Pharma ETFs Gain Attention After Strong Q3 Earnings Reports
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 14 2025
0mins
Source: NASDAQ.COM
Third-Quarter Earnings Performance: The medical sector, particularly large-cap pharmaceutical companies, reported strong third-quarter results with over 82% of participants showing 4.3% earnings growth and 10.7% revenue growth, alongside high earnings and revenue beat ratios of 91.8% and 83.7%, respectively.
Notable Company Performances: Major pharmaceutical companies like Johnson & Johnson, Eli Lilly, and Merck exceeded earnings expectations, with Eli Lilly showing a remarkable 54% revenue increase year-over-year, while Pfizer's earnings declined but still beat estimates.
Pharmaceutical ETFs Performance: Several major pharmaceutical ETFs, including iShares U.S. Pharmaceuticals ETF and VanEck Vectors Pharmaceutical ETF, experienced positive performance over the past month, with gains ranging from 3.5% to 8.7%.
Outlook and Guidance Adjustments: Companies like Bristol-Myers Squibb and AbbVie raised their revenue guidance for 2025, while others like Pfizer and Merck adjusted their earnings forecasts, reflecting a generally optimistic outlook for the sector despite some year-over-year declines.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1122.500
Low
950.00
Averages
1192
High
1500
Current: 1122.500
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Profitability Enhancement: The company's net income for the past 12 months reached $25.3 billion, a significant increase from a couple of years ago, indicating sustained profitability that provides robust financial support for future investments.
- Strategic Acquisitions Expansion: Eli Lilly has recently acquired several healthcare companies, including Orna Therapeutics, aimed at expanding its RNA therapies and infectious disease portfolio, further solidifying its market position in the healthcare sector.
- Long-Term Investment Appeal: Despite a current P/E ratio of 40, Eli Lilly is still viewed as a strong long-term investment option, particularly given its management's commitment to operational diversification and future growth prospects.
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- Market Expansion Plans: Novo Nordisk's CEO Mike Doustdar announced that the company will submit its Wegovy weight-loss pill for regulatory approval in China within a few months, indicating its intent to expand in the world's second-largest market and compete with Eli Lilly's orforglipron.
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