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Halozyme Stock Down Despite Q3 Earnings and Revenue Beat
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Key Takeaways
Halozyme's Q3 adjusted EPS rose 39% to $2.39, while revenues climbed 39.2% to $493 million.
Royalty revenues surged 44.5% to $341 million, driven by strong demand for partnered drugs.
Halozyme raised 2026 revenues, royalty, EBITDA and adjusted EPS guidance, but shares fell in after-hours.
Halozyme Therapeutics (HALO - Free Report) reported third-quarter 2026 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.29. Earnings rose 39% year over year.
Total revenues in the third quarter increased 39.2% year over year to $493 million. Revenues also surpassed the Zacks Consensus Estimate of $482 million.
The top-line growth was primarily driven by increased product sales and higher royalty payments. HALO received royalty payments from J&J (JNJ - Free Report) for subcutaneous Darzalex (daratumumab), argenx (ARGX - Free Report) for Vyvgart Hytrulo as well as Roche (RHHBY - Free Report) for Phesgo.
Several companies use Halozyme’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. The company has several marketed partnered drugs based on this technology, including the subcutaneous (SC) formulation of J&J’s Darzalex, argenx’s Vyvgart Hytrulo and Roche’s Phesgo.
Despite the better-than-expected results, shares of Halozyme were down more than 6% in after-hours trading on Thursday following the announcement.
The stock has rallied 82.7% so far this year compared with the industry’s increase of 13.1%.
Image Source: Zacks Investment Research
HALO's Q3 Earnings in Detail
Halozyme's top line comprises product sales, royalty revenues and revenues under collaborative agreements.
Royalty revenues totaled $341 million in the third quarter, up 44.5% from the year-ago quarter. The increase was primarily driven by strong demand for J&J's SC Darzalex, argenx's Vyvgart Hytrulo and Roche's Phesgo.
Royalty revenues beat our model estimate of $326.3 million.
Product sales amounted to $137.3 million, up 45.7% from the year-ago quarter. The growth reflected increased bulk rHuPH20 sales. Product sales beat our model estimate of $72.8 million.
Revenues under collaborative agreements declined 39% year over year to $14.6 million in the reported quarter.
Adjusted EBITDA was $336.2 million in the reported quarter, compared with $248.2 million in the year-ago quarter.
Halozyme had cash, cash equivalents and marketable securities of $1.08 billion as of Sept. 30, 2026, compared with $231.9 million as of June 30, 2026.
HALO's 2026 Guidance
Halozyme raised its total revenue and earnings guidance for 2026.
The company now expects total revenues in the range of $1.86 billion to $1.93 billion for 2026, compared with the previous expectation of $1.84 billion to $1.91 billion. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.
Halozyme shares were down, probably because investors seemed not too impressed with the sales outlook for 2026.
Royalty revenues are now expected to be between $1.24 billion and $1.26 billion, up from the earlier projection of $1.22-$1.25 billion, representing growth of 42%-45% over 2025.
Adjusted EBITDA is projected between $1.24 billion and $1.29 billion, compared with the previous guidance of $1.23-$1.28 billion, implying year-over-year growth of 89%-96%.
Adjusted earnings are now expected between $8.75 and $9.05 per share, up from $8.65-$9.00 guided earlier. This represents anticipated growth of 111%-118% year over year.
The revised earnings outlook includes approximately $60 million in investments related to Hypercon and Aerocon and does not consider the impact of potential future share repurchases.
Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise
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Image: Bigstock
Halozyme Stock Down Despite Q3 Earnings and Revenue Beat
Key Takeaways
Halozyme Therapeutics (HALO - Free Report) reported third-quarter 2026 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.29. Earnings rose 39% year over year.
Total revenues in the third quarter increased 39.2% year over year to $493 million. Revenues also surpassed the Zacks Consensus Estimate of $482 million.
The top-line growth was primarily driven by increased product sales and higher royalty payments. HALO received royalty payments from J&J (JNJ - Free Report) for subcutaneous Darzalex (daratumumab), argenx (ARGX - Free Report) for Vyvgart Hytrulo as well as Roche (RHHBY - Free Report) for Phesgo.
Several companies use Halozyme’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. The company has several marketed partnered drugs based on this technology, including the subcutaneous (SC) formulation of J&J’s Darzalex, argenx’s Vyvgart Hytrulo and Roche’s Phesgo.
Despite the better-than-expected results, shares of Halozyme were down more than 6% in after-hours trading on Thursday following the announcement.
The stock has rallied 82.7% so far this year compared with the industry’s increase of 13.1%.
Image Source: Zacks Investment Research
HALO's Q3 Earnings in Detail
Halozyme's top line comprises product sales, royalty revenues and revenues under collaborative agreements.
Royalty revenues totaled $341 million in the third quarter, up 44.5% from the year-ago quarter. The increase was primarily driven by strong demand for J&J's SC Darzalex, argenx's Vyvgart Hytrulo and Roche's Phesgo.
Royalty revenues beat our model estimate of $326.3 million.
Product sales amounted to $137.3 million, up 45.7% from the year-ago quarter. The growth reflected increased bulk rHuPH20 sales. Product sales beat our model estimate of $72.8 million.
Revenues under collaborative agreements declined 39% year over year to $14.6 million in the reported quarter.
Adjusted EBITDA was $336.2 million in the reported quarter, compared with $248.2 million in the year-ago quarter.
Halozyme had cash, cash equivalents and marketable securities of $1.08 billion as of Sept. 30, 2026, compared with $231.9 million as of June 30, 2026.
HALO's 2026 Guidance
Halozyme raised its total revenue and earnings guidance for 2026.
The company now expects total revenues in the range of $1.86 billion to $1.93 billion for 2026, compared with the previous expectation of $1.84 billion to $1.91 billion. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.
Halozyme shares were down, probably because investors seemed not too impressed with the sales outlook for 2026.
Royalty revenues are now expected to be between $1.24 billion and $1.26 billion, up from the earlier projection of $1.22-$1.25 billion, representing growth of 42%-45% over 2025.
Adjusted EBITDA is projected between $1.24 billion and $1.29 billion, compared with the previous guidance of $1.23-$1.28 billion, implying year-over-year growth of 89%-96%.
Adjusted earnings are now expected between $8.75 and $9.05 per share, up from $8.65-$9.00 guided earlier. This represents anticipated growth of 111%-118% year over year.
The revised earnings outlook includes approximately $60 million in investments related to Hypercon and Aerocon and does not consider the impact of potential future share repurchases.
Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise
Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. Quote
HALO’s Zacks Rank
Halozyme currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.