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Why Is Ionis Pharmaceuticals (IONS) Down 7.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Ionis Pharmaceuticals (IONS - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Ionis Pharmaceuticals, Inc. before we dive into how investors and analysts have reacted as of late.
Q4 Earnings & Sales Beat Estimates
Ionis reported fourth-quarter 2025 adjusted loss per share of $1.14, narrower than the Zacks Consensus Estimate of a loss of $1.21. In the year-ago period, the company had incurred an adjusted loss of 43 cents.
The adjusted earnings exclude compensation expenses related to equity awards. Including this special item, loss was $1.41 per share compared with a loss of 66 cents in the year-ago period.
Total revenues were $203 million, which beat the Zacks Consensus Estimate of about $156 million. Revenues declined 10.6% year over year.
Quarter in Detail
Commercial revenues, which include sales of wholly-owned drugs and royalties on partnered drugs, surged 64% year over year to $141 million during the quarter. This growth was primarily driven by higher product sales from Tryngolza. The metric surpassed the Zacks Consensus Estimate of $127 million.
Tryngolza product sales were $50 million, up 56% year over year, driven by a robust launch momentum.
Dawnzera generated $7 million in its first full quarter since launch.
Spinraza royalties totaled $54 million, down 15.6% year over year.
Wainua royalty revenues amounted to $16 million compared with $10 million in the previous quarter. The EU launch of the drug is currently underway.
Ionis recorded $6 million in other royalties compared with $3 million in the previous quarter. This metric includes royalties from Qalsody.
Though R&D revenues fell 56% year over year to $62 million, the figure still beat the Zacks Consensus Estimate of $25 million.
Collaborative agreement revenues totaled $52 million compared with $97 million in the year-ago quarter. Joint development revenues for Wainua from partner AstraZeneca amounted to $10 million compared with $44 million in the year-ago quarter.
Cost Discussion
Adjusted operating costs rose 24.6% year over year to $375 million in the quarter. While SG&A costs increased 52% to support commercialization efforts for Wainua, Tryngolza and Dawnzera, R&D costs rose 14% in the quarter.
Full-Year 2025 Results
In 2025, the company reported total revenues of $944 million, up 34% year over year. Total revenues beat the guidance of $875-$900 million. Total revenues in 2025 included a one-time upfront payment from Ono Pharmaceutical for rights to sapablursen.
Adjusted loss per share was $1.54 compared with $2.16 in the year-ago quarter.
2026 Guidance
The company issued fresh guidance for 2026. It expects total revenues in the range of $800-$825 million. This range suggests year-over-year growth of 20% at the mid-point, excluding the one-time $280 million sapablursen upfront payment in 2025.
The adjusted operating loss is expected to be between $500 million and $550 million, which implies flat growth from 2025 levels, excluding the one-time sapablursen license fee in 2025. Operating expenses are expected to increase in the low-teen percentage range in 2026 compared to last year.
Ionis expects to end the year with cash and investments of approximately $1.6 billion and expects to achieve cash flow breakeven by 2028.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in estimates revision over the past two months.
VGM Scores
Currently, Ionis Pharmaceuticals has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Ionis Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Ionis Pharmaceuticals (IONS) Down 7.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Ionis Pharmaceuticals (IONS - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Ionis Pharmaceuticals, Inc. before we dive into how investors and analysts have reacted as of late.
Q4 Earnings & Sales Beat Estimates
Ionis reported fourth-quarter 2025 adjusted loss per share of $1.14, narrower than the Zacks Consensus Estimate of a loss of $1.21. In the year-ago period, the company had incurred an adjusted loss of 43 cents.
The adjusted earnings exclude compensation expenses related to equity awards. Including this special item, loss was $1.41 per share compared with a loss of 66 cents in the year-ago period.
Total revenues were $203 million, which beat the Zacks Consensus Estimate of about $156 million. Revenues declined 10.6% year over year.
Quarter in Detail
Commercial revenues, which include sales of wholly-owned drugs and royalties on partnered drugs, surged 64% year over year to $141 million during the quarter. This growth was primarily driven by higher product sales from Tryngolza. The metric surpassed the Zacks Consensus Estimate of $127 million.
Tryngolza product sales were $50 million, up 56% year over year, driven by a robust launch momentum.
Dawnzera generated $7 million in its first full quarter since launch.
Spinraza royalties totaled $54 million, down 15.6% year over year.
Wainua royalty revenues amounted to $16 million compared with $10 million in the previous quarter. The EU launch of the drug is currently underway.
Ionis recorded $6 million in other royalties compared with $3 million in the previous quarter. This metric includes royalties from Qalsody.
Though R&D revenues fell 56% year over year to $62 million, the figure still beat the Zacks Consensus Estimate of $25 million.
Collaborative agreement revenues totaled $52 million compared with $97 million in the year-ago quarter. Joint development revenues for Wainua from partner AstraZeneca amounted to $10 million compared with $44 million in the year-ago quarter.
Cost Discussion
Adjusted operating costs rose 24.6% year over year to $375 million in the quarter. While SG&A costs increased 52% to support commercialization efforts for Wainua, Tryngolza and Dawnzera, R&D costs rose 14% in the quarter.
Full-Year 2025 Results
In 2025, the company reported total revenues of $944 million, up 34% year over year. Total revenues beat the guidance of $875-$900 million. Total revenues in 2025 included a one-time upfront payment from Ono Pharmaceutical for rights to sapablursen.
Adjusted loss per share was $1.54 compared with $2.16 in the year-ago quarter.
2026 Guidance
The company issued fresh guidance for 2026. It expects total revenues in the range of $800-$825 million. This range suggests year-over-year growth of 20% at the mid-point, excluding the one-time $280 million sapablursen upfront payment in 2025.
The adjusted operating loss is expected to be between $500 million and $550 million, which implies flat growth from 2025 levels, excluding the one-time sapablursen license fee in 2025. Operating expenses are expected to increase in the low-teen percentage range in 2026 compared to last year.
Ionis expects to end the year with cash and investments of approximately $1.6 billion and expects to achieve cash flow breakeven by 2028.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in estimates revision over the past two months.
VGM Scores
Currently, Ionis Pharmaceuticals has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Ionis Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.