Regeneron Pharmaceuticals, Inc. (REGN) Earnings

Regeneron Pharmaceuticals, Inc.

REGN · Nasdaq

Symbol: REGN
Type: Stock
Sector: Health Care
Industry: Biotechnology: Pharmaceutical Preparations
Exchange: Nasdaq

Regeneron (NASDAQ: REGN) is a leading biotechnology company that invents, develops and commercializes life-transforming medicines for people with serious diseases. Founded and led by physician-scientists, our unique ability to repeatedly and consistently translate science into medicine has led to numerous approved treatments and product candidates in development, most of which were homegrown in our laboratories. Our medicines and pipeline are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases, and rare diseases. Regeneron pushes the boundaries of scientific discovery and accelerates drug development using our proprietary technologies, such as VelociSuite ®, which produces optimized fully human antibodies and new classes of bispecific antibodies.

Key Issues

Bullish view

Dupixent remains a key source of strength, and higher Dupixent profits helped drive the second-quarter earnings beat. Continued demand could support growth even as older products mature.

Bearish view

The evidence confirms current strength but does not establish its durability. A slowdown in Dupixent could expose the company more directly to pressure from declining Eylea sales.

Analyst Consensus

See all

Buy

21 analysts

$808

Current

$854

Low

$852

Average

$860

High

Average target implies +5.46% versus the current price.

Earnings History

BeatMissNo estimate

Sep 2026upcoming

Next quarter

Expected to report Oct 27, 2026 — estimated from last year’s reporting date.

Consensus is $12.89 EPS for Sep 2026 across 6 estimates, ranging $9.58 to $15.06.

REGN Jun 2026

Reported Jul 30, 2026

: 56.62%
: +3.29%

: $8.00
: $12.53
: —
: $4.29B

Reported results

: $4.29B; from $3.68B
: $1.29B; from $1.08B
: 30.15%; from 29.37%
: $1.30B; from $1.39B
: $12.23; from $12.81

Highlights

Revenue: Second-quarter revenue rose 17% year over year to $4.29 billion, up from $3.61 billion in the first quarter.
Earnings: GAAP diluted EPS was $12.23 versus $12.81 a year ago and $6.75 in the prior quarter; the supplied consensus comparison was $8.00, implying a 56.62% surprise on the reported EPS measure.
Sanofi collaboration: Sanofi collaboration revenue increased 51% to $2.17 billion, driven by Regeneron's share of antibody profits rising to $2.03 billion from $1.28 billion.
Dupixent: Global Dupixent sales, recorded by Sanofi, reached a record $6.0 billion, up 38% year over year; Regeneron's reported share of Dupixent and Kevzara profits rose to $2.03 billion, or 33% of sales.
EYLEA transition: U.S. EYLEA HD sales grew 52% to a record $596 million, but legacy EYLEA sales fell 45% to $412 million, leaving combined U.S. EYLEA sales down 12% to $1.01 billion.
Libtayo: Global Libtayo sales increased 30% to a record $489 million, including U.S. sales of $343 million, up 38%.
Sanofi balance repaid: The Sanofi Development Balance was fully repaid at quarter-end, removing the deduction from Sanofi collaboration revenue and creating a step-up beginning in the third quarter.
Investment and capital returns: R&D expense rose 15% to $1.63 billion, while Regeneron repurchased $1.2 billion of stock in the quarter and deployed nearly $3.0 billion across repurchases, dividends, capital expenditures, and business development in the first half.
Guidance: Full-year gross-margin guidance improved to 78%-79% on a GAAP basis and 84%-85% on a non-GAAP basis, while capital-expenditure guidance declined to $1.03-$1.10 billion.

Analysis

Regeneron’s second quarter was a strong top-line and operating print, led by the Sanofi collaboration and continued commercial uptake of Dupixent. Revenue of $4.29 billion increased 17% from $3.68 billion a year ago and 19% sequentially from $3.61 billion. Operating income rose 20% year over year to $1.29 billion and more than doubled from $642.9 million in the first quarter. GAAP net income fell 7% year over year to $1.30 billion, partly reflecting lower investment gains and a higher tax rate, while GAAP diluted EPS was $12.23 versus $12.81 a year ago and $6.75 last quarter. The supplied consensus comparison was $8.00, with a stated 56.62% EPS surprise. Non-GAAP EPS increased 11% year over year to $14.29.

The central feature was the mix shift toward Dupixent and EYLEA HD. Global Dupixent sales rose 38% to $6.0 billion, lifting Sanofi collaboration revenue 51% to $2.17 billion. EYLEA HD U.S. sales grew 52% to $596 million, but legacy EYLEA declined 45% to $412 million, so combined U.S. EYLEA sales fell 12%. Regeneron also repaid its Sanofi Development Balance in full, which should lift collaboration revenue from the third quarter. The company is continuing to spend aggressively on its pipeline, manufacturing and external innovation while maintaining substantial buybacks.

