Alnylam Pharmaceuticals, Inc. (ALNY) Q2 2026 Earnings: Revenue $1.3B (+66.9%)
ALNY — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Amvuttra sales doubled to $1.01B, lifting revenue 67% to $1.29B and turning a year-ago loss into a $164M GAAP profit — but Alnylam cut its 2026 TTR guidance to $4.2–4.5B as switch-over demand normalized.
Revenue
$1.3B
+66.9% YoY
Net income
$165M
Diluted EPS
$1.21
Operating margin
17.9%
This period vs a year ago
Same period last year
This period
Revenue▲+66.9%
≈$773M
$1.3B
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Amvuttra doubles and Alnylam earns a GAAP profit, but the heart-drug launch is slowing and full-year guidance was cut
Alnylam Pharmaceuticals makes RNAi drugs. RNAi (RNA interference) medicines switch off a single disease-causing gene in the liver, so the body stops producing a harmful protein. In the second quarter of 2026 (April–June), total revenue rose 67% to $1.29 billion. Almost all of the growth came from one drug, Amvuttra (vutrisiran). Its sales more than doubled to $1.01 billion because more US patients with the heart form of transthyretin amyloidosis started taking it. The company swung from a $72 million GAAP net loss a year earlier to a $164 million GAAP net profit, which is $1.21 per diluted share. ("GAAP" means the official accounting rules, before any company adjustments.) This was its second GAAP-profitable quarter in a row: Q1 2026 earned about $206 million, which is the six-month total minus Q2.
The same release also cut full-year guidance for the TTR franchise (Amvuttra plus the older Onpattro) by $200 million at both ends of the range, to $4.2–4.5 billion. The reason given is that demand from patients switching to Amvuttra from an older treatment has settled at a lower rate than the first months of the launch suggested.
At a glance
Amvuttra: $1,012M, up 106% year on year and up 14% from Q1. The drug now brings in 78% of total revenue. US sales alone were $809M, more than double last year's $361M.
Operating margin: 17.9%, against −2.1% a year ago. Operating margin is the share of revenue left after running the business, before interest and tax. It improved a lot from a year earlier but fell from about 23% in Q1, because the royalties Alnylam pays on Amvuttra get more expensive as sales grow.
TTR guidance cut to $4.2–4.5B, from $4.4–4.7B. Even the new range needs second-half TTR sales to average $1.13–1.28B per quarter, against $1.03B in Q2.
Key figures
Metric
Q2 2026
Q2 2025
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YoY Change
Total revenue
$1,290.9M
$773.7M
+66.9%
Net product revenue
$1,172.1M
$672.2M
+74.4%
Amvuttra net product revenue
$1,011.8M
$492.0M
+105.7%
— of which United States
$809.1M
$361.3M
+123.9%
Product gross margin (1 − cost of goods sold ÷ product revenue)
74.6%
78.9%
−4.3 pts
GAAP operating income (loss)
$231.4M
−$16.2M
n/m
GAAP operating margin
17.9%
−2.1%
+20.0 pts
GAAP net income (loss)
$164.5M
−$72.2M
n/m
GAAP diluted EPS
$1.21
−$0.55
n/m
Non-GAAP diluted EPS (excludes stock-based pay)
$1.84
$0.28
n/m
Royalty revenue (mostly Novartis's Leqvio)
$71.7M
$40.0M
+79.3%
n/m = not meaningful: you can't calculate a percentage change from a loss to a profit. Figures are from the Q2 2026 10-Q and the July 30, 2026 earnings release.
Takeaway: Alnylam is now a profitable company, and one product is the reason. Amvuttra makes up 78% of revenue, and its $520M gain was more than the whole $517M year-on-year revenue increase: Onpattro and collaboration fees shrank. That makes the guidance cut the most important number this quarter, more than the profit. Alnylam's own explanation is that early demand from patients switching from older "stabilizer" drugs was a one-time backlog of people who had been waiting for a new option. If so, future growth depends on finding new, newly diagnosed patients, which is a slower and costlier way to grow. Meanwhile, the royalties Alnylam owes on Amvuttra rise as sales rise, so each extra dollar of sales leaves a bit less profit than the one before.
Product by product
Alnylam sells four drugs itself. It groups them into a "TTR" franchise and a "Rare" franchise.
