Healthcare Sector Shows Mixed Returns Across Industries

The Healthcare sector, as defined by Yahoo Finance, includes a broad range of companies such as biotechnology firms, pharmaceutical producers, medical equipment suppliers, and health information services. Recent data highlights the sector’s varied performance across its different industries and leading companies.

With a total market capitalization of approximately $7.162 trillion, Healthcare represents about 9.55% of the overall market weight. The sector’s year-to-date return stands at 1.03%, which is lower than the S&P 500’s return of 4.55% over the same period.

Examining longer-term returns, Healthcare posted a 12.01% gain over the last year, while the S&P 500 achieved a 16.86% return. Over three and five years, the sector’s returns were 16.48% and 20.76% respectively, compared to the S&P 500’s 60.19% and 61.42% for those periods.

What the numbers show

• Healthcare sector’s one-year return: 12.01%; S&P 500: 16.86%
• Drug Manufacturers - General year-to-date return: 11.97%
• Best-performing Healthcare stock over one year: Cardinal Health (+68.88%

Within the sector, the “Drug Manufacturers - General” industry accounts for the largest share, making up about 42.73% of the sector’s market weight. This industry also recorded a year-to-date return of 11.97%, outpacing the broader sector’s average for the same period.

Other industries within Healthcare showed a range of year-to-date results. Biotechnology posted a 2.14% gain, while Medical Devices and Diagnostics & Research saw declines of 11.05% and 15.22%, respectively. Health Information Services and Pharmaceutical Retailers experienced the largest decreases, at -37.78% and -32.11%.

Among the sector’s largest companies by market weight are Eli Lilly, Johnson & Johnson, and AbbVie. As of December 2, 2025, Eli Lilly led with a market capitalization of about $1.0 trillion, followed by Johnson & Johnson at approximately $497 billion and AbbVie at around $401 billion.

Several Healthcare stocks in the S&P 500 delivered strong one-year performances ending February 2, 2026. Cardinal Health returned 68.88%, Idexx Laboratories gained 54.47%, and Johnson & Johnson posted a 49.48% increase. Other notable performers included HCA Healthcare, Gilead Sciences, and McKesson.

Overall, the Healthcare sector’s performance reflects a mix of positive and negative results across its various industries and leading companies, with some segments and stocks outperforming others over recent periods.

* This article is based on publicly available information at the time of writing.