10-Q · May 5, 2026
Jazz Pharmaceuticals reported solid Q1 2026 results, with revenues reaching $1.1 billion, a 19% increase year-over-year, and EPS of $4.43, slightly beating estimates. The significant growth was driven primarily by…
Earnings analysis · 10-Q
JAZZ earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Jazz delivered Q2 revenue of $1.2083B, up 16% year over year and 13% sequentially, with gross margin expanding 150 basis points year over year to 90.4% and operating margin rebounding to 20.5% from -65.6%. Growth was…
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Jazz delivered Q2 revenue of $1.2083B, up 16% year over year and 13% sequentially, with gross margin expanding 150 basis points year over year to 90.4% and operating margin rebounding to 20.5% from -65.6%. Growth was broad-based across Xywav, Epidiolex/Epidyolex and oncology, while six-month operating cash flow reached $823.9M and the company repaid $1.0B of notes. Key offsets are the sequential decline in GAAP EPS to $2.78, generic pressure on the oxybate franchise, and planned removal of Zepzelca's second-line indication after the LAGOON trial missed its primary endpoint.
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
- $2.78
What stood out
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Revenue and margins improved sharply
Q2 revenue rose 16% year over year to $1.2083B and 13% sequentially from $1.07B in Q1 2026. Gross margin expanded to 90.4% from 88.9% a year earlier and 87.5% in Q1 2026, while operating margin recovered to 20.5% from -65.6% in Q2 2025.
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Xywav demand remained resilient
Xywav sales increased 13% to $471.2M on 12% volume growth. Exit patient counts reached approximately 17,125, including 11,275 narcolepsy patients (+6% year over year) and 5,850 IH patients (+26%).
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Oncology portfolio drove growth
Oncology sales grew 32% to $362.3M, led by Zepzelca at $105.8M (+42%), Defitelio at $62.0M (+29%), Modeyso at $48.2M following its August 2025 launch, and Ziihera at $15.4M (+157%).
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Epilepsy franchise sustained double-digit growth
Epidiolex/Epidyolex revenue rose 16% to $292.1M, supported by 12% volume growth, increased demand, lower gross-to-net deductions and a higher average selling price.
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Cash generation and liquidity strengthened
Six-month operating cash flow increased $305.3M year over year to $823.9M. Cash, cash equivalents and investments totaled $2.2B at June 30, 2026, alongside $885.0M of revolver availability.
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Debt repayment reduced interest burden
Jazz repaid $1.0B of 2026 Notes in June 2026, reducing outstanding long-term debt principal to $4.4B. Net interest expense fell 22% year over year to $37.1M in Q2.
What to watch
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Zepzelca second-line indication faces removal
The Phase 3 LAGOON trial did not meet its primary overall-survival endpoint in June 2026. Jazz plans in Q3 2026 to submit a labeling supplement to remove Zepzelca's second-line indication, even though the first-line maintenance indication remains unaffected.
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Potential $1.0B convertible-note cash demand
The $1.0B principal amount of 2030 Notes became exchangeable during Q3 2026 after the share-price condition was met. Although none had been exchanged as of the filing date, Jazz expects to use cash and/or its revolver if holders exchange the notes.
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Generic oxybate pressure persists
Xyrem revenue fell 14% year over year to $30.5M and high-sodium oxybate AG royalty revenue declined 22% to $42.2M. Amneal and Ascent began dispensing generic high-sodium oxybate in March 2026, and management expects continued negative effects on Xyrem and Xywav sales.
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EPS declined sequentially amid pipeline spending
Q2 GAAP diluted EPS of $2.78 was down from $4.43 in Q1 2026 and below the $5.94 consensus estimate. The quarter included $77.0M of acquired IPR&D expense, comprising $56.0M for AbCellera and $21.0M for Werewolf.
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Pipeline investment and obligations are rising
R&D expense rose 9% year over year to $207.5M, and management expects full-year 2026 R&D to increase as zanidatamab studies, dordaviprone and earlier-stage programs expand. Zymeworks also remains eligible for up to $1.4B of regulatory and commercial milestones for zanidatamab.
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No formal risk-factor update; tariff exposure noted
The filing states there were no material changes to risk factors versus the 2025 10-K. However, management cited potential tariffs and global disruptions and increased U.S. product inventory in anticipation of tariffs; margin effects remain uncertain.
Management's outlook
The 10-Q contains no explicit numerical revenue or EPS guidance. Management expects 2026 revenue to increase versus 2025, driven by Xywav, Epidiolex/Epidyolex and oncology growth, partly offset by lower high-sodium oxybate AG royalties and Xyrem sales.
Earlier filings 4
10-K · April 24, 2026
Jazz reported a record 2025 commercial year driven by core franchises — Xywav ($1,657.0M) and Epidiolex/Epidyolex ($1,059.2M) — and delivered positive pipeline and regulatory milestones (Ziihera EC conditional…
10-K · February 24, 2026
Jazz Pharmaceuticals reports modest annual revenue growth to ~$4.28B in 2025 driven by higher quarterly sales (Q4 2025 $1.20B) and new product launches/approvals (Ziihera, Modeyso, Zepzelca label expansion). Results…
10-Q · November 5, 2025
Jazz reported total revenues of $1,126,107 (in thousands) for the quarter ended September 30, 2025, up from $1,054,969 in Q3 2024, with net income of $251,412 (in thousands). Operating income compressed to $57,509 (in…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.