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4 Medical Stocks With a Healthy Shot at Q3 Earnings Beats
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The third-quarter 2026 earnings season is revealing a familiar healthcare divide: demand is holding up, but not every business is turning that demand into stronger profits. Laboratories are ordering more equipment, cancer testing continues to expand, and animal health innovation is attracting customers. Meanwhile, pricing pressure, uneven research spending and higher operating costs leave little room for mistakes.
Investors want to know whether this improvement extends to Medical companies awaiting results. Viatris Inc. (VTRS - Free Report) , Revvity, Inc. (RVTY - Free Report) , Elanco Animal Health Incorporated (ELAN - Free Report) and Veracyte, Inc. (VCYT - Free Report) offer four different ways to assess the sector's momentum. Each has favorable earnings indicators and business trends that could support results above consensus expectations.
According to the latest Earnings Trends report, the medical sector (one of the 16 broad Zacks sectors within the Zacks Industry) is projected to experience a 0.9% decline in earnings for the third quarter, even as revenues are anticipated to rise by 5%. The disconnect reflects ongoing margin pressure.
Factors at Play for Medical Stocks in Q3
The medical sector encompasses a broad range of businesses, including hospitals, physician groups, nursing care facilities, insurers, pharmaceutical manufacturers, medical device makers, life sciences tools and diagnostics, outpatient and home care providers and animal health medicines.
The clearest positive signal comes from companies supplying laboratories and drug developers. Thermo Fisher’s organic growth and Danaher’s better end-market commentary suggest pharmaceutical and biotechnology customers are becoming more willing to spend. Still, orders for major instruments can be delayed when research funding remains tight. Recurring reagents, screening services and consumables may prove more dependable than equipment purchases. Revvity’s life sciences business faces these conflicting forces, while diagnostic testing offers a more stable source of demand.
Cancer diagnostics is benefiting from a longer shift toward treatment decisions guided by molecular information. Physicians increasingly need tools that distinguish patients who require aggressive intervention from those who may avoid it. Broader clinical evidence and reimbursement coverage could expand adoption, but test volumes alone do not guarantee higher profits. Laboratories must secure payments, maintain pricing and control processing costs. Abbott’s recent cancer diagnostics momentum offers a constructive industry signal, particularly for companies such as Veracyte.
For pharmaceutical manufacturers, demand for affordable medicines remains durable, even as competition squeezes older products. Complex generics, branded treatments and specialty launches can improve the sales mix, but manufacturing reliability remains critical. Disruptions may have delayed some shipments, triggering remediation expenses and weakening operating leverage. Viatris faces precisely that balance between commercial opportunities and supply constraints, with investors also watching whether savings offset pricing erosion.
In animal health, longer parasite seasons and greater emphasis on preventive treatment are helping sustain interest in innovative pet medicines. Digital fulfillment and repeat prescriptions could improve compliance and revenue visibility. However, veterinary visits and discretionary spending remain sensitive to household budgets.
Merck's third-quarter animal health sales rose 4%, with companion animal revenues advancing 6% and livestock revenues increasing 2%. New products supported pet care growth. The results point to an opportunity for Elanco's expanding portfolio, although spending by pet owners, competition and farm economics could create uneven results across categories.
How We Selected Potential Earnings Winners
Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases. These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations.
Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our Picks in the Medical Sector
Viatris is scheduled to announce results on Nov. 5. Its Earnings ESP of +0.31% and Zacks Rank #3 point to a possible beat. The Zacks Consensus Estimate for VTRS is pegged at 64 cents per share for the bottom line and $3.78 billion in revenues. The estimate remained stable over the week. Branded products, new launches and savings initiatives could support results, while mature-drug pricing remains a drag.
The Zacks Consensus Estimate for net sales in developed markets indicates a 1.2% decline in the to-be-reported quarter. Nevertheless, the same in Greater China is expected to rise. Notably, Viatris beat earnings estimates in each of the past four quarters, with an average of 10.2%.
