HALOZYME REPORTS THIRD QUARTER 2026 RESULTS AND RAISES FULL YEAR 2026 FINANCIAL GUIDANCE
HALOZYME THERAPEUTICS, INC. (HALO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 HALOZYME REPORTS THIRD QUARTER 2026 RESULTS AND RAISES FULL YEAR 2026 FINANCIAL GUIDANCE Total Revenue Increased 39% YOY to $493 million Royalty Revenue Increased 44% YOY to $341 million Raising 2026 Financial Guidance Ranges: Total Revenue of $1.860 - $1.925 billion
How this was made
The 30-second read
Why it matters
The raised guidance reflects strong royalty growth and expanded collaborations, likely supporting a price rally.
Market read
First‑hand earnings and guidance raise for a mid‑cap biotech, offering a clear trading catalyst.
What to watch
Potential legal risk from the Merck injunction and upcoming regulatory reviews of partner programs.
HALOZYME REPORTS THIRD QUARTER 2026 RESULTS AND RAISES FULL YEAR 2026 FINANCIAL GUIDANCE
Third-quarter total revenue increased 39% year over year to $493.0 million, royalty revenue increased 44% to $341.0 million, GAAP net income increased to $247.0 million, and the Company raised all four full-year 2026 financial guidance ranges.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $493.0M | – | 39% |
| Q3 2026 royaltiesGAAP | $341.0M | – | 44% |
| Q3 2026 product sales, netGAAP | $137.3M | – | – |
| Q3 2026 revenues under collaborative agreementsGAAP | $14.64M | – | – |
| Q3 2026 cost of salesGAAP | $82.47M | – | – |
| Q3 2026 amortization of intangiblesGAAP | $29.51M | – | – |
| Q3 2026 research and developmentGAAP | $27.78M | – | – |
| Q3 2026 selling, general and administrativeGAAP | $58.24M | – | – |
| Q3 2026 total operating expensesGAAP | $198.0M | – | – |
| Q3 2026 operating incomeGAAP | $295.0M | – | – |
| Q3 2026 investment and other income, netGAAP | $2.17M | – | – |
| Q3 2026 inducement expense related to convertible notesGAAP | −$465K | – | – |
| Q3 2026 interest expenseGAAP | −$6.04M | – | – |
| Q3 2026 income before income tax expenseGAAP | $290.6M | – | – |
| Q3 2026 income tax expenseGAAP | $43.58M | – | – |
| Q3 2026 net incomeGAAP | $247.0M | – | – |
| Q3 2026 basic earnings per shareGAAP | $2.17 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $2.01 | – | – |
| Q3 2026 basic weighted average common shares outstandingGAAP | 113.8M | – | – |
| Q3 2026 diluted weighted average common shares outstandingGAAP | 122.6M | – | – |
| Q3 2026 EBITDAnon-GAAP | $328.7M | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $336.2M | – | – |
| Q3 2026 non-GAAP net incomenon-GAAP | $283.8M | – | – |
| Q3 2026 non-GAAP diluted earnings per sharenon-GAAP | $2.39 | – | – |
| Q3 2026 non-GAAP diluted sharesnon-GAAP | 118.9M | – | – |
| Nine months 2026 total revenuesGAAP | $1.35B | – | – |
| Nine months 2026 royaltiesGAAP | $889.4M | – | – |
| Nine months 2026 product sales, netGAAP | $397.4M | – | – |
| Nine months 2026 revenues under collaborative agreementsGAAP | $63.92M | – | – |
| Nine months 2026 total operating expensesGAAP | $583.5M | – | – |
| Nine months 2026 operating incomeGAAP | $767.1M | – | – |
| Nine months 2026 net incomeGAAP | $627.0M | – | – |
| Nine months 2026 diluted earnings per shareGAAP | $5.12 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RoyaltiesContinued sales uptake of ENHANZE® partner products that have launched since 2020, predominantly VYVGART® Hytrulo, DARZALEX® SC, and Phesgo in all geographies, plus contributions from other recently launched products. | $341M | – | 44% |
| Product sales, netTotal revenue growth was driven in part by an increase in product sales; cost of sales increased primarily due to an increase in bulk rHuPH20 sales. | $137.3M | – | – |
| Revenues under collaborative agreementsThe Company expanded ENHANZE® collaboration agreements with argenx, Incyte and Janssen. | $14.64M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full year 2026 outlook
- RevenueTotal revenue of $1.860 billion to $1.925 billion, representing growth of 33% to 38% over 2025 total revenue
- NoteRevenue from royalties of $1.235 billion to $1.255 billion, representing growth of 42% to 45% over 2025.
