Top 5 ASX healthcare shares to watch in 2026

What are healthcare shares?

Healthcare shares are the stocks of publicly listed companies that operate in the medical industry. The healthcare sector makes up one of the largest portions of the global economy, with a range of different categories of businesses, including:

• Pharmaceutical companies: these are involved in producing over-the-counter and prescription drugs. Often called ‘big pharma’, these companies spend large portions of their income on R&D
• Healthcare services: these companies include the hospitals and clinics, which are the backbone of any healthcare system. Although many countries choose to run a public healthcare system, private healthcare companies are available for share trading. Insurance companies are also included in this sector
  
• Medical device stocks: these are the companies involved in the creation and distribution of everything from artificial joints to blood pressure monitors. The products of these companies are usually always in demand
  Biotechnology: the companies in this section of healthcare are involved in research and development of medicines and technologies derived from living organisms. They provide treatment for chronic and terminal ailments

What moves the price of healthcare shares?

The prices of healthcare stocks, like most assets, are driven by the forces of supply and demand. There is a wide range of factors that cause share prices to change, including news and economic data.

Broadly speaking, the other factors that affect healthcare shares are:

• Demographics: as people live longer and the population grows, there’s an increased reliance on medical services. The greater demand for drugs and other products can have a positive impact on share prices
• Fiscal policy: the relationship between government spending and private companies is an important factor when assessing healthcare stocks. Policies that impact the taxation of companies and the amount companies can charge for their drugs can greatly impact profit margins
• Research and development: for manufacturers, the introduction of new products has the largest impact on their share price. Prior to a drug being released, the outcome of clinical trials and any related news will affect the company’s share price. A dramatic example of this was the development of the Covid-19 vaccines
• Regulations: any regulation that could restrict the output of manufacturing companies or cause issues in service delivery could play out negatively across share prices

What to consider before trading healthcare shares

The healthcare industry often experiences volatility. The impacts of Covid-19 have both increased demand for R&D around treatments, as well as lowered the demand for other services.

Healthcare shares have been a mixed bag through the 2020s, with some riding high on the ‘Covid effect’ while others have declined.

Before you take a position on or buy a healthcare stock, it’s important to do your research and look at how they’ve performed recently.

Depending on your goals – whether you’re interested in long- or short-term market movements – you’ll need to look at the lasting sustainability of the company’s share price. If it’s overvalued, you might consider taking a short position on it, in anticipation of a stock market correction. And if it’s undervalued, you might want to go long or buy to benefit from long-term growth.

Top 5 ASX healthcare shares to watch in 2026

We’ve selected these shares based on their market caps, ordering them from the largest ASX-listed healthcare stock. 

Overview of the healthcare shares in this article

Whether you’re thinking of share trading by buying individual shares, or trading via CFDs, you can access all the stocks on this list with us.

All figures are accurate as of 29 April 2026.

1. CSL Limited (ASX: CSL)

Market cap: A$62.56 billion

Current focus: Expanding its US plasma manufacturing capacity while advancing a research pipeline focused on gene therapies and mRNA vaccines

CSL is a global biotechnology leader that focuses on the development and delivery of innovative medicines. It operates through three primary segments: CSL Behring, which provides plasma-derived and recombinant therapies; CSL Seqirus, one of the world's largest influenza vaccine providers; and CSL Vifor, a specialist in iron deficiency and nephrology.

In recent news, CSL has focused heavily on strategic licensing and capital management. It recently entered into a significant licensing agreement with a major global pharmaceutical firm to develop treatments for chronic kidney disease.

For share traders, CSL is often viewed as a blue-chip cornerstone. It’s generally suitable for those looking for long-term growth and stability, as its earnings are underpinned by non-discretionary medical needs. CFD traders may find it attractive for different reasons; the stock has recently experienced uncharacteristic price swings, providing opportunities to trade on short-term volatility.

Risks:

• Regulatory changes and plasma collection costs. Any shift in global health regulations or a decrease in plasma donor numbers can squeeze margins
• For CFD traders, the main risk is leverage; because the stock is currently at a multi-year low, sudden relief rallies can occur, which could lead to rapid losses for those holding short positions

2. ResMed Inc (ASX: RMD)

Market cap: A$31.63 billion

Current focus: Prioritising AI-driven diagnostics for sleep apnea and expanding its digital health platform to improve patient adherence to therapy

ResMed is a pioneer in the development of medical devices and cloud-connected solutions for various respiratory conditions. It specialises in equipment for sleep apnea, chronic obstructive pulmonary disease (COPD) and other chronic respiratory illnesses.

The company’s primary products include continuous positive airway pressure (CPAP) masks and machines, which help patients breathe more easily during sleep.

Beyond hardware, it provides a comprehensive digital health platform that allows clinicians to monitor patient progress remotely, aiming to improve long-term health outcomes and reduce hospital readmissions.

Notable news from the past six months includes a major expansion of the company’s logistics and distribution network to better serve the North American market. ResMed also recently received regulatory clearance for a new suite of artificial intelligence-enabled features.

