Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $16.6 billion | Ahead of expectations |
| Reported diluted EPS | $0.56 | Not stated |
| Adjusted diluted EPS | $0.87 | Exceeded expectations |
| Adjusted gross margin | 77% | Not stated |
| Adjusted operating margin | 36% | Not stated |
Guidance and outlook
- Full year 2026 revenue guidance raised to a range of $62 billion to $64 billion.
- Full year 2026 adjusted diluted EPS guidance raised and narrowed to a range of $2.95 to $3.05.
- Full year 2026 R&D expense expected to be in the range of $10.8 billion to $11.8 billion.
- Expectation of approximately $4 billion for COVID products reaffirmed.
How management sounded
Positive (+6 on our -10 to +10 scale). Management raised full-year guidance for both revenue and EPS, citing strong commercial execution and confidence in their R&D pipeline. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Pipeline positioning
Asked: How is the trispecific antibody Tilrekimig positioned in atopic dermatitis?
Answer: Management is conducting a head-to-head Phase III study against dupilumab and is targeting both naive and lapsed patients with a first-in-class profile.
Obesity portfolio
Asked: What is the status of the amylin and berobenatide combination study?
Answer: The Phase IIb SOLIS-1 study is fully recruited with efficacy results expected in the second half of 2027.
Capital allocation
Asked: How does management prioritize capital allocation between R&D and business development?
Answer: Priorities remain unchanged, focusing on investing in the business, maintaining the dividend, and preserving flexibility for future value-enhancing actions like share repurchases.
MEVPRO timelines
Asked: What are the updated timelines for the MEVPRO studies?
Answer: MEVPRO-1 is expected to read out in the first quarter of 2027, and MEVPRO-2 is expected in the fourth quarter of 2027.
What to watch before the next call
- Readout for the MEVPRO-1 study in the first quarter of 2027.
- Phase III study results for the obesity portfolio and amylin combination program.
- Regulatory updates regarding the Lyme disease vaccine candidate.
- Execution of the second phase of cost savings programs from 2027 through 2029.
