Regeneron Pharmaceuticals, Inc. (REGN) Q3 2026: Strong Revenue Growth and Record Sales — Positive Outlook

Regeneron Pharmaceuticals, Inc. (REGN) reported a robust performance in the third quarter of 2026, with total revenues increasing by $1.4 billion or +36% year-over-year, reaching $5.1 billion compared to $3.8 billion in the same quarter of 2025. This significant growth was driven by strong sales across its key products, particularly Dupixent, EYLEA HD, and Libtayo.

This quarter is undoubtedly a positive one for shareholders, as the company not only exceeded revenue expectations but also demonstrated impressive growth in earnings per share (EPS). The GAAP EPS rose to $18.45, marking a 35% increase from $13.62 in Q3 2025, while the non-GAAP EPS surged by 70% to $20.07 from $11.83. Such performance reflects the company's effective commercialization strategies and the successful expansion of its product portfolio.

Key Financial Metrics:

• Total Revenues: $5.1 billion, up $1.4 billion or +36% YoY
• GAAP Net Income: $1.949 billion, up $489 million or +33% YoY
• GAAP EPS: $18.45, up $4.83 or +35% YoY
• Non-GAAP Net Income: $2.150 billion, up $863 million or +67% YoY
• Non-GAAP EPS: $20.07, up $8.24 or +70% YoY

Product Performance:

• Dupixent®: Global net sales increased by 35% to $6.5 billion.
• EYLEA HD®: U.S. net sales rose by 62% to $699 million.
• Libtayo®: Global net sales grew by 51% to $550 million.

The strong performance of these products is indicative of Regeneron's successful market strategies and the growing demand for its innovative therapies. The expansion of the collaboration with Sanofi, which includes an upfront payment of $1.0 billion and potential future milestones of up to $7.0 billion, further strengthens the company's financial position and growth prospects.

Capital Allocation and Shareholder Returns:

Regeneron has been proactive in returning value to its shareholders. During the first nine months of 2026, the company repurchased $2.3 billion of its common stock, with $2.2 billion remaining available for future buybacks. Additionally, the company declared a cash dividend of $0.94 per share, payable on December 3, 2026, to shareholders of record as of November 20, 2026.

Guidance and Future Catalysts:

Regeneron has updated its financial guidance for 2026, reflecting a positive outlook for the remainder of the year. The company expects GAAP R&D expenses to be in the range of $6.600–$6.735 billion, and non-GAAP R&D expenses to be between $6.050–$6.150 billion. The anticipated increase in collaboration revenue from Sanofi is expected to contribute significantly to future earnings.

Investors should keep an eye on the upcoming FDA decision for cemdisiran in generalized myasthenia gravis, expected next month, as well as updates from the company's extensive pipeline of approximately 50 product candidates. The progress in clinical trials for various indications, including multiple myeloma and obesity, will also be crucial for Regeneron's growth trajectory.

In conclusion, Regeneron's third quarter results reflect a strong operational performance and a solid foundation for future growth. The combination of increasing revenues, expanding product sales, and strategic collaborations positions the company favorably for continued success in the biotechnology sector.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

($ in millions, except per share data)

Three Months Ended September 30, 2026	Nine Months Ended September 30, 2026	Three Months Ended September 30, 2025	Nine Months Ended September 30, 2025
Net product sales	$ 1,805	$ 4,982.2	$ 1,587.7	$ 4,634.0
Collaboration revenue	$ 3,000.0	$ 7,355.2	$ 1,968.4	$ 5,360.0
Other revenue	$ 310.0	$ 674.5	$ 198.2	$ 464.0
Total Revenues	$ 5,115.0	$ 13,011.0	$ 3,754.3	$ 10,458.0
Operating Expenses
Research and development	$ 1,794.0	$ 4,969.8	$ 1,475.0	$ 4,224.1
Acquisition in-process research and development	$ 21.5	$ 250.4	$ 83.1	$ 105.4
Selling, general and administrative	$ 677.8	$ 1,987.6	$ 657.8	$ 1,925.0
Cost of goods sold	$ 321.7	$ 1,055.8	$ 281.0	$ 822.1
Cost of collaboration and contract manufacturing	$ 251.9	$ 763.7	$ 240.6	$ 694.0
Other operating expenses (inclusive)	—	—	-10.0	-10.0
Total Expenses	$ 3,067.0	$ 9,027.3	$ 2,727.5	$ 7,760.0
Income from operations	$ 2,048.0	$ 3,984.6	$ 1,026.8	$ 2,698.0
Other income (expense)
Other income	$ 246.5	$ 693.0	$ 755.8	$ 1,520.0
Interest expense	$ -10.6	$ -34.5	$ -19.3	$ -31.6
Income before income taxes	$ 2,284.0	$ 4,643.1	$ 1,763.3	$ 4,187.0
Income tax expense	$ 335.4	$ 670.3	$ 303.3	$ 526.7
Net income	$ 1,948.0	$ 3,972.8	$ 1,460.0	$ 3,660.0
Net income per share - basic	$ 19.16	$ 38.65	$ 14.09	$ 34.83
Net income per share - diluted	$ 18.45	$ 37.37	$ 13.62	$ 33.61
Weighted-average shares used to compute net income per share, basic	101.7	102.8	103.6	105.1
Weighted-average shares used to compute net income per share, diluted	105.6	106.3	107.2	108.9

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions)

Assets	September 30, 2026	December 31, 2025
Cash and marketable securities	$ 18,858.5	$ 18,865.8
Accounts receivable, net	$ 7,578.6	$ 5,741.1
Inventories	$ 2,894.6	$ 3,200.8
Property, plant, and equipment, net	$ 5,727.5	$ 5,120.4
Intangible assets, net	$ 1,315.5	$ 1,257.4
Deferred tax assets	$ 4,535.6	$ 4,077.2
Other assets	$ 3,494.9	$ 2,296.0
Total assets	$ 44,405.2	$ 40,558.7
Liabilities and stockholders' equity
Accounts payable, accrued expenses, and other liabilities	$ 7,229.7	$ 5,834.2
Finance lease liabilities	$ 720.0	$ 720.0
Deferred revenue	$ 970.0	$ 761.7
Long-term debt	$ 1,987.0	$ 1,985.9
Stockholders' equity	$ 33,498.5	$ 31,256.9
Total liabilities and stockholders' equity	$ 44,405.2	$ 40,558.7

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