second quarter 2026
Filed Jul 29, 2026Biogen reports strong second quarter 2026 results demonstrating progress toward its goal of sustainable revenue growth
Total revenue increased 3% year-over-year and Growth Portfolio revenue increased 24% year-over-year, while GAAP diluted EPS declined 85% and Non-GAAP diluted EPS declined 34% amid deal-related charges, acquisition dilution, product mix effects, and higher operating expenses.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueother | $2,736 million | – | 3% |
| Total revenue growth at constant currencyother | 2% | – | 2% |
| Growth Portfolio revenueother | $1.06 billion | – | 24% |
| Total product revenueother | $1,916 million | – | 2% |
| GAAP diluted EPSGAAP | $0.66 | – | (85)% |
| Non-GAAP diluted EPSnon-GAAP | $3.60 | – | (34)% |
| GAAP cost of salesGAAP | $777 million | – | (28)% |
| GAAP cost of sales as percentage of Total RevenueGAAP | 28% | – | – |
| Non-GAAP cost of salesnon-GAAP | $612 million | – | (10)% |
| Non-GAAP cost of sales as percentage of Total Revenuenon-GAAP | 22% | – | – |
| GAAP R&D expenseGAAP | $530 million | – | (33)% |
| Non-GAAP R&D expensenon-GAAP | $490 million | – | (24)% |
| GAAP SG&A expenseGAAP | $710 million | – | (22)% |
| Non-GAAP SG&A expensenon-GAAP | $680 million | – | (17)% |
| GAAP and Non-GAAP acquired IPR&D, upfront and milestone expenseother | $164 million | – | NMF |
| GAAP and Non-GAAP collaboration profit sharingother | a net expense of approximately $69 million | – | – |
| GAAP other expenseGAAP | approximately $19 million | – | – |
| Non-GAAP other expensenon-GAAP | approximately $60 million | – | – |
| GAAP effective tax rateGAAP | 26.4% | – | – |
| Non-GAAP effective tax ratenon-GAAP | 17.2% | – | – |
| Weighted average diluted sharesother | approximately 149 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Multiple sclerosis (MS) product revenueMultiple sclerosis includes TECFIDERA®, VUMERITY®, AVONEX®, PLEGRIDY® and TYSABRI®. | $963 million | – | (13)% |
| Rare disease revenueRare disease includes SPINRAZA®, SKYCLARYS® and QALSODY®. | $602 million | – | 11% |
| Specialized immunology revenueSpecialized immunology includes EMPAVELI® and SYFOVRE®. | $128 million | – | —% |
| Biosimilars revenue | $153 million | – | (16)% |
| Other product revenueOther includes FUMADERM® and ZURZUVAE®. | $71 million | – | 51% |
| Revenue from anti-CD20 therapeutic programs | $514 million | – | 10% |
| Alzheimer's collaboration revenueIncludes Biogen’s 50% share of net revenue and cost of sales, including royalties, from the LEQEMBI® Collaboration. | $64 million | – | 16% |
| Contract manufacturing, royalty and other revenue | $242 million | – | (1)% |
| Legacy MS PortfolioDriven by resilient performance from TYSABRI. | $767 million | – | – |
| SPINRAZA revenueDriven by demand and stocking for the high-dose regimen partially offset by shipment timing in certain ex-U.S. markets; conversion to the high-dose regimen has been ahead of Company expectations in all launched geographies. | $402 million | – | 2% |
| VUMERITY second quarter revenuePrimarily impacted by inventory dynamics; first half growth of 7% year-over-year. | $197 million | – | (7)% |
| LEQEMBI global in-market salesU.S. in-market sales of $97 million, representing continued sequential growth; LEQEMBI IQLIK approved by the FDA as an initiation dose. | $184 million | – | 15% |
| SKYCLARYS revenuePrimarily related to an increase in global demand mostly driven by the continued launch in Europe and certain other international markets. | $168 million | – | 29% |
| ZURZUVAE revenueDriven by demand growth; now launched in Germany, the first commercial launch outside the U.S. for PPD. | $71 million | – | 53% |
| SYFOVRE revenueShowed its strongest quarterly demand since launch. $97 million of revenue recognized by Biogen following the close of the Apellis acquisition on May 14, 2026. | $162 million | – | 8% |
| EMPAVELI revenueDriven by demand growth. $30 million of revenue recognized by Biogen following the close of the Apellis acquisition on May 14, 2026. | $46 million | – | 123% |
Full year 2026 outlook
- Revenueincrease by a mid-single digit percentage for 2026 as compared to 2025
- Operating expensescombined Non-GAAP R&D expense and Non-GAAP SG&A expense to be between $2.65 billion and $2.70 billion for the second half of 2026
- NoteNon-GAAP diluted EPS reported guidance of $12.00 to $13.00.
- NoteUnderlying Non-GAAP diluted EPS guidance of $15.85 to $16.85.
- NoteApproximate impact from acquired IPR&D and milestone charges of ~($3.00).
- NoteExpected dilution from the Apellis acquisition of ~($0.85).
- NoteTransaction run rate synergies exiting 2027 are expected to be at least $250 million.
- NoteBiogen expects approximately $0.85 dilution to Non-GAAP diluted EPS for full year 2026 and remains on track for the transaction to be accretive to Non-GAAP diluted EPS in 2027.
What drove it
- Growth Portfolio revenue of $1.06 billion represented 24% year-over-year growth.
- LEQEMBI IQLIK was approved by the FDA as an initiation dose.
- Cost of sales as a percentage of total revenue increased primarily because of product mix.
