Regeneron Revenue Jumps 36% as a Sanofi Accounting Step-Up Lands

Regeneron reported third-quarter revenue up 36% on Friday, as a Sanofi collaboration step-up lifted results well past analyst expectations.

Regeneron Pharmaceuticals reported third-quarter 2026 results on Friday, Oct. 30, 2026, for the three months ended Sept. 30.

Its shares trade on Nasdaq under the ticker REGN.

Total revenues were $5.12 billion in the quarter. That was up 36% from $3.75 billion a year earlier.

Non-GAAP earnings per share, the company's adjusted measure, were $20.07. That figure rose 70% from $11.83 a year earlier.

Analysts had expected $16.20, according to IBES estimates carried by Reuters.

Non-GAAP net income was $2.15 billion, up 67%. On the statutory basis, GAAP net income was $1.95 billion, up 33%.

GAAP diluted earnings per share were $18.45.

Shares rose in premarket trading on Friday after the results, Seeking Alpha reported.

The step-up behind the headline growth

The Development Balance, money Sanofi owed, previously netted against collaboration revenue, was fully repaid at the end of the second quarter.

It no longer reduced Sanofi collaboration revenue beginning in the third quarter.

Sanofi collaboration revenue was $2.72 billion, up 68%. Bayer collaboration revenue was $267 million, down 23%, and other collaboration revenue was $10 million.

Regeneron's share of profits from commercialization of antibodies was $2.58 billion. That was up from $1.46 billion a year earlier.

The release tied that increase primarily to higher Dupixent sales.

Chief Financial Officer Christopher Fenimore said the step-up drove the revenue and adjusted profit growth.

Total net product sales were $1.81 billion, up 14%, not 36%.

Other revenue was $310 million, up 57%.

Dupixent set a record, EYLEA split in two directions

"This was an outstanding quarter for Regeneron," Chief Executive Leonard S. Schleifer said in the release. He said Dupixent, EYLEA HD, and Libtayo each achieved record net sales.

Dupixent global net sales, recorded by Sanofi, were $6.54 billion, up 35%.

EYLEA HD sales in the United States were $699 million, up 62%. Legacy EYLEA sales in the United States were $400 million, down 41%.

The release tied the legacy decline to competition and the continued transition of patients to EYLEA HD.

Combined, EYLEA HD and legacy EYLEA sales in the United States were $1.1 billion, down 1%.

Libtayo and the smaller products added growth

Libtayo global sales were $550 million, up 51%. Sales in the United States were $396 million, up 81%.

Sales in the rest of the world were $154 million, up 5%.

Praluent sales in the United States were $81 million, up 21%. Evkeeza sales in the United States were $55 million, up 28%.

Lynozyfic global sales were $19 million.

Costs rose, margins held steady

GAAP research and development spending was $1.8 billion, up 22%. Non-GAAP research and development spending was $1.65 billion, up 23%.

GAAP selling, general, and administrative spending was $678 million, up 3%.

Gross margin on net product sales was 82% on a GAAP basis. It was 86% on a non-GAAP basis, the company's adjusted measure.

Both margins were unchanged from a year earlier.

The GAAP effective tax rate was 14.7%, compared with 17.2% a year earlier. The non-GAAP rate was 15.0%, compared with 13.1%.

Guidance shifts spending, raises the margin guide

As guidance, GAAP research and development spending is now expected at $6.600 billion to $6.735 billion. The prior guide was $6.500 billion to $6.635 billion.

Non-GAAP research and development guidance also rose, to $6.050 billion to $6.150 billion.

GAAP selling, general, and administrative guidance fell to $2.730 billion to $2.860 billion. Non-GAAP guidance for that line fell to $2.400 billion to $2.500 billion.

The GAAP gross margin guide rose to about 80%, from 78% to 79% previously. The non-GAAP margin guide rose to about 86%, from 84% to 85%.

Capital spending guidance was $1.050 billion to $1.100 billion. Cost of collaboration and contract manufacturing guidance was unchanged.

Tax-rate guidance was about 14% on a GAAP basis and about 15% on a non-GAAP basis. Regeneron gives no headline revenue or earnings-per-share guide.

TickerGrove covered the partners' October collaboration expansion separately on Oct. 1.

Buybacks, a dividend, and a November decision to watch

Regeneron repurchased $2.3 billion of stock in the nine months ended Sept. 30, 2026. Another $2.2 billion remained available at Sept. 30.

In October, the company declared a dividend of $0.94 per share. It is payable Dec. 3, 2026, to holders of record Nov. 20, 2026.

Regeneron said its pipeline holds about 50 product candidates. An FDA decision on cemdisiran in generalized myasthenia gravis, a muscle-weakness disorder, is expected next month.

That decision is expected in November 2026.

Pasatru was approved by the FDA in August 2026 for adults with fibrodysplasia ossificans progressiva. That is a rare bone disease, and an application is under review in Europe.

What remains unknown

What remains unknown is whether collaboration revenue holds this level without the step-up tailwind.

Also unknown is the FDA decision on cemdisiran, expected in November. Investors will watch whether EYLEA HD growth keeps offsetting the legacy EYLEA decline.

What to watch includes fourth-quarter recognition of the $1.0 billion up-front payment.