Halfway through 2026, five themes have taken shape across the global healthcare landscape. In a year headlined by strong M&A activity, cross-border partnerships and geopolitical and regulatory uncertainty, the sector has shown resilience and robustness. Here’s a deeper dive into themes that are defining the year — and a peek at what’s ahead.

Capital markets and M&A activity in the healthcare industry remain robust

Despite macro headwinds tied to global volatility, capital markets and M&A activity show no signs of slowing down. Areas like biopharma and biotech have seen strong activity, as companies make strategic acquisitions to replenish pipelines.

One example would be biopharmaceutical company Gilead’s acquisition of Tubulis, a clinical-stage biotech company developing next-generation antibody-drug conjugates (ADCs). The nearly $5 billion deal, for which J.P. Morgan acted as exclusive financial advisor to Tubulis, was the largest European private, clinical-stage oncology sell-side deal of all time. The acquisition is slated to expand Gilead’s oncology pipeline with a clinical-stage potential treatment for ovarian cancer, among other next-generation assets and platforms.

“The renewed confidence in deal activity is helping to drive a strong equity market backdrop, characterized by reopening equity capital markets and biotech issuance momentum,” said Jerry Lee, global co-head of Healthcare Investment Banking at J.P. Morgan. Lee cited strategic urgency created by pipeline gaps and patent cliffs, a term that refers to the drop in revenue a pharmaceutical company can experience when a key product’s patents expire and generic competitors enter the market.

“Additionally, large pharmaceutical companies have cash reserves they’re seeking to deploy. And there’s also the defensive nature of healthcare, which is often seen as a hedge against wider volatility,” said Lee. “All of this has created a dynamic, if selective, investment environment.”

Lee pointed to Sun Pharma’s $11.75 billion acquisition of Organon, which was the largest biopharma M&A deal this year, as an example of a megadeal featuring two companies with good financials, brand equity and stakeholder relationships. J.P. Morgan served as financial advisor to Sun Pharma on the deal, which is intended to grow its Innovative Medicines business through Organon’s portfolio and global footprint.

Financial sponsors are getting involved in industry M&A as well. In June, healthcare private equity firm Thoreau acquired Ensemble, a leading provider of managed services and automation solutions for health systems. J.P. Morgan served as the lead financial advisor to Ensemble during the sale to Thoreau, which is the among the year’s most significant healthcare M&A deals and the largest sponsor-to-sponsor transaction globally across all industries in 2026. “The Ensemble transaction marks a milestone in healthtech, demonstrating their continued growth and accelerated investment in technology and innovation across revenue cycle management,” said Francesco Leuthold, head of North America Healthcare M&A at J.P. Morgan.

“Going forward, we believe that strategic urgency and strong balance sheets will continue to drive M&A activity across healthcare, further reinforcing a vibrant capital markets activity which has remained resilient. A diverse spectrum of acquirors, including large and mid-cap strategics, will help sustain a deal-positive environment,” said Andy Ham, co-head of North America Biopharma M&A at J.P. Morgan.

AI is reshaping how healthcare companies innovate, compete and grow

AI has continued to grow its market influence in healthcare and biotech, moving from experimentation to a real driver of capital allocation, and shaping both transaction activity and competitive positioning. Companies are incorporating AI capabilities into diagnostics, imaging, clinical decision support, patient monitoring and precision medicine applications, creating differentiated offerings that can improve outcomes while strengthening competitive positioning. As adoption accelerates, AI is becoming a core component of product strategy.

Healthcare companies are seeking strategic enablement from AI-native and AI-enabled businesses. Transactions such as CareDX’s acquisition of Naveris, which uses AI to help analyze liquid biopsy data for cancer detection, and Performant’s merger with Machinify, which combines healthcare payment integrity solutions with AI-powered claims intelligence, demonstrate how AI can act as a powerful accelerator — expanding capabilities, creating new growth opportunities and unlocking value across the healthcare ecosystem.

Beyond product innovation, AI is increasingly influencing capital allocation decisions across the sector. Established healthcare companies are pursuing partnerships, acquisitions and investments that provide access to proprietary data, advanced algorithms and AI-enabled capabilities. In many cases, organizations are seeking to accelerate innovation timelines by acquiring technology rather than building it internally, contributing to growing strategic interest in AI-native healthcare businesses.

This interest in a broader application of AI technologies has reached healthcare back offices, where the focus is on automating, operationalizing and mitigating human error. Waystar’s acquisition of Iodine Software, a leader in AI-powered clinical intelligence, signals an emphasis on managing revenue leakage, lowering administrative burdens and increasing accuracy in reimbursements for patients. Similarly, New Mountain Capital’s investment in SmarterDX looks to support growth and product innovation for the company’s automated pre-bill review platform, which helps hospitals realize revenue integrity. J.P. Morgan served as exclusive financial advisor on both deals.

“The conversation has shifted from whether AI can create value to how quickly companies can incorporate it into their products, clinical capabilities and growth strategies," said Nick Richitt, global co-head of Healthcare Investment Banking at J.P. Morgan. "We expect AI to remain a significant driver of investment, partnerships and M&A activity across healthcare in the years ahead."

The pharmaceutical supply chain is getting a much-needed upgrade

With tariffs, energy costs and other recent shocks to the global supply chain top of mind for many CEOs, companies are seeking ways to diversify their source base.

“Whether it’s expanding out of a single region, investing in advanced manufacturing, or finding new markets for crucial inputs, the healthcare industry is awake and aware of how supply chain vulnerabilities can grind progress to a halt,” said Lee. “Crucially, we see these needs as part and parcel of the thinking behind the Security and Resiliency Initiative,” J.P. Morgan’s $1.5 trillion, 10-year plan to facilitate, finance and invest in industries critical to economic security and resiliency. “Pharmaceuticals and healthtech are not just prime examples, but serve as an entire pillar of the Initiative.”

Long-term, companies are looking at increasing capex in manufacturing and infrastructure, integrating vertically, and aligning their business goals with national health and security priorities. “The larger push to bridge critical vulnerabilities is a net positive for our sector,” said Lee. “We see these investments not as one-offs but as contributions to a wider narrative of supply and demand that will persist for years to come.”

What’s ahead for healthcare in 2026?

Healthcare companies are operating in an environment defined by rapid innovation, evolving policy considerations and growing demands for resilience. As organizations seek to strengthen competitive positioning and unlock growth, strategic transactions and capital deployment remain critical tools for achieving those objectives.

“We continue to see momentum across healthcare M&A and capital markets activity,” said Lee. “Companies are pursuing opportunities that provide access to innovation, expand capabilities and enhance long-term competitiveness.”

From AI and next-generation therapeutics to cross-border partnerships and supply chain investments, the themes shaping the sector today are likely to remain central to boardroom discussions throughout the remainder of the year. For companies that can navigate complexity while continuing to innovate, the outlook remains constructive.