We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pharma ETFs in Spotlight Following Robust Q3 Earnings Results
Read MoreHide Full Article
The third-quarter results of the broader Medical sector, which includes major large-cap pharmaceutical companies, have been quite impressive this year, with more than 82% of sector participants having reported so far. These stocks posted a solid year-over-year earnings growth scorecard of 4.3% on 10.7% revenue growth (as per our Earnings Trends report).
The earnings beat ratio of 91.8% and the revenue beat ratio of 83.7% are also assuring. After factoring in actual results and projections for the companies still to report, the sector is on track for 3% earnings growth, driven by a 10.5% rise in revenues (as of Nov. 5, 2025).
Many well-known pharmaceutical stocks have reported better-than-expected results this earnings season, with some beating top-line estimates, others surpassing bottom-line estimates, and several exceeding both.
Resultantly, major pharma exchange-traded funds (ETFs), which offer heavy exposure to these pharma bigwigs, have delivered positive performances over the past month. Evidently, iShares U.S. Pharmaceuticals ETF ((IHE - Free Report) ), VanEck Vectors Pharmaceutical ETF ((PPH - Free Report) ), Invesco Pharmaceuticals ETF ((PJP - Free Report) ), SPDR S&P Pharmaceuticals ETF ((XPH - Free Report) ) and First Trust Nasdaq Pharmaceuticals ETF ((FTXH - Free Report) ) have gained 8%, 7.9%, 8.7%, 3.5% and 8.5%, respectively, in a month (see: all the Healthcare ETFs here).
Now, before gaining more insight into the aforementioned pharma ETFs, let’s delve a bit deeper into the earnings performance of some of the prominent pharma stocks.
Pharma Stocks’ Q3 Earnings in Focus
Johnson and Johnson
Johnson & Johnson ((JNJ - Free Report) ) continued its streak of earnings beat with its third-quarter 2025 results. Sales of JNJ’s blockbuster multiple myeloma medicine Darzalex soared 21.7% year over year. The company raised its sales expectation to $93.5-$93.9 billion and maintained its expectation for 2025 adjusted earnings per share (EPS). JNJ also announced its intention to separate its Orthopaedics franchise, DePuy Synthes, within the MedTech segment (read more: ETFs to Watch Post JNJ's Q3 Earnings Surprise & Bullish Outlook).
Eli Lily
Eli Lilly and Company’s ((LLY - Free Report) ) third-quarter 2025 adjusted EPS beat the Zacks Consensus Estimate by 1%. Its revenues rose 54% year over year and also beat the Zacks Consensus Estimate by 9.9%. Lilly raised its 2025 revenue and EPS guidance.
Pfizer
Pfizer ((PFE - Free Report) ) reported third-quarter 2025 adjusted earnings per share of 87 cents, which beat the Zacks Consensus Estimate by 31.8% but declined 18% year over year. Its revenues also went down 6% from the year-ago quarter’s level. However, PFE beat the top-line estimate by a small margin. As for its 2025 outlook, PFE raised its adjusted EPS guidance to $3.00-$3.15 but maintained its revenue forecast.
Merck
Merck’s ((MRK - Free Report) ) third-quarter 2025 adjusted EPS of $2.58 beat the Zacks Consensus Estimate by 9.3% and improved 64% year over year on a reported basis. Its revenues rose 4% year over year on a reported basis and also beat the Zacks Consensus Estimate by 1.2%. MRK narrowed its sales guidance for 2025. It has raised its adjusted EPS guidance, which includes a revised negative impact of foreign exchange of around 15 cents per share.
Bristol-Myers Squibb
Bristol-Myers Squibb Company’s ((BMY - Free Report) ) third-quarter 2025 adjusted EPS beat the Zacks Consensus Estimate by 10.1%, but came in lower than the year-ago quarter’s comparable level of $1.80. Its total revenues also surpassed the Zacks Consensus Estimate by 3.3% and went up 3% from the year-ago period’s level. As for its 2025 outlook, Bristol-Myers raised its revenue guidance on the back of strong performance of the Growth Portfolio. However, it narrowed its adjusted EPS outlook.
AbbVie
AbbVie Inc.’s ((ABBV - Free Report) ) third-quarter 2025 adjusted EPS beat the Zacks Consensus Estimate by 5.1% but declined 38.0% year over year, on account of higher IPR&D charges incurred during the quarter. Its revenues surpassed the Zacks Consensus Estimate by 1.2% and also rose 9.1% year over year on a reported basis. The company raised its EPS guidance for 2025.
