Regeneron Pharmaceuticals, Inc. (REGN.US) Q3 results beat expectations; raises full-year net product gross margin guidance

Regeneron Pharmaceuticals, Inc. (REGN.US) reported Q3 2026 results: total revenue of US$5.1158 billion, up 36.3% year-over-year, beating the IBES consensus of US$4.542 billion; GAAP diluted EPS of US$18.45, up 35.5% year-over-year. Non-GAAP diluted EPS of US$20.07, up 69.7% year-over-year, about 24% above the IBES estimate of US$16.20. The growth mix needs to be broken down: net product sales were only US$1.8053 billion, up 13.7% year-over-year, while collaboration revenue was US$3.0005 billion, up 52.4% year-over-year (of which Sanofi collaboration revenue was US$2.724 billion). The company explained that the Sanofi development balance was fully repaid by the end of Q2 2026, and starting from Q3 it no longer reduces Sanofi collaboration revenue, causing this item to jumpi.e., most of the revenue growth is an accounting factor rather than an acceleration in end-market sales. On the product side, performance was sharply divergent. Dupixent global net sales were US$6.5405 billion, up 35% year-over-year (recorded by Sanofi; Regeneron only recognizes its profit share); Libtayo US$550 million, up 51%; Kevzara US$255.6 million, up 66%. But EYLEA HD and legacy EYLEA combined were US$1.7412 billion, down 11% year-over-yearEYLEA HD's 63% growth failed to offset legacy EYLEA's 49% decline, and the two combined in the U.S. market also edged down 1%. The company raised its 2026 net product gross margin guidance to about 80% (non-GAAP about 86%, previously 77%78%/83%84%), while lowering SG&A and capex guidance. In addition, the Sanofi collaboration amended in October added four next-generation long-acting antibodies, with Regeneron receiving a US$1 billion upfront payment to be recognized as collaboration revenue in Q4, and potentially up to US$7 billion in additional milestones; Pasatru (garetosmab) has received FDA approval for fibrodysplasia ossificans progressiva, and the FDA decision on cemdisiran for myasthenia gravis is expected next month.