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BIIB's Q3 Earnings Beat, New Drugs Aid Sales, '26 EPS View Tightened
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Key Takeaways
Biogen's Q3 2026 adjusted EPS of $2.62 and revenues of $2.80 billion topped estimates.
Growth drugs Skyclarys, Qalsody and Zurzuvae, plus acquired Apellis products, boosted quarterly sales.
BIIB narrowed its 2026 underlying adjusted EPS view to $15.95-$16.75 per share from $15.85-$16.85.
Biogen (BIIB - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $2.62, which beat the Zacks Consensus Estimate of $2.06 per share. Earnings, however, declined 46% year over year due to higher acquired in-process research and development (IPR&D), and upfront and milestone charges (around $284 million), primarily related to the RayThera acquisition.
Total revenues during the quarter came in at $2.80 billion, up 11% year over year on a reported basis and 10% on a constant-currency basis. Revenues beat the Zacks Consensus Estimate of $2.59 billion.
Higher revenues from new drugs, Skyclarys, Qalsody and Zurzuvae and contributions from the newly acquired drugs, Empaveli and Syfovre, from the Apellis acquisition that closed in May 2026, drove revenues in the quarter. Spinraza’s sales also improved in the third quarter.
All growth rates mentioned below are on a constant-currency (cc) basis.
BIIB's Q3 Revenue Breakdown
Product revenues increased 13% year over year to $2.09 billion. Revenues from anti-CD20 therapeutic programs grew 1% to $497.3 million, supported by royalties on Ocrevus sales and Biogen's share of profits from Roche's (RHHBY - Free Report) Rituxan, Gazyva and Lunsumio.
Contract manufacturing, royalty and other revenues declined 1% to $149.7 million. Alzheimer's collaboration revenues surged 60% to $68.4 million in the reported quarter.
Alzheimer’s collaboration revenues include Biogen’s 50% share of net product revenues and cost of sales (including royalties) from Alzheimer’s disease (AD) drug Leqembi (lecanemab), which has been developed in collaboration with Eisai.
Leqembi generated approximately $202 million in global in-market sales, up 67% year over year. U.S. sales reached $107 million, reflecting continued demand growth.
Year to date, shares of Biogen have rallied 43.6% compared with the industry’s rise of 6.1%.
Image Source: Zacks Investment Research
BIIB's Growth Drugs Maintain Momentum
Rare disease revenues increased 27% year over year to $676.3 million.
Spinraza sales rose 23% to $460.6 million, supported by accelerated conversion to the high-dose regimen. Biogen stated that conversion rates continued to exceed expectations across launched markets.
Skyclarys revenues increased 34% to $178.2 million, driven by higher U.S. and international demand and favorable U.S. inventory dynamics. Qalsody sales grew 42% to $37.5 million, reflecting continued global demand growth.
Zurzuvae generated $84.4 million, up 53% year over year, driven by strong demand.
Biogen has a collaboration with Supernus Pharmaceuticals (SUPN - Free Report) for Zurzuvae. Biogen and Supernus Pharmaceuticals equally share profits and losses for the commercialization of Zurzuvae in the United States. In outside U.S. markets, Biogen records product sales (excluding Japan, Taiwan and South Korea) and pays royalties to Supernus.
Biosimilar revenues fell 19% to $166 million, reflecting lower sales of Benepali, Imraldi and Flixabi.
The acquired Apellis products, Syfovre and Empaveli, contributed $191.3 million and $51.5 million, respectively, to Biogen's reported third-quarter revenues. This was the first full quarter of results from Apellis products.
Syfovre sales grew 27% year over year, with commercial injections reaching their highest quarterly level since launch. Meanwhile, Empaveli revenues surged 92%, reflecting higher demand and growth in nephrology indications.
BIIB's Legacy MS Portfolio Remains Under Pressure
Multiple sclerosis product revenues declined 13% year over year to $919.3 million, reflecting continued competitive pressures across the company's legacy portfolio.
Tecfidera revenues plunged 51.2% to $82 million, while Vumerity sales declined 10.5% to $192 million. Vumerity's sales were primarily affected by U.S. formulary dynamics.
Meanwhile, Tysabri revenues increased 1.2% to $437.1 million.
Combined Avonex and Plegridy revenues declined 15.7% to $208.2 million.
