Halozyme Therapeutics, Inc.
HALO · Nasdaq
HALO · Nasdaq
Reports Nov 5, 2026, after the close.
Consensus is $2.16 EPS for Sep 2026 across 3 estimates, ranging $2.06 to $2.21.
Halozyme delivered a record Q2 FY2026, with revenue of $481.0 million up 48% year over year and 28% sequentially from $376.7 million. Operating income rose 42% year over year to $287.7 million, net income increased 39% to $229.9 million, and GAAP diluted EPS reached $1.90 versus $1.33 a year ago and $1.22 in Q1. The supplied earnings dataset reports EPS of $2.17 against consensus of $1.73, a 25.43% beat; the release also reported non-GAAP diluted EPS of $2.28 versus $1.54 a year ago.
The print was defined by continued scaling of the ENHANZE royalty base, unusually strong bulk rHuPH20 demand and a broader collaboration pipeline. Royalties rose 50% to $307.7 million, led by DARZALEX SC and rapidly growing VYVGART Hytrulo, while product sales increased 59% to $129.6 million. Adjusted EBITDA grew 46% to $328.8 million despite higher amortization, research spending and litigation costs following the Elektrofi and Surf Bio acquisitions. Management raised every major 2026 guidance range, including revenue, royalties, adjusted EBITDA and non-GAAP EPS, while returning $332.8 million through buybacks.
The royalty business remained the central driver of the quarter. Royalty revenue reached $307.7 million, up $102.1 million or 50% year over year, with growth concentrated in newer ENHANZE products. DARZALEX royalties rose 27% to $152.2 million, VYVGART Hytrulo royalties increased 143% to $72.6 million, Phesgo royalties grew 8% to $28.4 million and royalties from other products increased 85% to $54.4 million. Halozyme expects further growth from DARZALEX SC, VYVGART Hytrulo and Phesgo, alongside newer launches including TECENTRIQ SC, OCREVUS SC, RYBREVANT SC and Opdivo Qvantig. Earlier Roche products such as Herceptin and MabThera continue to face modest price erosion.
Product sales were $129.6 million, up 59% from $81.5 million a year earlier. Bulk rHuPH20 sales more than doubled to $59.6 million from $23.3 million as partners increased demand. Proprietary product sales rose 19% to $55.4 million, supported by continued XYOSTED market growth, while device-partnered product sales increased 24% to $14.6 million. Product sales are less predictable than royalties because bulk enzyme and device shipments fluctuate with partner requirements, but the first-half product sales total reached $260.1 million, up 63% year over year.
Management raised the full-year outlook after the record quarter. Total revenue is now expected at $1.835-$1.910 billion, versus the prior $1.710-$1.810 billion range, implying 31%-37% growth over 2025. Royalty revenue guidance increased to $1.220-$1.245 billion from $1.130-$1.170 billion, or 41%-43% growth. Adjusted EBITDA guidance moved to $1.225-$1.280 billion from $1.125-$1.205 billion, and non-GAAP diluted EPS guidance rose to $8.65-$9.00 from $7.75-$8.25. The updated EBITDA and EPS outlook includes approximately $60 million of Hypercon and Surf Bio investment and excludes the potential effect of future buybacks on EPS.
Halozyme added five ENHANZE and Hypercon collaboration agreements through July, exceeding its goal of three for 2026. Vertex paid a $15 million upfront fee for access to Hypercon for up to three targets, while GSK signed an ENHANZE agreement covering multiple oncology targets and a potential antibody-drug conjugate application. Oruka licensed Hypercon for ORKA-001 and one additional target, an undisclosed partner licensed ENHANZE for a nucleic-acid therapeutic, and Incyte added an ENHANZE collaboration with options for two more targets. These agreements provide upfront, milestone and royalty opportunities, but most future economics remain dependent on partner development and commercialization.
Operating cash flow reached $421.0 million in the first half, up from $253.9 million a year earlier, helping fund substantial capital returns. Halozyme repurchased 4.8 million shares for $332.8 million in Q2 at an average price of $69.30, completing the February 2024 program and beginning a new $1.0 billion authorization that runs through December 2028. Cash, cash equivalents, restricted cash and marketable securities totaled $231.9 million at June 30, up from $145.4 million at December 31, 2025. The company carried $2.18 billion of convertible-note principal, although the $750 million revolving facility remained undrawn and all debt covenants were satisfied.
