Statistics · 2026 · Stocks
Healthcare Stock Statistics (2026)
Health care is the fourth-largest of the 11 sectors in the S&P 500, at 9.1% of the index by weight, as of October 1, 2026. Its 60 companies hold $6.3 trillion in market value and 19.6% of the revenue of the 497 companies WealthyBud tracks. Eli Lilly (LLY) is the largest, at $1.07T. The median company earns a 13.15% net margin.
Key takeaways
- Health care carries 9.1% of the S&P 500’s index weight and 8.9% of total market value across 497 companies.
- The sector produces 19.6% of the index’s revenue but 8.9% of its net income.
- The median health care company has a 13.15% net margin, against 13.15% for the median company in the index.
- Health insurers earn a median 2.8% net margin, and pharma and biotech companies earn 18.0%.
How big is the health care sector in the S&P 500?
Health care is the fourth-largest of the 11 sectors in the S&P 500, with a 9.1% weight in the SPDR S&P 500 ETF holdings file on October 1, 2026. Its 60 companies are worth $6.25 trillion in total market value, 8.9% of the 497 companies with fundamentals in WealthyBud’s data.
1. Health care is 9.1% of the S&P 500 by index weight
Index weight comes from State Street’s SPY holdings file for October 1, 2026. The 60 companies sum to 9.1% (WealthyBud data · October 2, 2026).
2. Health care holds $6.3 trillion, 8.9% of total market value
The 60 companies add up to $6.25 trillion out of $70.0 trillion for 497 companies. This market-cap share differs from the 9.1% index weight because index weights follow S&P’s methodology, cover all 501 constituents (not 497) and date from October 1, 2026, not October 2, 2026 (WealthyBud data · October 2, 2026).
3. Health care earns 8.9% of net income on 19.6% of revenue
The sector reported $3.54 trillion in revenue and $0.20 trillion in net income in each company’s latest fiscal year. WealthyBud’s calculation shows its profit share is 0.45 times its revenue share, and health insurers alone book 31.7% of sector revenue at a median 2.8% margin (WealthyBud data · October 2, 2026).
4. State Street’s health care index has 60 holdings, matching our 60 companies
The State Street XLV fund page lists 60 holdings under its index characteristics, and XLV tracks the health care sector of the S&P 500. That equals the 60 companies in WealthyBud’s count.
Which health care companies are the largest?
Eli Lilly is the largest health care company, worth $1.07T, followed by Johnson & Johnson at $616.1B and AbbVie at $462.7B. The ten largest hold 60.8% of the sector’s market value. The table shows each company’s revenue, net margin and P/E.
5. The top three are 34.4% of sector market value
Eli Lilly (LLY), Johnson & Johnson (JNJ) and AbbVie (ABBV) carry 3.0% of the S&P 500’s index weight and hold 34.4% of Health Care market cap (WealthyBud data · October 2, 2026).
| Company | Market cap | Revenue | Net margin | P/E |
|---|---|---|---|---|
| Eli Lilly (LLY) | $1.07T | $65.2B | 31.7% | 52.0 |
| Johnson & Johnson (JNJ) | $616.1B | $94.2B | 28.5% | 23.0 |
| AbbVie (ABBV) | $462.7B | $61.2B | 6.9% | 109.3 |
| Merck (MRK) | $354.0B | $65.0B | 28.1% | 19.4 |
| UnitedHealth Group (UNH) | $331.9B | $447.6B | 2.9% | 25.9 |
| Thermo Fisher Scientific (TMO) | $241.5B | $44.6B | 15.1% | 35.9 |
| Amgen (AMGN) | $217.6B | $36.8B | 21.0% | 28.2 |
| Gilead Sciences (GILD) | $179.0B | $29.4B | 28.9% | 21.0 |
| Abbott Laboratories (ABT) | $169.4B | $44.3B | 14.7% | 26.0 |
| Pfizer (PFE) | $156.9B | $62.6B | 12.5% | 20.1 |
See fundamentals and Investor Scores for 103 large caps
How profitable are health care companies?
The median Health Care company keeps 13.15% of revenue as net income, essentially the same as the 13.15% median for the S&P 500. Among the 28 health care companies that report gross profit, the median gross margin is 59.7%. 5 of 60 health care companies lost money in their latest fiscal year.
6. Median net margin: 13.15% for health care, 13.15% for the index
Net margin is GAAP net income divided by revenue for each company’s latest fiscal year, so it includes non-operating gains and losses. The health care median covers 60 companies and the index median covers 496. The medians differ by under 0.1 point: a tie. (WealthyBud data · October 2, 2026).
7. Median gross margin: 59.7% for health care, 45.1% for the index
Many companies do not report gross profit. The health care median covers 28 of 60 companies and the index median covers 186 (WealthyBud data · October 2, 2026).
8. 5 of 60 health care companies reported a net loss
BAX, CNC, CRL, MRNA, and VTRS had negative net income in the latest fiscal year. The other 55 were profitable. CRL made $25.2M in operating income but lost $142.2M after non-operating items and taxes totaling $167.3M, including $107.0 million of interest expense. (WealthyBud data · October 2, 2026)
Among the 36 health care companies with at least $10 billion in revenue, these five had the highest GAAP net margins, which include non-operating gains and losses:
- Vertex Pharmaceuticals (VRTX) earned a 32.9% net margin on $12.0B of revenue.
- Eli Lilly (LLY) earned a 31.7% net margin on $65.2B of revenue.
