Regeneron (NASDAQ: REGN) revenue jumps 36% on a bigger Sanofi profit share

Posted by Max Byerly on Oct 30th, 2026

What happened

Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) reported third-quarter revenue of $5.1 billion, up 36% from a year earlier, as its Sanofi profit share grew. By OptimistFi's calculation, Sanofi collaboration revenue supplied $1.11 billion of the $1.36 billion increase, or 81.3%. Profits from Dupixent, which Sanofi sells, did most of the lifting.

Adjusted earnings rose faster than sales. Non-GAAP earnings per share jumped 70% to $20.07 from $11.83. GAAP diluted EPS rose 35% to $18.45 from $13.62.

The gap comes from securities gains. GAAP other income, net fell to $246.5 million from $755.8 million, mainly on lower net gains on marketable and other securities. Those gains were $60.3 million this quarter against $577.7 million a year earlier. Non-GAAP results exclude them.

Key numbers

Metric	Latest	Change	Source
Total revenues, Q3	$5.12 billion	from $3.75 billion, +36%	SEC 8-K Exhibit 99.1
Non-GAAP diluted EPS, Q3	$20.07	from $11.83, +70%	SEC 8-K Exhibit 99.1
Sanofi collaboration revenue, Q3	$2.72 billion	from $1.62 billion, +68%	SEC 8-K Exhibit 99.1
EYLEA HD U.S. net sales, Q3	$699 million	from $431 million, +62%	SEC 8-K Exhibit 99.1
Free cash flow, nine months	$2.90 billion	from $3.16 billion, -8.0%	Calculated from SEC 8-K

Where the growth came from

Regeneron's share of Sanofi antibody profits was $2.57 billion, up from $1.46 billion. The company said higher Dupixent sales drove most of the increase. Those sales rose 35% to $6.5 billion.

A second factor is the end of a drag on that revenue. The Sanofi Development Balance was fully repaid as of the end of the second quarter. It no longer reduced Sanofi collaboration revenue from the third quarter on. Chief Financial Officer Christopher Fenimore called the step-up anticipated.

Regeneron's own product sales grew more slowly, up 14% to $1.81 billion from $1.59 billion. EYLEA HD U.S. sales rose 62% to $699 million on higher volumes, partly offset by a lower net selling price. Libtayo global sales rose 51% to $550 million, with the U.S. up 81% to $396 million.

The older EYLEA moved the other way. U.S. sales fell 41% to $400 million. The company blamed competitive pressures and the move of patients to EYLEA HD. Combined U.S. sales of the two EYLEA products slipped 1% to $1.10 billion. Bayer collaboration revenue, which includes ex-U.S. EYLEA profit share, fell 23% to $267 million.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

Why it matters

OptimistFi has argued that Regeneron turns a few high-margin biologics and partner profit-sharing into durable cash flow. The quarter supports the earnings half of that view. Income from operations rose 99.5% to $2.05 billion from $1.03 billion. R&D spending rose 22% to $1.8 billion. GAAP gross margin on net product sales held at 82%.

Cash flow is the weaker half. For the nine months ended Sept. 30, free cash flow fell 8.0% to $2.90 billion from $3.16 billion. Operating cash flow slipped to $3.68 billion from $3.81 billion. Capital expenditures rose to $771.0 million from $649.7 million. Free cash flow is a non-GAAP measure. Accounts receivable rose to $7.58 billion from $5.74 billion at Dec. 31.

Concentration is the other caveat. Most of the revenue gain runs through one Sanofi-sold product. The EYLEA franchise in the U.S. is no longer growing.

The Sanofi expansion and updated guidance

In October, Regeneron and Sanofi amended their antibody collaboration to add four Regeneron-invented, long-acting antibodies designed to build on Dupixent. Regeneron received $1.0 billion up front, to be recognized as collaboration revenue in the fourth quarter. It can receive up to $7.0 billion more if development, regulatory and sales milestones are met. The companies will share costs and any future profits equally.

Regeneron raised its full-year margin outlook. It now expects GAAP gross margin on net product sales of about 80%, up from 78% to 79%. It expects a non-GAAP margin of about 86%, up from 84% to 85%. GAAP R&D guidance rose by $100 million at both ends of the range. GAAP SG&A guidance fell by $100 million at both ends.

The guidance does not assume any business development deal that was not complete when the press release came out. Regeneron also repurchased $2.3 billion of stock in the nine months, with $2.2 billion left under its programs.

What's next

The nearest test is the FDA decision for cemdisiran in generalized myasthenia gravis, expected next month. An approval would add to the pipeline side of the case. A delay or rejection would weaken it. Regeneron also plans to present CIDEB RNAi interim results at the AASLD meeting and baloncibart POTS results at the AAS meeting, both in November 2026.

Ordspono has an FDA target action date in February 2027, and the Libtayo supplemental application has one in March 2027. The $0.94 dividend is payable Dec. 3 to holders of record Nov. 20. Fourth-quarter results will carry the Sanofi up-front payment as collaboration revenue, according to the filing.