Best Free-Cash-Flow Margins: Healthcare
The Healthcare cash machines of the S&P 500
Updated October 11, 2026
Cash conversion is structural before it’s managerial — an asset-light business model throws off more of each sales dollar than a capital-hungry one, whoever runs it. So the fair question isn’t whether a Healthcare company clears a market-wide bar; it’s who converts best inside the sector, where everyone faces roughly the same capital demands. The Healthcare median free-cash-flow margin is 17%; these are the names furthest above it.
| # | Stock | FCF margin | Free cash flow (TTM) | Revenue (TTM) |
|---|---|---|---|---|
| 1 | RMDResMed Inc.Medical - Devices | 51% | $2.9B | $5.7B |
| Medical - Devices — converts 51% of revenue to free cash ($2.9B on $5.7B in sales), against a Healthcare median of 17%. | ||||
| 2 | VEEVVeeva Systems Inc.Medical - Healthcare Information Services | 47% | $1.6B | $3.5B |
| Medical - Healthcare Information Services — converts 47% of revenue to free cash ($1.6B on $3.5B in sales), against a Healthcare median of 17%. | ||||
| 3 | GILDGilead Sciences, Inc.Drug Manufacturers - General | 43% | $13.2B | $30.5B |
| Drug Manufacturers - General — converts 43% of revenue to free cash ($13.2B on $30.5B in sales), against a Healthcare median of 17%. | ||||
| 4 | ABBVAbbVie Inc.Drug Manufacturers - General | 33% | $20.9B | $62.8B |
| Drug Manufacturers - General — converts 33% of revenue to free cash ($20.9B on $62.8B in sales), against a Healthcare median of 17%. | ||||
| 5 | INCYIncyte CorporationBiotechnology | 33% | $1.9B | $5.8B |
| Biotechnology — converts 33% of revenue to free cash ($1.9B on $5.8B in sales), against a Healthcare median of 17%. | ||||
| 6 | VRTXVertex Pharmaceuticals IncorporatedBiotechnology | 30% | $3.8B | $12.6B |
| Biotechnology — converts 30% of revenue to free cash ($3.8B on $12.6B in sales), against a Healthcare median of 17%. | ||||
| 7 | BIIBBiogen Inc.Drug Manufacturers - General | 30% | $3.0B | $9.9B |
| Drug Manufacturers - General — converts 30% of revenue to free cash ($3.0B on $9.9B in sales), against a Healthcare median of 17%. | ||||
| 8 | DXCMDexCom, Inc.Medical - Devices | 28% | $1.4B | $5.0B |
| Medical - Devices — converts 28% of revenue to free cash ($1.4B on $5.0B in sales), against a Healthcare median of 17%. | ||||
| 9 | IDXXIDEXX Laboratories, Inc.Medical - Diagnostics & Research | 27% | $1.3B | $4.6B |
| Medical - Diagnostics & Research — converts 27% of revenue to free cash ($1.3B on $4.6B in sales), against a Healthcare median of 17%. | ||||
| 10 | AMGNAmgen Inc.Drug Manufacturers - General | 27% | $10.2B | $38.1B |
| Drug Manufacturers - General — converts 27% of revenue to free cash ($10.2B on $38.1B in sales), against a Healthcare median of 17%. | ||||
| 11 | LLYEli Lilly and CompanyDrug Manufacturers - General | 25% | $20.1B | $79.7B |
| Drug Manufacturers - General — converts 25% of revenue to free cash ($20.1B on $79.7B in sales), against a Healthcare median of 17%. | ||||
| 12 | ZTSZoetis Inc.Drug Manufacturers - General | 25% | $2.4B | $9.5B |
| Drug Manufacturers - General — converts 25% of revenue to free cash ($2.4B on $9.5B in sales), against a Healthcare median of 17%. | ||||
| 13 | MRKMerck & Co., Inc.Drug Manufacturers - General | 24% | $16.1B | $66.4B |
| Drug Manufacturers - General — converts 24% of revenue to free cash ($16.1B on $66.4B in sales), against a Healthcare median of 17%. | ||||
| 14 | BMYBristol-Myers Squibb CompanyDrug Manufacturers - General | 23% | $11.4B | $49.2B |
| Drug Manufacturers - General — converts 23% of revenue to free cash ($11.4B on $49.2B in sales), against a Healthcare median of 17%. | ||||
| 15 | REGNRegeneron Pharmaceuticals, Inc.Biotechnology | 23% | $3.5B | $15.5B |
| Biotechnology — converts 23% of revenue to free cash ($3.5B on $15.5B in sales), against a Healthcare median of 17%. | ||||
| 16 | DHRDanaher CorporationMedical - Diagnostics & Research | 22% | $5.5B | $25.1B |
| Medical - Diagnostics & Research — converts 22% of revenue to free cash ($5.5B on $25.1B in sales), against a Healthcare median of 17%. | ||||
| 17 | TECHBio-Techne CorporationBiotechnology | 22% | $263M | $1.2B |
| Biotechnology — converts 22% of revenue to free cash ($263M on $1.2B in sales), against a Healthcare median of 17%. | ||||
| 18 | ZBHZimmer Biomet Holdings, Inc.Medical - Devices | 22% | $1.8B | $8.5B |
| Medical - Devices — converts 22% of revenue to free cash ($1.8B on $8.5B in sales), against a Healthcare median of 17%. | ||||
| 19 | MTDMettler-Toledo International Inc.Medical - Diagnostics & Research | 21% | $864M | $4.1B |
| Medical - Diagnostics & Research — converts 21% of revenue to free cash ($864M on $4.1B in sales), against a Healthcare median of 17%. | ||||
| 20 | ISRGIntuitive Surgical, Inc.Medical - Devices | 21% | $2.3B | $11.0B |
| Medical - Devices — converts 21% of revenue to free cash ($2.3B on $11.0B in sales), against a Healthcare median of 17%. | ||||
| 21 | AAgilent Technologies, Inc.Medical - Diagnostics & Research | 19% | $1.4B | $7.4B |
| Medical - Diagnostics & Research — converts 19% of revenue to free cash ($1.4B on $7.4B in sales), against a Healthcare median of 17%. | ||||
| 22 | RVTYRevvity, Inc.Medical - Diagnostics & Research | 19% | $559M | $2.9B |
| Medical - Diagnostics & Research — converts 19% of revenue to free cash ($559M on $2.9B in sales), against a Healthcare median of 17%. | ||||
| 23 | JNJJohnson & JohnsonDrug Manufacturers - General | 18% | $17.8B | $96.4B |
| Drug Manufacturers - General — converts 18% of revenue to free cash ($17.8B on $96.4B in sales), against a Healthcare median of 17%. | ||||
| 24 | ALGNAlign Technology, Inc.Medical - Devices | 18% | $756M | $4.1B |
| Medical - Devices — converts 18% of revenue to free cash ($756M on $4.1B in sales), against a Healthcare median of 17%. | ||||
| 25 | SYKStryker CorporationMedical - Devices | 18% | $4.7B | $25.8B |
| Medical - Devices — converts 18% of revenue to free cash ($4.7B on $25.8B in sales), against a Healthcare median of 17%. | ||||