- Regeneron Pharmaceuticals (REGN) earned a 31.4% net margin on $14.3B of revenue.
- Gilead Sciences (GILD) earned a 28.9% net margin on $29.4B of revenue.
- Intuitive Surgical (ISRG) earned a 28.6% net margin on $10.1B of revenue.
REGN’s net income of $4.5B exceeds its $3.6B of operating income. Its 10-K reports $1.65 billion of non-operating income, including $955.6 million of gains on equity securities. WealthyBud’s data has no operating income for LLY, so it cannot check that.
How expensive are health care stocks?
The median health care stock trades at 28.2 times earnings, above the 24.6 median for the S&P 500. Its median price-to-sales ratio is 3.4, versus 3.3 for the index. The median dividend yield among payers is 1.09%, below the index’s 1.89%.
9. Median P/E: 28.2 for health care, 24.6 for the index
P/E here is market cap divided by latest-fiscal-year net income, for profitable companies only. The health care median covers 55 companies and the index median covers 471. (WealthyBud data · October 2, 2026).
10. 7 of 55 profitable health care stocks trade above 50 times earnings
ABBV, CVS, LLY, RVTY, TECH, WAT, and WST sit above that line. A P/E above 50 means investors pay more than $50 for each $1 of last year’s profit (WealthyBud data · October 2, 2026).
11. 33 of 60 health care companies pay a dividend
Their median yield is 1.09%, against 1.89% among the 355 dividend payers in the index. (WealthyBud data · October 2, 2026).
How fast is health care revenue growing?
The median Health Care company grew revenue 7.1% in its latest fiscal year, above the 6.9% index median. 5 of 60 health care companies grew revenue more than 20%, and 7 reported lower revenue. Over three years the median compound rate was 5.5% a year.
12. Median revenue growth: 7.1% for health care, 6.9% for the index
Growth compares latest fiscal-year revenue with the year before. The latest year is 2025 and 2026 depending on the company (WealthyBud data · October 2, 2026).
13. 5 of 60 health care companies grew revenue by more than 20%
The fastest were Eli Lilly (LLY) at 45%, Humana (HUM) at 32%, and Insulet (PODD) at 31% (WealthyBud data · October 2, 2026).
How do pharma, devices and insurers compare?
Health insurers book the most revenue, $1.12 trillion across 5 companies, but keep a median 2.8% of it. The 16 pharma and biotech companies earn a median 18.0% on $0.57 trillion. The 15 device makers earn 13.3%. The groups follow SEC industry codes.
| Group | SEC rule | Companies | Revenue | Market cap | Median net margin |
|---|---|---|---|---|---|
| Pharma & biotech | SIC 2834, 2836 | 16 | $570.0B | $3.73T | 18.0% |
| Devices & instruments | SIC 3841, 3842, 3845 | 15 | $173.4B | $688.3B | 13.3% |
| Health insurers | SIC 6324 | 5 | $1.12T | $564.1B | 2.8% |
| Other health care | all other SIC codes | 24 | $1.67T | $1.28T | 9.3% |
14. Pharma and biotech: 16 companies, 18.0% median net margin
The group uses SEC codes 2834 (pharmaceutical preparations) and 2836 (biological products). It holds $3.73 trillion in market cap, 59.6% of the sector. The median P/E is 24.1 across 14 profitable companies. Code 2834 is broad: it includes ABT and ZTS alongside traditional drug makers (WealthyBud data · October 2, 2026).
15. Health insurers: 5 companies, $1.12 trillion in revenue
CI, CNC, ELV, HUM, and UNH use SEC code 6324 and earn a median 2.8% net margin. Their combined revenue is 2.0 times that of the 16 pharma and biotech companies. CVS files under retail drug stores (code 5912), so the rule places it in the other group (WealthyBud data · October 2, 2026).
16. Devices and instruments: 15 companies, 13.3% median net margin
The group uses SEC codes 3841, 3842 and 3845 (medical instruments, surgical appliances and electromedical apparatus). Median P/E is 27.2. Revenue totals $0.17 trillion (WealthyBud data · October 2, 2026).
17. The FDA approved 46 novel drugs in 2025
The FDA’s Center for Drug Evaluation and Research says it approved 46 new drugs never before approved or marketed in the U.S. in 2025, which it calls “novel” drugs, per its novel drug approvals page. This page does not test how approvals relate to stock prices.
18. Healthcare jobs: 1.9 million openings a year through 2035
The Bureau of Labor Statistics projects employment in healthcare occupations to grow “much faster than the average for all occupations” from 2025 to 2035, with about 1.9 million openings a year, per its Occupational Outlook Handbook. Median pay for healthcare practitioners and technical occupations was $86,530 in May 2025, against $50,980 for all occupations; healthcare support occupations paid $38,340. These figures cover all employers.
What this means for investors
Health care is not one business. Insurers earn a median 2.8% margin and drug makers 18.0%, so sector averages hide large gaps. The healthcare ETF statistics show how funds such as XLV package the sector.
The top three set the sector’s tone. Eli Lilly (LLY), Johnson & Johnson (JNJ) and AbbVie (ABBV) hold 34.4% of sector market value. Their results drive sector-wide moves.
Valuation sits above the index. A 28.2 median P/E against 24.6 for the index leaves less room for an earnings miss. Compare income-oriented sectors in the consumer staples stock statistics.
Check each company, not the label. Our stocks hub and the largest companies statistics show fundamentals company by company.
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