Third quarter 2026
Filed Oct 28, 2026Biogen Reports Third Quarter 2026 Results
Total revenue increased 11% year-over-year and Growth Portfolio revenue increased 49%, while GAAP diluted EPS was $(0.14) and Non-GAAP diluted EPS declined to $2.62 amid $284 million of acquired IPR&D, upfront and milestone expense.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $2.80B | – | 10.6 % |
| Q3 2026 total product revenue, netGAAP | $2.09B | – | 13.1 % |
| Q3 2026 revenue from anti-CD20 therapeutic programsGAAP | $497.3M | – | 0.7 % |
| Q3 2026 Alzheimer's collaboration revenueGAAP | $68.4M | – | 60.2 % |
| Q3 2026 contract manufacturing, royalty and other revenueGAAP | $149.7M | – | (1.0) % |
| Q3 2026 cost of sales, excluding amortization and impairment of acquired intangible assetsGAAP | $748.4M | – | (11)% |
| Q3 2026 cost of salesnon-GAAP | $552.5M | – | (8)% |
| Q3 2026 research and development expenseGAAP | $574M | – | (32)% |
| Q3 2026 research and development expensenon-GAAP | $567.1M | – | (31)% |
| Q3 2026 selling, general and administrative expenseGAAP | $752M | – | (26)% |
| Q3 2026 selling, general and administrative expensenon-GAAP | $729.7M | – | (23)% |
| Q3 2026 acquired in-process research and development, upfront and milestone expenseGAAP | $283.8M | – | NMF |
| Q3 2026 net loss attributable to Biogen Inc.GAAP | −$20.6M | – | – |
| Q3 2026 net income attributable to Biogen Inc.non-GAAP | $391.4M | – | – |
| Q3 2026 diluted earnings per shareGAAP | $ (0.14) | – | (104)% |
| Q3 2026 diluted earnings per sharenon-GAAP | $2.62 | – | (46)% |
| Q3 2026 effective tax rateGAAP | (128.5) % | – | – |
| Q3 2026 effective tax ratenon-GAAP | 20.0 % | – | – |
| Nine months ended September 30, 2026 total revenueGAAP | $8.02B | – | 5.3 % |
| Nine months ended September 30, 2026 total product revenue, netGAAP | $5.76B | – | 5.6 % |
| Nine months ended September 30, 2026 net income attributable to Biogen Inc.GAAP | $396.4M | – | – |
| Nine months ended September 30, 2026 net income attributable to Biogen Inc.non-GAAP | $1.46B | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $2.66 | – | – |
| Nine months ended September 30, 2026 diluted earnings per sharenon-GAAP | $9.79 | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | $640.8M | – | – |
| Q3 2026 purchases of property, plant and equipmentGAAP | $40.4M | – | – |
| Q3 2026 free cash flownon-GAAP | $600.4M | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $1.74B | – | – |
| Nine months ended September 30, 2026 free cash flownon-GAAP | $1.60B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Multiple sclerosis (MS) product revenueIncludes TECFIDERA, VUMERITY, AVONEX, PLEGRIDY and TYSABRI. | $919M | – | (13)% |
| Rare disease revenueIncludes SPINRAZA, SKYCLARYS and QALSODY. | $676M | – | 27% |
| Specialized immunology revenueIncludes EMPAVELI and SYFOVRE, acquired as part of the Apellis acquisition, which closed in May 2026. | $243M | – | —% |
| Biosimilars revenue | $166M | – | (16)% |
| Other product revenueIncludes ZURZUVAE. | $84M | – | 53% |
| SPINRAZAAccelerated conversion to high-dose regimen continues to exceed Company expectations across all launched markets. | $461M | – | 23% |
| LEQEMBIContinued sequential growth; U.S. in-market sales of $107M. | $202M | – | 67% |
| VUMERITYImpacted primarily by U.S. formulary dynamics. | $192M | – | (11)% |
| SYFOVREContinued volume growth, up 18% year-over-year, with commercial injections reaching their highest quarterly level since launch. | $191M | – | 27% |
| SKYCLARYSIncreased U.S. and international demand and favorable U.S. inventory dynamics. | $178M | – | 34% |
| ZURZUVAEStrong continued demand growth. | $84M | – | 53% |
| EMPAVELIStrong demand growth in nephrology indications. | $52M | – | 92% |
| QALSODYStrong U.S. and international demand growth. | $38M | – | 42% |
Full year 2026 outlook
- RevenueFull year total revenue is expected to increase by a mid-single digit percentage for 2026 as compared to 2025
- Operating expensesBiogen expects combined Non-GAAP R&D expense and Non-GAAP SG&A expense to be approximately $4.95 billion for the full year 2026.
- NoteReported Non-GAAP diluted EPS guidance: $12.20 to $13.00
- NoteUnderlying guidance: $15.95 to $16.75
- NoteExpected approximate impact from acquired IPR&D, upfront and milestone charges: ~($3.20)
- NoteExpected dilution from the Apellis acquisition: ~($0.55)
- NoteGuidance assumes that foreign exchange rates as of October 23, 2026, will remain in effect for the remainder of the year, net of hedging activities.
What drove it
- Growth Portfolio revenue was $1.26 billion, increased 49% year-over-year, and represented 63% of Core Pharmaceutical revenue.
- Third quarter results included the first full quarter contribution from acquired Apellis products.
- Higher GAAP and Non-GAAP R&D expense reflected clinical-trial spending, including felzartamab, salanersen and litifilimab, Apellis operating expenses, and reduced R&D funding received from Royalty Pharma.
