JAZZ earnings analysis
What we found in JAZZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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%).
- 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%).
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.78
- Gross margin
- 90.4%
- Operating margin
- 20.5%
- Segment
- Sleep: $501.7M (+11% year over year), comprising Xywav $471.2M (+13%) and Xyrem $30.5M (-14%).
- Segment
- Epilepsy: $292.1M (+16% year over year), all from Epidiolex/Epidyolex.
- Segment
- Oncology: $362.3M (+32% year over year), including Zepzelca $105.8M (+42%), Modeyso $48.2M, Defitelio $62.0M (+29%), Ziihera $15.4M (+157%), Rylaze/Enrylaze $99.5M (-1%), and Vyxeos $31.4M (-30%).
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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