This fund provides exposure to 43 U.S. companies that manufacture prescription or over-the-counter drugs or vaccines. Of its top three holdings, LLY has the first spot (26.68%), while JNJ holds the second (21.87%).
It has net assets worth $666.5 million and charges 38 basis points (bps) in fees and expenses. It trades in average daily volume of 48,398 shares and carries a Zacks ETF Rank #3 (Hold).
This fund provides exposure to 26 companies involved in pharmaceuticals, including pharmaceutical research and development as well as the production, marketing, and sales of pharmaceutical products. Of its top three holdings, LLY has the first spot (24.09%), while MRK holds the third (7.35%).
It has net assets worth $1.14 billion and charges 36 bps in fees and expenses. It trades in an average daily volume of 692,138 shares and carries a Zacks ETF Rank #3.
This fund offers exposure to 31 companies that are principally engaged in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. Of its top four holdings, LLY has the first spot (6.14%), while ABBV holds the fourth (5.01%).
It has net asset value of $102.19 per share and charges 57 bps in fees and expenses. It trades in average daily volume of 10,738 shares and carries a Zacks ETF Rank #3.
State Street SPDR S&P Pharmaceuticals ETF (XPH - Free Report)
This fund provides exposure to 51 pharmaceutical companies. Among its top 10 holdings, LLY occupies the second spot (3.27%), JNJ the seventh (2.68%), and MRK the tenth (2.64%).
It has assets under management (AUM) worth $183.4 million and charges 35 bps in fees and expenses. It traded at a volume of 3,810 on Nov. 13, 2025, and carries a Zacks ETF Rank #3.
This fund provides exposure to 50 U.S. pharmaceutical and biotechnology companies. Of its top 10 holdings, ABBV has the first spot (7.14%), JNJ the second (7.07%), MRK the third (7.01%), PFE the fourth (6.73%), BMY the fifth (6.70%) and LLY the sixth (4.48%).
It has net assets worth $18.87 million and charges 60 bps in fees and expenses. It trades in average daily volume of 4,752 shares and carries a Zacks ETF Rank #3.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pharma ETFs in Spotlight Following Robust Q3 Earnings Results
The third-quarter results of the broader Medical sector, which includes major large-cap pharmaceutical companies, have been quite impressive this year, with more than 82% of sector participants having reported so far. These stocks posted a solid year-over-year earnings growth scorecard of 4.3% on 10.7% revenue growth (as per our Earnings Trends report).
The earnings beat ratio of 91.8% and the revenue beat ratio of 83.7% are also assuring. After factoring in actual results and projections for the companies still to report, the sector is on track for 3% earnings growth, driven by a 10.5% rise in revenues (as of Nov. 5, 2025).
Many well-known pharmaceutical stocks have reported better-than-expected results this earnings season, with some beating top-line estimates, others surpassing bottom-line estimates, and several exceeding both.
Resultantly, major pharma exchange-traded funds (ETFs), which offer heavy exposure to these pharma bigwigs, have delivered positive performances over the past month. Evidently, iShares U.S. Pharmaceuticals ETF ((IHE - Free Report) ), VanEck Vectors Pharmaceutical ETF ((PPH - Free Report) ), Invesco Pharmaceuticals ETF ((PJP - Free Report) ), SPDR S&P Pharmaceuticals ETF ((XPH - Free Report) ) and First Trust Nasdaq Pharmaceuticals ETF ((FTXH - Free Report) ) have gained 8%, 7.9%, 8.7%, 3.5% and 8.5%, respectively, in a month (see: all the Healthcare ETFs here).
Now, before gaining more insight into the aforementioned pharma ETFs, let’s delve a bit deeper into the earnings performance of some of the prominent pharma stocks.
Pharma Stocks’ Q3 Earnings in Focus
Johnson and Johnson
Johnson & Johnson ((JNJ - Free Report) ) continued its streak of earnings beat with its third-quarter 2025 results. Sales of JNJ’s blockbuster multiple myeloma medicine Darzalex soared 21.7% year over year. The company raised its sales expectation to $93.5-$93.9 billion and maintained its expectation for 2025 adjusted earnings per share (EPS). JNJ also announced its intention to separate its Orthopaedics franchise, DePuy Synthes, within the MedTech segment (read more: ETFs to Watch Post JNJ's Q3 Earnings Surprise & Bullish Outlook).
