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New Earnings Show the Healthcare Sector Has a Pulse

BY | ETF Database
5:58 am ET 10/15/26 | 11 VIEWS
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  • XLV
Tuesday, October 13, turned out to be a very interesting day for the healthcare sector. This is because UnitedHealth Group and Johnson & Johnson reported their Q3 2026 earnings results.Key Takeaways: Two key healthcare giants reported earnings this Tuesday — UnitedHealth Group and Johnson & Johnson. UnitedHealth posted stellar results and raised its fiscal year guidance, while Johnson & Jonson also had strong results, but tangled with a weaker medtech report. Advisors and investors can gain targeted access to this sector through the State Street Health Care Select Sector SPDR ETF (XLV A). To begin, things look relatively sunny for UnitedHealth Group. The company reported adjusted earnings per share of $4.69, over $0.50 higher than what many analysts were expecting. Revenue came in at $112.69 billion for the quarter, which was, again, far above analyst projections. “Our third quarter results reflect the discipline and execution our teams are bringing to every part of our business, as we continue evolving UnitedHealth Group to deliver a simpler, more supportive experience for patients and the clinicians who care for them,” said Stephen Hemsley, UnitedHealth Group CEO. Crucially, the healthcare giant is adjusting its 2026 guidance. UnitedHealth now expects its adjusted fiscal 2026 earnings to sit at at least $20.50 per share. This is above the company’s previous outlook of $19.50–$20.00 per share. See More: XLK Hits New All-Time High as Tech TriumphsJohnson & Johnson: High Performance; Medtech SlumpsJohnson & Johnson also reported relatively strong earnings. The report showed earnings per share at $2.59, which was above expectations. Additionally, quarterly revenue came in above expectations at $25.40 billion. However, J&J’s earnings report did have one sore spot — its medtech unit. Johnson & Johnson’s medtech unit only posted sales growth of 2.5%, which was below expectations. That being said, one disappointing number shouldn’t deter one from the opportunities within the healthcare sector. As a reminder, Johnson & Johnson also raised its guidance for the fiscal year, anticipating full-year sales within the range of $101 billion and $101.4 billion. See More: Ignoring the Noise: The Long-Term Case for MaterialsHealthcare Sector Warrants Concentrated ExposureAll of this may bode well for targeted exposure within the healthcare sector. After all, not only does the sector offer strong defensive potential, but it’s currently seeing compelling growth opportunities, due to innovation in the field. Advisors and investors seeking focused healthcare exposure may wish to consider the State Street Health Care Select Sector SPDR ETF (XLV A). A fund that focuses on S&P 500 companies in the healthcare sector, XLV currently offers distinct exposure to both UnitedHealth Group and Johnson & Johnson. Crucially, XLV has seen significant interest from the broader investment community over the past year or so. ETFDb notes that as of October 12, 2026, the fund has accrued net flows of about $1.3 billion over the past year. For more news, information, and analysis, visit our Sector Investing Content Hub.

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