Q2 FY2026
Filed Jul 30, 2026Q2 2026: double-digit sales growth and strong business EPS growth; 2026 guidance upgraded
Q2 net sales increased by 17.8% at CER, business EPS increased by 33.3% at CER, business operating income margin expanded by 3.8pp, and Sanofi upgraded its 2026 sales and business EPS guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesother | €11,597 million | – | +17.8% at CER; +16.0% at actual exchange rates |
| Net salesother | €22,106 million | – | +15.7% at CER; +11.1% at actual exchange rates |
| Other revenuesother | €703 million | – | -4.3% at CER; -5.1% at actual exchange rates |
| Business gross profitnon-GAAP | €9,411 million | – | +23.6% at CER; +21.6% at actual exchange rates |
| Business gross marginnon-GAAP | 81.2% | – | +3.7pp |
| Gross profitother | €9,283 million | – | – |
| Research and Development expensesother | €2,233 million | – | +17.9% at CER; +17.0% at actual exchange rates |
| R&D as % of net salesother | 19.3% | – | +0.2pp |
| Selling and general expensesother | €2,465 million | – | +9.0% at CER; +7.9% at actual exchange rates |
| Selling and general expenses as % of net salesother | 21.3% | – | -1.6pp |
| Total operating expensesother | €4,698 million | – | +13.1% at CER; +12.0% at actual exchange rates |
| Business operating incomenon-GAAP | €3,291 million | – | +35.8% at CER; +33.7% at actual exchange rates |
| Business operating income marginnon-GAAP | 28.4% | – | +3.8pp |
| Operating incomeother | €1,047 million | – | – |
| IFRS net income attributable to equity holders of Sanofiother | €343 million | – | -91.3% |
| Business net incomenon-GAAP | €2,501 million | – | +31.0% at CER; +28.9% at actual exchange rates |
| IFRS basic earnings per shareother | €0.29 | – | -91.0% |
| Business earnings per sharenon-GAAP | €2.09 | – | +33.3% at CER; +31.4% at actual exchange rates |
| Free cash flownon-GAAP | €2,670 million | – | +86.8% |
| H1 free cash flownon-GAAP | €3,724 million | – | +51.5% |
| H1 operating cash flowother | €5,687 million | – | – |
| Cash and cash equivalentsother | €6,350 million | – | – |
| Net debtother | €15,513 million | – | – |
| Long-term debtother | €14,646 million | – | – |
| Short-term debt and current portion of long-term debtother | €7,026 million | – | – |
| Effective tax ratenon-GAAP | 21.7% | – | – |
| H1 business operating incomenon-GAAP | €6,258 million | – | +22.3% at CER; +16.7% at actual exchange rates |
| H1 business net incomenon-GAAP | €4,765 million | – | +20.4% at CER; +14.8% at actual exchange rates |
| H1 business earnings per sharenon-GAAP | €3.97 | – | +22.7% at CER; +17.1% at actual exchange rates |
| H1 IFRS net income attributable to equity holders of Sanofiother | €1,957 million | – | -66.3% |
| H1 IFRS basic earnings per shareother | €1.63 | – | -65.6% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| United States (US)Growth was driven by pharma launches and Dupixent, with newly acquired Heplisav-B contributing to absolute growth, partly offset by Lantus and influenza vaccines. | €6,344 million | – | +33.5% at CER |
| EuropeGrowth from pharma launches and Dupixent was almost offset by lower sales of many legacy medicines and most vaccine areas. | €2,141 million | – | +1.3% at CER |
| Rest of WorldDupixent and launches, including Beyfortus, drove growth. Rare diseases and diabetes more than offset declines in many legacy medicines, while most vaccine areas declined. | €3,112 million | – | +3.7% at CER |
| ChinaVaccines, particularly polio/pertussis/hib primary vaccines, were affected by declining childbirths. Pharma grew at a low single-digit percentage, driven by launches and Dupixent. | €676 million | – | -4.9% at CER |
| Pharma launchesGrowth was driven mostly by Ayvakit, ALTUVIIIO, and Sarclisa. | €1,305 million | – | +48.3% at CER |
| DupixentGlobal sales were driven by strong volume growth across approved indications. US sales were supported by strong demand, operational improvements, and a favourable adjustment of gross-to-net deductions. | €5,154 million | – | +37.6% at CER |