Product (what it treats)
Q2 2026
Q2 2025
YoY
Amvuttra (ATTR amyloidosis: nerve and heart forms)
$1,011.8M
$492.0M
+106%
Onpattro (ATTR amyloidosis: nerve form, IV infusion)
$18.5M
$52.5M
−65%
Total TTR
$1,030.2M
$544.5M
+89%
Givlaari (acute hepatic porphyria)
$89.8M
$80.8M
+11%
Oxlumo (primary hyperoxaluria type 1)
$52.1M
$46.9M
+11%
Total Rare
$141.9M
$127.7M
+11%
Amvuttra is the whole story. Transthyretin (TTR) amyloidosis is a disease in which a protein made by the liver misfolds and builds up in nerves or the heart. The heart form is called ATTR-CM (cardiomyopathy). Amvuttra is a quarterly injection that stops the liver making TTR. It was approved for ATTR-CM in the US in March 2025, so this quarter is compared with the first few months of that launch. That comparison is why US Amvuttra sales are up 124%, while Europe is up a more modest 28% ($119.0M versus $92.9M). Rest of World is up 122% ($83.7M versus $37.7M).
The quarter-on-quarter numbers are a better test of momentum. Total US TTR revenue rose $106M from Q1 2026. The company breaks that into $129M from more patient demand, about $20M lost to inventory movements (distributors holding less stock), and a "modest reduction in net price." Net price is the price after discounts and rebates. Alnylam says the demand added this quarter was more than double the demand added in Q1. In other words, underlying demand picked up speed in Q2. The guidance cut is about the second half of the year falling short of the earlier, higher expectations, not about a decline.
Onpattro is shrinking on purpose. It is the older drug for the same disease, given as an IV infusion every three weeks. Patients are moving to Amvuttra, which is a quarterly injection under the skin. Onpattro fell 65%. This is cannibalization: sales lost to the company's own newer product, not to a competitor.
The rare-disease drugs grew 11% because more patients are on Givlaari and Oxlumo. Currency helped a little: growth at constant exchange rates was 10% (constant exchange rates means recalculating as if currency values hadn't changed). These two drugs are steady but small. Together they bring in less than one-seventh of what Amvuttra does.
Partner revenue: royalties up, collaboration fees down
Royalty revenue rose 79% to $71.7M because Novartis sold more of Leqvio, a cholesterol drug built on Alnylam's technology, and Alnylam's royalty rate went up. Alnylam does not keep all of this money (see below).
Collaboration revenue fell 23% to $47.2M. Revenue from Regeneron dropped to $5.0M from $32.5M. The exclusive research period of the Regeneron partnership ended in May 2026. Roche revenue more than doubled to $41.9M because Roche reimburses part of the cost of the ZENITH Phase 3 trial of zilebesiran, an experimental blood-pressure drug the two companies are developing together.
What the headline numbers hide
The product gross margin is falling, and the cause will continue. Cost of goods sold rose to 25.4% of product revenue, from 21.1% a year ago and about 20% in Q1 2026 ($207.5M on $1,036.1M, using the six-month total minus Q2). The company says this was "primarily as a result of increased sales of AMVUTTRA and an associated increase in the blended royalty rate payable on net sales of AMVUTTRA." The royalties are tiered, meaning the rate steps up as sales grow. This is the main reason operating income fell from about $269M in Q1 to $231M in Q2, even though revenue grew 11% over the same period.
The profit is partly flattered by a very low tax bill. Pre-tax income was $177.8M and the tax charge was only $13.3M, an effective tax rate of 7.5%. Alnylam spent decades making losses, which built up past losses it can now use to reduce tax. It still keeps a "full valuation allowance" on its US deferred tax assets, meaning it doesn't yet count those tax savings as an asset. As an illustration only: at the 21% US federal rate, the same pre-tax income would leave about $140M of net income, not $164M. This benefit will shrink as the carried-forward losses get used up.
The gap between GAAP and adjusted figures is stock-based pay. Non-GAAP net income of $251.8M ($1.84 per share) adds back $86.6M of stock-based compensation. That is 6.7% of revenue, and it is a real cost to shareholders because it dilutes their ownership. The GAAP number ($1.21) is the better measure of what shareholders actually earned.
Part of the royalty revenue goes to Blackstone. In 2020 Alnylam sold 50% of its Leqvio royalties to Blackstone in exchange for cash up front. The accounting still records the full royalty as Alnylam's revenue and treats the sale like a loan, with interest. In Q2, $53M of the $82M interest expense related to that Leqvio royalty liability, and another $26M related to Blackstone's funding of the vutrisiran and zilebesiran trials. So the $71.7M royalty line overstates what Alnylam keeps. Interest expense is a real offset, even though most of it doesn't involve cash: $145.3M of interest was non-cash in H1.
