The diabetes and weight?loss drug market has entered 2026 with extraordinary momentum, building on the explosive growth seen throughout 2025.
According to global health information technology and research firm Iqvia, GLP?1 therapies are now mainstream obesity care, with global demand strong enough to help propel Eli Lilly and Co. (ticker: LLY) past a $1 trillion market capitalization in late 2025. Supply shortages that once constrained growth have eased, pipelines have expanded and obesity is increasingly recognized as a chronic disease requiring long?term pharmacotherapy.
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Policy shifts are also providing a tailwind for the market. Starting mid?2026, Medicare will begin covering GLP?1 weight?loss drugs for select patient groups, and state Medicaid programs may adopt similar coverage at newly negotiated price levels as low as $245 per month. Internationally, the World Health Organization issued its first global guideline recommending long?term GLP?1 use for obesity treatment in December, further cementing these medicines as foundational to chronic disease management.
With GLP?1 and next?generation obesity drugs gaining traction across the U.S. and globally, investors are now looking toward the companies best positioned to benefit from this acceleration. Here are seven stocks with clear catalysts and strong pipelines for 2026:
| Stock | Year-to-date return* |
| Eli Lilly and Co. (LLY) | -2.8% |
| Novo Nordisk A/S (NVO) | 15.8% |
| Pfizer Inc. (PFE) | 8.9% |
| AstraZeneca PLC (AZN) | 7.4% |
| Teva Pharmaceutical Industries Ltd. (TEVA) | 13.8% |
| Viking Therapeutics Inc. (VKTX) | -15.8% |
| Viatris Inc. (VTRS) | 9.9% |
*As of the Feb. 2 market close.
Eli Lilly and Co. (LLY)
Despite its lackluster year-to-date performance, Indianapolis?based Eli Lilly still enters 2026 as the undisputed leader of the obesity?drug boom, powered by surging demand for its GLP?1 medicines and a manufacturing footprint that continues to scale at breakneck speed. The company will report fourth-quarter earnings on Feb. 4, but its most recent reported quarter showed non-GAAP earnings per share (EPS) of $7.02, up from $1.18 for the same quarter last year. Meanwhile, revenue surged by 54% over the same period, to $17.6 billion.
“Eli Lilly remains the preferred way to ride growth in weight loss and diabetes drugs,” says James Harlow, a chartered financial analyst and senior vice president of Novare Capital Management. “Mounjaro (for) type 2 diabetes and Zepbound (for) obesity are blockbuster drugs that have key advantages over competitors in terms of efficacy.”
If its oral GLP-1 pill orfoglipron launches this year as planned, this should further expand its market since oral drugs are easier to manufacture, distribute and administer relative to injectables, he adds.
“While Novo Nordisk’s oral pill has already launched, Eli Lilly’s version could see greater uptake due to a lack of dietary restrictions and being easier to manufacture,” Harlow says.
So don’t let the decline in share price deter you. With record revenue growth, expanding manufacturing capacity and a pipeline poised to deliver the next wave of obesity and metabolic drugs, LLY deserves consideration in 2026. This drop in the price could be a great buying opportunity.
Novo Nordisk A/S (NVO)
If you prefer to jump on a train that’s rolling strong with steady year-to-date performance, Denmark?based Novo Nordisk offers a more measured growth phase after its extraordinary GLP?1?driven surge in prior years.
Investors are watching 2026 closely as Novo prepares for its next earnings release on Feb. 4. Analysts expect full?year earnings to grow from $3.82 to $4.68 per share, suggesting that demand for its key drugs remains strong even as competition intensifies.
The policy backdrop is also shifting. Medicare’s Inflation Reduction Act price negotiations will begin affecting diabetes drug pricing this year, with reductions scheduled to take effect in 2026. Novo Nordisk is among the companies included in the first round of negotiated price cuts.
Despite these pressures, Wall Street remains constructive. Analyst ratings are still largely “buy,” “overweight” or “hold.” With the company’s next major data releases approaching and global obesity?drug adoption accelerating, Novo Nordisk remains an intriguing drug stock to own this year.
Pfizer Inc. (PFE)
Pfizer could be said to be in a transitional phase as investors weigh declining COVID-19?related revenue against the company’s expanding pipeline in oncology, immunology and metabolic disease treatment. Pfizer’s most recent quarterly report delivered adjusted EPS of 66 cents, beating analyst expectations of 57 cents per share, though its quarterly revenue of $17.6 billion was down 3% year over year. Looking ahead, the company has issued 2026 revenue guidance of $59.5 billion to $62.5 billion, reflecting continued normalization after the pandemic?era surge.
