My Top 3 Healthcare Stocks to Buy in 2026

Three healthcare picks recommended for 2026 are AbbVie, Eli Lilly and Intuitive Surgical: AbbVie is pitched as a reliable income play with a 54‑year dividend increase streak and healthy fundamentals (Q3 revenue $15.8bn, +9% YoY) driven by immunology winners Skyrizi and Rinvoq (Skyrizi forecast at ~$26.6bn peak sales by 2030) and a deep pipeline; Eli Lilly is characterized as a high‑growth powerhouse (Q3 revenue $17.6bn, +54% YoY) powered by tirzepatide (Zepbound/Mounjaro) and a growing weight‑loss and oncology pipeline (including orforglipron, Jaypirca, Inluriyo) plus AI initiatives; and Intuitive Surgical, while facing tariff and new‑entrant risks from Medtronic’s Hugo, is viewed as having a durable moat via a 10,763‑unit da Vinci installed base, high switching costs, pricing power and recurring instrument/accessory sales that should sustain margins and growth. The write‑up flags competitive and policy risks—especially for Intuitive and the sustainability of Lilly’s torrid growth—but concludes all three remain attractive, noting the author and Motley Fool holdings and recommendations as relevant disclosures.

Analysis

The article profiles three healthcare names with distinct risk/reward profiles for 2026: AbbVie is presented as a dividend-focused, cash-generative incumbent with a 54‑year streak of dividend increases and Q3 revenue of $15.8 billion (+9% year‑over‑year), driven by Vraylar, Botox Therapeutics, Qulipta and growth engines Skyrizi and Rinvoq. Analysts cited an external estimate that Skyrizi could reach ~$26.6 billion in peak sales by 2030, implying material upside relative to Humira’s prior peak and supporting the company’s dividend sustainability and M&A/licensing optionality.

Eli Lilly is framed as a high‑growth powerhouse after reporting Q3 revenue of $17.6 billion (+54% YoY), led by tirzepatide (Zepbound/Mounjaro) with pipeline follow‑ons such as orforglipron and a growing oncology slate (Jaypirca launched in 2023, recent approval for Inluriyo, and a dozen+ oncology programs), as well as strategic investments in AI that the author expects to broaden its franchise beyond weight loss.

Intuitive Surgical faces near‑term headwinds from tariffs and new competition (Medtronic’s Hugo cleared for U.S. use) but is argued to possess a durable moat via a 10,763‑unit da Vinci installed base, high switching costs, clinical evidence and recurring instrument/accessory revenue that can support pricing power and margin resilience. The write‑up’s tone is moderately positive (sentiment ~0.55) and discloses positions held by the author and Motley Fool in the named names, which is relevant to assessment of bias.

Key Decisions for Investors

• Consider allocating to AbbVie in an income sleeve given the 54‑year dividend increase streak and Q3 revenue stability ($15.8bn, +9% YoY), while monitoring pipeline execution (Skyrizi/Rinvoq) and capital allocation decisions that could affect dividend coverage
• Initiate or add to Eli Lilly on strong top‑line momentum (Q3 $17.6bn, +54% YoY) driven by tirzepatide and an expanding oncology pipeline, but size positions to account for possible growth normalization and watch regulatory readouts for orforglipron and other approvals
• Hold or selectively accumulate Intuitive Surgical for its installed‑base moat (10,763 da Vinci systems) and recurring consumables economics, while hedging or trimming exposure until tariff outcomes and early market share trends versus Medtronic’s Hugo are clearer
• Use the moderately positive sector tone to overweight selective healthcare exposure, but prioritize names with visible cash generation and near‑term catalysts (approval news, label expansions, tariff rulings) as triggers to add or reduce positions