Eli Lilly (LLY -0.35%) is the most valuable healthcare company, with Johnson & Johnson (JNJ +1.87%) and AbbVie (ABBV +0.32%) rounding out the top three. Pharmaceutical companies dominate this market sector, comprising half of the largest healthcare companies by market cap. Let's take a look at the companies that could be a financial cure-all for investors and their portfolios.
Largest companies by market cap in the healthcare sector
(Editor's note: Rankings are as of Jan. 8th, 2026.)
1. Eli Lilly
NYSE: LLY
Key Data Points
- Market cap: $991.76 billion (as of Jan. 8)
- Revenue (TTM): $59.4 billion
- Gross profit (TTM): $49.3 billion
- Five-year annualized return: 46.81%
- Year founded: 1876
Pharmaceutical giant Eli Lilly is the world's most valuable drug company. A chemist and veteran of the Union Army founded the company in 1876, and it later became the first to mass-produce insulin and the polio vaccine.
Some of its top products are diabetes medications, weight loss drugs, obesity treatments, and antidepressants such as Prozac. In 2024, Eli Lilly partnered with Amazon (AMZN -1.57%) to offer home delivery of select medications. In November 2025, it agreed to a deal with the Trump administration to offer reduced pricing on some of its drugs, including weight-loss blockbuster Zepbound.
2. Johnson & Johnson
NYSE: JNJ
Key Data Points
NYSE: ABBV
Key Data Points
- Market cap: $412.54 billion (as of Jan. 8)
- Revenue (TTM): $59.6 billion
- Gross profit (TTM): $41.6 billion
- Five-year annualized return: 19.8%
- Year founded: 2012
AbbVie is a biotechnology company that develops treatments for serious diseases. It has produced therapies for illnesses, including autoimmune diseases, plaque psoriasis, blood cancers, and advanced Parkinson's disease. It also acquired Capstan Therapeutics, a cell and gene therapy company, for $2.1 billion in mid-2025.
AbbVie is a relatively new company that started as a spinoff of Abbott Laboratories. It's now one of the better dividend stocks in the healthcare sector. It has regularly raised its dividend payout, resulting in a high dividend yield.
4. UnitedHealth Group
NYSE: UNH
Key Data Points
- Market cap: $309.53 billion (as of Jan. 8)
- Revenue (TTM): $435.15 billion
- Gross profit (TTM): $85.7 billion
- Five-year annualized return: 0.7%
- Year founded: 1977
UnitedHealth Group provides health insurance and healthcare services. It sells health insurance products through its UnitedHealthcare division and offers healthcare services through its Optum division.
Although UnitedHealth Group is one of the largest healthcare companies, it has faced a number of high-profile issues. A subsidiary, Change Healthcare, was responsible for the largest reported healthcare data breach in history in 2024. CEO Andrew Witty abruptly resigned in May 2025 for personal reasons, and the company replaced its CFO in July. Also in July 2025, UnitedHealth disclosed that it's facing a criminal and civil investigation by the Department of Justice.
5. AstraZeneca
NASDAQ: AZN
Key Data Points
- Market cap: $297.68 billion (as of Jan 8)
- Revenue (TTM): $58.12 billion
- Gross profit (TTM): $47.88 billion
- Five-year annualized return: 15.35%
- Year founded: 1913 (Astra AB), Zeneca (1993), 1999 (merger of Astra AB and Zeneca)
AstraZeneca is a multinational biotech company formed through the 1999 merger of Astra, a Swiss company, and Zeneca, a British company. Its headquarters are in Cambridge, U.K.
This company manufactures prescription medications for many major diseases, including cardiovascular disease, metabolic disorders, renal disease, and rare diseases. It has 11 research and development (R&D) centers, 28 manufacturing sites, and a market presence in more than 130 countries.
6. Novartis
NYSE: NVS
Key Data Points
NYSE: MRK
Key Data Points
- Market cap: $269.55 billion (as of Jan. 8)
- Revenue (TTM): $64.23 billion
- Gross profit (TTM): $49.57 billion
- Five-year annualized return: 8.33%
- Year founded: 1891
Merck is a pharmaceutical company known for its impressive oncology portfolio. That includes its leading drug, Keytruda, which is also the best-selling drug worldwide. Merck also makes diabetes medications, an HPV vaccine, and a chickenpox vaccine.
This company has made several major acquisitions recently. In 2024 alone, it acquired Harpoon Therapeutics, Abceutics, EyeBio, and Modifi Biosciences. In 2025, it acquired SpringWorks Therapeutics for $3.4 billion. Merck is also going through a leadership transition; CEO Belen Garijo will step down at the end of April 2026. Her successor will be Kai Beckmann, head of the company's Electronics business.
8. Thermo Fisher Scientific
NYSE: ABT
Key Data Points
NASDAQ: ISRG
Key Data Points
- Market cap: $209.96 billion (as of Jan. 8)
- Revenue (TTM): $9.61 billion
- Gross profit (TTM): $6.38 billion
- Five-year annualized return: 17.06%
- Year founded: 1995
Intuitive Surgical is a biotechnology company that manufactures robotic surgical systems. Its most notable product is the da Vinci system, which is used for minimally invasive surgery in more than 70 countries.
The company is currently expanding its European operations. In January 2025, it announced plans to establish a direct presence in Italy, Spain, and Portugal. Intuitive also went through a recent leadership change, promoting its president, Dave Rosa, to CEO in July 2025.
Related investing topics
Healthcare sector takeaways for investors
Investing in healthcare stocks can be challenging. Among the 10 largest healthcare companies, five have outperformed the S&P 500 over the last five years.
The sector also has some unique risks. The development of new products often requires a lengthy regulatory process, particularly for pharmaceutical companies. And if a company's product may have caused harm to a consumer, there's the possibility of a lawsuit.
Like most businesses, healthcare companies have been affected by the Trump administration's import tariffs. Tariffs could increase the cost of medical devices and lead to pharmaceutical shortages if they remain in place. Although a federal court has ruled that the tariffs are illegal, the Trump administration has appealed the ruling. Regardless, Eli Lilly, Johnson & Johnson, and AstraZeneca are all investing heavily to expand their U.S. manufacturing to reduce the potential impact of tariffs.
Even with those risks, there are also plenty of reasons why healthcare is an attractive sector for investors. Some of the top healthcare companies pay high dividends, which is great for those looking to build passive income. Healthcare stocks also tend to be resistant to market downturns. After all, no matter how the economy is doing, people always need healthcare.
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