Regeneron shares jump 13% after Q3 profit tops estimates

Regeneron (REGN) said on Oct. 30 that third-quarter revenue rose 36% to $5.12 billion, from $3.75 billion a year earlier.

Shares jumped 13.3% in regular trading as of 3:59 p.m. ET, from a regular-session close of $818.77.

Non-GAAP earnings per share reached $20.07, up 70% from $11.83 a year earlier. That topped the $16.48 consensus estimate compiled by Finnhub. Revenue also topped the $4.63 billion estimate compiled by Finnhub.

Here's how the company did:

• Revenue: $5.12 billion vs. $3.75 billion a year earlier, and $4.63 billion expected, according to Finnhub
• Non-GAAP EPS: $20.07 vs. $11.83 a year earlier, and $16.48 expected, according to Finnhub
• GAAP EPS: $18.45 vs. $13.62 a year earlier

The company said the largest single driver was higher collaboration revenue from Sanofi. Sanofi collaboration revenue was $2.72 billion in the quarter, up 68% from $1.62 billion a year earlier.

The company said the increase reflected a higher share of profits from antibodies sold under the Sanofi alliance, which were $2.58 billion in the quarter, up from $1.46 billion. It also said the Sanofi Development Balance was fully repaid by the end of the second quarter and no longer reduced Sanofi collaboration revenue from the third quarter.

Chief Executive Officer Leonard S. Schleifer, who serves as Board co-Chair and President, said the quarter was strong across the portfolio.

"This was an outstanding quarter for Regeneron, with Dupixent, EYLEA HD, and Libtayo each achieving record net sales," said Board co-Chair, President and Chief Executive Officer Leonard S. Schleifer.

Product sales

U.S. net sales of EYLEA HD rose 62% to $699 million. U.S. net sales of EYLEA fell 41% to $400 million, as patients continued to move to EYLEA HD, the company said.

Global net sales of Libtayo rose 51% to $550 million. Global net sales of Dupixent, which Sanofi records, rose 35% to $6.5 billion.

Total net product sales were $1.81 billion, up 14% from $1.59 billion a year earlier.

2026 guidance

The company raised its 2026 forecast for GAAP gross margin on net product sales to approximately 80%, from 78% to 79%. It raised its non-GAAP gross margin forecast to approximately 86%, from 84% to 85%.

It raised its GAAP research and development forecast to $6.60 billion to $6.74 billion, from $6.50 billion to $6.64 billion. Non-GAAP research and development is now expected at $6.05 billion to $6.15 billion, from $5.95 billion to $6.05 billion.

It lowered its GAAP selling, general and administrative forecast to $2.73 billion to $2.86 billion, from $2.83 billion to $2.96 billion. Non-GAAP selling, general and administrative is now expected at $2.40 billion to $2.50 billion, from $2.50 billion to $2.60 billion.

Capital expenditures are now expected at $1.05 billion to $1.10 billion, from $1.03 billion to $1.10 billion. The company's GAAP effective tax rate forecast is approximately 14%, from 13% to 14%.

The company's 2026 guidance does not assume completion of any business development transactions not completed as of the date of its press release.

Sanofi deal and capital returns

In October, the company and Sanofi amended their antibody collaboration to add several next-generation, long-acting antibodies invented by Regeneron. Regeneron received a $1.0 billion up-front payment and can receive up to an additional $7.0 billion in milestones.

The companies will split development and commercialization costs for the new programs equally. Any future profits will also be shared equally, if the products are commercialized.

Regeneron repurchased $2.3 billion of its common stock in the first nine months of 2026. As of Sept. 30, $2.2 billion remained available under its share repurchase programs.

In October, the company declared a cash dividend of 94 cents per share, payable Dec. 3 to shareholders of record as of Nov. 20.

The company said it expects an FDA decision on cemdisiran for generalized myasthenia gravis next month.