| Rare diseases: ALTUVIIIOGrowth was driven by patients switching from shorter half-life and legacy factor medicines, and some patients from non-factor medicines. | €349 million | – | +23.7% at CER |
| Rare diseases: Nexviazyme/NexviadymeGrowth was driven by the US, while patients switched from Myozyme/Lumizyme across geographies. | €218 million | – | +15.6% at CER |
| Oncology: SarclisaGrowth was driven by Rest of World, Europe, and the US, supporting increased use in earlier lines of treatment. | €187 million | – | +35.7% at CER |
| VaccinesLower influenza and meningitis, travel, and endemic vaccine sales more than offset growth in polio/pertussis/hib primary and booster vaccines, including Heplisav-B, and Beyfortus. | €1,150 million | – | -4.7% at CER |
| Polio/pertussis/hib primary and boosters, incl. Heplisav-BUS sales benefited from newly acquired Heplisav-B, while Rest of World sales were affected by declining childbirths, primarily in China. | €700 million | – | +1.4% at CER |
| BeyfortusRest of World growth benefited from expanded geographical availability and use in the Southern Hemisphere. | €108 million | – | +54.2% at CER |
| Influenza, COVID-19Sales declined because of 2025 one-offs from late-season use in the US and Europe and lower Southern Hemisphere sales. | €54 million | – | -61.7% at CER |
2026 outlook
- Revenuesales are now expected to grow by around 10% at CER
- Tax ratec.21%
- NoteBusiness EPS at CER is expected to grow slightly faster than sales.
- NoteApplying July 2026 average currency exchange rates, the currency impacts are estimated at c.-1% on sales and at c.-2% on business EPS.
- NoteDupixent sales are now expected to reach around €25 billion in 2030, complemented by approximately €10 billion from Pharma launches, both at constant exchange rates.
Capital returns
- Sanofi executed a €1 billion share buyback programme in 2026, with the purpose of share cancellation. The programme was completed in April 2026.
- Shareholders approved a dividend of €4.12 per share for 2025 on April 29, 2026.
- Dividends paid to shareholders of Sanofi were €4,923 million in H1 2026.
- Acquisition of treasury shares and related tax effect was €1,009 million in H1 2026.
What drove it
- Q2 sales growth was led by Dupixent, pharma launches, including recent acquisitions, and US growth of +33.5% at CER.
- Business gross margin improved through product mix, including a higher proportion of speciality care and rare disease medicines, plus reversal of past Sarclisa SC manufacturing provisions amounting to more than €200 million.
- Business operating income growth reflected business gross-profit growth and operating leverage, partly offset by higher Regeneron profit sharing.
- SG&A growth reflected the consolidation of Blueprint and Dynavax.
- The Q2 R&D increase included more than €200 million of wind-down costs from pipeline decisions.
Concerns
- IFRS net income attributable to equity holders of Sanofi was €343 million, down 91.3%, reflecting excluded business-net-income items including a €1,031 million impairment expense mainly related to the amlitelimab intangible asset.
- Sanofi decided that amlitelimab will not progress to regulatory submission and discontinued the itepekimab and balinatunfib clinical development programmes.
- Vaccines sales declined by 4.7% at CER, with influenza and COVID-19 vaccine sales down 61.7% at CER.
- China sales decreased by 4.9% at CER, primarily due to lower polio/pertussis/hib primary vaccine sales associated with declining childbirths.
- Lantus sales decreased by 7.0% at CER and Lovenox sales decreased by 15.8% at CER.
What to watch
- The pace of Dupixent sales, which reached €5,154 million in Q2 2026 and is now expected to reach around €25 billion in 2030 at constant exchange rates.
- Execution of pharma launches, which generated €1,305 million in Q2 sales and are expected to contribute approximately €10 billion in 2030 at constant exchange rates.
- The anticipated normalisation of growth in the second half of 2026 cited with the upgraded 2026 guidance.
