It has been about a month since the last earnings report for Ionis Pharmaceuticals (IONS Quick QuoteIONS - Free Report) . Shares have added about 17.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Q2 Earnings & Sales Beat Estimates

Ionis reported second-quarter 2026 adjusted loss per share of 43 cents, narrower than the Zacks Consensus Estimate of a loss of 89 cents. In the year-ago period, the company had posted adjusted earnings of 86 cents.

The adjusted earnings/loss excludes compensation expenses related to equity awards. Including this special item, the loss was 69 cents per share against the earnings of 70 cents in the year-ago period.

Quarterly revenues were $268 million, which beat the Zacks Consensus Estimate of $190.7 million. Yet, the reported figure fell nearly 41% year over year as the comparison was affected by an upfront payment of $280 million received from Japan-based Ono Pharmaceutical in the year-ago period.

Excluding the Ono payment, total revenues rose 56% year over year, driven by commercial growth and payments tied to progress across partnered programs.

Diverse Revenue Stream

The company’s revenues are divided into two segments — commercial revenues and research and development (R&D) revenues.

Commercial revenues, which include net product sales, royalties and other commercial revenues, rose 15% year over year to $119 million.

R&D revenues, which include collaborative agreement revenues and Wainua joint-development revenues, fell 57% to $149 million.

Tryngolza Sales Reflect Price Reset

Tryngolza generated net product sales of $5 million in the second quarter compared with $19 million in the year-ago period. The decline reflected a strategic wholesale acquisition cost reduction that took effect on April 1, 2026, ahead of the broader sHTG launch.

Following the drug's approval last month for the broader sHTG indication, management said the launch is off to an encouraging start. Management also noted that underlying FCS demand remained strong, with the highest number of new patients starting treatment since launch, and expects sales to accelerate in the second half of 2026.

Dawnzera Launch Gains Momentum

Dawnzera generated net product sales of $26 million in the reported quarter, up 63% sequentially from $16 million in the first quarter of 2026.

Demand was supported by patients switching from other long-term prophylactic therapies, those previously relying only on on-demand treatment and treatment-naive patients. Management also highlighted a growing base of repeat prescribers, indicating physicians’ positive experience with the drug.

Partnered Portfolio Supports Revenues

Royalty revenues increased 9% year over year to $76 million.

Spinraza royalties fell 2% year over year to $53 million, while Wainua royalties rose 60% to $16 million. Other royalty revenues were $7 million.

R&D Revenues Face a Tough Comparison

Collaborative agreement revenues were $133 million, down nearly 61% year over year. The sharp decline was primarily attributed to an upfront payment of $280 million received in the year-ago period from Ono for out-licensing rights to sapablursen, an investigational therapy for a rare blood cancer called polycythemia vera (PV).

Wainua joint-development revenues increased to $16 million, up 33% year over year.

Costs Rise on Commercial Investments

Adjusted research, development and patent expenses declined nearly 3% year over year to $192 million, while adjusted selling, general and administrative (SG&A) expenses increased more than 60% to $130 million.

The higher SG&A expenses reflected investments supporting the commercialization of Tryngolza and Dawnzera, as well as launch preparations for zilganersen in Alexander disease.

Reiterates 2026 Outlook

Ionis reaffirmed its full-year 2026 revenue guidance of $875-$900 million. The company continues to expect Tryngolza's net product sales of $100-$110 million and Dawnzera's net product sales of $110-$120 million.

The company also reiterated its adjusted operating loss guidance of $425-$475 million. Operating expenses are expected to increase in the low-teens percentage range from 2025, while R&D expenses are projected to remain broadly consistent with the prior year.

Ionis continues to project year-end cash and investments of more than $1.6 billion while remaining on track for cash-flow breakeven in 2028.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -10.35% due to these changes.

VGM Scores

At this time, Ionis Pharmaceuticals has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.

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

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Ionis Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.