3Q26
Filed Nov 2, 2026Broad commercial execution drives record quarterly revenues of $1.2 billion (+10% YoY); company raises full year 2026 total revenue guidance.
Total revenues increased 10% YoY to $1,243.0 million, led by Xywav, Zepzelca, Ziihera and Modeyso, and the company raised full-year revenue guidance. GAAP and non-GAAP results were materially affected by $754 million of acquired IPR&D expense related to the Actio acquisition.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $1.24B | – | 10% |
| Product sales, net, three months ended September 30, 2026GAAP | $1.20B | – | – |
| Royalties and contract revenues, three months ended September 30, 2026GAAP | $46.5M | – | – |
| GAAP gross margin on total revenues, three months ended September 30, 2026GAAP | 91.1% | – | – |
| Non-GAAP adjusted gross margin on total revenues, three months ended September 30, 2026non-GAAP | 91.5% | – | – |
| Cost of product sales, three months ended September 30, 2026GAAP | $110.6M | – | – |
| Non-GAAP adjusted cost of product sales, three months ended September 30, 2026non-GAAP | $105.1M | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $407.9M | – | – |
| Non-GAAP adjusted selling, general and administrative expense, three months ended September 30, 2026non-GAAP | $328M | – | – |
| Research and development expense, three months ended September 30, 2026GAAP | $211.9M | – | – |
| Non-GAAP adjusted research and development expense, three months ended September 30, 2026non-GAAP | $188.9M | – | – |
| Intangible asset amortization, three months ended September 30, 2026GAAP | $171.8M | – | – |
| Acquired in-process research and development, three months ended September 30, 2026GAAP | $754.2M | – | – |
| Income (loss) from operations, three months ended September 30, 2026GAAP | −$413.4M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | −$45.5M | – | – |
| Income tax expense (benefit), three months ended September 30, 2026GAAP | $24.5M | – | – |
| GAAP effective tax rate, three months ended September 30, 2026GAAP | (5.3)% | – | – |
| Non-GAAP adjusted effective tax rate, three months ended September 30, 2026non-GAAP | (40.3)% | – | – |
| GAAP net income (loss), three months ended September 30, 2026GAAP | −$483.4M | – | – |
| Non-GAAP adjusted net income (loss), three months ended September 30, 2026non-GAAP | −$250.8M | – | – |
| GAAP diluted earnings (loss) per share, three months ended September 30, 2026GAAP | $ (7.48) | – | – |
| Non-GAAP adjusted diluted earnings (loss) per share, three months ended September 30, 2026non-GAAP | $ (3.88) | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $3.52B | – | – |
| Product sales, net, nine months ended September 30, 2026GAAP | $3.38B | – | – |
| Royalties and contract revenues, nine months ended September 30, 2026GAAP | $142.3M | – | – |
| GAAP gross margin on total revenues, nine months ended September 30, 2026GAAP | 89.7% | – | – |
| Non-GAAP adjusted gross margin on total revenues, nine months ended September 30, 2026non-GAAP | 91.8% | – | – |
| Income (loss) from operations, nine months ended September 30, 2026GAAP | $171.4M | – | – |
| GAAP net income (loss), nine months ended September 30, 2026GAAP | $2.5M | – | – |
| Non-GAAP adjusted net income, nine months ended September 30, 2026non-GAAP | $565.1M | – | – |
| GAAP diluted earnings (loss) per share, nine months ended September 30, 2026GAAP | $ 0.04 | – | – |
| Non-GAAP adjusted diluted earnings per share, nine months ended September 30, 2026non-GAAP | $ 8.23 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $1.33B | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | −$605.8M | – | – |
| Net cash used in financing activities, nine months ended September 30, 2026GAAP | −$79.3M | – | – |
| Net increase (decrease) in cash and cash equivalents, nine months ended September 30, 2026GAAP | $644.5M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Xywav, three months ended September 30, 2026Robust new patient growth drove revenue. | $482.8M | – | 12% YoY |
| Xyrem, three months ended September 30, 2026 | $31.2M | – | – |
| Sleep, three months ended September 30, 2026 | $514M | – | – |