- The US regulatory submission for Nexviazyme in infantile-onset Pompe disease anticipated in H2 2026.
- The FDA target action date of November 25, 2026 for venglustat in type 3 Gaucher disease.
- The impact of higher Regeneron profit sharing, recent acquisition consolidation, pipeline prioritisation costs, and elevated net debt on profitability and cash deployment.
Balance sheet and cash flow
- H1 operating cash flow was €5,687 million, compared to €4,398 million in H1 2025.
- H1 free cash flow before restructuring, acquisitions, and disposals was €4,308 million, compared to €3,448 million in H1 2025.
- H1 capital expenditures were €967 million, compared to €873 million in H1 2025.
- Cash and cash equivalents were €6,350 million on June 30, 2026.
- Net debt increased from €10,988 million on January 1, 2026 to €15,513 million on June 30, 2026.
- In April, Sanofi priced an offering of €2.3 billion of notes across 3 tranches.
- The change in net debt was €4,525 million in H1 2026.
Analysis
Sanofi reported Q2 2026 net sales of €11,597 million, up 17.8% at CER and 16.0% at actual exchange rates. The United States was the principal source of growth, with sales of €6,344 million up 33.5% at CER. Dupixent delivered €5,154 million of sales, up 37.6% at CER, while pharma launches generated €1,305 million, up 48.3% at CER. These growth engines outweighed slower Europe growth, a China decline, and a 4.7% CER decline in Vaccines sales.
The sales mix and a reversal of past Sarclisa SC manufacturing provisions amounting to more than €200 million lifted business gross margin to 81.2%, up 3.7pp. Business operating income was €3,291 million, up 35.8% at CER, and the business operating income margin expanded to 28.4% from 24.6%. The result included operating leverage, although higher Regeneron profit sharing was a partial offset. SG&A increased 9.0% at CER, elevated by the consolidation of Blueprint and Dynavax, while R&D rose 17.9% at CER and included more than €200 million of pipeline wind-down costs.
Business net income was €2,501 million and business EPS was €2.09, up 31.0% and 33.3%, respectively, at CER. IFRS net income attributable to equity holders of Sanofi was €343 million and IFRS basic EPS was €0.29. The divergence from business results reflected reconciliation items including a €1,031 million impairment expense, mainly related to amlitelimab, along with intangible-asset amortisation, acquisition-related inventory amortisation, and restructuring costs.
Pipeline prioritisation is a central offset to the commercial performance. Sanofi will not advance amlitelimab to global regulatory submission and discontinued itepekimab and balinatunfib programmes. The filing also reported positive phase 3 results for Nexviazyme in infantile-onset Pompe disease and seven regulatory approvals. Commercially, the company continues to emphasize Dupixent and launches, but it faces declining legacy products, weak China vaccine demand, and lower influenza and COVID-19 vaccine sales.
Cash generation increased in the first half, with free cash flow of €3,724 million versus €2,458 million in H1 2025. Sanofi completed its €1 billion share buyback programme and paid €4,923 million in dividends, while net debt increased to €15,513 million from €10,988 million on January 1, 2026. The company upgraded 2026 guidance to sales growth of around 10% at CER and business EPS growth slightly faster than sales at CER, while explicitly anticipating normalisation of growth in the second half.
Management, verbatim
We delivered double-digit sales growth and strong business EPS growth in Q2. Sales increased by 17.8%, driven by Pharma launches, including recent acquisitions, and by Dupixent, up by 37.6%. Business EPS increased by 33.3%, supported by disciplined cost management and one-offs.
Belén Garijo, Chief Executive Officer
Based on our strong performance in the first half and anticipating normalisation of growth in the second half, we are upgrading our 2026 guidance.
Belén Garijo, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Q2 operating cash flow was not reported.
- Q2 capital expenditures were not reported.
- Q2 cash and cash equivalents were not reported.
- Q2 net debt was not reported.
- Forward guidance for gross margin and operating expenses was not reported.
- A numerical 2026 business EPS growth percentage was not reported.
- Q2 prior-quarter comparisons were not reported for the financial metrics.
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.