Royalty Pharma raises 2026 forecast, but Q3 revenue misses estimates

Royalty Pharma said on Nov. 4 that third-quarter total revenue was $690 million, below the $812.46 million consensus estimate, while it raised its full-year 2026 Portfolio Receipts guidance.

Shares fell 1.4% in regular trading as of 10:05 a.m. ET, from a regular-session close of $66.40.

Portfolio Receipts, the cash the company collects from its royalty portfolio, rose 9% to $890 million from $814 million a year earlier. Royalty Receipts grew 9% to $883 million, driven by Tremfya, Voranigo, Evrysdi and Imdelltra.

Royalty Pharma is a buyer of biopharmaceutical royalties, with royalties on more than 35 commercial products. The company said in its press release that the results were for the quarter ended Sept. 30.

Quarterly results

Here's how the company did:

• Total revenue: $690 million vs. $609 million a year earlier, below the $812.46 million consensus estimate
• Portfolio Receipts: $890 million vs. $814 million a year earlier
• Adjusted EBITDA: $840 million vs. $779 million a year earlier
• Net income attributable to Royalty Pharma plc: $145 million vs. $284 million a year earlier

Revenue has risen in each of the last three quarters, from $609.3 million in the third quarter of 2025 to $674.1 million in the second quarter of 2026, according to its SEC filings.

Net cash provided by operating activities was $686 million, down 2% from a year earlier.

2026 guidance

The company now expects 2026 Portfolio Receipts of $3.50 billion to $3.55 billion, up from the previous range of $3.40 billion to $3.50 billion. That outlook represents expected Royalty Receipts growth of 10% to 11%.

The guidance excludes transactions announced after the release. It assumes a foreign exchange impact of approximately +1% to Portfolio Receipts. The company expects interest paid of $350 million to $360 million in 2026.

Pablo Legorreta, Chief Executive Officer and Chairman of the Board, said: “Royalty Pharma delivered excellent third quarter 2026 results and we again raised our financial guidance.” He added that the company remains “well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.”

Royalty transactions

The company acquired a royalty on Zoryve for $100 million in September. In August it acquired a royalty interest in Mimrylo for $100 million, paid as $50 million upfront and $50 million on the first anniversary of the closing.

In July the company acquired a portion of Neurimmune AG’s royalty interest in cliramitug for up to $425 million, including $125 million upfront.

As of Nov. 3, the company said it had announced transactions of $1.9 billion and Capital Deployment of $1.6 billion.

The company recorded a non-cash impairment charge of $150 million related to pelacarsen, after Novartis announced in September that the Phase 3 Lp(a)HORIZON trial did not meet its primary endpoint.

Costs, debt and shareholder returns

Cash and cash equivalents were $514 million as of Sept. 30. Total debt with principal value of $8.8 billion was down from $9.2 billion as of June 30, reflecting payment of a $380 million term loan in July.

The company paid a quarterly dividend of 23.5 cents per share in the third quarter, or $135 million in dividends and distributions. It repurchased about 1.5 million Class A ordinary shares for $87 million in the quarter and 3.5 million shares for $183 million in the first nine months of 2026.