Eli Lily
Eli Lilly and Company’s ((LLY - Free Report) ) third-quarter 2025 adjusted EPS beat the Zacks Consensus Estimate by 1%. Its revenues rose 54% year over year and also beat the Zacks Consensus Estimate by 9.9%. Lilly raised its 2025 revenue and EPS guidance.
Pfizer
Pfizer ((PFE - Free Report) ) reported third-quarter 2025 adjusted earnings per share of 87 cents, which beat the Zacks Consensus Estimate by 31.8% but declined 18% year over year. Its revenues also went down 6% from the year-ago quarter’s level. However, PFE beat the top-line estimate by a small margin. As for its 2025 outlook, PFE raised its adjusted EPS guidance to $3.00-$3.15 but maintained its revenue forecast.
Merck
Merck’s ((MRK - Free Report) ) third-quarter 2025 adjusted EPS of $2.58 beat the Zacks Consensus Estimate by 9.3% and improved 64% year over year on a reported basis. Its revenues rose 4% year over year on a reported basis and also beat the Zacks Consensus Estimate by 1.2%. MRK narrowed its sales guidance for 2025. It has raised its adjusted EPS guidance, which includes a revised negative impact of foreign exchange of around 15 cents per share.
Bristol-Myers Squibb
Bristol-Myers Squibb Company’s ((BMY - Free Report) ) third-quarter 2025 adjusted EPS beat the Zacks Consensus Estimate by 10.1%, but came in lower than the year-ago quarter’s comparable level of $1.80. Its total revenues also surpassed the Zacks Consensus Estimate by 3.3% and went up 3% from the year-ago period’s level. As for its 2025 outlook, Bristol-Myers raised its revenue guidance on the back of strong performance of the Growth Portfolio. However, it narrowed its adjusted EPS outlook.
AbbVie
AbbVie Inc.’s ((ABBV - Free Report) ) third-quarter 2025 adjusted EPS beat the Zacks Consensus Estimate by 5.1% but declined 38.0% year over year, on account of higher IPR&D charges incurred during the quarter. Its revenues surpassed the Zacks Consensus Estimate by 1.2% and also rose 9.1% year over year on a reported basis. The company raised its EPS guidance for 2025.
Pharma ETFs in Spotlight
iShares U.S. Pharmaceuticals ETF (IHE - Free Report)
This fund provides exposure to 43 U.S. companies that manufacture prescription or over-the-counter drugs or vaccines. Of its top three holdings, LLY has the first spot (26.68%), while JNJ holds the second (21.87%).
It has net assets worth $666.5 million and charges 38 basis points (bps) in fees and expenses. It trades in average daily volume of 48,398 shares and carries a Zacks ETF Rank #3 (Hold).
VanEck Pharmaceutical ETF (PPH - Free Report)
This fund provides exposure to 26 companies involved in pharmaceuticals, including pharmaceutical research and development as well as the production, marketing, and sales of pharmaceutical products. Of its top three holdings, LLY has the first spot (24.09%), while MRK holds the third (7.35%).
It has net assets worth $1.14 billion and charges 36 bps in fees and expenses. It trades in an average daily volume of 692,138 shares and carries a Zacks ETF Rank #3.
Invesco Pharmaceuticals ETF (PJP - Free Report)
This fund offers exposure to 31 companies that are principally engaged in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. Of its top four holdings, LLY has the first spot (6.14%), while ABBV holds the fourth (5.01%).
It has net asset value of $102.19 per share and charges 57 bps in fees and expenses. It trades in average daily volume of 10,738 shares and carries a Zacks ETF Rank #3.
State Street SPDR S&P Pharmaceuticals ETF (XPH - Free Report)
This fund provides exposure to 51 pharmaceutical companies. Among its top 10 holdings, LLY occupies the second spot (3.27%), JNJ the seventh (2.68%), and MRK the tenth (2.64%).
It has assets under management (AUM) worth $183.4 million and charges 35 bps in fees and expenses. It traded at a volume of 3,810 on Nov. 13, 2025, and carries a Zacks ETF Rank #3.
First Trust NASDAQ Pharmaceuticals ETF (FTXH - Free Report)
This fund provides exposure to 50 U.S. pharmaceutical and biotechnology companies. Of its top 10 holdings, ABBV has the first spot (7.14%), JNJ the second (7.07%), MRK the third (7.01%), PFE the fourth (6.73%), BMY the fifth (6.70%) and LLY the sixth (4.48%).
It has net assets worth $18.87 million and charges 60 bps in fees and expenses. It trades in average daily volume of 4,752 shares and carries a Zacks ETF Rank #3.