Regeneron Pharmaceuticals, Inc.
REGN10-Q,quarter ended Sep 30, 2026,filed Oct 30, 2026,Original on SEC.gov (opens in a new tab)
1 of 1 checkable figure match the filing, 4 of 4 risk excerpts located in the filing text
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The Print
Regeneron reported third-quarter 2026 revenues of $5,115.8M and net income of $1,948.7M ($18.45 diluted EPS), with the revenue increase driven by higher Sanofi collaboration revenue and higher Libtayo and EYLEA HD U.S. net product sales.
Revenue increased $1,361.5M to $5,115.8M. Management attributes the increase in its Sanofi share of profits to higher profits primarily associated with an increase in Dupixent net product sales, as well as higher Sanofi collaboration revenue resulting from the full repayment of the Sanofi development balance as of the second quarter of 2026. EYLEA HD U.S. net product sales rose primarily due to higher sales volumes, partly offset by a lower net selling price, while EYLEA U.S. net product sales fell primarily due to lower sales volumes as a result of continued competitive pressures and the continued transition of patients to EYLEA HD.
- Total revenues rose to $5,115.8M from $3,754.3M in the prior-year quarter, with Sanofi collaboration revenue of $2,724.0M versus $1,617.0M.
- Net income was $1,948.7M versus $1,460.0M, and diluted EPS was $18.45 versus $13.62.
- Income from operations was $2,048.2M versus $1,026.8M, while other income (expense), net fell to $235.9M from $736.5M.
- EYLEA U.S. net product sales declined 41% for each of the three and nine months ended September 30, 2026 compared to the corresponding periods in 2025.
Results That Matter
- Total revenues
- Current period
- $5.1B
- Prior period
- $3.8B
- Change
- +36.3%
Increase reflects higher Sanofi collaboration revenue and higher Libtayo and EYLEA HD U.S. net product sales, partly offset by lower EYLEA U.S. net product sales and lower Bayer collaboration revenue. - Income from operations
- Current period
- $2.0B
- Prior period
- $1.0B
- Change
- +99.5%
Operating expenses rose to $3,067.6M from $2,727.5M, including research and development of $1,794.7M versus $1,475.0M, while revenue rose by a larger amount. - Net income
- Current period
- $1.9B
- Prior period
- $1.5B
- Change
- +33.5%
Net income rose despite other income (expense), net declining to $235.9M from $736.5M, as income from operations increased. - Net income per share - diluted
- Current period
- $18.45
- Prior period
- $13.62
- Change
- unavailable
Diluted weighted average shares outstanding were 105.6M versus 107.2M. - Net income per share - basic
- Current period
- $19.16
- Prior period
- $14.09
- Change
- unavailable
Basic weighted average shares outstanding were 101.7M versus 103.6M.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
| $5.1B | $3.8B | +36.3% | Increase reflects higher Sanofi collaboration revenue and higher Libtayo and EYLEA HD U.S. net product sales, partly offset by lower EYLEA U.S. net product sales and lower Bayer collaboration revenue. | |
| $2.0B | $1.0B | +99.5% | Operating expenses rose to $3,067.6M from $2,727.5M, including research and development of $1,794.7M versus $1,475.0M, while revenue rose by a larger amount. | |
| $1.9B | $1.5B | +33.5% | Net income rose despite other income (expense), net declining to $235.9M from $736.5M, as income from operations increased. | |
| $18.45 | $13.62 | unavailable | Diluted weighted average shares outstanding were 105.6M versus 107.2M. | |
| $19.16 | $14.09 | unavailable | Basic weighted average shares outstanding were 101.7M versus 103.6M. |
What changed
Quarter over quarter, against the 10-Q for the quarter ended Jun 30, 2026.
Prior 10-QNet income up 50.3%
| Metric | Prior | Current | Change | Read as |
|---|---|---|---|---|
| Net income | 1.3B | 1.9B | +50.3% | Favorable |
- Net income+50.3%Prior 1.3B, current 1.9BFavorable
▲ and ▼ show the direction of each change. Color and “Read as” show whether that direction is usually favorable for the metric.
Earnings Quality & Cash Conversion
Income from operations of $2,048.2M includes other income (expense), net of $235.9M reported below the operating line, versus $736.5M in the prior-year quarter; that line includes net gains recognized on equity securities of $57.7M in the quarter versus $577.0M a year earlier. Acquired in-process research and development expense was $21.5M versus $83.1M.