Despite muted share performance, Pfizer remains a staple for defensive investors thanks to its reliable dividend. Management reaffirmed its commitment to maintaining and growing the payout even as the company prioritizes R&D investment over share repurchases. It recently declared its 349th consecutive dividend.
With a stabilizing revenue base, a high?yield dividend and renewed focus on pipeline execution, Pfizer remains a steady, if unspectacular, option for conservative investors in 2026.
AstraZeneca PLC (AZN)
With solid operational momentum and one of the deepest late?stage pipelines in large?cap pharma, U.K.?based AstraZeneca presents an intriguing value proposition for investors in 2026. The company’s most recent reported quarter delivered EPS of $1.64, topping consensus estimates of $1.15. Quarterly revenue rose 12% year over year to $15.2 billion. Management recently reiterated its goal to reach $80 billion in annual revenue by 2030, supported by 16 positive phase 3 trials in 2025 alone.
Analysts remain constructive heading into 2026. Consensus forecasts call for EPS to rise from $9.16 in 2025 to $10.24 in 2026. With a diversified portfolio and a robust pipeline, AstraZeneca continues to appeal to growth?oriented investors seeking exposure to oncology leadership and next?generation cardiometabolic therapies.
[Read: 10 Best Health Care Stocks to Buy for 2026]
Teva Pharmaceutical Industries Ltd. (TEVA)
Israel?based Teva shows renewed momentum as its multi?year turnaround continues to take hold. The company’s most recent reported quarter delivered non?GAAP EPS of 96 cents and revenue of $4.7 billion, reflecting steady growth across generics, biosimilars and branded specialty medicines.
Teva used the J.P. Morgan Healthcare Conference in January to reaffirm its 2030 financial targets, including mid?single?digit revenue growth and a continued reduction in net debt. Investors are also watching Teva’s role in the next phase of the obesity drug market. With semaglutide losing patent protection in multiple global markets beginning this year, Teva is positioned to become a major supplier of generic GLP?1 formulations outside the U.S., a development that could meaningfully expand its revenue base over the next several years.
With stabilizing revenue, disciplined cost management, and emerging opportunities in biosimilars and global GLP?1 generics, Teva enters 2026 as a compelling turnaround story for value?oriented investors.
Viking Therapeutics Inc. (VKTX)
Viking Therapeutics kicked off 2026 with a number of important catalysts. On Jan. 12, Viking published peer?reviewed results from its phase 2 Venture trial, showing up to 14.7% weight loss over 13 weeks with no plateau observed. The company also announced completion of enrollment in its maintenance?dosing study, which is evaluating weekly, biweekly and monthly subcutaneous regimens as well as daily and weekly oral dosing. Meanwhile, the pivotal phase 3 Vanquish?1 and Vanquish?2 trials are underway.
Shares have declined by about 16% year to date, but this slip is more a reflection of investor caution after last year’s sharp run-up than cause for long-term concern. Viking remains a clinical?stage biotech focused on metabolic and endocrine disorders, with VK2735, its dual GLP?1/GIP agonist, positioned as the company’s most important value driver.
With a strengthened clinical dataset, advancing phase 3 trials and rising strategic interest in next?generation GLP?1/GIP therapies, Viking Therapeutics is one of the most closely watched small?cap players in the obesity drug race this year.
Viatris Inc. (VTRS)
Pittsburgh?based Viatris entered 2026 with steady operational performance and a clearer strategic identity as a global generics, biosimilars and specialty?medicine manufacturer. The company’s most recent reported quarter delivered adjusted EPS of 67 cents and revenue of $3.8 billion, essentially flat year over year.
Management used its November earnings update to highlight progress on late?stage pipeline assets, including a New Drug Application submission for a low?dose estrogen weekly patch, and to reaffirm its focus on returning capital to shareholders — good news for those who who want to keep enjoying the 3.5% dividend yield.
Viatris reported returning more than $920 million to shareholders year to date, including $500 million in share repurchases, underscoring its commitment to disciplined capital allocation. The company also completed the acquisition of Aculys Pharma, adding rights to sleep disorder drug pitolisant and seizure treatment Spydia in Japan and select Asia?Pacific markets.
With consistent cash generation, a shareholder?friendly capital return program and a pipeline that continues to advance, the company is a steady, income?focused option in the broader pharmaceutical sector.
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7 Best Weight Loss Drug Stocks to Buy in 2026 originally appeared on usnews.com
Update 02/03/26: This story was published at an earlier date and has been updated with new information.
