Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) delivered its fourth-quarter financial results, showcasing a performance that exceeded consensus expectations despite a minor annual dip in adjusted earnings per share (EPS). The biotech firm disclosed adjusted EPS of $11.44, a 5% decrease from the prior year but notably higher than the $10.71 forecasted by analysts. Concurrently, Regeneron reported sales figures reaching $3.88 billion, marking a 3% increase over the same period in the previous year and surpassing the consensus estimate of $3.79 billion.
Looking ahead, Regeneron outlined its financial outlook for fiscal year 2026, projecting a Generally Accepted Accounting Principles (GAAP) gross margin between 79% and 80%. The company also anticipates an adjusted gross margin in a slightly higher range of 83% to 84%. Furthermore, Regeneron expects its adjusted research and development (R&D) expenses to fall between $5.9 billion and $6.1 billion. Non-GAAP selling, general, and administrative (SG&A) expenses are projected to range from $2.5 billion to $2.65 billion for the same fiscal year.
Leonard S. Schleifer, M.D., Ph.D., who serves as Regeneron's Board co-Chair, President, and Chief Executive Officer, commented on the results and outlook. He stated, "Regeneron performed well in 2025, with financial strength driven by our four blockbuster medicines and future growth supported by our exciting late-stage clinical portfolio." Schleifer's remarks point to a solid foundation in the company's current product lineup as well as optimism about forthcoming clinical developments.
Following the earnings report, Regeneron’s stock experienced a positive market reaction, rising by 2.1% to close at $756.63 on the subsequent Monday. This appreciation reflects investor confidence in the company’s earnings beat and sustained growth prospects.
Subsequent to the earnings announcement, several financial analysts adjusted their price targets for Regeneron Pharmaceuticals, reflecting updated assessments of the stock’s potential performance:
- Truist Securities: Analyst Gregory Renza maintained a Buy rating but marginally lowered the price target from $820 to $818.
- Cantor Fitzgerald: Carter Gould upheld an Overweight rating, increasing the price target from $740 to $800.
- Wells Fargo: Mohit Bansal continued with an Equal-Weight rating while raising the target price from $745 to $800.
- Morgan Stanley: Matthew Harrison kept an Equal-Weight rating, slightly uplifting the target from $768 to $769.
As these varied yet generally positive adjustments indicate, analysts largely affirm the potential for Regeneron’s stock to perform well in the near-to-mid term, buoyed by strong fundamentals and a robust clinical pipeline.