As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the pharmaceuticals industry, including Ocular Therapeutix (NASDAQ:OCUL) and its peers.
The pharmaceuticals sector develops, manufactures, and distributes drugs, benefiting from diversified portfolios of branded and generic medications. Looking ahead, growth will be driven by innovations in precision medicine, such as genetic therapies and advanced biologics, and the increasing use of AI to speed and increase the efficiency of drug discovery. These could specifically magnify the advantages of the most scaled players. Conversely, the sector faces considerable headwinds from intense, bipartisan political pressure on drug pricing, scrutiny of patent practices, and growing competition from biosimilars. These could specifically stymie the growth of smaller companies or ones facing patent expirations on key drugs.
The 15 pharmaceuticals stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.4% while next quarter’s revenue guidance was 1.5% above.
In light of this news, share prices of the companies have held steady as they are up 5% on average since the latest earnings results.
Ocular Therapeutix (NASDAQ:OCUL)
Pioneering a drug delivery platform that can eliminate the need for monthly eye injections, Ocular Therapeutix (NASDAQ:OCUL) develops sustained-release treatments for eye diseases using its proprietary ELUTYX bioresorbable hydrogel technology that gradually releases medication.
Ocular Therapeutix reported revenues of $13.48 million, flat year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates.
“We continue to execute with discipline, precision, and urgency to redefine the retina experience and make AXPAXLI available to patients as early as possible. Our June Investor Day marked a pivotal milestone with the announcement of a clear, FDA-aligned path to submit the AXPAXLI NDA for wet AMD in the fourth quarter of 2026,” said Pravin U. Dugel, MD, Executive Chairman, President and CEO of Ocular Therapeutix.
Interestingly, the stock is up 35.1% since reporting and currently trades at $11.04.
Is now the time to buy Ocular Therapeutix? Access our full analysis of the earnings results here, it’s free.
Best Q2: Bristol-Myers Squibb (NYSE:BMY)
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Bristol-Myers Squibb reported revenues of $12.97 billion, up 5.7% year on year, outperforming analysts’ expectations by 12.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
The market seems content with the results as the stock is up 4% since reporting. It currently trades at $65.60.
Is now the time to buy Bristol-Myers Squibb? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Zoetis (NYSE:ZTS)
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Zoetis reported revenues of $2.47 billion, flat year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ full-year EPS guidance estimates.
Zoetis delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. Interestingly, the stock is up 1.8% since the results and currently trades at $75.73.
Read our full analysis of Zoetis’s results here.
Amphastar Pharmaceuticals (NASDAQ:AMPH)
Founded in 1996 and known for its expertise in complex drug formulations, Amphastar Pharmaceuticals (NASDAQ:AMPH) develops and manufactures technically challenging injectable and inhalation medications, including both generic and proprietary pharmaceutical products.
Amphastar Pharmaceuticals reported revenues of $183.9 million, up 5.4% year on year. This print surpassed analysts’ expectations by 2%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates.
The stock is up 9.5% since reporting and currently trades at $21.69.
Read our full, actionable report on Amphastar Pharmaceuticals here, it’s free.
Eli Lilly (NYSE:LLY)
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE:LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Eli Lilly reported revenues of $22.97 billion, up 47.7% year on year. This result topped analysts’ expectations by 11.4%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Eli Lilly scored the fastest revenue growth in the group. The stock is up 11.7% since reporting and currently trades at $1,246.
Read our full, actionable report on Eli Lilly here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.