Sanofi (NASDAQ: SNY) raises full-year outlook and Dupixent sales jump 34.8%

What happened

Sanofi (NASDAQ: SNY) raised its 2026 guidance and reported third-quarter sales growth of 14.3% at constant exchange rates. It now expects full-year sales to grow by a low-teens percentage and business earnings per share by a mid-teens percentage, both at constant exchange rates.

Business EPS reached 3.55, up 19.6% at constant exchange rates and 22.0% at actual rates from 2.91 in the third quarter of 2025. Currency cut about 1% from both sales and business EPS, using October 2026 average rates.

Chief Executive Officer Belén Garijo said new medicines and Dupixent drove sales growth. She said cost discipline drove business EPS growth.

Key numbers

Metric	Latest	Change	Source
Q3 2026 sales growth at constant exchange rates	14.3%		SEC 6-K press release
Q3 business EPS (change at actual exchange rates)	3.55 per share	from 2.91 per share, +22.0%	SEC 6-K press release
Dupixent Q3 sales (change at constant exchange rates)	5.7 billion	+34.8%	SEC 6-K press release
Vaccines Q3 sales (change at constant exchange rates)	3.2 billion	-6.6%	SEC 6-K press release
Upfront payment to Regeneron	$1 billion		SEC 6-K press release
Potential additional milestone payments to Regeneron (cap)	up to $7 billion		SEC 6-K press release

Read more: Sanofi (SNY) company research

Where the growth came from

Dupixent carried the quarter. Sales rose 34.8% to 5.7 billion, above 5 billion for the second quarter running. US sales grew 40.2%. Sanofi credits strong demand and a lasting benefit from operational improvements that produced favourable gross-to-net price adjustments.

Newer products added to it. Pharma launches rose 31.4% to 1.4 billion, led by ALTUVIIIO, Ayvakit and Rezurock.

Vaccines pulled the other way. Sales fell 6.6% to 3.2 billion, which Sanofi ties to expected timing in respiratory prevention. Influenza and COVID-19 vaccines fell 18.8% because more seasonal deliveries fall in the fourth quarter than in 2025. Beyfortus fell 15.4%. US sales dropped 39.3% on a smaller central order from the Centers for Disease Control and Prevention.

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Why it matters

Profit moved faster than sales. The business gross margin was 81.0%, up 2.1 percentage points. The release credits a higher share of specialty care and rare disease medicines, plus some help from favourable gross-to-net price adjustments. Selling and general expenses were 2.3 billion, down 0.9% at constant exchange rates. Research and development spending of 1.8 billion was broadly stable.

Dupixent's success also raises costs. Profit and loss sharing with Regeneron, a line within other operating expenses, was 2.23 billion against 1.49 billion in the third quarter of 2025. The release says this higher sharing partly offset the gain in business operating income.

OptimistFi has argued that Sanofi can turn a diversified portfolio into durable returns if new launches and margin discipline offset patent and pricing pressure. Launch growth and held-down spending both showed up this quarter, which strengthens that view.

The release also gives reasons for caution. Garijo said the priority is to protect earnings through Dupixent's loss of exclusivity. US Lantus sales still benefit from temporary demand tied to competitor supply problems, and that effect is expected to fade. Nine-month IFRS net income fell 42.2% to 4.98 billion. Among items excluded from business net income, the release lists a 952 million impairment on the amlitelimab intangible asset, booked in the second quarter.

What the Regeneron expansion adds

In early October, Sanofi and Regeneron Pharmaceuticals, Inc. announced an expansion of their antibody collaboration. It adds four long-acting, Regeneron-invented antibodies. They target interleukin-13, interleukin-4, interleukin-4 receptor alpha and an IL4xIL13 bispecific.

Regeneron will receive $1 billion upfront from Sanofi, plus possible development, regulatory and commercial milestone payments. The $7 billion is a cap on those milestones, not money paid.

The companies will share development and commercial costs and split future profits 50-50 globally. Regeneron will lead research and development. Sanofi will lead global commercial efforts. The existing profit-sharing agreement on Dupixent and Kevzara will not change. Regeneron also has an option to include Sanofi's lunsekimig once its phase 3 studies for chronic obstructive pulmonary disease are complete.

Cash, debt and portfolio moves

Free cash flow for the nine months was 6.99 billion, up 28.3%. Net debt rose by 1.21 billion to 12.20 billion. The Dynavax acquisition at 1.65 billion, the dividend payout of 4.92 billion and a 1.01 billion share buyback more than used up that cash flow.

In September, Sanofi and Cheplapharm announced plans for a partnership. Cheplapharm would take over 20 mature medicines and three manufacturing sites. Sanofi would receive a 26.4% equity stake in Cheplapharm. Lovenox Clexane, excluding the US, had 2025 sales of 822 million.

What's next

Sanofi reports fourth-quarter 2026 results on Thursday, Jan. 28, 2027. That report shows whether vaccine sales recover as more influenza and COVID-19 deliveries land in the fourth quarter. It also shows whether sales stay on course for low-teens growth. A weaker vaccine quarter or slower Dupixent growth would challenge the raised guidance.

Among fourth-quarter pipeline milestones, the release lists a US regulatory decision on venglustat in Gaucher disease type 3 and phase 3 data for Sarclisa in transplant-eligible multiple myeloma. The Cheplapharm commercial transfer is planned to begin in the first quarter of 2027. Full completion is expected by the third quarter of 2027, subject to employee consultation, regulatory approvals and customary closing conditions.

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