Share traders are often drawn to ResMed because of the structural growth in the sleep-health market, driven by an aging global population. It’s generally considered a high-quality growth stock. CFD traders might be interested in the stock around its quarterly earnings releases, which frequently trigger sharp price movements. The stock’s high liquidity makes it possible to enter and exit positions quickly.

Risks:

• Competitive pressures and technological disruption. If a competitor releases a more effective or comfortable treatment, ResMed’s market share could suffer
• For those using CFDs, the volatility surrounding obesity-drug trial results remains a significant risk, as these macro news events can cause the share price to gap up or down suddenly

3. Sigma Healthcare Limited (ASX: SIG)

Market cap: A$31.58 billion

Current focus: Integration of the Chemist Warehouse brand to create a dominant, high-volume retail and wholesale network

Sigma Healthcare is a major Australian pharmaceutical distributor and retail pharmacy franchisor. It acts as a vital link in the medical supply chain, delivering products to thousands of pharmacies across the country.

Following a transformative recent merger, the company now represents one of the largest retail pharmacy networks in the region, most notably through the integration of the Chemist Warehouse brand. It operates a vast network of distribution centres and provides support services, branding, and private-label products to its partner pharmacies.

The last six months have been defining for Sigma, marked by the massive integration of its new retail arm. This move has fundamentally changed the company’s scale and market position. It reported significant growth in specialised medicine sales and has begun expanding its retail footprint into international markets.

This stock has become popular with share traders seeking exposure to the discount end of the retail healthcare market. The integration of a household name like Chemist Warehouse has turned Sigma into a high-volume retail powerhouse. CFD traders have been particularly active with this stock due to the high volatility surrounding merger updates and earnings reports. The stock's lower price-per-share compared to CSL makes it more accessible for smaller trading accounts.

It may be less suitable for dividend-seeking investors in the short term, as the company is currently focused on reinvesting capital into its merger integration.

Risks:

• The complex execution risk of merging two massive businesses. If the integration of systems and logistics doesn't go smoothly, costs could spiral
• For CFD traders, the stock can be prone to speculative noise, where the price moves based on rumours or sector-wide sentiment rather than company fundamentals, leading to unpredictable spikes

4. Fisher & Paykel Healthcare Corporation Limited (ASX: FPH)

Market cap: A$17.36 billion

Current focus: Driving the global adoption of its nasal high-flow hospital therapies and launching its next generation of lightweight masks

Fisher & Paykel Healthcare is a leader in the design and manufacture of systems for use in respiratory care, acute care, and the treatment of obstructive sleep apnea. It focuses on humidification technology, which is essential for patients receiving oxygen or ventilator support.

Management noted that new clinical practices are increasingly adopting its therapies for patients who might previously have used more invasive options. Despite this operational success, the company has had to navigate uncertainty regarding international trade policies and tariffs, which has occasionally weighed on investor sentiment.

For share traders, Fisher & Paykel is often seen as a reliable growth play with a strong competitive moat due to its specialised patents. It’s suitable for those wanting exposure to the hospital-capital-equipment sector. CFD traders might find the stock attractive because it often trends well; when a clear direction is established, the stock tends to maintain momentum.

Risks:

• If healthcare systems reduce their capital expenditure, demand for new equipment could drop
• For CFD traders, the main risk is the potential for gap risk during earnings season or when trade policy updates are announced, as the share can be sensitive to news on international manufacturing and export duties

5. Pro Medicus Limited (ASX: PME)

Market cap: A$14.21 billion

Current focus: Accelerating the rollout of cloud-based imaging software across North American hospitals and embedding AI to automate clinical workflows

Pro Medicus is a healthcare information technology company that provides specialist software to hospitals, imaging centres and healthcare groups worldwide. Its flagship product, Visage 7, is a cloud-based platform that allows radiologists and clinicians to view massive medical images, like high-resolution MRIs or CT scans, extremely quickly on almost any device.

The news for Pro Medicus over the last six months has been a mix of strong financial performance and market volatility. While the company reported higher revenue and net income in its most recent half-year results, the share price has been caught in a broader sell-off of high-growth technology stocks.

There’s also been significant focus on the company's integration of artificial intelligence, as it develops new tools to help radiologists identify abnormalities more accurately. Despite the price volatility, the company continues to secure multi-million-dollar contracts with major hospital networks.

Share traders are typically attracted to Pro Medicus because of its high profit margins and recurring revenue model. It’s considered a premium tech-healthcare stock. CFD traders often target Pro Medicus for its high volatility. It can move several percentage points in a single day, offering high reward potential for those trading on price action.

Risks:

• Because the stock is priced for high growth, any delay in signing new contracts can lead to a sharp sell-off

How to trade healthcare shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX healthcare shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX healthcare shares
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about healthcare shares 

Footnotes
 

1. TradingView, April 2026
2. TradingView, April 2026
3. TradingView, April 2026
4. TradingView, April 2026
5. TradingView, April 2026