- NoteAdjusted EBITDA of $1.240 billion to $1.290 billion, representing growth of 89% to 96% over 2025, including new Hypercon™ and Aerocon™ investments of approximately $60 million.
- NoteNon-GAAP diluted earnings per share of $8.75 to $9.05, representing growth of 111% to 118% over 2025.
- NoteThe Company’s earnings per share guidance includes new Hypercon™ and Aerocon™ investments of approximately $60 million and does not consider the impact of potential future share repurchases.
Capital returns
- During the third quarter of 2026, Halozyme repurchased approximately 0.8 million shares for $67.2 million at an average price of $79.47 per share under the May 2026 share repurchase program.
- $400 million of share repurchases in 2026.
What drove it
- Total revenue increased 39% year over year, primarily driven by royalty revenue growth and an increase in product sales.
- Royalty revenue increased 44% year over year, primarily driven by continued ENHANZE® partner-product sales uptake.
- Three ENHANZE® programs, one each with Pfizer, Incyte and argenx, advanced into Phase 1 clinical development, bringing total products in development to twelve.
- argenx expanded its collaboration by nominating two additional targets, providing exclusive access to ENHANZE® for a total of eight targets.
- The specialized Dutch patent court found MSD BV to be infringing one of Halozyme’s MDASE™ patents and ordered restrictions involving Keytruda Qlex in specified European markets.
Concerns
- Cost of sales increased to $82.5 million from $55.2 million, primarily due to an increase in bulk rHuPH20 sales.
- Amortization of intangibles expense increased to $29.5 million from $17.8 million due to the acquisition of Elektrofi in November 2025.
- Research and development expense increased to $27.8 million from $17.3 million, primarily due to the acquisition of Elektrofi and Surf Bio, Inc. in the fourth quarter of 2025.
- Selling, general and administrative expense increased to $58.2 million from $46.1 million, primarily reflecting consulting and professional service fees, including patent litigation costs, the Elektrofi acquisition, and compensation expense.
- The Company reported $305,612 (In thousands) of current portion of long-term debt, net and $2,944,691 (In thousands) of long-term debt, net at September 30, 2026.
- Non-GAAP results exclude items including share-based compensation, amortization of debt discounts, intangible asset amortization, transaction costs for business combinations, intellectual property litigation costs, inducement expenses related to convertible notes, and certain income-tax adjustments.
What to watch
- Execution against full-year 2026 guidance of total revenue of $1.860 billion to $1.925 billion and royalty revenue of $1.235 billion to $1.255 billion.
- Partnered-program development, regulatory submissions and potential launches, including the filed Biologics License Application for TAK-881 and the priority-review supplemental Biologics License Application for SC amivantamab and hyaluronidase-lpuj.
- Commercial sales uptake of ENHANZE® partner products, particularly VYVGART® Hytrulo, DARZALEX® SC and Phesgo.
- The outcome and implications of judicial decisions relating to the Keytruda Qlex injunction and related patent findings.
- Deployment of proceeds from the $1.5 billion convertible notes, future share repurchases, and the stated path to retire remaining 2027 and 2028 notes at maturity.
- Progress and investment requirements for Hypercon™ and Aerocon™ technologies.
Balance sheet and cash flow
- Cash, cash equivalents, restricted cash and marketable securities were $1.08 billion on September 30, 2026, compared to $145.4 million on December 31, 2025.
- Cash and cash equivalents were $1,029,988 (In thousands) at September 30, 2026, compared to $133,820 (In thousands) at December 31, 2025.
- Marketable securities, available-for-sale were $44,399 (In thousands) at September 30, 2026, compared to $9,000 (In thousands) at December 31, 2025.