- GAAP and Non-GAAP R&D expense increased due to higher spend on clinical trials, including felzartamab, salanersen and litifilimab, inclusion of Apellis operating expenses, and a reduction in R&D funding received from Royalty Pharma.
- GAAP and Non-GAAP SG&A increased due to inclusion of Apellis commercial and management operations and increased sales and marketing spending supporting U.S. and international product launches.
- Diranersen demonstrated proof-of-concept in Alzheimer's disease, and Biogen plans to advance to Phase 3.
Concerns
- GAAP diluted EPS declined (85)% year-over-year to $0.66 and Non-GAAP diluted EPS declined (34)% year-over-year to $3.60.
- Multiple sclerosis product revenue declined (13)% year-over-year to $963 million, while Biosimilars revenue declined (16)% year-over-year to $153 million.
- The Apellis acquisition is expected to dilute full year 2026 Non-GAAP diluted EPS by approximately $0.85, driven largely by lower interest income and higher interest expense associated with transaction financing.
- GAAP R&D expense increased (33)% year-over-year to $530 million and GAAP SG&A expense increased (22)% year-over-year to $710 million.
- The GAAP effective tax rate increased to 26.4% from 14.7%, primarily driven by non-deductible expenses related to the Apellis acquisition.
What to watch
- Registrational data for litifilimab in SLE expected by end of 2026.
- Additional Phase 3 readouts for litifilimab in CLE, felzartamab in AMR, and zorevunersen in Dravet syndrome anticipated next year.
- Expected initiation of a new Phase 2 study of felzartamab in Graves' disease.
- Pending RayThera acquisition expected to add multiple immunology programs to Biogen’s portfolio, including a lead program now in Phase 1 development.
- Revenue growth from the Growth Portfolio and the full year 2026 expectation for total revenue to increase by a mid-single digit percentage.
Balance sheet and cash flow
- Second quarter 2026 net cash flow from operations was approximately $449 million.
- Capital expenditures were approximately $41 million.
- Free cash flow was approximately $408 million.
- As of June 30, 2026, cash and cash equivalents totaled approximately $1.3 billion.
- As of June 30, 2026, total debt was approximately $8.1 billion.
- As of June 30, 2026, net debt was approximately $6.8 billion.
Analysis
Second quarter 2026 total revenue was $2,736 million, up 3% year-over-year, with 2% growth at constant currency. The Growth Portfolio generated $1.06 billion of revenue and grew 24% year-over-year, exceeding Legacy MS Portfolio revenue of $767 million. Revenue expansion was led by rare disease revenue, specialized immunology revenue, anti-CD20 therapeutic programs, Alzheimer's collaboration revenue, and other product revenue, while multiple sclerosis product revenue and biosimilars revenue declined.
Product-level performance reflected demand-led growth in SKYCLARYS, ZURZUVAE, SYFOVRE, and EMPAVELI. SPINRAZA revenue increased 2% year-over-year, supported by demand and stocking for the high-dose regimen, though shipment timing in certain ex-U.S. markets partially offset growth. VUMERITY revenue declined 7% year-over-year due primarily to inventory dynamics. LEQEMBI global in-market sales increased 15% year-over-year, and the FDA approval of LEQEMBI IQLIK adds an at-home initiation option.
Profitability was pressured by transaction-related items, product mix, and investment. GAAP diluted EPS was $0.66 and Non-GAAP diluted EPS was $3.60, compared with $4.33 and $5.47, respectively, in the prior-year period. Cost of sales as a percentage of Total Revenue increased to 28% on a GAAP basis and 22% on a Non-GAAP basis, primarily driven by product mix. R&D and SG&A both increased with clinical-trial spending, Apellis operating expenses, product-launch support, and acquired IPR&D, upfront and milestone expense of $164 million.
The Apellis acquisition contributed recognized revenue from SYFOVRE and EMPAVELI following the May 14, 2026 close, but it also increased financing costs and is expected to dilute full year 2026 Non-GAAP diluted EPS by approximately $0.85. Biogen ended the period with approximately $1.3 billion of cash and cash equivalents, approximately $8.1 billion of total debt, and approximately $6.8 billion of net debt. Net cash flow from operations was approximately $449 million and free cash flow was approximately $408 million.
Full year 2026 guidance calls for total revenue to increase by a mid-single digit percentage versus 2025 and reported Non-GAAP diluted EPS of $12.00 to $13.00. Underlying Non-GAAP diluted EPS guidance increased to $15.85 to $16.85, while acquired IPR&D and milestone charges and expected Apellis dilution reduce reported guidance. The next major operating milestones are registrational readouts for litifilimab, felzartamab, and zorevunersen, alongside continued integration of Apellis and the pending RayThera acquisition.
Management, verbatim
This quarter is a reflection of the significant progress Biogen has made repositioning the company for long-term growth. Not only did our growth portfolio revenue exceed that of our legacy MS portfolio, delivering 24% of year-over-year growth, we also delivered strong revenue performance from our two recently acquired products, providing an opportunity for our pipeline to build on a growing business.
Christopher A. Viehbacher, President and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP gross margin.
- Non-GAAP gross margin.
- GAAP operating income.
- Non-GAAP operating income.
- GAAP net income.
- Non-GAAP net income.
- Quarter-over-quarter comparisons for revenue, EPS, expenses, cash flow, and segment revenue.
- Capital return activity, including share repurchases and dividends.
- Full year 2026 gross-margin guidance.
- Full year 2026 tax-rate guidance.
- Prior-release outlook section for comparison with actual reported results.
- Portion of the filing following the truncated text ending in "Other than the ac".
AlphaAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.