| Epidiolex/Epidyolex, three months ended September 30, 2026The 3Q26 growth rate was negatively affected by lower U.S. gross-to-net deductions in 3Q25 and lower levels of inventory build in 3Q26 due to wholesaler buying patterns. | $295.4M | – | decreased 2% YoY |
| Epilepsy, three months ended September 30, 2026 | $295.4M | – | – |
| Zepzelca, three months ended September 30, 2026Continued uptake of the Zepzelca and atezolizumab combination in the 1L maintenance extensive-stage small-cell lung cancer setting, partially offset by a decline in second-line use. | $104.4M | – | 32% YoY |
| Rylaze/Enrylaze, three months ended September 30, 2026 | $106.3M | – | – |
| Defitelio/defibrotide, three months ended September 30, 2026 | $60.7M | – | – |
| Modeyso, three months ended September 30, 2026Modeyso net product sales were included following FDA approval in August 2025. | $61.1M | – | – |
| Vyxeos, three months ended September 30, 2026 | $34M | – | – |
| Ziihera, three months ended September 30, 2026Promising early demand from first full month of 1L GEA launch with ~40% increase in average demand vials per selling day and a threefold increase in new ordering accounts, 80% of which are community based. | $20.6M | – | – |
| Oncology, three months ended September 30, 2026 | $387.1M | – | – |
| High-sodium oxybate AG royalty revenue, three months ended September 30, 2026 | $38.4M | – | – |
| Other royalty and contract revenues, three months ended September 30, 2026 | $8.1M | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
full-year 2026 outlook
- Revenue$4,775 - $4,850 million
- Gross marginGAAP: 89% - 90%; Non-GAAP adjusted: 90.5% - 91.5%
- Tax rateGAAP: 20% - 30%; Non-GAAP adjusted: 19.5% - 21.5%
- NoteGAAP SG&A expenses: $1,544 - $1,597 million
- NoteGAAP R&D expenses: $819 - $876 million
- NoteGAAP weighted-average diluted shares outstanding: 69 - 70
- NoteNon-GAAP adjusted SG&A expenses: $1,330 - $1,370 million
- NoteNon-GAAP adjusted R&D expenses: $725 - $775 million
- NoteNon-GAAP adjusted weighted-average diluted shares outstanding: 69 - 70
Capital returns
- Repurchased $225 million of its ordinary shares concurrent with the private placement of the 2032 notes.
- The share repurchases completely exhausted the share repurchase program announced in July 2024.
- In October 2026, the board of directors approved a new share repurchase program with no expiration date for up to an aggregate purchase price of $500 million, exclusive of any brokerage commissions.
What drove it
- Xywav net product sales increased 12% YoY to $483 million in 3Q26, supported by approximately 425 net patient adds.
- Xywav had approximately 17,550 active patients exiting the quarter, comprised of approximately 11,375 narcolepsy patients and approximately 6,175 idiopathic hypersomnia patients.
- Zepzelca net product sales increased 32% YoY to $104 million in 3Q26.
- Ziihera net product sales were $21 million in 3Q26 after its August 25, 2026 FDA approval and prompt first-line GEA launch.
- Modeyso net product sales were $61 million in 3Q26, and approximately 725 patients had received Modeyso from product launch in August 2025 through the end of 3Q26.
- GAAP SG&A expense decreased primarily due to litigation settlements of $152 million in 3Q25, partially offset by restructuring expenses of $34 million included in 3Q26.
Concerns
- GAAP net loss was $ (483.4) million and non-GAAP adjusted net loss was $ (250.8) million in 3Q26.
- Acquired IPR&D expense of $754 million related to ABS-1230 (JZP6979) impacted results by $11.32 per share on a GAAP basis and $11.03 per share on a non-GAAP adjusted basis.
- Epidiolex/Epidyolex net product sales decreased 2% YoY to $295 million in 3Q26.
- The FDA approved the label supplement removing Zepzelca's second-line indication on September 30, 2026.
- The outstanding principal balance of long-term debt was $5.6 billion as of September 30, 2026.
What to watch
- The PDUFA target action date for the oral cannabidiol capsule formulation NDA is April 16, 2027.
- The company anticipates the OS interim analysis for the event-driven Phase 3 ACTION trial in 1H27.
- Initial patient data from the Phase 1b/2a KYRON trial are expected at a medical meeting in 4Q26.
- Commercial demand following the first-line GEA launch of Ziihera.
