10-Q · July 29, 2026
Biogen delivered Q2 revenue of $2.736B, up 3.4% YoY and 10.3% sequentially, aided by Apellis, rare-disease launches, and growing anti-CD20 and LEQEMBI-related revenue. However, GAAP EPS declined to $0.66 from $4.33 a…
Earnings analysis · 10-Q
BIIB earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Biogen delivered strong top-line growth, with third-quarter revenue up 10.6% year over year to $2.8041 billion, supported by Rare Disease, ZURZUVAE, LEQEMBI collaboration revenue and the newly acquired Apellis…
Read full summary
Biogen delivered strong top-line growth, with third-quarter revenue up 10.6% year over year to $2.8041 billion, supported by Rare Disease, ZURZUVAE, LEQEMBI collaboration revenue and the newly acquired Apellis portfolio. However, GAAP EPS declined to $(0.14), gross margin fell to approximately 67.2%, and significant acquisition-related charges and restructuring costs weighed on profitability. Liquidity weakened materially following the $5.1 billion Apellis acquisition, with cash and marketable securities declining to $1.3039 billion and borrowings increasing to $7.6920 billion. The outlook is mixed: new-product growth and operating cash flow are positive, but MS erosion, integration costs, pricing pressure and elevated leverage remain substantial headwinds.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.14
What stood out
-
Revenue grew 10.6% year over year
Third-quarter revenue increased to $2.8041 billion, up $269.4 million or 10.6% year over year and approximately 2.3% sequentially from $2.74 billion in 2026 Q2.
-
Rare Disease delivered strong growth
Rare Disease revenue increased $143.0 million or 26.8% to $676.3 million, led by high-dose SPINRAZA and launch products. Global SKYCLARYS revenue rose 34.1% to $178.2 million and QALSODY revenue rose 42.0% to $37.5 million.
-
Apellis added a new growth portfolio
The Apellis acquisition added $242.8 million of Specialized Immunology revenue in the quarter, including $191.3 million from SYFOVRE and $51.5 million from EMPAVELI.
-
Operating cash flow remained resilient
Operating cash flow was $1.7352 billion for the first nine months of 2026, up 2.5% from $1.6927 billion in the prior-year period, despite acquisition-related spending and lower net income.
-
LEQEMBI collaboration revenue accelerated
Alzheimer's collaboration revenue increased 60.2% to $68.4 million in the quarter, driven by higher LEQEMBI sales volumes in the U.S. and international markets.
-
ZURZUVAE continued its launch ramp
ZURZUVAE revenue increased 52.6% to $84.4 million in the quarter, and management anticipates continued U.S. growth as total patients increase during 2026.
What to watch
-
Acquisition accounting pressured margins
Gross margin fell to approximately 67.2% from 71.6% in the prior quarter and 73.4% a year earlier, primarily reflecting acquired inventory step-up amortization. Apellis inventory step-up amortization was $100.0 million in the quarter, while SKYCLARYS step-up amortization was $97.2 million.
-
Large acquisition charges drove a GAAP loss
GAAP diluted EPS was $(0.14), down from $0.66 in the prior quarter and $3.17 in the prior-year quarter. The quarter included $283.8 million of acquired IPR&D, upfront and milestone expense, including a $225.0 million RayThera payment and a $50.0 million Dayra milestone.
-
Liquidity fell and leverage increased
Cash, cash equivalents and marketable securities declined 69.3% to $1.3039 billion from $4.2476 billion at December 31, 2025, while total borrowings increased 22.4% to $7.6920 billion. The Apellis transaction required $5.1 billion of consideration net of cash acquired.
-
MS franchise erosion continued
MS revenue declined 13.4% to $919.3 million, including a 51.2% decrease in TECFIDERA revenue to $82.0 million. Management expects total MS revenue to continue declining, with TECFIDERA affected by generic competition and TYSABRI affected by biosimilar entry.
-
Tariff exposure remains uncertain
The filing identifies new or expanded trade-policy exposure, including a 100% tariff on certain patented pharmaceutical and biologic imports effective for some categories on July 31, 2026 and others on September 29, 2026. Management does not expect currently applicable tariffs to have a material adverse effect in 2026 but warns additional tariffs could materially affect future results.
-
Healthcare-policy changes could pressure pricing
The filing adds uncertainty around the July 2025 OBBBA and the CMS Global Benchmark for Efficient Drug Pricing Model, which begins January 1, 2027. Management currently does not believe the model will have a material impact in 2027, but implementation of the OBBBA remains uncertain and could be material.
Management's outlook
The 10-Q does not provide a new EPS guidance range or explicitly state whether prior guidance was maintained. Management expects full-year 2026 revenue to increase by a mid-single-digit percentage versus 2025, expects total MS revenue to continue to decline, expects core R&D expense and SG&A expense to increase, and anticipates higher net interest expense in 2026 versus 2025.
Earlier filings 4
10-Q · April 29, 2026
Biogen's Q1 2026 results reflect stable performance with revenue of $2.5 billion, a 2% increase year-over-year, alongside a significant earnings rebound with GAAP diluted EPS of $2.15, marking a 31% increase from the…
10-K · February 12, 2025
Biogen positions itself as a neurology-, specialized immunology- and rare-disease-focused biopharma, emphasizing growth via pipeline development, collaborations (Eisai, Sage, UCB) and acquisitions. The company reported…
10-Q · October 30, 2024
Biogen reported total revenue of $2,465.8 million for the three months ended September 30, 2024, with operating income recovering to $451.0 million and diluted EPS of $2.66, reversing a prior-year loss. Management…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.