The Zacks Consensus Estimate implies roughly 9.3% year-over-year EPS growth to $1.29. It remained stable over the past week. Revenues are expected to have increased 1.2% to $707 million. A recovery in pharmaceutical research spending could improve orders for reagents and instruments, although academic funding remains uncertain.
The consensus estimate for net sales in Life Sciences signals 4% year-over-year growth, while the same in Diagnostics suggests 2.1% decline. Nevertheless, both units are likely to have witnessed increased adjusted operating income in the fiscal third quarter. RVTY beat earnings estimates in each of the past four quarters, with an average of 6.6%.
Elanco Animal Health follows on Nov. 6, currently carrying a +3.70% Earnings ESP and Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 20 cents per share, up 5.3% from a year ago, while revenues are expected to jump 6.1% to $1.21 billion.
Credelio Quattro’s expanding clinic reach and Zenrelia’s international uptake offer growth opportunities, particularly as pet owners seek year-round parasite and dermatology care. The Zacks Consensus Estimate for total pet health revenues indicate 8.4% year-over-year growth in the to-be reported quarter, while the same from total farm animal predicts a 3.6% increase.
Revenues from domestic and international markets are expected to increase. ELAN beat earnings estimates in each of the past four quarters, with an average surprise of 27%.
Veracyte reports its results on Nov. 4 and carries an Earnings ESP of +3.45% with a Zacks Rank #3. The consensus mark calls for earnings of 44 cents per share on revenues of $147.25 million, implying 11.7% sales growth. The earnings estimate has witnessed one upward revision over the past month against no movement in the opposite direction.
Demand for Decipher prostate and Afirma thyroid tests remains central to the story. Newer offerings, including Prosigna and TrueMRD, broaden its reach, but commercialization costs and reimbursement timing could limit near-term contributions. VCYT also beat earnings estimates in each of the past four quarters, with an average surprise of 41.8%.
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4 Medical Stocks With a Healthy Shot at Q3 Earnings Beats
The third-quarter 2026 earnings season is revealing a familiar healthcare divide: demand is holding up, but not every business is turning that demand into stronger profits. Laboratories are ordering more equipment, cancer testing continues to expand, and animal health innovation is attracting customers. Meanwhile, pricing pressure, uneven research spending and higher operating costs leave little room for mistakes.
Investors want to know whether this improvement extends to Medical companies awaiting results. Viatris Inc. (VTRS - Free Report) , Revvity, Inc. (RVTY - Free Report) , Elanco Animal Health Incorporated (ELAN - Free Report) and Veracyte, Inc. (VCYT - Free Report) offer four different ways to assess the sector's momentum. Each has favorable earnings indicators and business trends that could support results above consensus expectations.
According to the latest Earnings Trends report, the medical sector (one of the 16 broad Zacks sectors within the Zacks Industry) is projected to experience a 0.9% decline in earnings for the third quarter, even as revenues are anticipated to rise by 5%. The disconnect reflects ongoing margin pressure.
Factors at Play for Medical Stocks in Q3
The medical sector encompasses a broad range of businesses, including hospitals, physician groups, nursing care facilities, insurers, pharmaceutical manufacturers, medical device makers, life sciences tools and diagnostics, outpatient and home care providers and animal health medicines.
The clearest positive signal comes from companies supplying laboratories and drug developers. Thermo Fisher’s organic growth and Danaher’s better end-market commentary suggest pharmaceutical and biotechnology customers are becoming more willing to spend. Still, orders for major instruments can be delayed when research funding remains tight. Recurring reagents, screening services and consumables may prove more dependable than equipment purchases. Revvity’s life sciences business faces these conflicting forces, while diagnostic testing offers a more stable source of demand.
Cancer diagnostics is benefiting from a longer shift toward treatment decisions guided by molecular information. Physicians increasingly need tools that distinguish patients who require aggressive intervention from those who may avoid it. Broader clinical evidence and reimbursement coverage could expand adoption, but test volumes alone do not guarantee higher profits. Laboratories must secure payments, maintain pricing and control processing costs. Abbott’s recent cancer diagnostics momentum offers a constructive industry signal, particularly for companies such as Veracyte.
