Regeneron Beats Forecasts as Dupixent Momentum Offsets Eylea Erosion

Regeneron Pharmaceuticals posted third-quarter 2026 results that cleared analyst expectations by a wide margin, and the market's response built through the session: shares were up 7.8% at the latest reading, extending an earlier gain of 3.9%. The advance reflects a quarter in which collaboration income and newer products carried the group past a shrinking U.S. Eylea business.

Revenue rose 36% to $5.116 billion. Adjusted earnings per share climbed 70% to $20.07, well ahead of the $16.24 analysts tracked by LSEG had forecast, according to Reuters.

Sanofi accounting shift removes a drag

A change in the Sanofi settlement mechanics helped flatter the collaboration line. Regeneron's development balance with its partner had been fully repaid by the end of the prior quarter, so that charge no longer weighs on collaboration revenue. The Sanofi tie-up contributed $2.724 billion in the quarter, up 68% year on year.

That figure draws heavily on Dupixent. Worldwide net sales of the drug, which Sanofi books, reached $6.5 billion, a 35% increase. Investors should keep the two numbers apart: Sanofi records the product sales, so they do not translate one-for-one into Regeneron's own top line.

Eylea HD grows, but the franchise still shrinks

The picture is less clear-cut in ophthalmology. Eylea HD generated $699 million in U.S. sales, up 62%, while combined U.S. revenue for Eylea HD and the older Eylea came to $1.099 billion — 1% below the year-earlier quarter. U.S. sales of the legacy product alone fell 41% to $400 million. Whether the high-dose variant can pull the whole franchise back into growth is the question that matters for valuation.

Additional competitive pressure may be coming. Sandoz is preparing to launch Enzeevu, an aflibercept biosimilar, in the U.S. in the coming weeks.

Elsewhere, Libtayo posted worldwide sales of $550 million, up 51%, showing that Regeneron's expansion does not rest solely on the Sanofi alliance.

$1 billion upfront to land in the fourth quarter

The companies also widened their collaboration to include next-generation long-acting immunology antibodies. Regeneron will record a $1 billion upfront payment as collaboration revenue in the fourth quarter of 2026, with up to $7 billion in milestone payments possible over time. The distinction matters: the upfront is booked, while the milestones are contingent and not yet secured — and none of it is part of the just-reported quarter. Development and commercialization costs, along with any profits, will be split evenly between the partners.

R&D budget raised, overhead trimmed

Alongside the results, Regeneron lifted its 2026 guidance for adjusted research and development spending to $6.05–6.15 billion. On a GAAP basis, R&D is expected at $6.600–6.735 billion, with product gross margin around 80%. The outlook for adjusted selling, general and administrative costs moved the other way, down to $2.4–2.5 billion.

The quarter thus pairs a clear earnings beat and a broadened Sanofi partnership with two visible drags: the decline in Eylea and a heavier research budget. The upfront payment strengthens the closing quarter, though it does not substitute for durable growth in the product business.