Regeneron Q2 2026 revenue rose 16.7% to $4.29B and operating profit 19.8% on 38% Dupixent growth, but net income fell 6.8% on lower investment gains and a higher tax rate as original Eylea U.S. sales dropped 45%.
Revenue
$4.3B
+16.7% YoY
Net income
$1.3B
-6.8% YoY
Diluted EPS
$12.23
-4.5% YoY
Operating margin
30.1%
Overview: Dupixent carries the quarter while the original Eylea shrinks
Regeneron's second quarter of 2026 (the three months to June 30) showed two businesses moving in opposite directions. Revenue rose 16.7% to $4.29 billion, and income from operations rose 19.8% to $1.29 billion, almost entirely because of Dupixent, the eczema-and-asthma drug Regeneron co-owns with Sanofi. Meanwhile U.S. sales of the original Eylea eye drug fell 45% as cheaper copies and Regeneron's own newer version, Eylea HD, took its patients.
The bottom line moved the other way: net income fell 6.8% to $1.30 billion and diluted EPS fell 4.5% to $12.23. That decline did not come from the operating business. It came from much smaller gains on Regeneron's investment portfolio and a tax rate that nearly doubled from an unusually low prior-year level (details below).
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Total revenues
$4,290.7M
$3,675.6M
+16.7%
Income from operations
$1,293.5M
$1,079.5M
+19.8%
Operating margin
30.1%
29.4%
+0.8 pts
Net income
$1,296.9M
$1,391.6M
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Operating margin is the share of revenue left after the costs of running the business (research, selling, manufacturing), before investment income, interest and tax. All figures are from Regeneron's Form 10-Q for the quarter ended June 30, 2026.
For the first half of 2026, revenue was $7,896.1M (+17.8%), net income $2,024.1M (-8.0%) and diluted EPS $18.95 (-5.3%), so the same pattern holds across both quarters.
Dupixent: the growth engine, and a hidden tailwind coming in Q3
Regeneron does not book Dupixent sales itself. Sanofi records the sales, and the two companies split the profits; Regeneron's share shows up as "collaboration revenue" — money earned from a partnership rather than from selling the product directly. In the U.S. the profit split is 50/50; outside the U.S. Regeneron's share slides from 35% up to 45% as sales rise.
Dupixent global sales grew 38% to $6.0 billion in the quarter: U.S. sales rose 42% to $4,561.1M and rest-of-world sales rose 26% to $1,437.1M.
Regeneron's share of the Dupixent/Kevzara profit pool grew from $1,496.7M to $2,285.6M. The 10-Q attributes the increase to "higher profits primarily associated with an increase in Dupixent net product sales."
Regeneron's net share rose to 33% of Dupixent/Kevzara sales, up from 29% a year earlier.
The important detail for the rest of 2026 is a line that shrinks Regeneron's share every quarter: repayments of a "development balance." Years ago Sanofi funded Regeneron's half of Dupixent's development costs, and Regeneron has been paying that back out of its profit share. In Q2 that repayment cut Regeneron's Sanofi revenue by $253.0M (H1: $530.0M). The 10-Q states the balance "was fully repaid as of June 30, 2026 and will no longer reduce our share of profits beginning in the third quarter of 2026." If Dupixent sales simply hold at Q2 levels, that deduction disappearing is worth roughly a quarter of a billion dollars of extra collaboration revenue per quarter, and almost all of it would fall straight to operating profit.
Eylea: the switch to Eylea HD isn't yet offsetting biosimilar losses
Eylea (aflibercept) treats wet age-related macular degeneration and other retinal diseases, and was for years Regeneron's largest product. Its U.S. regulatory exclusivity ended in May 2024. Since then the FDA has approved several biosimilars — near-identical copies of a biologic drug made by other companies, usually sold at lower prices — and the 10-Q says one has launched in the U.S., with more "expected to launch in the United States in the near future."
Regeneron's response is Eylea HD, a higher-dose (8 mg) version that lets patients go longer between eye injections. The quarter's numbers show that shift underway, but not yet enough:
Eylea HD U.S. sales +52% to $596.3M, "primarily due to higher sales volumes, partly offset by a lower net selling price." Sequentially, Eylea HD rose from $468.4M in Q1 to $596.3M in Q2 (+27%).
Original Eylea U.S. sales -45% to $412.2M, due to "lower sales volumes as a result of continued competitive pressures... and the continued transition of patients to EYLEA HD, and ... a lower net selling price."
Eylea HD now makes up 59% of Regeneron's U.S. Eylea franchise, up from 34% a year ago — but the combined franchise still shrank 12% ($139.0M).
Outside the U.S., where Bayer sells both versions and splits profits 50/50 with Regeneron, total Eylea/Eylea 8 mg sales fell 32% to $666.5M, and Bayer collaboration revenue fell 33% to $276.2M.
Two regulatory items matter for Eylea HD's trajectory: the FDA approved Eylea HD for dosing intervals up to 20 weeks in wet AMD and diabetic macular edema, and for retinal vein occlusion. The 10-Q also says Regeneron is working with the FDA and "multiple third-party filling manufacturers to potentially achieve regulatory approval for the pre-filled syringe by the end of 2026." A pre-filled syringe matters commercially because retina doctors favour ready-to-inject formats; original Eylea already has one in the U.S., and Eylea HD's is approved only in the EU so far.
