It has been about a month since the last earnings report for Biogen Inc. (BIIB Quick QuoteBIIB - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Biogen due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Biogen Inc. before we dive into how investors and analysts have reacted as of late.

Q2 Earnings & Sales Beat

Biogen reported second-quarter 2026 adjusted earnings per share (EPS) of $3.60, which significantly beat the Zacks Consensus Estimate of $3.04 per share. Earnings declined 34% year over year due to deal-related charges and increased R&D costs. In the second quarter, Biogen recorded IPR&D, upfront and milestone expenses of approximately $164 million.

Total revenues during the quarter came in at $2.74 billion, up 3% year over year on a reported basis and 2% on a constant-currency basis. Revenues beat the Zacks Consensus Estimate of $2.50 billion.

Lower sales of key multiple sclerosis drugs were offset by higher revenues from new drugs, Skyclarys, Qalsody and Zurzuvae and contributions from the newly acquired drugs, Empaveli and Syfovre, from the Apellis acquisition. Spinraza’s sales also improved in the second quarter. 

Biogen’s growth products (Empaveli, Qalsody, Skyclarys, Spinraza, Syfovre, Vumerity, Zurzuvae plus Alzheimer’s revenues from the Leqembi collaboration) generated sales of $1.06 billion in the second quarter and rose 24% year over year and 25% on a sequential basis. Sales of the growth drugs surpassed the legacy multiple sclerosis portfolio, which generated $767 million in sales in the second quarter. Even excluding newly acquired Syfovre and Empaveli, revenues from the growth products were $933 million, up 9% year over year and 10% quarter over quarter. This was also higher than revenues from the legacy MS portfolio in the second quarter.

Product revenues increased 2% year over year to $1.92 billion. Revenues from anti-CD20 therapeutic programs grew 10% to $513.5 million, driven by royalties on Ocrevus sales and Biogen’s share of profits from Rituxan, Gazyva and Lunsumio.

Contract manufacturing, royalty and other revenues declined 1% to $242.4 million. Alzheimer’s collaboration revenues advanced 16% to $63.7 million. 

Alzheimer’s collaboration revenues include Biogen’s 50% share of net product revenues and cost of sales (including royalties) from Eisai for Leqembi (lecanemab).

Eisai recorded nearly $184 million in global revenues from Leqembi sales in the second quarter, up 15% year over year and around 10% sequentially, driven by demand growth globally. The drug’s U.S. sales were $97 million.

Growth Drugs Gain Ground

Rare disease revenues rose 11% to $601.7 million. 

Spinraza sales increased 2% to $401.9 million as demand and stocking for the high-dose regimen offset unfavorable shipment timing in some international markets. The figure beat the Zacks Consensus Estimate of $379 million.

Biogen said that conversion trends to the high-dose regimen have been better than expected.

Spinraza’s U.S. sales rose 36.8% year over year to $204.3 million due to demand and stocking for the high-dose regimen. In the rest of the world, Spinraza sales declined 18.8% to $197.6 million due to unfavorable shipment timing.

Rare disease drug Skyclarys revenues surged 29% year over year and 11% on a sequential basis to $167.9 million on higher demand growth in both U.S. and ex-U.S. markets. Skyclarys’ revenues beat the Zacks Consensus Estimate of $155 million. In the United States, revenues of $82.3 million rose 5.5% year over year and 14.6% on a sequential basis. In ex-U.S. markets, sales rose 63.7% to $85.6 million, driven by continued launches in Europe and some international markets. 

In 2026, Biogen expects Rare Disease revenues to grow due to the continued launch of Skyclarys in the EU and other ex-U.S. markets and the continued launch of Qalsody in Europe. Biogen expects global Spinraza revenues to be relatively flat in 2026.

Qalsody sales increased 59.5% year over year to $31.9 million, driven by demand growth. 

Zurzuvae generated $70.8 million, up 53% year over year and 28% sequentially, reflecting demand growth.

Biosimilar revenues fell 15.9% to $152.8 million, reflecting lower sales of Benepali, Imraldi and Flixabi.

Syfovre and Empaveli contributed $97.4 million and $30.4 million, respectively, to Biogen’s reported revenues in the second quarter.

For the full second quarter, Syfovre recorded sales of $162 million, up 8% year over year, while Empaveli’s sales were $46 million, up 123%. Biogen has consolidated revenues of Syfovre and Empaveli from May 14, when the transaction closed.

BIIB's Legacy MS Portfolio Remains Under Pressure

Multiple sclerosis product revenues declined 13% year over year to $963.3 million due to generic competition for Tecfidera globally and Tysabri in Europe and rising competitive pressure in the MS market.

Vumerity revenues fell 7.4% to $196.5 million due mainly to inventory dynamics. However, revenues rose 9% on a sequential basis. This metric missed the Zacks Consensus Estimate of $205 million.

Tecfidera sales plunged 53% to $90.9 million due to generic erosion globally, particularly in Europe. The drug’s sales also missed the Zacks Consensus Estimate of $103 million.

Tysabri revenues slipped 0.8% year over year to $450.8 million due to a decrease in U.S. demand and unfavorable shipment timing in some ex-U.S. markets. The drug’s sales beat the Zacks Consensus Estimate of $375 million.

Combined Avonex and Plegridy sales declined 8.8% to $225.1 million.

In 2026, Biogen expects revenues for MS products to decline due to accelerating generic competition for Tecfidera in the EU and biosimilar competition for Tysabri.

Operating Costs Rise

Adjusted research and development expenses increased 24% to $489.5 million. The increase reflected higher clinical-trial spending on felzartamab, salanersen and litifilimab, the inclusion of Apellis operating costs and lower research funding from Royalty Pharma.

Adjusted selling, general and administrative expenses rose 17% to $679.6 million. The increase was driven by Apellis’ commercial and management operations and higher spending to support product launches. 

In the quarter, the collaboration profit-sharing was a net expense of around $69 million, which included nearly $45 million of net profit-sharing expenses related to Biogen’s biosimilar collaboration with Samsung Bioepis and around $24 million of net profit-sharing expenses linked to Biogen’s collaboration with Supernus Pharmaceuticals for marketing Zurzuvae in the United States.

Ups 2026 Revenue and EPS Outlook

The company raised its sales and earnings guidance due to an improved underlying business outlook.

Biogen raised its revenue guidance for the year due to expected higher revenues from growth products and the addition of Syfovre and Empaveli into its product portfolio. Biogen now expects 2026 revenues to increase by a mid-single-digit percentage from 2025. This is in contrast to the company’s earlier expectation of a mid-single-digit constant-currency decline.

The company raised its underlying adjusted earnings guidance to a range of $15.85-$16.85 per share from the prior expectation of $15.25 to $16.25 per share.

Biogen expects the Apellis acquisition to dilute adjusted EPS by 85 cents in 2026 due to costs to finance the transaction. The Apellis deal is expected to be accretive to adjusted EPS in 2027.

Combined adjusted R&D and SG&A costs are expected to be between $2.65 billion and $2.70 billion for the second half of 2026.

Other Key Announcements

Biogen announced that BIIB091 achieved proof of concept in a phase II study for relapsing-remitting multiple sclerosis. The company will evaluate the next development steps for the asset.

BIIB also exercised its option and in-licensed worldwide rights from partner Ionis to develop and commercialize BIIB147, a phase I-ready antisense therapy targeting stathmin 2 pre-mRNA in broad amyotrophic lateral sclerosis. Biogen paid Ionis a $15 million one-time license fee.

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 -22.95% due to these changes.

VGM Scores

Currently, Biogen has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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 these revisions indicates a downward shift. Interestingly, Biogen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.