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SRPT Q3 Earnings Miss Estimates, Stock Down as Elevidys Sales Decline
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Key Takeaways
Sarepta reported Q3 adjusted EPS of 13 cents, missing estimates, while revenues of $381.4M beat expectations.
Elevidys sales fell short at $83.5 million, while PMO revenues exceeded estimates, reaching $240.3 million.
Sarepta raised 2026 product revenue guidance to $1.25-$1.3 billion on strong PMO performance.
Sarepta Therapeutics (SRPT - Free Report) reported adjusted earnings of 13 cents per share in the third quarter of 2026, missing the Zacks Consensus Estimate of 37 cents. The company had incurred an adjusted loss of 13 cents per share in the year-ago period. The GAAP loss narrowed to 27 cents per share from 50 cents a year earlier.
Total revenues fell 4.5% year over year to $381.4, primarily due to lower sales of Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD). Yet, the figure beat the Zacks Consensus Estimate of $348 million. SRPT shares declined 3.4% in after-hours trading following the mixed results.
Sarepta's commercial DMD portfolio includes three approved PMO therapies, Exondys 51, Vyondys 53 and Amondys 45, alongside the Elevidys gene therapy. Product revenues fell 12.5% year over year to $323.8 million from $370 million in the year-ago quarter.
PMO revenues reached $240.3 million, exceeding the Zacks Consensus Estimate of $223.6 million. The performance highlights the resilience of Sarepta's established exon-skipping treatments.
Elevidys revenues totaled $83.5 million, falling short of the Zacks Consensus Estimate of $84.4 million. Lower sales volumes primarily reflected the updated U.S. label, which restricts treatment to ambulatory patients ages four and older.
Year to date, the stock has lost 18.3% against the industry’s 12% growth.
Image Source: Zacks Investment Research
Sarepta's Other Revenues Rise on Roche Shipments
Collaboration and other revenues increased 96.5% year over year to $57.6 million from $29.3 million. The gain helped cushion the drop in product revenues.
Contract manufacturing revenues rose $31.4 million as Sarepta delivered more commercial Elevidys supply to Roche (RHHBY - Free Report) . The Roche-linked manufacturing contribution partially offset lower U.S. treatment volumes in the overall revenue mix. Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, RHHBY has exclusive rights to launch and market Elevidys in ex-U.S. markets.
SRPT's Adjusted R&D Falls While SG&A Rises
Adjusted research and development (R&D) expenses declined 65.3% year over year to $71.6 million from $206.5 million. The decline primarily reflected the absence of a $100 million milestone payment made in the year-ago quarter for the myotonic dystrophy type 1 (DM1) program, as well as lower manufacturing and clinical spending following pipeline reprioritization.
Adjusted selling, general and administrative (SG&A) expenses rose 26.6% to $97.6 million from $77.1 million. The comparison reflected the absence of year-ago reversals of certain incentive compensation accruals tied to the company's restructuring.
Adjusted operating income reached $22.9 million against an operating loss of $35.7 million a year earlier.
Sarepta Raises 2026 Product Revenue Outlook
Sarepta increased the lower end of its 2026 net product revenue guidance by $50 million, setting a new range of $1.25 billion to $1.3 billion. The revision reflected strong PMO performance.
The company expects fourth-quarter Elevidys revenues to trend in line with third-quarter levels, subject to normal variability for a one-time gene therapy. Management also expects continued strength across its PMO franchise.
Sarepta narrowed its combined adjusted R&D and SG&A expense outlook to $800-$825 million from $800-$850 million.
Sarepta Therapeutics, Inc. Price, Consensus and EPS Surprise
The FDA has accepted Sarepta’s regulatory filings seeking to convert the accelerated approvals granted for Vyondys 53 and Amondys 45 into full/traditional approvals. A final decision is expected by Feb. 28, 2027. These filings are supported by data from a late-stage confirmatory study and substantial real-world evidence.
Sarepta expects to complete enrollment in Cohort 8 of the phase Ib ENDEAVOR study by the end of 2026. The cohort is designed to improve the safety profile of Elevidys in non-ambulatory patients by combining it with an enhanced sirolimus-based immunosuppressive regimen.
Full 12-week data are now expected in the first quarter of 2027, later than the company’s previous expectation of a readout before the end of 2026. Management had earlier attributed the revised timeline to investigators dosing participants sequentially, which delayed the availability of complete 12-week data from approximately 25 patients.
Sarepta also expects multiple-ascending-dose data from SRP-1003 in DM1 and SRP-1001 in facioscapulohumeral muscular dystrophy during the fourth quarter of 2026. The results should provide insight into reductions in disease-related RNA and downstream biological effects. It is preparing both programs for potential phase III development, including manufacturing clinical supplies. It is evaluating accelerated and traditional approval pathways, with decisions depending on clinical data and discussions with the FDA.
SRPT’s Zacks Rank & Stocks to Consider
Sarepta currently has a Zacks Rank #5 (Strong Sell).
Over the past 30 days, loss per share estimates for ImmunityBio remain unchanged at 97 cents for 2026. Over the same period, estimates for 2027 loss per share have improved from 14 cents to 11 cents. IBRX’s shares have skyrocketed 304.6% year to date.
ImmunityBio’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 13.40%.
Over the past 30 days, earnings per share 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 climbed 54.4% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 27.21%.