- Execution of the new share repurchase program of up to an aggregate purchase price of $500 million.
Balance sheet and cash flow
- As of September 30, 2026, cash, cash equivalents and investments were $2.9 billion.
- Cash and cash equivalents were $ 2,036.4 million as of September 30, 2026, compared with $ 1,391.9 million as of December 31, 2025.
- Investments were $ 820.0 million as of September 30, 2026, compared with $ 1,050.0 million as of December 31, 2025.
- The outstanding principal balance of long-term debt was $5.6 billion as of September 30, 2026.
- Current portion of long-term debt was $ 1,017.3 million and long-term debt, less current portion, was $ 4,552.1 million as of September 30, 2026.
- Undrawn borrowing capacity under the revolving credit facility was $885 million.
- Net cash provided by operating activities was $ 1,330.0 million for the nine months ended September 30, 2026.
- Total assets were $ 11,997.7 million and total shareholders’ equity was $ 4,191.8 million as of September 30, 2026.
- The company completed a private placement of $1.25 billion aggregate principal amount of 1.875% exchangeable senior notes due 2032.
- The company amended and extended its Term Loan B, reducing the applicable margin by 50 basis points and extending maturity by five years to May 2033.
Analysis
Jazz reported record quarterly total revenues of $1,243.0 million, up 10% YoY from $1,126.1 million. Growth was primarily attributed to higher Xywav, Zepzelca and Ziihera net product sales and the inclusion of Modeyso sales following its FDA approval in August 2025. Xywav increased 12% YoY to $483 million, supported by approximately 425 net patient adds, while Zepzelca increased 32% YoY to $104 million. Epidiolex/Epidyolex was the principal reported product setback, decreasing 2% YoY to $295 million amid gross-to-net and wholesaler inventory comparisons.
The quarter's reported earnings were dominated by the Actio acquisition accounting. GAAP net loss was $ (483.4) million, or $ (7.48) per diluted share, and non-GAAP adjusted net loss was $ (250.8) million, or $ (3.88) per diluted share. The company recorded $754.2 million of acquired IPR&D expense, representing the value allocated to ABS-1230 (JZP6979), and stated that this item impacted results by $11.32 per share on a GAAP basis and $11.03 per share on a non-GAAP adjusted basis.
Underlying expense and margin measures showed a mixed pattern. GAAP gross margin rose to 91.1% from 88.6%, while non-GAAP adjusted gross margin declined to 91.5% from 92.6%. GAAP SG&A fell to $407.9 million from $530.6 million, primarily because 3Q25 included $152 million of litigation settlements, although 3Q26 included $34 million of restructuring expense. R&D increased to $211.9 million from $198.2 million as the company continued pipeline portfolio and evidence-generation investment.
Capital generation remained substantial over the nine-month period, with $1,330.0 million of operating cash flow. Cash, cash equivalents and investments were $2.9 billion as of September 30, 2026, against an outstanding principal balance of long-term debt of $5.6 billion. The company also issued $1.25 billion of 1.875% exchangeable senior notes due 2032, repurchased $225 million of ordinary shares, and authorized a new repurchase program of up to $500 million.
Management raised full-year 2026 total revenue guidance to $4,775 - $4,850 million from the August 3, 2026 range shown in the current release. Gross-margin guidance was unchanged on a GAAP basis at 89% - 90%, while GAAP SG&A guidance increased to include restructuring expenses and tax-rate guidance was updated to reflect the Actio acquired IPR&D expense. Near-term operating milestones include initial KYRON data in 4Q26, the ACTION trial OS interim analysis in 1H27, and the April 16, 2027 PDUFA target action date for the oral cannabidiol capsule formulation.
Management, verbatim
Our third-quarter performance reflects sustained execution across the business and gives us confidence to raise our full-year total revenue guidance.
Renee Gala, president and chief executive officer of Jazz Pharmaceuticals
Not in the filing
stated, not guessed- Prior-quarter figures for reported quarterly financial metrics were not provided.
- Quarterly operating cash flow was not provided.
- Free cash flow was not provided.
- Dividend information was not provided.
- A previous earnings release outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- Year-over-year percentage changes were not printed for most individual revenue lines, expense lines, earnings lines, balance-sheet lines, and cash-flow lines.
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 is checked against the filing text, and a metric the filing does not print, or 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.