Halozyme Therapeutics Inc. (NASDAQ: HALO) has announced an upward revision to its fiscal 2026 and multi-year financial guidance, attributing the improvement to rapidly increasing royalty revenues, a growing network of partnerships, and recent acquisitions poised to fortify its long-term growth trajectory. The company's preliminary sales forecast for fiscal 2025 ranges between $1.385 billion and $1.4 billion, marking a year-on-year increase of 36% to 38%. Within this total, royalty revenues alone are projected between $865 million and $870 million.
Looking forward, Halozyme expects its total revenue for 2026 to rise by 23% to 30% from the previous year, with this growth primarily driven by royalties and active pharmaceutical ingredient (API) product sales. The company elevated its revenue guidance for fiscal 2026 from an earlier range of $1.43 billion to $1.53 billion to a new range of $1.71 billion to $1.81 billion. Projected royalty revenues are set between $1.13 billion and $1.17 billion, which signifies growth of 30% to 35% and surpasses the $1 billion milestone a full year sooner than earlier anticipated.
Halozyme's President and Chief Executive Officer, Helen Torley, highlighted that the company's robust expectations for 2026 revenue growth corroborate the strength of its royalty stream. She underlined the milestone of royalty revenues exceeding $1 billion during 2026, achieving a 30% to 35% increase compared to the previous year, indicating the advancement of their core income source ahead of schedule.
In addition to the strengthening royalty base, Halozyme foresees an expanding pipeline of partner programs. By the close of 2026, the company aims to have 15 active partner programs in various stages of development. Furthermore, it plans to sign three or more new drug delivery licensing agreements, thereby diversifying and extending its drug delivery portfolio. This strategic expansion is expected to broaden Halozyme's market reach and augment growth opportunities.
Collectively, these factors underpin management's confidence in achieving durable revenue expansion well into the 2040s, supporting a long-term growth outlook designed to deliver sustained shareholder value. The company's outlook encompasses adjusted EBITDA projections for 2026 ranging from $1.125 billion to $1.205 billion, which incorporates approximately $60 million allocated for new investments related to its recent acquisitions, Hypercon and Surf Bio. Additionally, non-GAAP diluted earnings per share (EPS) estimates have been revised upwards, now projected between $7.75 and $8.25. This reflects an increase from previous guidance of $6.50 to $7.00 per share, excluding any impact from possible share repurchase activities.
Halozyme's acquisition of Surf Bio was completed with a $300 million upfront payment and includes potential milestone payments of up to $100 million. This purchase forms part of the company's strategy to enhance its product offerings and technological capabilities within the drug delivery domain.
Investors have responded positively to the revised forecasts, with Halozyme Therapeutics shares trading higher. At the time of reporting, shares were up 2.95%, reaching $72.29. This movement reflects market confidence in the company’s improving financial profile and optimistic long-term prospects.