Cash generation backs up the profit. Operating cash flow for the first half was $397.2M against net income of $370.5M, a ratio of 1.07×. After $56.5M of capital spending, about $341M was left. The cash came in despite a $326M drag from working capital (money tied up in day-to-day operations). Receivables (money owed by customers) grew by $142M and accrued liabilities fell by $114M. Receivables rose 17% since December ($912.7M versus $777.6M), which is roughly in line with how fast quarterly sales grew. That's not a red flag yet. Cash and marketable securities rose to $3.3B from $2.9B. Against that, there is $1.01B of convertible debt and $1.72B of royalty and development-funding liabilities.
No buyback boost. The weighted-average share count rose about 2% year on year (133.6M basic shares versus 130.6M), and diluted shares were 138.3M. All of the EPS improvement came from the business itself, not from buying back stock.
Spending is still rising fast. GAAP R&D rose 28% to $413.1M. The money went to two Phase 3 trials (TRITON-CM and TRITON-PN) of nucresiran, a next-generation TTR silencer, and to the ZENITH trial of zilebesiran. SG&A (sales, general and admin costs) rose 8% to $347.9M, mainly from marketing for the Amvuttra heart launch. Full-year non-GAAP R&D plus SG&A guidance was left at $2.7–2.8B.
Guidance: lower drug sales, higher partner income
Full-year 2026 item
Prior guidance
Updated (July 30)
H1 actual
Total TTR net product revenue
$4.4–4.7B
$4.2–4.5B
$1.94B
Total Rare net product revenue
$500–600M
Reiterated
$268M
Total net product revenue
$4.9–5.3B
$4.7–5.1B
$2.21B
Collaborations + royalties
$400–500M
$575–625M
$250M
Non-GAAP R&D + SG&A
$2.7–2.8B
Reiterated
n/a
Management says the cut reflects "an updated outlook for AMVUTTRA in the second line segment of the U.S. market." "Second line" here means heart patients who were already taking a TTR stabilizer, the older type of drug that keeps the protein from misfolding but doesn't stop it being made, and whose disease kept getting worse. Growth from this group "moderated in early 2026 to what the Company now believes is a normalized level." Looking back, the early launch "benefited from pent-up demand from patients progressing on stabilizers who had been waiting for a new treatment option." Put simply, a one-time wave of people waiting to switch has mostly been treated.
Two calculations from the table:
The lowered TTR range still needs H2 to grow. $4.2–4.5B minus H1's $1.94B leaves $2.26–2.56B for the second half, or $1.13–1.28B per quarter. That is 10–24% above Q2's $1.03B. Q2 alone added $106M over Q1 in the US, so the low end looks reachable at the current pace. The high end would need demand to speed up again.
The partner-income raise implies a big second half. To hit $575–625M, collaboration and royalty revenue would need $325–375M in H2, against $250M in H1. The release doesn't say what drives the step-up. One possible contributor is Regeneron's cemdisiran: Regeneron says the FDA has a target decision date for it in November 2026. But the filing doesn't link the guidance to any specific payment.
Our read on what comes next
The ATTR-CM opportunity is still large. US Amvuttra sales were $809M in a single quarter, and demand grew faster in Q2 than in Q1. But the guidance cut changes the shape of the growth. Patients who were already diagnosed and ready to switch drove the first year. The next phase depends on finding newly diagnosed patients. That's why Alnylam is funding AI-enabled heart-ultrasound screening (the DETECT-ATTR study with a large California health system) and a real-world outcomes study of more than 2,000 patients. Both are slow ways to grow volume.
Things to watch in the Q3 report, expected around late October based on the company's usual timing:
US TTR growth quarter on quarter. This quarter added $106M. If Q3 adds a similar or larger amount, the lower half of the new range is safe. If it adds less, another cut becomes possible.
Product gross margin. As long as the royalty rate keeps stepping up with sales, cost of goods sold above 25% of product revenue is likely to be the new baseline, not a one-off.
Pipeline events. Initial Phase 1 data for ALN-HTT02 in Huntington's disease is due October 23. The FDA decision on cemdisiran (Regeneron) is targeted for November. Also watch the start of Amvuttra sales in China through the new BeOne Medicines deal, which needs Chinese approval first.
Alnylam has now posted two GAAP-profitable quarters in a row. It is generating cash and carries more cash than convertible debt. But most of its growth relies on one drug in one indication and one country. With the second-line backlog largely used up, it has to keep proving it can find new patients.