Let’s dig into the relative performance of Ocular Therapeutix (NASDAQ: OCUL) and its peers as we unravel the now-completed Q1 pharmaceuticals earnings season.

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 17 pharmaceuticals stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 6.5% on average since the latest earnings results.

Weakest Q1: 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 $10.79 million, flat year on year. This print fell short of analysts’ expectations by 16.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.

“2026 is off to a tremendous start for Ocular, driven by the superiority demonstrated with AXPAXLI in the landmark SOL-1 Phase 3 trial in wet AMD,” said Pravin U. Dugel, MD, Executive Chairman, President and CEO of Ocular Therapeutix.

Ocular Therapeutix delivered the weakest performance against analyst estimates in the group. The market seems disappointed with the results as the stock is down 13% since reporting and currently trades at $8.50.

Read our full report on Ocular Therapeutix here, it’s free.

Best Q1: 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 $19.8 billion, up 55.5% year on year, outperforming analysts’ expectations by 13.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates.

Eli Lilly achieved the fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 40.7% since reporting. It currently trades at $1,197.

Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free.

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 $171.2 million, flat year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 22.1% since the results and currently trades at $18.72.

Read our full analysis of Amphastar Pharmaceuticals’s results here.

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 $11.49 billion, up 2.5% year on year. This number topped analysts’ expectations by 7.4%. Aside from that, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

The stock is up 7.3% since reporting and currently trades at $61.80.

Read our full, actionable report on Bristol-Myers Squibb here, it’s free.

Jazz Pharmaceuticals (NASDAQ: JAZZ)

Originally founded in 2003 and now headquartered in Ireland following a 2012 tax inversion merger, Jazz Pharmaceuticals (NASDAQGS:JAZZ) develops and markets medicines for sleep disorders, epilepsy, and cancer, with a focus on treatments for patients with limited therapeutic options.

Jazz Pharmaceuticals reported revenues of $1.07 billion, up 19.1% year on year. This result surpassed analysts’ expectations by 9.4%. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates.

The stock is up 19.6% since reporting and currently trades at $253.87.

Read our full, actionable report on Jazz Pharmaceuticals 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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.