Red flag
Red flag
Value Drivers & Capital Allocation
“The Company's board of directors has authorized share repurchase programs, including a share repurchase program for up to $3.0 billion of the Company's Common Stock which was authorized in April 2026.”
Filing statement
“As of September 30, 2026, $2.157 billion remained available for share repurchases under the Company's share repurchase program.”
Filing statement
Period net income (numerator scope unestablished) / period-end assets, not annualized: 4.4%.
Forward Signals
No financial guidance is provided in the filing.
Known trends
- EYLEA net product sales have been, and are likely to continue to be, negatively impacted by increased competition from other anti-VEGF products, including biosimilars, as well as the transition of patients from EYLEA to EYLEA HD.
- The Company is working with the FDA and multiple third-party filling manufacturers to potentially achieve regulatory approval for the pre-filled syringe by the end of 2026.
Subsequent events
- In October 2026, the parties amended the Sanofi collaboration agreement to include four additional long-acting, Regeneron-invented antibodies; the Company received an up-front payment of $1.0 billion from Sanofi, which will be recorded to Collaboration revenue in the fourth quarter of 2026, and is entitled to receive up to an additional $7.0 billion in the aggregate upon the achievement of certain development, regulatory, and sales-based milestones.
- In October 2026, the Company declared a cash dividend of $0.94 per share on its Common Stock and Class A Stock, payable to shareholders in December 2026.
- On October 9, 2026, the Company and Bayer entered into a settlement agreement with Sandoz AG and its affiliated entities in respect of all jurisdictions other than the United States, Australia, and Canada.
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
For each of the three and nine months ended September 30, 2026, EYLEA U.S. net product sales…
For each of the three and nine months ended September 30, 2026, EYLEA U.S. net product sales declined by 41% compared to the corresponding periods in 2025 as a result of competitive pressures and other factors
The Company had product sales to certain customers that each accounted for more than 10% of total…
The Company had product sales to certain customers that each accounted for more than 10% of total gross product revenue for the three and nine months ended September 30, 2026 and 2025.
As of September 30, 2026 and December 31, 2025, the Company's accruals for loss contingencies…
As of September 30, 2026 and December 31, 2025, the Company's accruals for loss contingencies were not material.
we have agreed, among other matters, to provide certain of our products that we wholly own…
we have agreed, among other matters, to provide certain of our products that we wholly own in the United States to the Medicaid program at prices no greater than prices determined based on benchmarking against a defined group of other developed countries
4 of 4 excerpts located in the filing text
Balance Sheet & Liquidity
Leverage: This filing's standardized financial data reports no debt balance under a concept whose scope can be verified. That is an unestablished scope, not zero debt and not a net cash position; no total debt, net debt or debt-to-equity figure is stated.
Liquidity: Cash and cash equivalents of $3,659.1M plus marketable securities of $15,199.4M at September 30, 2026. Net cash provided by operating activities was $3,675.3M for the nine months ended September 30, 2026 versus $3,808.2M in the prior-year period; capital expenditures were $771.0M versus $649.7M.
Working capital: Total current assets were $20,795.1M and total current liabilities $6,202.1M at September 30, 2026, versus $18,021.9M and $4,368.4M at December 31, 2025. Current liabilities include finance lease liabilities of $720.0M reclassified from long-term at December 31, 2025.
Maturities & covenants
- Available-for-sale debt securities mature at various dates through December 2032; $5,642.0M mature within one year.
- The fair value of the Company's long-term debt, which was determined based on Level 2 inputs, was estimated to be $1.494 billion and $1.576 billion as of September 30, 2026 and December 31, 2025, respectively.
Notable Footnotes
| Item | Impact |
|---|---|
| Sanofi collaboration amendment (October 2026) | Up-front payment of $1.0 billion to be recorded to Collaboration revenue in the fourth quarter of 2026, plus up to $7.0 billion in aggregate milestone payments. |
| Sanofi development balance fully repaid | Removal of the reimbursement of development expenses incurred by Sanofi increased the Company's share of profits; the obligation was fully repaid as of June 30, 2026. |
| Effective tax rate | Effective tax rate was 14.7% for the three months ended September 30, 2026 versus 17.2% in 2025, and 14.4% versus 12.6% for the nine months. |
| Single reportable segment | The Company operates in one business segment; the CODM reviews consolidated net income for performance assessment and resource allocation. |
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