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…
Earnings analysis · 10-Q
BIIB earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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 year ago and operating margin compressed to 5.5%, as Apellis-related inventory step-up, integration, R&D, SG&A and milestone costs outpaced revenue growth. The acquisition strengthens the growth portfolio but reduced liquidity to $1.285B and lifted borrowings to $8.090B, while generic-driven MS erosion remains the central operational headwind.
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
- $0.66
What stood out
-
Revenue returned to growth
Q2 revenue rose $90.5M, or 3.4% YoY, to $2.736B; it was also up $256M, or 10.3%, from Q1 2026 revenue of $2.480B. Product revenue increased 2.0% to $1.916B.
-
Rare disease growth remained strong
Rare-disease revenue grew $58.7M, or 10.8%, to $601.7M. SKYCLARYS increased $37.6M to $167.9M, QALSODY rose $11.9M to $31.9M, and U.S. SPINRAZA increased $55.0M to $204.3M.
-
Apellis added a new revenue stream
The Apellis acquisition added $127.8M of specialized-immunology revenue after closing May 14, 2026, comprising $97.4M of SYFOVRE and $30.4M of EMPAVELI U.S. revenue.
-
Collaboration revenue grew
Anti-CD20 revenue increased $46.2M, or 9.9%, to $513.5M, including OCREVUS royalties of $381.4M, up from $353.8M. Alzheimer's collaboration revenue rose 16.0% to $63.7M.
-
Cash generation improved year over year
Six-month operating cash flow was $1.094B, up $674.2M, or 160.4%, from $420.2M a year earlier. Q2 free cash flow was $408M, versus $144M in Q2 2025.
-
Management sees growth-product momentum
Management expects rare-disease growth in 2026 from SKYCLARYS launches in Europe and other international markets, QALSODY's European launch, and continued U.S. ZURZUVAE patient growth.
What to watch
-
Acquisition and launch costs compressed earnings
GAAP diluted EPS fell $3.67, or 84.8% YoY, to $0.66, while operating margin fell to 5.5% from 30.0% in Q2 2025. Total cost and expense increased $702.1M, or 36.9%, to $2.604B.
-
Legacy MS franchise continues to erode
MS revenue declined $143.9M, or 13.0%, to $963.3M, led by a $102.7M, or 53.0%, decline in TECFIDERA to $90.9M amid generic competition. Management expects total MS revenue to decline in 2026.
-
Apellis deal materially raised leverage
Cash, cash equivalents and marketable securities fell $2.963B, or 69.7%, to $1.285B, while total borrowings increased $1.804B, or 28.7%, to $8.090B following the $5.3B Apellis acquisition.
-
Working-capital cushion narrowed
Current working capital declined $2.236B, or 39.8%, to $3.389B. Current debt increased by $800.0M and accounts receivable increased by $543.2M following the Apellis acquisition.
-
New pharmaceutical tariff exposure
Management cites a new 100% U.S. tariff on certain imported patented pharmaceuticals, biologics and ingredients, effective July 31, 2026 for certain categories and September 29, 2026 for others. It does not expect currently applicable tariffs to be material in 2026, but states additional tariffs could affect future results.
-
Business-development commitments remain sizable
Biogen could make up to $7.9B in future third-party milestones, including approximately $1.0B development, $0.9B regulatory and $6.0B commercial milestones. RayThera also carries a proposed $225.0M upfront payment plus up to $775.0M in milestones.
Management's outlook
The 10-Q does not provide a numeric revenue or EPS outlook. Management expects 2026 MS revenue to decline, rare-disease revenue growth, relatively flat global SPINRAZA revenue, growth in U.S. ZURZUVAE revenue, and higher core R&D, SG&A and net interest expense versus 2025.
Earlier filings 4
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…
10-Q · August 1, 2024
Biogen reported Q2 revenue of $2,464.9 million, essentially flat year-over-year (up $8.9 million vs. $2,456.0 million in Q2 2023). Gross margin remained strong at ~77.9% and operating margin was ~28.3%; diluted EPS was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.