View the Zacks #1 Rank List
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SRPT Q3 Earnings Miss Estimates, Stock Down as Elevidys Sales Decline
Key Takeaways
Sarepta Therapeutics (SRPT - Free Report) reported adjusted earnings of 13 cents per share in the third quarter of 2026, missing the Zacks Consensus Estimate of 37 cents. The company had incurred an adjusted loss of 13 cents per share in the year-ago period. The GAAP loss narrowed to 27 cents per share from 50 cents a year earlier.
Total revenues fell 4.5% year over year to $381.4, primarily due to lower sales of Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD). Yet, the figure beat the Zacks Consensus Estimate of $348 million. SRPT shares declined 3.4% in after-hours trading following the mixed results.
SRPT's Product Revenues Decline Despite PMO Strength
Sarepta's commercial DMD portfolio includes three approved PMO therapies, Exondys 51, Vyondys 53 and Amondys 45, alongside the Elevidys gene therapy. Product revenues fell 12.5% year over year to $323.8 million from $370 million in the year-ago quarter.
PMO revenues reached $240.3 million, exceeding the Zacks Consensus Estimate of $223.6 million. The performance highlights the resilience of Sarepta's established exon-skipping treatments.
Elevidys revenues totaled $83.5 million, falling short of the Zacks Consensus Estimate of $84.4 million. Lower sales volumes primarily reflected the updated U.S. label, which restricts treatment to ambulatory patients ages four and older.
Year to date, the stock has lost 18.3% against the industry’s 12% growth.
Image Source: Zacks Investment Research
Sarepta's Other Revenues Rise on Roche Shipments
Collaboration and other revenues increased 96.5% year over year to $57.6 million from $29.3 million. The gain helped cushion the drop in product revenues.
Contract manufacturing revenues rose $31.4 million as Sarepta delivered more commercial Elevidys supply to Roche (RHHBY - Free Report) . The Roche-linked manufacturing contribution partially offset lower U.S. treatment volumes in the overall revenue mix. Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, RHHBY has exclusive rights to launch and market Elevidys in ex-U.S. markets.
SRPT's Adjusted R&D Falls While SG&A Rises
Adjusted research and development (R&D) expenses declined 65.3% year over year to $71.6 million from $206.5 million. The decline primarily reflected the absence of a $100 million milestone payment made in the year-ago quarter for the myotonic dystrophy type 1 (DM1) program, as well as lower manufacturing and clinical spending following pipeline reprioritization.
Adjusted selling, general and administrative (SG&A) expenses rose 26.6% to $97.6 million from $77.1 million. The comparison reflected the absence of year-ago reversals of certain incentive compensation accruals tied to the company's restructuring.
Adjusted operating income reached $22.9 million against an operating loss of $35.7 million a year earlier.
Sarepta Raises 2026 Product Revenue Outlook
Sarepta increased the lower end of its 2026 net product revenue guidance by $50 million, setting a new range of $1.25 billion to $1.3 billion. The revision reflected strong PMO performance.
The company expects fourth-quarter Elevidys revenues to trend in line with third-quarter levels, subject to normal variability for a one-time gene therapy. Management also expects continued strength across its PMO franchise.
Sarepta narrowed its combined adjusted R&D and SG&A expense outlook to $800-$825 million from $800-$850 million.
Sarepta Therapeutics, Inc. Price, Consensus and EPS Surprise
Sarepta Therapeutics, Inc. price-consensus-eps-surprise-chart | Sarepta Therapeutics, Inc. Quote
SRPT Advances Key Pipeline Programs
The FDA has accepted Sarepta’s regulatory filings seeking to convert the accelerated approvals granted for Vyondys 53 and Amondys 45 into full/traditional approvals. A final decision is expected by Feb. 28, 2027. These filings are supported by data from a late-stage confirmatory study and substantial real-world evidence.
Sarepta expects to complete enrollment in Cohort 8 of the phase Ib ENDEAVOR study by the end of 2026. The cohort is designed to improve the safety profile of Elevidys in non-ambulatory patients by combining it with an enhanced sirolimus-based immunosuppressive regimen.
Full 12-week data are now expected in the first quarter of 2027, later than the company’s previous expectation of a readout before the end of 2026. Management had earlier attributed the revised timeline to investigators dosing participants sequentially, which delayed the availability of complete 12-week data from approximately 25 patients.
Sarepta also expects multiple-ascending-dose data from SRP-1003 in DM1 and SRP-1001 in facioscapulohumeral muscular dystrophy during the fourth quarter of 2026. The results should provide insight into reductions in disease-related RNA and downstream biological effects. It is preparing both programs for potential phase III development, including manufacturing clinical supplies. It is evaluating accelerated and traditional approval pathways, with decisions depending on clinical data and discussions with the FDA.
SRPT’s Zacks Rank & Stocks to Consider
Sarepta currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the biotech sector are ImmunityBio (IBRX - Free Report) and Amneal Pharmaceuticals (AMRX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Over the past 30 days, loss per share estimates for ImmunityBio remain unchanged at 97 cents for 2026. Over the same period, estimates for 2027 loss per share have improved from 14 cents to 11 cents. IBRX’s shares have skyrocketed 304.6% year to date.
ImmunityBio’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 13.40%.
Over the past 30 days, earnings per share 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 climbed 54.4% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 27.21%.