Biogen's Operating Expenses Increase
Adjusted research and development expenses increased 31% year over year to $567.1 million. Higher clinical-trial spending on felzartamab, salanersen and litifilimab, additional Apellis operating costs and reduced research funding from Royalty Pharma drove the increase.
Adjusted selling, general and administrative expenses rose 23% to $729.7 million, reflecting Apellis' commercial and management operations and higher spending to support product launches.
BIIB 2026 EPS Outlook Tightened
Biogen continues to expect 2026 revenues to increase by a mid-single-digit percentage from 2025, driven by continued strength in its Growth Portfolio.
The company tightened its underlying adjusted earnings guidance to a range of $15.95-$16.75 per share from the prior expectation of $15.85 to $16.85 per share.
Combined adjusted R&D and SG&A costs are expected to be around $4.95 billion for 2026. Previously, the company expected combined adjusted R&D and SG&A costs to be between $2.65 billion and $2.70 billion.
Our Take on BIIB Results
Biogen delivered a strong third-quarter performance, beating estimates for both earnings and revenues. Though earnings declined year over year on higher acquisition-related costs, revenues from Biogen’s growth products (Empaveli, Qalsody, Skyclarys, Spinraza, Syfovre, Zurzuvae plus Alzheimer’s revenues from the Leqembi collaboration) rose almost 50% year over year and surpassed the legacy multiple sclerosis portfolio.
The company tightened its underlying earnings guidance while maintaining its expectation of mid-single-digit revenue growth for 2026.
Biogen has also strengthened its mid-to-late-stage neurology and immunology pipeline lately with M&A deals. Biogen expects several registrational readouts from its late-stage pipeline in the upcoming quarters.
However, the company continues to face pressure from declining multiple sclerosis and biosimilar sales, while higher research, commercial and acquisition-related costs weigh on profitability despite improving revenue momentum.
Over the past 60 days, estimates for TG Therapeutics’ 2026 earnings per share have risen from 92 cents to 94 cents, while estimates for 2027 have increased from $2.65 to $2.66 during the same time. TGTX shares have surged 89.4% year to date.
TG Therapeutics’ earnings beat estimates in one of the trailing four quarters, while missing the same on the remaining three occasions, with the average surprise being 184.65%.
View the Zacks #1 Rank List
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BIIB's Q3 Earnings Beat, New Drugs Aid Sales, '26 EPS View Tightened
Key Takeaways
Biogen (BIIB - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $2.62, which beat the Zacks Consensus Estimate of $2.06 per share. Earnings, however, declined 46% year over year due to higher acquired in-process research and development (IPR&D), and upfront and milestone charges (around $284 million), primarily related to the RayThera acquisition.
Total revenues during the quarter came in at $2.80 billion, up 11% year over year on a reported basis and 10% on a constant-currency basis. Revenues beat the Zacks Consensus Estimate of $2.59 billion.
Higher revenues from new drugs, Skyclarys, Qalsody and Zurzuvae and contributions from the newly acquired drugs, Empaveli and Syfovre, from the Apellis acquisition that closed in May 2026, drove revenues in the quarter. Spinraza’s sales also improved in the third quarter.
All growth rates mentioned below are on a constant-currency (cc) basis.
BIIB's Q3 Revenue Breakdown
Product revenues increased 13% year over year to $2.09 billion. Revenues from anti-CD20 therapeutic programs grew 1% to $497.3 million, supported by royalties on Ocrevus sales and Biogen's share of profits from Roche's (RHHBY - Free Report) Rituxan, Gazyva and Lunsumio.
Contract manufacturing, royalty and other revenues declined 1% to $149.7 million. Alzheimer's collaboration revenues surged 60% to $68.4 million in the reported quarter.
Alzheimer’s collaboration revenues include Biogen’s 50% share of net product revenues and cost of sales (including royalties) from Alzheimer’s disease (AD) drug Leqembi (lecanemab), which has been developed in collaboration with Eisai.
Leqembi generated approximately $202 million in global in-market sales, up 67% year over year. U.S. sales reached $107 million, reflecting continued demand growth.
Year to date, shares of Biogen have rallied 43.6% compared with the industry’s rise of 6.1%.
Image Source: Zacks Investment Research
BIIB's Growth Drugs Maintain Momentum
Rare disease revenues increased 27% year over year to $676.3 million.
