Regeneron reported adjusted earnings of $11.44 per share for the fourth quarter, down 5% year-over-year but surpassing the consensus estimate of $10.71. Revenues rose 3% to $3.88 billion, ahead of analysts’ projections of $3.79 billion. Sales growth was driven by continued uptake of its four blockbuster medicines—EYLEA®, Dupixent®, Libtayo® and Praluent®—with ophthalmology and immunology franchises each contributing double-digit percentage increases. Operating cash flow for the quarter reached $1.1 billion, reflecting strong free cash generation despite elevated investment in the late-stage pipeline.

Following the earnings release, Raymond James upgraded Regeneron to an “Outperform” rating, raising its 12-month price target from $820 to $870. The firm cited clarity provided by the Q4 call on margin expansion opportunities and the company’s capital allocation priorities. Raymond James highlighted Regeneron’s market capitalization of approximately $76.6 billion and noted that analyst models now incorporate accelerated launches of next-generation pipeline candidates in oncology and ophthalmology, lifting revenue forecasts for 2027 by 4%.

Management forecast GAAP gross margins of 79%–80% and non-GAAP gross margins of 83%–84% for fiscal 2026, reflecting anticipated manufacturing efficiencies and product mix improvements. The company expects adjusted R&D expenditures of $5.9 billion to $6.1 billion, up modestly as late-stage trials progress, and non-GAAP SG&A spending between $2.5 billion and $2.65 billion, supporting global commercial expansion. CEO Leonard S. Schleifer emphasized that this disciplined investment profile will balance near-term profitability with sustained innovation across the late-stage pipeline, positioning Regeneron for mid-single-digit revenue growth in 2026.