Sanofi ADS
SNY · Nasdaq
Next quarter
Reports Oct 30, 2026, before the open.
Consensus is $1.72 EPS for Sep 2026 across 5 estimates, ranging $1.54 to $1.86.
SNY Jun 2026
- 10.00%
- +0.44%
- $1.10
- $1.21
- —
- —
Highlights
- EPS beat: Reported EPS was 1.21 versus consensus of 1.10, a 10% surprise.
- Sales growth: First-half net sales rose 11.1% reported to €22.1 billion and 15.7% at constant exchange rates, with U.S. sales up to €11.6 billion from €9.5 billion.
- Underlying profit: Business operating income increased 16.7% to €6.26 billion, or 22.3% at constant exchange rates, lifting the margin to 28.3% from 27.0%.
- Dupixent remains the engine: First-half Dupixent sales increased 27.5% reported to €9.32 billion, including growth in both the United States and Europe.
- Amlitelimab impairment: Sanofi recorded a €1.03 billion intangible-asset impairment, mainly a €952 million write-down of amlitelimab, contributing to a 15.7% decline in operating income to €3.17 billion.
- Reported earnings comparison: Net income attributable to Sanofi shareholders was €1.96 billion versus €5.81 billion a year earlier, when the Opella divestment generated €2.88 billion of discontinued-operation income.
- Dynavax integration: The acquisition contributed €144 million of sales and €89 million of business operating income after closing, but reduced consolidated net income by €63 million in the first half.
- Cash and leverage: Continuing-operations operating cash flow rose to €4.64 billion from €3.37 billion, while net debt increased to €15.5 billion from €11.0 billion after the Dynavax acquisition and €4.92 billion dividend payment.
Analysis
Sanofi’s June 2026 print was an underlying growth quarter despite a complicated reported-income comparison. EPS of 1.21 beat the 1.10 consensus by 10%. The supplied filing reports first-half figures rather than a standalone quarter: net sales rose 11.1% to €22.1 billion, or 15.7% at constant exchange rates, while business operating income advanced 16.7% to €6.26 billion and the margin expanded to 28.3% from 27.0% a year earlier. A prior-quarter comparison was not provided in the supplied material.
The print was led by continued specialty-care momentum, particularly Dupixent, whose first-half sales rose 27.5% to €9.32 billion, and by strong U.S. performance, where sales increased to €11.6 billion from €9.5 billion. Reported operating income fell 15.7% to €3.17 billion because of higher amortization, restructuring and acquisition-related charges, including a €1.03 billion intangible impairment largely tied to amlitelimab. Net income also fell sharply from €5.81 billion to €1.96 billion, but the prior-year period included €2.88 billion of Opella disposal-related discontinued-operation income. Sanofi also added Dynavax to its vaccines portfolio, while funding the acquisition and dividend through a higher debt balance.
Underlying operating growth
Sanofi’s core operating performance accelerated in the first half despite higher investment and acquisition costs. Business operating income rose 16.7% on a reported basis to €6.26 billion and 22.3% at constant exchange rates. The business margin reached 28.3% versus 27.0% in the prior-year period.
- Revenue: Net sales increased 11.1% to €22.1 billion, with constant-exchange growth of 15.7%. Other revenues were €1.44 billion, broadly flat reported and up 2.7% at constant exchange rates.
- Investment: Research and development expense rose 7.1% reported to €3.98 billion, while selling and general expenses increased 6.3% to €4.79 billion.
- Geography: U.S. sales grew 22.0% to €11.63 billion, while Europe rose to €4.30 billion from €4.14 billion and rest-of-world sales declined slightly to €6.17 billion.
Dupixent and portfolio momentum
The commercial engine remained concentrated in immunology and newer growth products. Dupixent continued to provide the largest contribution, while launches and recently acquired products added to the growth profile.
- Dupixent: Sales rose to €9.32 billion from €7.31 billion, with U.S. sales of €6.92 billion versus €5.28 billion and Europe sales of €1.15 billion versus €944 million.
- Vaccines: Polio, pertussis, Hib and booster vaccines, including Heplisav-B, generated €1.36 billion versus €1.36 billion a year earlier. Beyfortus sales increased to €392 million from €356 million, while meningitis, travel and endemic vaccines declined to €565 million from €609 million.
- Other growth products: ALTUVIIIO sales increased to €674 million from €542 million, Nexviazyme/Nexviadyme to €426 million from €387 million, and Sarclisa to €354 million from €276 million. Ayvakit contributed €367 million after its inclusion in the portfolio.
Dynavax acquisition
Sanofi completed its acquisition of Dynavax on February 10 for an equity value of approximately $2.2 billion, including the subsequent repayment of short-term debt. The deal adds the marketed adult hepatitis B vaccine HEPLISAV-B and a shingles vaccine candidate to Sanofi’s adult-immunization platform.
- Contribution: Since closing, Dynavax added €144 million of Biopharma sales and €89 million of business operating income.
- Purchase accounting: Sanofi recognized €1.15 billion of acquired intangible assets and €204 million of goodwill. The acquisition generated a net cash outflow of €1.40 billion.
- Near-term earnings effect: Dynavax reduced consolidated net income by €63 million, including €38 million of intangible amortization, €44 million of acquired-inventory expenses and €63 million of restructuring costs.
Amlitelimab impairment
The reported IFRS result was weighed down by a major pipeline write-down. Sanofi recognized €1.03 billion of intangible-asset impairment in the first half, principally a €952 million charge against amlitelimab, representing the asset’s entire carrying value.
- Operating income: Reported operating income declined to €3.17 billion from €3.76 billion, despite the increase in business operating income.
- Other charges: Amortization of intangible assets rose to €1.09 billion from €777 million, restructuring costs increased to €563 million from €430 million, and other gains, losses and litigation represented a €95 million charge.
- Tax effect: The amlitelimab impairment was not tax-deductible and contributed to an effective tax rate of 30.6%, versus 19.8% in the prior-year first half.
Cash flow and capital structure
Cash generation improved, but acquisition spending, the annual dividend and ongoing shareholder returns increased leverage. Continuing-operations operating cash flow rose 38% to €4.64 billion from €3.37 billion.
- Investment outflow: Continuing investing cash flow was negative €2.42 billion, including €1.41 billion of acquisitions and €1.30 billion of property, plant and intangible-asset investment.
- Shareholder distributions: Sanofi paid €4.92 billion in dividends and repurchased €1.00 billion of shares in the first half.
- Debt: Net debt increased to €15.51 billion from €11.01 billion at December 31, 2025. Cash fell to €6.35 billion from €7.66 billion, while total debt increased to €21.89 billion from €18.70 billion.
