The third-quarter earnings season of 2026 is underway, with the Medical sector showing promising results so far. This sector, which includes pharmaceutical, biotechnology, and medical device companies, has seen several key players report their earnings.
Among the pharmaceutical giants, Johnson & Johnson reported earnings that exceeded expectations but fell short on sales for the third quarter. Similarly, Novartis, a leading Swiss pharmaceutical company, managed to surpass earnings estimates but did not meet sales forecasts. In the biotechnology sphere, Bristol-Myers Squibb surpassed both earnings and revenue expectations, buoyed by strong demand for its Growth Portfolio and the anticoagulant drug, Eliquis. Biogen also reported robust results, exceeding both earnings and sales estimates.
According to the Earnings Trends report, as of October 28, 26.7% of companies in the Medical sector, which represent about 33.1% of the sector’s market capitalization, have disclosed their quarterly earnings. Of these, 81.3% have exceeded earnings estimates, while 93.8% have surpassed sales projections. Year-over-year, earnings have increased by 8.1%, and sales have grown by 2.7%. However, overall third-quarter earnings are projected to decline by 0.9% compared to the previous year, while revenues are anticipated to rise by 5%.
Biotech Companies Expected to Outperform
While several major biotechnology firms have already announced their results, others are yet to report and are anticipated to exceed expectations. Four biotech companies, in particular, are highlighted for their potential to deliver earnings surprises this quarter: TG Therapeutics (NASDAQ:TGTX), Immunome (NASDAQ:IMNM), REGENXBIO (NASDAQ:RGNX), and ProMIS Neurosciences (NASDAQ:PMN).
The Earnings ESP (Expected Surprise Prediction) is a proprietary tool that identifies stocks with a high likelihood of delivering an earnings surprise. It calculates the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) significantly increases the probability of an earnings beat.
Profiles of Promising Biotech Stocks
TG Therapeutics
TG Therapeutics is a biotechnology company focused on developing and commercializing innovative treatments for B-cell diseases. The company has seen strong demand for its leading drug, Briumvi, which treats relapsing multiple sclerosis in the United States. This demand likely contributed to revenue growth in the third quarter. TG Therapeutics has an Earnings ESP of +71.43% and a Zacks Rank of 1. The Zacks Consensus Estimate for the upcoming quarter’s revenue is $247.16 million, with expected earnings of 37 cents per share. The company is set to announce its third-quarter results on November 9.
Immunome
Immunome is a clinical-stage company specializing in oncology, developing targeted cancer therapies. The company is advancing its drug candidate, varegacestat, for potential approval in the U.S. and Europe for treating desmoid tumors. The FDA accepted its new drug application in July 2026, with an action date set for April 28, 2027. The European Medicines Agency has also validated its Marketing Authorization Application. Immunome has an Earnings ESP of +1.27% and a Zacks Rank of 2. The Zacks Consensus Estimate for revenues is $2 million, with an anticipated earnings loss of 67 cents per share. Immunome is expected to report its third-quarter results later this week.
REGENXBIO Inc.
REGENXBIO is a biotechnology firm developing gene therapies for rare and retinal diseases. Its pipeline includes RGX-202 for Duchenne muscular dystrophy and RGX-121 and RGX-111 for MPS II and MPS I, respectively, both in partnership with Nippon Shinyaku. Additionally, RGX-314 for wet age-related macular degeneration and diabetic retinopathy is being developed in collaboration with AbbVie. REGENXBIO has an Earnings ESP of +6.53% and a Zacks Rank of 2. The Zacks Consensus Estimate for revenues is $9.6 million, with an expected earnings loss of $1.35 per share. The company is scheduled to release its third-quarter results on November 5.
ProMIS Neurosciences
ProMIS Neurosciences is focused on developing therapies for neurodegenerative diseases, including Alzheimer’s, Parkinson’s, and ALS. Its lead candidate, PMN310, is a monoclonal antibody targeting toxic amyloid-beta oligomers in Alzheimer’s disease. ProMIS Neurosciences has an Earnings ESP of +22.43% and a Zacks Rank of 2. The company is set to report its third-quarter results on November 12.
Footnotes:
- As of October 28, 26.7% of Medical sector companies have reported earnings. Source.
- TG Therapeutics is focused on B-cell disease treatments. Source.
- Immunome’s varegacestat is advancing toward approvals. Source.
- REGENXBIO collaborates with AbbVie on RGX-314. Source.
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