Financial performance

Revenue growth converted into stronger operating leverage despite elevated pipeline investment. Operating expenses increased 15% to $3.00 billion, below the 17% revenue increase, and operating income rose to $1.29 billion from $1.08 billion a year ago. GAAP net income declined because other income fell to $245 million from $443 million and the effective tax rate increased to 15.1% from 8.4%.

Non-GAAP results: Non-GAAP net income rose 8% to $1.54 billion and diluted EPS increased 11% to $14.29 from $12.89.
R&D: GAAP R&D increased 15% to $1.63 billion, driven by the mid- and late-stage clinical pipeline; acquired IPR&D was $127 million versus $10 million a year ago.
Manufacturing costs: GAAP gross margin on net product sales declined to 78% from 83%, primarily because of unabsorbed costs from the temporary Limerick bulk-manufacturing interruption. Production returned to normal by quarter-end.

Dupixent economics

Dupixent remained the most important growth engine. Sanofi recorded $6.0 billion of global sales, up 38% year over year, and Regeneron’s share of profits from Dupixent and Kevzara rose 53% to $2.03 billion. The reported profit share represented 33% of the products’ $6.20 billion of sales, versus 29% a year earlier.

Balance repayment: Regeneron fully repaid the Sanofi Development Balance at June 30, eliminating the $253 million quarterly deduction that reduced its share of profits in the second quarter.
Third-quarter impact: Management said the repayment will produce a meaningful step-up in collaboration profits beginning in the third quarter.
Commercial expansion: Dupixent received U.S. and European approvals during the quarter for pediatric chronic spontaneous urticaria, expanding the eligible population to children aged 2-11 who remain symptomatic despite antihistamines.

EYLEA HD transition

EYLEA HD continued to take share from legacy EYLEA, but the transition has not yet fully offset the older product’s decline. U.S. EYLEA HD revenue rose $203 million year over year to $596 million, while EYLEA fell $342 million to $412 million. Combined U.S. sales therefore declined $139 million, or 12%, to $1.01 billion.

EYLEA HD momentum: Higher volume drove the 52% increase, partly offset by lower net selling price. The FDA also approved dosing intervals of up to 20 weeks for responsive wet age-related macular degeneration and diabetic macular edema patients.
Legacy pressure: EYLEA sales were affected by competitive pressure, including biosimilars, lower pricing and continued patient migration to EYLEA HD.
International weakness: Bayer collaboration revenue fell 33% to $276 million as Regeneron’s share of profits from EYLEA 8 mg and EYLEA outside the U.S. declined to $227 million from $383 million.

Pipeline and development

Regeneron continued to fund a broad pipeline of approximately 50 clinical assets, with progress in rare disease, hematology and cardiometabolic programs. The most immediate regulatory catalyst is cemdisiran in generalized myasthenia gravis, while the quarter also included a notable setback for fianlimab.

Cemdisiran: FDA and EMA applications for adult generalized myasthenia gravis were accepted; the FDA is using priority review with a target action date in November 2026.
Lynozyfic: Phase 1/2 results in second-line-plus systemic amyloid light-chain amyloidosis were positive, and the registrational-intent Phase 2 portion is underway.
Fianlimab: The Phase 3 first-line metastatic melanoma study failed to reach statistical significance on its progression-free-survival endpoint versus pembrolizumab monotherapy, although the adjuvant melanoma study continued after passing both planned interim analyses.
Manufacturing and launches: The Saratoga Springs facility was selected for the FDA PreCheck Pilot Program, and Regeneron is working toward potential U.S. approval of an EYLEA HD prefilled syringe by the end of 2026.

Capital allocation and guidance

Regeneron continued to return capital while expanding manufacturing and research capacity. It repurchased $1.2 billion of stock in the quarter and $2.0 billion in the first half, with $2.5 billion remaining under its repurchase programs. The quarterly dividend was $0.94 per share.

Cash generation: First-half operating cash flow was $1.89 billion and free cash flow was $1.42 billion, below the respective $2.19 billion and $1.74 billion in the prior-year period.
Investment: First-half capital expenditures were $471 million, including research and manufacturing expansion; full-year capital-expenditure guidance was reduced to $1.03-$1.10 billion.
Updated cost outlook: GAAP R&D guidance narrowed to $6.50-$6.64 billion, GAAP SG&A to $2.83-$2.96 billion, and GAAP effective-tax-rate guidance increased to 13%-14%.