Other products
Libtayo (cancer immunotherapy): global sales +30% to $489.4M, with U.S. sales +38% to $342.6M, "primarily due to higher sales volumes."
Praluent (cholesterol) U.S. +14% to $74.7M; Evkeeza (rare cholesterol disorder) +29% to $53.3M; Lynozyfic (multiple myeloma, newly launched) contributed $16.5M.
Costs: a manufacturing hiccup and more deal spending
Product gross margin fell to 78% from 83% — gross margin being the share of product sales left after the direct cost of making the drugs. The 10-Q attributes this to "unabsorbed manufacturing costs as a result of a temporary interruption of bulk manufacturing production at our facility in Limerick, Ireland, due to unanticipated facility repairs." Production had returned to normal levels by June 30, and the company says product availability wasn't affected, so this should be a temporary drag.
R&D rose 14.8% to $1,631.6M, roughly in line with revenue (38.0% of revenue vs. 38.7%). Spending increases were concentrated in fianlimab (+$24.8M), the cenvacibart & amrecibart program (+$33.8M) and clinical manufacturing (+$67.7M).
Acquired in-process R&D — up-front payments to license or buy other companies' experimental drugs — jumped to $127.0M from $10.0M. The quarter included a May 2026 deal with Parabilis Medicines ($50.0M up-front plus a $75.0M equity purchase).
Why net income fell despite higher operating profit
Two items below the operating line explain the entire gap:
Smaller investment gains. Gains on marketable and other securities were $61.9M versus $250.0M a year ago, so total other income fell from $439.2M to $234.3M. These gains depend on the value of stakes Regeneron holds in other companies and aren't part of the drug business.
A higher tax rate. The effective tax rate rose to 15.1% from 8.4%. The 10-Q explains the prior-year rate was pushed down by "the release of liabilities associated with unrecognized tax benefits upon the settlement of an IRS audit" — a one-time benefit that didn't recur.
Pre-tax income was essentially flat ($1,527.8M vs. $1,518.7M). The share count helped EPS: diluted shares fell to 106.0M from 108.6M, supported by $1,164.5M of buybacks in the quarter. A new $3.0 billion repurchase program was authorized in April 2026, with $2.534 billion left at June 30. Cash and marketable securities totalled $17.8 billion.
Takeaway: The headline EPS decline is misleading. Operating profit grew nearly 20% because Dupixent's profit growth outran Eylea's erosion; the drop in net income came from lower investment gains and a one-time tax benefit in the prior year that didn't repeat. From Q3, the end of the $253M-per-quarter Sanofi development-balance repayment should lift reported collaboration revenue without Dupixent needing to sell a single extra dose.
Outlook
The 10-Q does not restate numeric financial guidance. What it does lay out:
Dupixent/Sanofi: the development-balance repayment ends, removing a deduction that was $253.0M in Q2, starting in Q3 2026.
Eylea: management expects more competition, warning that Eylea and/or Eylea HD sales "are likely to continue to be negatively impacted by biosimilar competition in the United States, including competition from additional biosimilar versions of EYLEA expected to launch... in the near future," and that the degree to which Eylea HD can offset Eylea's decline "is uncertain." The Eylea HD pre-filled syringe is targeted for FDA approval by the end of 2026.
Pipeline milestones listed in the filing (as of late July 2026) include an FDA decision for garetosmab in fibrodysplasia ossificans progressiva (a rare bone-growth disorder; scheduled for August 2026) and for cemdisiran in generalized myasthenia gravis (November 2026), Phase 3 results for fianlimab + Libtayo versus pembrolizumab in adjuvant melanoma and for cemdisiran + pozelimab in PNH (both Q4 2026), and the start of a Phase 3 obesity program for olatorepatide, a GLP-1/GIP drug licensed from Hansoh (second half of 2026). There were setbacks too: Regeneron and Sanofi stopped developing itepekimab in COPD and related sinus diseases, and the Phase 3 study of fianlimab + Libtayo versus pembrolizumab in first-line metastatic melanoma did not reach statistical significance on its primary endpoint.
Drug pricing: Regeneron's April 2026 agreements with the U.S. government commit it to "Most-Favored-Nation" pricing (benchmarked against other developed countries) for certain wholly owned products sold to Medicaid and for certain future medicines. The 10-Q doesn't quantify the financial impact.
Our view: Regeneron is now primarily a Dupixent profit-share story with a declining eye franchise attached. Q3 should show a visible step-up in Sanofi collaboration revenue from the end of the repayment, which will make results look stronger than the underlying Dupixent growth rate alone. The key watch item is the U.S. Eylea franchise: Eylea HD added $203M year over year while original Eylea lost $342M, and with more biosimilars expected, the gap closes only if the pre-filled syringe and the longer-dosing label speed up Eylea HD's growth. Gross margin should recover toward the low-80s now that Limerick production is back to normal, though the filing doesn't give a target.