Regeneron Pharmaceuticals Inc (NASDAQ:REGN) reported its fourth quarter and full-year 2025 financial results, delivering a top and bottom line that narrowly surpassed Wall Street's expectations. The biotechnology giant's performance underscores a year of strategic execution amid a significant product transition, with the market's initial reaction reflecting a measured assessment of the mixed dynamics within the report.
Earnings and Revenue Versus Estimates
For the fourth quarter, Regeneron posted total revenues of $3.88 billion, a 3% increase over the prior year period. This figure slightly exceeded the analyst consensus estimate of approximately $3.87 billion. The company's non-GAAP earnings per share (EPS) came in at $11.44, beating the estimated $10.84.
The full-year picture showed more modest top-line growth, with 2025 revenues reaching $14.34 billion, a 1% increase over 2024. The quarterly performance was driven by two primary, opposing forces: the rapid ascent of newer products and the anticipated decline of a legacy blockbuster.
- Revenue Beat Drivers:
- Dupixent Collaboration Revenue: Sanofi collaboration revenue, largely driven by profits from the blockbuster immunology drug Dupixent, surged 35% year-over-year to $1.64 billion for the quarter. Global net sales for Dupixent (recorded by Sanofi) grew 34% to $4.9 billion.
- EYLEA HD Growth: U.S. net sales for the higher-dose EYLEA HD increased 66% to $506 million, reflecting strong adoption.
- Offsetting Pressures:
- Legacy EYLEA Decline: As patients transition to EYLEA HD and face competitive pressures, U.S. net sales for the original EYLEA formulation fell 52% to $577 million for the quarter. Combined sales of EYLEA and EYLEA HD in the U.S. were down 28%.
Market Reaction and Price Action
Following the earnings release, Regeneron's stock traded slightly lower in pre-market activity, indicating a muted to cautiously negative initial response from investors. This reaction suggests the market is weighing the solid earnings beat against the broader narrative.
The beat itself is positive, but investors are likely processing several factors:
- The magnitude of the legacy EYLEA decline, which was significant.
- The company's increased R&D spending, which grew 15% year-over-year on a GAAP basis to $1.63 billion in Q4 as Regeneron advances its late-stage pipeline.
- A higher effective tax rate, which contributed to a 10% year-over-year decline in non-GAAP net income for the quarter despite the revenue increase.
The stock's performance over the past month has been negative, and the post-earnings drift suggests the report did not contain a catalyst strong enough to immediately reverse that trend, with the market focusing on the ongoing product transition phase.
Key Business Highlights and Pipeline Progress
Beyond the financials, Regeneron highlighted several significant regulatory and pipeline milestones achieved in late 2025:
- Label Expansions: EYLEA HD received FDA approval for retinal vein occlusion (RVO) and monthly dosing flexibility. Libtayo was approved in the U.S. and EU as the first immunotherapy for high-risk adjuvant cutaneous squamous cell carcinoma.
- New Approvals: Dupixent gained European Commission approval for chronic spontaneous urticaria (CSU) and expanded its pediatric asthma approval in Japan.
- Regulatory Submissions: The company submitted a Biologics License Application (BLA) to the FDA for gene therapy DB-OTO for genetic hearing loss and regulatory applications for garetosmab in fibrodysplasia ossificans progressiva (FOP).
Forward Outlook and Analyst Estimates
Regeneron provided financial guidance for 2026, projecting non-GAAP R&D expenses between $5.9 and $6.1 billion and non-GAAP SG&A expenses between $2.5 and $2.65 billion. The company expects a non-GAAP gross margin on net product sales of 83-84%.
While the company did not provide specific revenue or EPS guidance, current analyst estimates offer a benchmark for expectations. Analysts are forecasting Q1 2026 revenue of approximately $3.54 billion. For the full year 2026, the consensus sales estimate stands at about $15.50 billion, which would represent an 8% growth over the reported 2025 figure. The company's ability to meet or exceed these estimates will hinge on the continued robust growth of Dupixent and EYLEA HD, the successful commercialization of newer products like Linvoseltamab, and the management of the EYLEA decline.
For a detailed breakdown of future quarterly estimates and historical earnings performance, you can review Regeneron's earnings and estimates data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
