill for obesity. Phase 3 trials showed 9.6% weight loss over 72 weeks. Global regulatory submissions are planned by year-end 2025 for obesity treatment. The company is investing heavily in manufacturing, including a new $6.5 billion Texas facility. The oral GLP-1 segment could represent 25% of the market by decade-end.
#4. Regeneron Pharmaceuticals (REGN)
2025 Performance Analysis
Regeneron delivered solid performance driven by its Dupixent franchise strength and Eylea HD transition. Q3 2025 adjusted EPS of $11.83 comfortably beat the consensus estimate of $9.44. Total revenues grew 1% year-over-year to $3.7 billion.
Dupixent global sales surged 27% year-over-year to $4.86 billion, driven by strong demand across all approved indications including atopic dermatitis, asthma, chronic rhinosinusitis, eosinophilic esophagitis, and newly approved chronic spontaneous urticaria and bullous pemphigoid.
Eylea HD U.S. sales reached $431 million, up 10% year-over-year. The company announced over $7 billion in planned investments for New York and North Carolina infrastructure. The oncology franchise received a boost with FDA approval of linvoseltamab for relapsed/refractory multiple myeloma.
- Revenue: $3.7 billion (+1% YoY)
- Dupixent Global Sales: $4.86 billion (+27% YoY)
- Eylea HD U.S. Sales: $431 million (+10%)
- Non-GAAP EPS: $11.83 (beat by 25%)
2026 Outlook
Key 2026 catalysts include continued Dupixent label expansion (COPD, pediatric indications), Phase 3 data for itepekimab in COPD, and obesity program results from the COURAGE trial evaluating semaglutide with myostatin inhibition. The company expects to complete Sanofi development balance repayment by 2026, improving profit margins.
#5. UnitedHealth Group (UNH)
2025 Performance Analysis
UnitedHealth faced significant challenges in 2025, with higher-than-expected Medicare Advantage medical costs and leadership changes. However, the company’s scale and diversification through Optum continued to drive revenue growth.
Q3 2025 revenues grew $12.3 billion year-over-year to $113.2 billion. UnitedHealthcare served 50.1 million consumers domestically, up 795,000 year-over-year. Medicare Advantage offerings grew 625,000 members. Optum revenues grew 8% to $69.2 billion, driven by Optum Rx’s 16% growth.
The company completed the Amedisys acquisition in August 2025, expanding home health capabilities. Despite cost pressures, UnitedHealthcare Community & State revenues grew 18% year-over-year to $23.8 billion.
- Revenue: $113.2 billion (+12% YoY)
- Medicare Advantage Members: +625,000
- Optum Revenue: $69.2 billion (+8% YoY)
- Adjusted EPS: $2.92
2026 Outlook
UnitedHealth is repositioning for 2026 with aggressive repricing of Medicare Advantage plans. CEO Stephen Hemsley noted that repricing is “on track to drive solid operating earnings growth from margin improvement.” The company targets a return to its long-term earnings growth rate of 13-16%. UBS maintains a “Buy” rating despite trimming price target to $385.
π 2026 Healthcare Sector Outlook
Major investment banks expect Healthcare to be a top-performing sector in 2026 after years of underperformance.
Investment Bank Healthcare Outlook
- J.P. Morgan: “Healthcare companies have beaten Q3 estimates by 13% β well above the broad market’s 7%, and the highest beat rate in at least two years.”
- Goldman Sachs: Healthcare among sectors with concentrated share buybacks and strong fundamentals
- Citi: Positive on GLP-1 manufacturers and biotech M&A targets
- EY-Parthenon: Ambulatory and post-acute services to drive volume growth in 2026
Key 2026 Catalysts
- Orforglipron Oral GLP-1 Pill Launch – Game changer from Eli Lilly
- GLP-1 Expansion Beyond Obesity – Heart, liver, kidney indications
- M&A Acceleration in Biotech – Averaging one deal per week since Labor Day
- AI Drug Discovery Efficiency Gains – Accelerating R&D timelines
- Drug Pricing Policy Clarity – New administration providing direction
π GLP-1 Market Size Projections
- 2024: ~$53.5 billion (GLP-1 receptor agonist market)
- 2030: $95-156 billion (various estimates)
- Growth Rate: 17-23% CAGR
- Obesity-specific Market: $50B+ by 2030
β οΈ Investment Considerations
- Regulatory Risk: FDA compounding rules impacting telehealth platforms
- Pricing Pressure: GLP-1 price erosion and insurance coverage limitations
- Competition: Next-generation drugs and generics entering market
- Medicare Policy: Funding cuts and program changes affecting managed care
- Valuation: Eli Lilly trades at premium P/E of ~25x vs healthcare avg of 16.5x
This article is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Do your own research before making investment decisions.