- Restricted cash was $861 (In thousands) at September 30, 2026, compared to $2,601 (In thousands) at December 31, 2025.
- Current portion of long-term debt, net was $305,612 (In thousands) at September 30, 2026, compared to $0 (In thousands) at December 31, 2025.
- Long-term debt, net was $2,944,691 (In thousands) at September 30, 2026, compared to $2,142,630 (In thousands) at December 31, 2025.
- The Company completed its $1.5 billion convertible notes.
Analysis
Halozyme reported a strong third quarter, led by royalty growth. Total revenue was $493.0 million, compared to $354.3 million in the third quarter of 2025, while royalties were $341.0 million, compared to $236.0 million. The Company attributed the revenue increase to royalties and product sales, and identified VYVGART® Hytrulo, DARZALEX® SC and Phesgo as predominant contributors to continuing ENHANZE® partner-product uptake.
Profitability increased alongside revenue. Operating income was $295.0 million, compared to $217.9 million, and GAAP net income was $247.0 million, compared to $175.2 million. GAAP diluted earnings per share was $2.01, compared to $1.43, while non-GAAP diluted earnings per share was $2.39, compared to $1.72. Adjusted EBITDA was $336.2 million, compared to $248.2 million. Expense growth reflected higher bulk rHuPH20 sales, acquired intangible amortization, acquired R&D operations, litigation costs, consulting and professional fees, and compensation expense.
The balance sheet changed materially following the convertible-notes issuance. Cash, cash equivalents, restricted cash and marketable securities increased to $1.08 billion at September 30, 2026 from $145.4 million at December 31, 2025, primarily driven by the issuance of convertible notes and cash generated from operations. Long-term debt, net was $2,944,691 (In thousands), and the current portion of long-term debt, net was $305,612 (In thousands). The Company also repurchased approximately 0.8 million shares for $67.2 million during the quarter and reported $400 million of 2026 share repurchases.
Management raised each of its full-year 2026 guidance ranges. The updated outlook calls for total revenue of $1.860 billion to $1.925 billion, royalty revenue of $1.235 billion to $1.255 billion, adjusted EBITDA of $1.240 billion to $1.290 billion and non-GAAP diluted earnings per share of $8.75 to $9.05. The adjusted EBITDA and EPS outlook includes approximately $60 million of new Hypercon™ and Aerocon™ investments. Commercial royalty progression, further partner development activity, capital deployment and the ongoing patent litigation outcome are the principal reported items to follow.
Management, verbatim
Halozyme delivered another exceptional quarter, with total revenue increasing 39% and royalty revenue growing 44% year-over-year to record levels.
Dr. Helen Torley, President and Chief Executive Officer
Based on our strong financial performance this quarter, we are pleased to be able to raise our guidance for the full year 2026.
Darren Snellgrove, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- GAAP gross margin and gross profit
- Non-GAAP gross margin
- Operating cash flow
- Free cash flow
- Dividend amount or dividend policy
- Quarter-over-quarter comparisons for reported financial metrics
- GAAP tax rate
- Full-year 2026 GAAP earnings-per-share guidance
- Forward-looking gross-margin, operating-expense and tax-rate guidance
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Halozyme's 8‑K filing provides the first public disclosure of its Q3 results and updated 2026 guidance.
Ticker impact
Halozyme reported Q3 2026 revenue of $493M and raised full‑year 2026 revenue guidance to $1.86‑$1.925B.
upward pressure as investors price in higher revenue outlook
The 39% YoY revenue increase and a 33‑38% guidance lift are material and newly disclosed, likely prompting buying.
Market effects
Positive for biotech firms using ENHANZE platform and royalty‑based partners.
U.S. biotech sector may see modest gains.
Limited to companies with ENHANZE collaborations worldwide.
Counterpoint
If the guidance raise is already priced in, the stock could face short‑term profit‑taking.
Key entities
- companyHalozyme Therapeutics, Inc.
Biotech firm delivering ENHANZE drug‑delivery platform.
- companyMerck Sharp & Dohme B.V.
Subject of a Dutch court injunction over Keytruda Qlex.