- Higher GAAP and Non-GAAP SG&A reflected Apellis commercial and management operations and sales and marketing support for U.S. and international product launches.
- The reported Non-GAAP diluted EPS range was raised to $12.20 to $13.00 from $12.00 to $13.00, reflecting ongoing business strength and Apellis dilution favorability.
Concerns
- GAAP diluted EPS was $(0.14), driven primarily by transaction-related charges.
- GAAP and Non-GAAP diluted EPS included $284 million of acquired IPR&D, upfront and milestone expense, primarily related to the acquisition of RayThera Inc.
- Multiple sclerosis product revenue was $919 million, down (13)% year-over-year.
- Biosimilars revenue was $166 million, down (16)% year-over-year.
- VUMERITY revenue was $192 million, down (11)% year-over-year, impacted primarily by U.S. formulary dynamics.
- Q3 2026 GAAP other expense was approximately $137 million, driven by net interest expense, losses on equity investments, and higher litigation expenses.
What to watch
- Top line data from the TOPAZ-1 and TOPAZ-2 Phase 3 studies evaluating litifilimab in SLE are expected in the first half of December 2026.
- Additional Phase 3 readouts are expected for litifilimab in CLE and felzartamab in antibody mediated rejection in the first half of 2027.
- A Phase 3 readout for zorevunersen in Dravet syndrome is expected in the third quarter of 2027.
- Continued Growth Portfolio performance, including demand for SPINRAZA, LEQEMBI, SYFOVRE, SKYCLARYS, ZURZUVAE, EMPAVELI and QALSODY.
- Execution of Apellis integration and the expected dilution from the Apellis acquisition of ~($0.55).
Balance sheet and cash flow
- As of September 30, 2026, cash and cash equivalents were $1,303.9 million.
- As of September 30, 2026, notes payable were $7,292.0 million and the current portion of notes payable was $400.0 million.
- As of September 30, 2026, Biogen had approximately $7.7 billion in total debt, resulting in net debt of approximately $6.4 billion.
- Q3 2026 net cash provided by investing activities was $(222.1) million.
- Q3 2026 net cash provided by financing activities was $(393.8) million.
- Q3 2026 net increase in cash and cash equivalents was $24.9 million.
Analysis
Biogen reported Q3 2026 total revenue of $2,804.1 million, compared with $2,534.7 million in Q3 2025. Total product revenue, net was $2,088.7 million versus $1,846.9 million. The company identified its Growth Portfolio as the central source of growth, with revenue of $1.26 billion, up 49% year-over-year and representing 63% of Core Pharmaceutical revenue. Rare disease revenue increased 27% to $676 million, specialized immunology revenue was $243 million following the May 2026 Apellis acquisition, and Alzheimer's collaboration revenue increased 60.2 % to $68.4 million.
Growth was uneven across the underlying portfolio. SPINRAZA revenue was $461 million, LEQEMBI in-market revenue was $202 million, SYFOVRE revenue was $191 million, and SKYCLARYS revenue was $178 million. In contrast, multiple sclerosis product revenue was $919 million, down (13)%, and biosimilars revenue was $166 million, down (16)%. VUMERITY revenue declined (11)% to $192 million, which Biogen attributed primarily to U.S. formulary dynamics. The release also cited favorable U.S. inventory dynamics for SKYCLARYS.
Profitability was affected by acquisition-related and pipeline costs. GAAP net loss attributable to Biogen Inc. was $ (20.6) million and GAAP diluted EPS was $ (0.14), compared with net income of $466.5 million and diluted EPS of $3.17 in Q3 2025. Non-GAAP net income attributable to Biogen Inc. was $391.4 million and Non-GAAP diluted EPS was $2.62, compared with $707.5 million and $4.81. The quarter included $283.8 million of acquired in-process research and development, upfront and milestone expense, primarily related to the RayThera Inc. acquisition. R&D expense and SG&A expense also increased with clinical-trial activity, Apellis operating costs, commercial operations, and launch spending.
Cash generation remained positive but was lower than the prior-year quarter. Net cash provided by operating activities was $640.8 million and free cash flow was $600.4 million, compared with $1,272.5 million and $1,226.3 million, respectively. At September 30, 2026, cash and cash equivalents were $1,303.9 million. Notes payable were $7,292.0 million, with a $400.0 million current portion; the company described total debt as approximately $7.7 billion and net debt as approximately $6.4 billion.
For full-year 2026, Biogen raised the lower end of reported Non-GAAP diluted EPS guidance to $12.20 to $13.00 from $12.00 to $13.00. It retained an expectation for total revenue to increase by a mid-single digit percentage versus 2025 and expects combined Non-GAAP R&D and SG&A expense of approximately $4.95 billion. The main reported upcoming catalysts are TOPAZ-1 and TOPAZ-2 SLE data in the first half of December 2026, followed by additional Phase 3 readouts in 2027.
Management, verbatim
Our third quarter results demonstrate that Biogen has returned to growth. We’re seeing the strength of our Growth Portfolio – including the first full quarter of results from Apellis products – which helped drive double-digit revenue growth and an approximately 50% year-over-year increase from our growth products.
Christopher A. Viehbacher, President and Chief Executive Officer
With multiple Phase 3 readouts expected over the next 12 months, we are positioned to further strengthen our long-term growth profile and create sustainable value for patients and shareholders.
Christopher A. Viehbacher, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income or operating loss was not reported.
- Prior-quarter comparisons were not reported for the listed metrics.
- Share repurchases, dividends and other capital returns were not reported.
- Forward guidance for gross margin and tax rate was not reported.
- A GAAP earnings outlook was not provided other than revenue 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.