Health Information Services stocks have become a key focus for investors as AI starts to enter more domains in 2025. Some of the most amazing gains have come in health information services stocks that are utilizing AI to improve research and services in the healthcare sector.
The healthcare information services sector allows investors to gain exposure to a number of growing and emerging technologies including cloud-backed software solutions to physician enablement platforms. Some of the companies in our list are surging based on earnings anticipation while others are increasing in share price because of their upcoming products or revenue growth.
To come up with our list of top 10 health information services stocks outpacing the broader market in 2025, we only considered stocks with a market cap of at least $2 billion that were outperforming the S&P 500 index.
10. Solventum Corporation (NYSE:SOLV)
Solventum Corporation is a healthcare company that manufactures, develops, and markets a range of solutions for critical patient and customer needs. The company operates in dental solutions, filtration & purification, MedSurg, and health information systems segments. Its stock is up 12% so far this year.
SOLV is a spinoff from 3M Company (MMM) and is currently facing activist investor pressure. Nelson Peltz, a billionaire investor, has a 5% stake in the company and is pushing the company to do better, which is one factor driving its recent rally.
When the company was under 3M, it was doing much better than it is doing now, a sentiment summed up perfectly by Trian Fund Management, Peltz’s firm:
In a short period of time, Solventum went from consistently growing organically at a low-to-midsingle digit rate at a mid-to-high 20% operating margin – to a business that is barely growing today at a low-20% operating margin, despite its core end markets continuing to perform well.
The stock is up 50% since Trian first disclosed its stake in the company. However, there is still no clear evidence of whether the management is taking any concrete measures to please the activist investor or change the company’s fortunes.
9. Veeva Systems Inc. (NYSE:VEEV)
Veeva Systems Inc. is a cloud-based software provider for the life sciences industry. The company provides Veeva Vault Medical, Veeva Link, Veeva Commercial Cloud, Veeva Compass, Veeva OpenData, and Veeva Vault PromoMats. Goldman Sachs downgraded VEEV last month and decreased its target price from $261 to $200 due to medium-term risks. The share price declined 4% after the downgrade but the stock rebounded strongly with a 13% uptick this year.
Quarter over quarter, the company is showing a consistent recovery in its performance though there are some uncertainties associated with the industry that interrupted the upward momentum of the stock. Regardless of short-term instability, Veeva is well positioned for long-term growth due to its key area of expertise in life sciences, strong finances, and innovative approach.
This can further be supported by the strong earnings of Q3 and raised guidance for Q4 as the management is optimistic about the company’s prospects. In Q3, the company demonstrated solid revenue growth of 16.8% year-over-year. Net income went up by 37.5% and a 20.32% increase in free cashflows YoY. After strong Q3 earnings, the company has also raised its FY 2025 guidance.
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