Jazz Pharmaceuticals plc
JAZZ · NASDAQ-GS
Next quarter
Reports Nov 2, 2026, after the close.
Consensus is $1.30 EPS for Sep 2026 across 5 estimates, ranging -$5.64 to $6.10.
JAZZ Jun 2026
- 3.36%
- +3.99%
- $5.06
- $4.89
- —
- $1.21B
Reported results
- $1.21B
- $248.20M
- 20.54%
- $192.80M
- $2.78
Highlights
- Revenue: Q2 revenue reached a record $1.208 billion, up 16% year over year and 13% from $1.07 billion in Q1; product sales rose 17% to $1.156 billion.
- Earnings: Reported EPS of $4.89 missed the $5.06 consensus by 3.36%; the release reported GAAP diluted EPS of $2.78 and non-GAAP adjusted EPS of $5.71, versus a GAAP loss of $11.74 a year ago.
- Guidance: Jazz raised 2026 revenue guidance to $4.60-$4.75 billion from $4.25-$4.50 billion, implying continued double-digit growth from Xywav and the epilepsy and oncology franchises.
- Xywav: Sales increased 13% to $471 million, supported by 525 net patient additions; the quarter ended with approximately 17,125 active patients, including 11,275 narcolepsy and 5,850 idiopathic hypersomnia patients.
- Epilepsy: Epidiolex/Epidyolex revenue grew 16% to $292 million, with volume up 12%; Jazz submitted an NDA for a capsule formulation and expanded development into additional epilepsy populations.
- Oncology: Oncology revenue rose 32% to $362 million, led by Zepzelca sales up 42% to $106 million and the first full contribution from Modeyso, which generated $48 million.
- Ziihera launch: Ziihera revenue increased to $15 million from $6 million, while Jazz prepared for a potential first-line HER2-positive GEA launch following the FDA's August 25, 2026 PDUFA date.
- Balance sheet: Six-month operating cash flow was $824 million; Jazz repaid $1.0 billion of 2026 Notes in June and ended the quarter with $2.2 billion of cash, cash equivalents and investments against $4.4 billion of debt.
Analysis
Jazz's Q2 was primarily a commercial execution and guidance-raise quarter. Revenue of $1.208 billion was a record, up 16% year over year from $1.046 billion and 13% sequentially from $1.07 billion, but reported EPS of $4.89 was 3.36% below the $5.06 consensus. The company's release showed GAAP diluted EPS of $2.78, versus a $11.74 loss in the year-ago quarter, and non-GAAP adjusted EPS of $5.71, versus an adjusted loss of $8.25. Compared with Q1, GAAP EPS fell from $4.43 and net income declined from $293.1 million to $192.8 million, reflecting the quarter's $77 million of acquired IPR&D expense and higher commercial and development investment.
The operating story was stronger than the headline EPS miss. Xywav, Epidiolex and the oncology portfolio all grew, with Xywav up 13%, Epidiolex up 16% and oncology up 32%. Zepzelca benefited from first-line maintenance adoption, while Modeyso added $48 million of sales. Jazz raised full-year revenue guidance by $350 million at the midpoint, although the outlook also incorporates higher SG&A and a diluted share count of 69-70 million. The next major catalyst is the planned Ziihera launch in first-line HER2-positive GEA, while the company will remove Zepzelca's second-line indication after the LAGOON trial failed its overall-survival endpoint.
Record revenue, mixed earnings
Revenue growth accelerated across the portfolio, but reported profitability remained affected by acquisition-related and investment items. GAAP operating income was $248.2 million, compared with a $686.4 million operating loss in Q2 2025, when Modeyso acquisition accounting created a $905.4 million IPR&D charge. Q2 2026 included $77.0 million of IPR&D expense from the AbCellera collaboration and the acquisition of remaining JZP898 rights. GAAP net income was $192.8 million, versus a $718.5 million loss a year ago.
- Margins: GAAP gross margin improved to 90.4% from 88.9%, while adjusted gross margin was 92.1% versus 92.7% a year ago.
- Investment: SG&A increased 9% year over year to $389.2 million, driven by $13.6 million of additional marketing investment and $11.8 million of higher compensation expense.
- Development: R&D rose 9% to $207.5 million, primarily because of higher clinical costs for zanidatamab.
- Sequential comparison: Revenue rose from $1.07 billion in Q1, but operating income fell from $336.6 million and net income from $293.1 million.
