After a period of lackluster performance, CVS Health (CVS) and Amgen (AMGN) staged a remarkable comeback in 2025, outperforming the broader market by a significant margin. While the overall healthcare sector remained relatively soft, the strong rebound of these two giants captured the attention of investors. As we move into 2026, a critical question emerges: Was last year’s success the start of a new long-term growth trend, or merely a short-lived rebound? Can they continue writing their success story this year?
To answer this, we need to look beyond short-term market fluctuations and examine the distinct fundamentals and strategic positioning of each company.
Over the past year, CVS Health did not deliver explosive earnings growth, but its steady improvement gained market recognition. The company has proactively adjusted its strategy, planning to scale back its less profitable Medicare Advantage business to focus on higher-quality growth—paving the way for improved margins in the future.
The stock is currently trading at historically low valuations, with a forward P/E ratio of just 11.2x, well below the sector average of 18.4x, highlighting its status as a clear value play. More importantly, its vast retail pharmacy network across the U.S., combined with integrated insurance and primary care services, creates a durable competitive moat. Paired with a growing dividend (forward yield of 3.3%), CVS Health represents a solid “anchor” holding for long-term investors.
Amgen’s 2025 was impressive, with strong financials and stock performance. However, 2026 will bring a significant challenge: the loss of exclusivity for denosumab, its key bone disease drug, which will face biosimilar competition and impact roughly 18% of total revenue. This poses a clear and present threat to near-term earnings.
Yet the company’s resilience lies in its innovation-driven future. Amgen is betting on several promising pipeline assets: rocatinlimab for eczema, Tezspire for asthma, and the closely watched weight-loss therapy MariTide, which has entered Phase 3 trials for diabetes and obesity. These candidates will determine whether Amgen can successfully navigate through this transition and return to growth. In addition, its consistent dividend policy, with a 3% yield and a history of annual increases since 2011, offers shareholders steady income amid uncertainty.
For CVS Health and Amgen, 2026 will not be a simple continuation of past trends. CVS stands out for its stable business model and deep value, while Amgen must balance near-term pressures with long-term innovation. Continuing their “legendary” performance is never guaranteed, but the strategic discipline and fundamental strengths displayed by these healthcare giants make their 2026 journey one worth watching closely.