For pharmaceutical manufacturers, demand for affordable medicines remains durable, even as competition squeezes older products. Complex generics, branded treatments and specialty launches can improve the sales mix, but manufacturing reliability remains critical. Disruptions may have delayed some shipments, triggering remediation expenses and weakening operating leverage. Viatris faces precisely that balance between commercial opportunities and supply constraints, with investors also watching whether savings offset pricing erosion.
In animal health, longer parasite seasons and greater emphasis on preventive treatment are helping sustain interest in innovative pet medicines. Digital fulfillment and repeat prescriptions could improve compliance and revenue visibility. However, veterinary visits and discretionary spending remain sensitive to household budgets.
Merck's third-quarter animal health sales rose 4%, with companion animal revenues advancing 6% and livestock revenues increasing 2%. New products supported pet care growth. The results point to an opportunity for Elanco's expanding portfolio, although spending by pet owners, competition and farm economics could create uneven results across categories.
How We Selected Potential Earnings Winners
Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases. These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations.
Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our Picks in the Medical Sector
Viatris is scheduled to announce results on Nov. 5. Its Earnings ESP of +0.31% and Zacks Rank #3 point to a possible beat. The Zacks Consensus Estimate for VTRS is pegged at 64 cents per share for the bottom line and $3.78 billion in revenues. The estimate remained stable over the week. Branded products, new launches and savings initiatives could support results, while mature-drug pricing remains a drag.
The Zacks Consensus Estimate for net sales in developed markets indicates a 1.2% decline in the to-be-reported quarter. Nevertheless, the same in Greater China is expected to rise. Notably, Viatris beat earnings estimates in each of the past four quarters, with an average of 10.2%.
Viatris Price and EPS Surprise
Viatris Inc. price-eps-surprise | Viatris Inc. Quote
Revvity is scheduled to report earnings on Nov. 3. Its Earnings ESP stands at +1.03%, alongside a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate implies roughly 9.3% year-over-year EPS growth to $1.29. It remained stable over the past week. Revenues are expected to have increased 1.2% to $707 million. A recovery in pharmaceutical research spending could improve orders for reagents and instruments, although academic funding remains uncertain.
The consensus estimate for net sales in Life Sciences signals 4% year-over-year growth, while the same in Diagnostics suggests 2.1% decline. Nevertheless, both units are likely to have witnessed increased adjusted operating income in the fiscal third quarter. RVTY beat earnings estimates in each of the past four quarters, with an average of 6.6%.
Revvity Price and EPS Surprise
Revvity Inc. price-eps-surprise | Revvity Inc. Quote
Elanco Animal Health follows on Nov. 6, currently carrying a +3.70% Earnings ESP and Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 20 cents per share, up 5.3% from a year ago, while revenues are expected to jump 6.1% to $1.21 billion.
Credelio Quattro’s expanding clinic reach and Zenrelia’s international uptake offer growth opportunities, particularly as pet owners seek year-round parasite and dermatology care. The Zacks Consensus Estimate for total pet health revenues indicate 8.4% year-over-year growth in the to-be reported quarter, while the same from total farm animal predicts a 3.6% increase.
Revenues from domestic and international markets are expected to increase. ELAN beat earnings estimates in each of the past four quarters, with an average surprise of 27%.
Elanco Animal Health Price and EPS Surprise
Elanco Animal Health Incorporated price-eps-surprise | Elanco Animal Health Incorporated Quote
Veracyte reports its results on Nov. 4 and carries an Earnings ESP of +3.45% with a Zacks Rank #3. The consensus mark calls for earnings of 44 cents per share on revenues of $147.25 million, implying 11.7% sales growth. The earnings estimate has witnessed one upward revision over the past month against no movement in the opposite direction.
Demand for Decipher prostate and Afirma thyroid tests remains central to the story. Newer offerings, including Prosigna and TrueMRD, broaden its reach, but commercialization costs and reimbursement timing could limit near-term contributions. VCYT also beat earnings estimates in each of the past four quarters, with an average surprise of 41.8%.
Veracyte Price and EPS Surprise
Veracyte, Inc. price-eps-surprise | Veracyte, Inc. Quote