Xywav and epilepsy momentum
The core neuroscience portfolio continued to expand despite ongoing erosion in older high-sodium oxybate products. Xywav's low-sodium positioning and its status as the only FDA-approved therapy for idiopathic hypersomnia supported patient and prescriber additions, while Epidiolex benefited from demand and volume growth.
- Xywav: Q2 sales were $471.2 million, up 13% year over year, with volume growth of 12% and approximately 525 net patient additions.
- Patient mix: Active Xywav patients increased to approximately 17,125, including 11,275 narcolepsy patients and 5,850 idiopathic hypersomnia patients; the latter group was up 26% year over year.
- Xyrem and royalties: Xyrem sales declined 14% to $30.5 million, while high-sodium oxybate royalty revenue fell 22% to $42.2 million as generic and authorized-generic competition expanded.
- Epidiolex: Sales rose 16% to $292.1 million, with volume up 12%; Jazz submitted a capsule NDA and added trials in developmental and epileptic encephalopathy, juvenile myoclonic epilepsy and adult Lennox-Gastaut syndrome.
- Patent exposure: Xywav litigation remains ongoing against Lupin and Teva, while Jazz is also defending patents against Tris Pharma's Section 505(b)(2) applications.
Oncology portfolio transition
Oncology was the largest incremental growth contributor, with revenue up 32% year over year to $362.3 million. Growth came from the Modeyso launch and Zepzelca's new first-line maintenance use, while the portfolio also carries a regulatory transition after disappointing second-line Zepzelca data.
- Zepzelca: Sales increased 42% to $105.8 million as first-line maintenance adoption offset declining second-line use.
- Zepzelca risk: The Phase 3 LAGOON trial did not meet its overall-survival endpoint in second-line metastatic SCLC; Jazz plans to submit a supplement to remove that indication, with first-line maintenance unaffected.
- Modeyso: The product generated $48.2 million in Q2 and more than 600 patients had received it from its August 2025 launch through June 2026.
- Other products: Defitelio sales rose 29% to $62.0 million, while Rylaze/Enrylaze was broadly flat at $99.5 million and Vyxeos declined 30% to $31.4 million.
Ziihera launch preparation
Ziihera remains the most important near-term product catalyst. Sales in its existing biliary tract cancer indication reached $15.4 million, up from $6.0 million a year earlier, while Jazz is preparing for a potentially much larger first-line HER2-positive GEA opportunity.
- Regulatory timing: FDA granted Priority Review for the supplemental BLA and set an August 25, 2026 PDUFA date; the application is also being reviewed under the Real-Time Oncology Review program.
- Clinical support: The HERIZON-GEA-01 trial showed statistically significant progression-free-survival benefits for both zanidatamab-containing regimens; the regimen including tislelizumab produced median overall survival of 26.4 months and a 28% reduction in the risk of death versus trastuzumab.
- Pipeline expansion: FDA granted Breakthrough Therapy designation for zanidatamab in previously treated HER2-positive colorectal cancer, while second-interim overall-survival results from the GEA trial are expected in Q3 2026.
- External innovation: Jazz paid $56 million upfront to AbCellera for two multispecific-antibody research programs and recorded total Q2 acquired IPR&D of $77 million, including $21 million for the remaining JZP898 rights.
Cash flow and deleveraging
Jazz generated substantial cash while using liquidity to retire its 2026 Notes. The company has reduced debt, but the balance sheet remains leveraged and the exchangeability of its 2030 Notes creates a near-term financing consideration.
- Cash generation: Operating cash flow was $823.9 million in the first six months, up from $518.6 million a year earlier, helped by higher product sales and the absence of the $172 million Xyrem antitrust settlement payments made in 2025.
- Liquidity: Cash, cash equivalents and investments totaled $2.2 billion at June 30, 2026, alongside $885 million of undrawn revolver capacity.
- Debt repayment: Jazz repaid the $1.0 billion principal amount of its 2026 Notes in June and issued 1.89 million ordinary shares representing the conversion premium.
- Remaining obligations: Principal debt totaled $4.4 billion, with scheduled maturities including $1.85 billion in 2028 and $1.5 billion in 2029.
- 2030 Notes: The share-price condition was met during Q2, making the $1.0 billion 2030 Notes exchangeable during Q3; none had been exchanged as of the filing date.
