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Biogen reported Q3 FY2026 revenue of $2.8 billion, up from $2.5 billion a year earlier and above the $2.6 billion consensus. Adjusted earnings per share of $2.62 also exceeded the $2.06 consensus, while diluted earnings per share fell to −$0.14 from $3.17 a year earlier.
The filing attributed growth in rare disease revenue primarily to the high-dose SPINRAZA launch and growth from products including SKYCLARYS. Biogen said SYFOVRE and EMPAVELI, acquired with Apellis, contributed $243.0 million in their first full quarter under its ownership. The filing said multiple sclerosis revenue declined, primarily because generic competition reduced TECFIDERA demand and patients continued moving away from interferon products.
Biogen’s gross margin was 73.3%, compared with 73.4% a year earlier, while operating margin fell to 4.58% from 23.3%. The filing attributed higher research and development spending partly to clinical trials and Apellis, and said acquired research and development, upfront and milestone expenses increased primarily because of the RayThera acquisition. Free cash flow was $375.4 million, compared with $1.2 billion a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $2.8 billion | $2.5 billion | 10.6% |
| Diluted EPS | −$0.14 | $3.17 | −104.4% |
| Gross margin | 73.3% | 73.4% | −0.1 percentage points |
| Operating margin | 4.58% | 23.3% | −18.8 percentage points |
| Free cash flow | $375.4 million | $1.2 billion | −69.3% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.62 | $2.06 | Beat by 27.2% |
| Revenue | $2.8 billion | $2.6 billion | Beat by 8.06% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CFO Robin Kramer said rapid conversion to high-dose SPINRAZA supported third-quarter revenue, including one-time transition doses for patients moving from the lower dose. In response to a question about conversion, North America President Alicia Alimo said some patients had switched back to SPINRAZA and that Biogen was also looking at new patients beyond the transition group. Kramer said dosing patterns should normalize as that group matures.
Kramer said tighter Medicare Part D formulary management affected VUMERITY revenue and would continue to affect drugs such as VUMERITY this year. She also said SKYCLARYS revenue benefited from inventory that Biogen expects to be drawn down in the fourth quarter.
On SYFOVRE, Alimo said more healthcare professionals were prescribing the treatment and existing prescribers were using it more. She said discontinuation after the first month remained high, and Biogen was introducing education for patients, office staff and physicians about what to expect from treatment. Kramer said SYFOVRE also benefited from an inventory build that Biogen expects to be drawn down in the fourth quarter.
Kramer said early U.S. uptake of LEQEMBI iCLIC had begun, but broader reimbursement would constrain adoption. Responding to a question about the launch, Alimo said physicians who had not previously prescribed the treatment class were beginning to prescribe iCLIC.
Kramer said the Apellis transaction was “now roughly neutral on an operating basis” and that Biogen had captured integration savings faster than expected. She attributed higher non-GAAP core operating expenses to Apellis, investment in late-stage programs and support for product launches. Kramer also said acquired research and development and milestone charges, inventory amortization and Apellis restructuring costs affected GAAP earnings.
Guidance
Biogen raised the lower end of its reported non-GAAP diluted EPS guidance for FY2026 to a range of $12.20 to $13.00. Biogen also tightened its underlying adjusted EPS guidance to $15.95 to $16.75 per share.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Debt, Term Loan Repayments | FY2027 | $1.4 billion | — | New |
| Research and development, Acquired Iprd | Q4 FY2026 | $50.0 million | — | New |
| Operating expenses, Non Gaap Core | Q4 FY2026 | Biogen expects seasonally higher non-GAAP core operating expenses in Q4 FY2026. | — | — |
| Operating expenses, Apellis Run Rate Synergies | FY2027 | $250.0 million | — | New |
| EPS, Non Gaap Apellis | FY2027 | Biogen expects the Apellis transaction to be accretive to non-GAAP diluted EPS in FY2027. | — | — |
| EPS, non-GAAP | FY2026 | $12.20–$13.00 | $0.85 | Raised |
| Revenue, Contract Manufacturing | Q4 FY2026 | Biogen expects lower contract manufacturing revenue in Q4 FY2026. | — | — |
| Revenue, Syfovre | Q4 FY2026 | Biogen expects Syfovre revenue to rise by approximately a mid-single-digit percentage year over year in Q4 FY2026. | — | — |
| Revenue, Vumerity | Q4 FY2026 | Biogen expects Vumerity revenue to be roughly flat sequentially, or up approximately a mid-single-digit percentage year over year, in Q4 FY2026. | — | — |
| Revenue, Spinraza | Q4 FY2026 | Biogen expects global Spinraza revenue to rise by approximately a mid-single-digit percentage year over year in Q4 FY2026. | — | — |
| Revenue | FY2027 | Biogen expects its business to grow in FY2027. | — | — |
| Revenue | FY2026 | Biogen expects total revenue to grow in FY2026. | Biogen expects full-year 2026 total revenue to increase by a mid-single-digit percentage versus 2025. | — |
| Operating expenses, Non Gaap, combined r&d and sg&a | FY2026 | $5.0 billion | — | New |
| EPS, Non Gaap, reported | FY2026 | $12.20–$13.00 | — | New |
| Operating expenses, non-GAAP | H2 FY2026 | $2.7 billion–$2.7 billion | — | New |