S&P 500 Healthcare Sector SEC Filings — July 15, 2026

Revenue grew 6.6% YoY to $25.3B, with Innovative Medicine up 6.8% operational and MedTech up 3.6% operational; full-year guidance raised to $101.1B sales (+7.3% at midpoint) and adjusted EPS of $11.68 (+8.2% at midpoint)

Adjusted EPS rose 4.7% YoY to $2.90, while GAAP EPS fell 0.9% to $2.27; the divergence signals one-time charges or amortization headwinds that may reverse

Adjusted diluted EPS of $7.45 beat expectations and was supported by a net below-the-line benefit of ~$0.80/share; full-year adjusted EPS guidance raised to at least $27.00, implying ~3.8% YoY growth at the low end

GAAP diluted EPS fell 13.1% YoY to $6.71, and Health Benefits segment operating gain dropped 42.6% to $0.9B due to higher benefit expense and targeted investments

Operating cash flow more than doubled to $6.245B in H1 2026 from $3.071B in H1 2025, providing strong liquidity for capital returns

Stock repurchases increased to $1.358B in H1 2026 from $1.258B in H1 2025, signaling management confidence despite earnings pressure

International sales grew 5.7% YoY reported but only 3.4% operationally, with a 2.3% currency headwind; this FX drag may reverse if the USD weakens

CarelonRx operating margin improved 20 bps YoY to 5.2%, while Carelon Services margin declined 80 bps to 4.6%; the pharmacy benefit segment is outperforming the services segment

MedTech operational sales growth was negatively impacted by only 10 bps from net acquisitions/divestitures, indicating organic growth is the primary driver

Net losses on financial instruments improved to -$56M in Q2 2026 from -$131M in Q2 2025, a $75M swing that boosted EPS by ~$0.31

STELARA had an approximate 760 bps negative impact on Innovative Medicine growth; biosimilar competition is accelerating and could intensify in H2 2026

Days in Claims Payable decreased 1.2 days QoQ to 45.4 days, suggesting faster claims processing and potentially higher medical cost trends; the 2.9-day YoY increase indicates a structural shift

Operating gain dropped 27.3% YoY to $1.8B, and the adjusted operating expense ratio rose 100 bps to 11.0% due to targeted investments; this margin pressure may persist

Net income fell 16.6% YoY to $1.454B in Q2 2026, and diluted EPS dropped to $6.71 from $7.72; the divergence from adjusted EPS raises questions about earnings quality

International operational growth of 3.4% was 2.3% below reported growth of 5.7%; sustained USD strength could further pressure reported sales

Medical claims payable rose 8.1% to $18.463B from $17.084B at year-end 2025, outpacing revenue growth; this could signal rising utilization or cost inflation

Operating gain in the core Health Benefits segment fell 42.6% to $0.9B; this is the primary earnings driver and its deterioration is a red flag for the managed care model

GAAP net earnings declined 0.1% YoY despite 6.6% revenue growth, indicating cost pressures or unfavorable mix shifts

Full-year adjusted EPS guidance raised to $11.68 (8.2% growth at midpoint), implying strong H2 2026 momentum; the stock may re-rate if execution continues

Operating cash flow more than doubled to $6.245B in H1 2026, providing ample capacity for buybacks ($1.358B in H1) and potential M&A; the stock yields ~1.5% with room for dividend growth

MedTech operational sales grew 3.6% YoY despite only a 10 bps impact from net M&A; organic innovation in surgical robotics or cardiovascular could accelerate growth

CarelonRx operating margin improved 20 bps YoY to 5.2%; continued scale benefits in pharmacy benefit management could offset pressure in other segments

If the USD weakens in H2 2026, JNJ's international sales (which grew 5.7% reported vs 3.4% operational) could see a 2-3% tailwind, boosting reported revenue by ~$1B

Net losses on financial instruments narrowed from -$131M to -$56M in Q2 2026, a $75M improvement; if this trend continues, it could add ~$0.30 to quarterly EPS

Excluding STELARA's 760 bps drag, Innovative Medicine growth was strong; new drug launches (e.g., CARVYKTI, TECVAYLI) could drive acceleration as biosimilar headwinds fade

Q2 adjusted EPS of $7.45 beat expectations, and full-year guidance was raised to at least $27.00; if medical cost trends stabilize, the stock could see multiple expansion from current ~12x P/E

With both Pharma and MedTech growing, JNJ offers a defensive growth profile; the 3.1% dividend yield and 61-year dividend growth streak provide downside protection

JNJ grew revenue 6.6% YoY while ELV grew only 0.8% YoY; diversified healthcare companies with product cycles are outperforming managed care organizations facing utilization headwinds

Both companies show a widening gap between GAAP and adjusted earnings—JNJ's GAAP EPS fell 0.9% vs adjusted +4.7%, ELV's GAAP EPS fell 13.1% vs adjusted beat; investors should focus on cash earnings quality

ELV's Health Benefits operating gain dropped 42.6% YoY and operating expense ratio rose 100 bps, while JNJ maintained stable margins; the managed care sub-sector is under structural pressure from medical cost inflation

ELV increased buybacks to $1.358B in H1 2026 from $1.258B in H1 2025, despite earnings decline; JNJ also maintains a strong buyback program; both prioritize shareholder returns over debt reduction

JNJ's international sales faced a 2.3% currency headwind, while ELV is primarily domestic; a weakening USD would disproportionately benefit multinational healthcare companies

Both JNJ and ELV raised full-year adjusted EPS guidance, suggesting management sees H2 2026 improvement; however, the quality of the raise differs—JNJ's is operational, ELV's includes one-time benefits

Q3 2026 earnings call (scheduled late October) to assess STELARA biosimilar erosion trajectory and MedTech growth sustainability; watch for further guidance adjustments

Q3 2026 earnings call (scheduled late October) to monitor medical loss ratio trends and Health Benefits segment recovery; Days in Claims Payable will be a key metric

Medical claims payable growth of 8.1% since year-end 2025 warrants monitoring; if utilization accelerates, full-year guidance may be at risk despite the raise

Currency headwinds on international sales; watch Fed policy and USD index for potential tailwind reversal in H2 2026

Carelon Services margin decline of 80 bps YoY to 4.6%; if this continues, it could offset CarelonRx gains and pressure overall earnings

Innovative Medicine pipeline catalysts—CARVYKTI and TECVAYLI sales trends in Q3 2026 could signal whether new products can offset STELARA erosion

Insider trading activity in next 30 days (not reported in these filings); any insider selling after the guidance raise would be a red flag

Q3 2026 sector-wide medical cost trends; if ELV's utilization pressure spreads to other managed care peers, it could trigger a sector sell-off