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JAZZ Q3 Earnings & Sales Beat Estimates, Raises '26 Sales View

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Key Takeaways

  • Jazz Pharmaceuticals' Q3 revenues rose 10.4% to $1.24 billion, beating estimates despite an adjusted loss.
  • Rare sleep revenues grew 10%, while oncology sales rose 34.5%, led by strong Zepzelca and Ziihera demand.
  • Jazz raised 2026 revenue guidance to $4.775-$4.85 billion, citing rare sleep strength and product growth.

Jazz Pharmaceuticals (JAZZ - Free Report) reported a third-quarter 2026 adjusted loss of $3.88 per share, narrower than the Zacks Consensus Estimate of a loss of $4.09. In the year-ago period, the company posted adjusted earnings per share (EPS) of $8.13.

The loss was attributed to a one-time charge of $754 million recorded as acquired in-process research and development (IPR&D) expenses in connection with the recently completed acquisition of Actio Biosciences.

Total revenues rose 10.4% year over year to $1.24 billion, beating the Zacks Consensus Estimate of $1.21 billion, driven by oncology demand and Xywav growth. Jazz added approximately 425 net Xywav patients during the third quarter.

Year to date, shares of Jazz have gained 26% compared with the industry’s 10% growth.

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JAZZ's Product Sales Outpace Royalty Revenues

Net product sales increased 12.4% year over year to $1.20 billion, reflecting strength across multiple marketed therapies. Product sales accounted for most of the company's revenues.

High-sodium oxybate authorized generic royalty revenues declined 27.4% to $38.4 million. Other royalty and contract revenues decreased 8% to $8.1 million, limiting the contribution from non-product revenue streams.

Jazz's Rare Sleep Business Maintains Momentum

Rare sleep revenues grew 10% year over year to $514.0 million. Xywav sales rose 12% to $482.8 million, exceeding the Zacks Consensus Estimate of $478.4 million and our model estimate of $475.6 million.

Jazz ended September with approximately 17,550 active Xywav patients, including 11,375 narcolepsy patients and 6,175 idiopathic hypersomnia patients.

Xyrem sales fell 12.6% to $31.2 million. Management noted that competing high-sodium generics continued to have a limited impact on demand.

JAZZ's Epidiolex Sales Miss Forecasts

Epidiolex/Epidyolex revenues decreased 2.4% year over year to $295.4 million. The result missed the Zacks Consensus Estimate of $310.0 million and our model estimate of $312.8 million.

The sales decline reflected prior-year U.S. gross-to-net effects and lower inventory building by wholesalers, rather than weaker underlying patient demand. Jazz has an April 16, 2027, FDA action date for its oral cannabidiol capsule formulation, which could offer patients an alternative to the liquid version.

Jazz's Oncology Portfolio Posts Broad Gains

Oncology revenues advanced 34.5% year over year to $387.1 million.

Zepzelca sales jumped 31.7% to $104.4 million, beating the $95.6 million consensus and our $91.6 million estimate. First-line maintenance demand offset declining second-line use.

Rylaze/Enrylaze revenues increased 6.4% to $106.3 million, exceeding the $103.1 million consensus and $102.0 million model forecast.

Modeyso sales stood at $61.1 million compared with $48 million reported in the previous quarter. The reported metric topped the Zacks Consensus Estimate of $53.6 million and our model estimate of $54.0 million. The total included a $14.0 million partner inventory build in Japan.

Ziihera revenues climbed 148.2% year over year to $20.6 million. New ordering accounts tripled in September versus August, with approximately 80% coming from community practices. Average vial demand per selling day increased about 40% sequentially. Management expects Ziihera uptake to build with newly presenting patients, although the recent launch in first-line HER2-positive gastroesophageal adenocarcinoma (GEA) contributes only modestly to this year's guidance.

Jazz's Actio Charge Pressures Profitability

Adjusted gross margin contracted 110 basis points year over year to 91.5%, reflecting higher product royalties and manufacturing technology transfers.

Adjusted selling, general and administrative (SG&A) expenses declined 28.7% year over year to $328 million, primarily due to the absence of litigation settlement charges of $152 million recorded in the year-ago quarter. Excluding these charges, adjusted SG&A expenses increased 6% or $19 million, reflecting higher spending to support Ziihera's first-line GEA launch and investments in key commercial capabilities.

Adjusted research and development (R&D) spending increased 11.2% to $188.9 million. The $754.2 million acquired IPR&D charge tied to Actio reduced adjusted per-share results by $11.03. Excluding the charge, management said adjusted EPS would have been $7.15.

The company completed its Actio acquisition, adding epilepsy candidate ABS-1230, and expects initial patient data in the fourth quarter.

JAZZ Raises Its 2026 Sales Outlook Again

Jazz raised and narrowed its 2026 total revenue guidance to $4.78-$4.85 billion, up from the previously issued range of $4.60-$4.75 billion. Management attributed slightly more than half the increase to rare sleep performance, with contributions from other products in the United States and Europe.

The rare sleep revenue forecast rose to $2.13-$2.18 billion (previously: $2.03-$2.13 billion). Adjusted gross margin guidance range increased 50 basis points to 90.5-91.5%, while adjusted R&D and SG&A spending outlooks remained unchanged. The adjusted tax-rate forecast rose to 19.5-21.5%, up from the previous guidance of 11.5-13.5%, reflecting Actio's nondeductible research charge.

JAZZ’s Zacks Rank

Jazz currently has a Zacks Rank #4 (Sell).

Our Key Picks Among Biotech Stocks

Some better-ranked stocks in the biotech sector include TG Therapeutics (TGTX - Free Report) and Amneal Pharmaceuticals (AMRX - Free Report) . While TGTX sports a Zacks Rank #1 (Strong Buy) at present, AMRX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past 30 days, EPS estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 EPS have increased from $2.65 to $2.66. TGTX’s shares have risen 101% year to date.

TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with an average surprise of 184.65%.

Over the past 30 days, EPS estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have surged 62% year-to-date.

Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.82%.

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