Spinraza sales rose 23% to $460.6 million, supported by accelerated conversion to the high-dose regimen. Biogen stated that conversion rates continued to exceed expectations across launched markets.
Skyclarys revenues increased 34% to $178.2 million, driven by higher U.S. and international demand and favorable U.S. inventory dynamics. Qalsody sales grew 42% to $37.5 million, reflecting continued global demand growth.
Zurzuvae generated $84.4 million, up 53% year over year, driven by strong demand.
Biogen has a collaboration with Supernus Pharmaceuticals (SUPN - Free Report) for Zurzuvae. Biogen and Supernus Pharmaceuticals equally share profits and losses for the commercialization of Zurzuvae in the United States. In outside U.S. markets, Biogen records product sales (excluding Japan, Taiwan and South Korea) and pays royalties to Supernus.
Biosimilar revenues fell 19% to $166 million, reflecting lower sales of Benepali, Imraldi and Flixabi.
The acquired Apellis products, Syfovre and Empaveli, contributed $191.3 million and $51.5 million, respectively, to Biogen's reported third-quarter revenues. This was the first full quarter of results from Apellis products.
Syfovre sales grew 27% year over year, with commercial injections reaching their highest quarterly level since launch. Meanwhile, Empaveli revenues surged 92%, reflecting higher demand and growth in nephrology indications.
BIIB's Legacy MS Portfolio Remains Under Pressure
Multiple sclerosis product revenues declined 13% year over year to $919.3 million, reflecting continued competitive pressures across the company's legacy portfolio.
Tecfidera revenues plunged 51.2% to $82 million, while Vumerity sales declined 10.5% to $192 million. Vumerity's sales were primarily affected by U.S. formulary dynamics.
Meanwhile, Tysabri revenues increased 1.2% to $437.1 million.
Combined Avonex and Plegridy revenues declined 15.7% to $208.2 million.
Biogen's Operating Expenses Increase
Adjusted research and development expenses increased 31% year over year to $567.1 million. Higher clinical-trial spending on felzartamab, salanersen and litifilimab, additional Apellis operating costs and reduced research funding from Royalty Pharma drove the increase.
Adjusted selling, general and administrative expenses rose 23% to $729.7 million, reflecting Apellis' commercial and management operations and higher spending to support product launches.
BIIB 2026 EPS Outlook Tightened
Biogen continues to expect 2026 revenues to increase by a mid-single-digit percentage from 2025, driven by continued strength in its Growth Portfolio.
The company tightened its underlying adjusted earnings guidance to a range of $15.95-$16.75 per share from the prior expectation of $15.85 to $16.85 per share.
Combined adjusted R&D and SG&A costs are expected to be around $4.95 billion for 2026. Previously, the company expected combined adjusted R&D and SG&A costs to be between $2.65 billion and $2.70 billion.
Our Take on BIIB Results
Biogen delivered a strong third-quarter performance, beating estimates for both earnings and revenues. Though earnings declined year over year on higher acquisition-related costs, revenues from Biogen’s growth products (Empaveli, Qalsody, Skyclarys, Spinraza, Syfovre, Zurzuvae plus Alzheimer’s revenues from the Leqembi collaboration) rose almost 50% year over year and surpassed the legacy multiple sclerosis portfolio.
The company tightened its underlying earnings guidance while maintaining its expectation of mid-single-digit revenue growth for 2026.
Biogen has also strengthened its mid-to-late-stage neurology and immunology pipeline lately with M&A deals. Biogen expects several registrational readouts from its late-stage pipeline in the upcoming quarters.
However, the company continues to face pressure from declining multiple sclerosis and biosimilar sales, while higher research, commercial and acquisition-related costs weigh on profitability despite improving revenue momentum.
Biogen Inc. Price
Biogen Inc. price | Biogen Inc. Quote
BIIB’s Zacks Rank & Key Pick
Biogen currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the biotech sector is TG Therapeutics (TGTX - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for TG Therapeutics’ 2026 earnings per share have risen from 92 cents to 94 cents, while estimates for 2027 have increased from $2.65 to $2.66 during the same time. TGTX shares have surged 89.4% year to date.
TG Therapeutics’ earnings beat estimates in one of the trailing four quarters, while missing the same on the remaining three occasions, with the average surprise being 184.65%.