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Axios analysis of company financial documents; Chart: Andrew Witherspoon/Axios

The health care industry recorded an immensely profitable first quarter, according to an analysis of financial documents for 108 companies. Year-over-year earnings among the 10 biggest health care corporations by net profit soared by 8.4%.

Yes, but: Wall Street wants more. The S&P 500 health care index so far this year is trailing the broader S&P 500 as well as other industries, including energy and technology.

The bottom line: The 108 companies cumulatively boosted Q1 global revenues by 6.3% to $558 billion — an amount from just one quarter that is about the size of Sweden's economy. Their collective profits actually decreased 0.8% to $44.7 billion, but if a few one-off elements from 2017 were eliminated, profits would have increased.

  • More than half of the industry's earnings came from 10 companies.
  • All 10 of those companies that reaped the largest earnings are either pharmaceutical firms or are involved with the drug supply chain.
  • No health care company collected more Q1 earnings than Johnson & Johnson, the maker of drugs, medical devices and Band-Aids.
  • Drug maker Amgen's 41.6% profit margin was the highest among all companies in Q1.
  • Of the 10 companies with the highest profit margins, eight were pharmaceutical firms. The other two were a real estate investment trust (Welltower) and a medical device company (Intuitive Surgical).
  • The Republican tax overhaul contributed to increased earnings, as savings from a lower corporate tax rate immediately fall to the bottom line — especially for companies like health insurers that have almost all of their business in the U.S.
  • The analysis did not include not-for-profit hospital systems, but most of those organizations have been doing well, too.

The big picture: Higher profits and revenues naturally mean U.S. health care spending is increasing. That inevitably affects other portions of the economy — like how people may not be getting significant salary raises since their employers are covering the rising costs of health care.

Go deeper: The health care industry's bubble.

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Updated 52 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7:30 p.m. ET: 32,694,155 — Total deaths: 991,273 — Total recoveries: 22,575,658Map.
  2. U.S.: Total confirmed cases as of 7:30 p.m. ET: 7,074,155 — Total deaths: 204,461 — Total recoveries: 2,750,459 — Total tests: 100,492,536Map.
  3. States: New York daily cases top 1,000 for first time since June — U.S. reports over 55,000 new coronavirus cases.
  4. Health: The long-term pain of the mental health pandemicFewer than 10% of Americans have coronavirus antibodies.
  5. Business: Millions start new businesses in time of coronavirus.
  6. Education: Summer college enrollment offers a glimpse of COVID-19's effect.
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What they're saying: Trump nominates Amy Coney Barrett for Supreme Court

Judge Amy Coney Barrett in the Rose Garden of the White House on Sept. 26. Photo: Oliver Douliery/AFP via Getty Images

Democratic and Republican lawmakers along with other leading political figures reacted to President Trump's Saturday afternoon nomination of federal appeals court Judge Amy Coney Barrett to succeed Justice Ruth Bader Ginsburg on the Supreme Court.

What they're saying: "President Trump could not have made a better decision," Senate Majority Leader Mitch McConnell said in a statement. "Judge Amy Coney Barrett is an exceptionally impressive jurist and an exceedingly well-qualified nominee to the Supreme Court of the United States."

Amy Coney Barrett: "Should I be confirmed, I will be mindful of who came before me"

Trump introduces Amy Coney Barrett as nominee to replace Ruth Bader Ginsburg. Photo: Olivier Douleiry/Getty Images

In speaking after President Trump announced her as the Supreme Court nominee to replaced Ruth Bader Ginsburg, Circuit Court Judge Amy Coney Barrett said on Saturday she will be "mindful" of those who came before her on the court if confirmed.

What she's saying: Barrett touched on Ginsburg's legacy, as well as her own judicial philosophy and family values. "I love the United States and I love the United States Constitution," she said. "I'm truly humbled at the prospect of serving on the  Supreme Court."