Regeneron beats third-quarter forecasts, lifts 2026 guidance and widens its Sanofi deal

Revenue rose 36% and non-GAAP earnings per share 70% in the third quarter, and Sanofi is paying a further $1.0bn upfront to widen their antibody collaboration.

Regeneron reported third-quarter earnings of $20.07 a share, $3.59 above forecasts, on revenue of $5.12bn against the $4.63bn expected, and then handed investors a second reason to pay attention: a new Sanofi agreement worth $1.0bn upfront.

Revenue rose 36% and non-GAAP earnings per share 70%. Christopher Fenimore, the chief financial officer, put the increase down to two things: a step-up in collaboration revenue from Sanofi once the Development Balance was repaid, and strong commercial execution.

The new deal widens the antibody collaboration to take in several next-generation, long-acting immunology antibodies. Beyond the $1.0bn upfront, Regeneron could receive up to $7.0bn in further milestones. Milestones are payable only if drug development goes to plan, so the upfront is the number to bank, but the pattern is of Sanofi adding terms to a relationship that is already deepening.

The guidance matters more than the beat. Regeneron now expects non-GAAP research and development spending of $6.05bn to $6.15bn and selling, general and administrative costs of $2.4bn to $2.5bn. It puts the non-GAAP gross margin on net product sales at about 86% and the non-GAAP tax rate at about 15%. Raised targets suggest management sees momentum lasting beyond one strong quarter, and the commercial execution Fenimore cites points to demand that does not hinge on Sanofi payments.

Capital return adds to the case. Regeneron bought back $2.3bn of stock in the first nine months of 2026, leaving $2.2bn under its repurchase programmes, and declared a dividend of $0.94 a share, payable on December 3 to holders of record on November 20.