10-Q · May 6, 2026
BeOne Medicines Ltd. reported strong Q1 2026 financial results, with total revenue of $1.51 billion, a 35% increase year-over-year, driven largely by successful sales of BRUKINSA, which saw a 38% revenue growth. The…
Earnings analysis · 10-Q
ONC earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
BeOne delivered a strong Q2: revenue grew 29.6% to $1.705 billion, diluted GAAP EPS increased to $2.05 per ADS from $0.84, and operating income rose to $325.0 million from $87.9 million. Growth was overwhelmingly led by…
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BeOne delivered a strong Q2: revenue grew 29.6% to $1.705 billion, diluted GAAP EPS increased to $2.05 per ADS from $0.84, and operating income rose to $325.0 million from $87.9 million. Growth was overwhelmingly led by $1.248 billion of BRUKINSA revenue, while product gross margin improved to 89.6% and free cash flow reached $435.3 million. Liquidity improved to $5.281 billion, although investors should monitor the $59.0 million China tax-audit expense, $1.073 billion debt balance, pharmaceutical tariff developments, and ongoing AbbVie litigation.
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
- $2.05
What stood out
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Revenue growth remained near 30%
Q2 revenue rose $389.8 million, or 29.6% year over year, to $1.705 billion. Revenue also increased sequentially from an implied $1.513 billion in Q1, based on reported six-month revenue of $3.219 billion.
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Product gross margin expanded 220 bps
Gross margin on product sales expanded 220 basis points year over year to 89.6%, from 87.4%, driven by a greater global BRUKINSA mix and production productivity improvements for BRUKINSA and TEVIMBRA.
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Operating leverage sharply lifted earnings
Operating income increased $237.2 million to $325.0 million from $87.9 million, lifting operating margin to approximately 19.1% from approximately 6.7%. Q2 diluted GAAP EPS was $2.05 per ADS, versus $0.84 a year earlier.
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BRUKINSA remained the core growth driver
BRUKINSA generated $1.248 billion of revenue, up 31.4%; U.S. sales were $892.5 million (+30.5%) and Europe sales were $195.6 million (+30.0%). Management attributed the U.S. performance primarily to robust demand growth and cited continued European share gains.
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Cash conversion and capex intensity improved
Q2 operating cash flow rose to $462.8 million from $263.6 million, while free cash flow nearly doubled to $435.3 million from $219.8 million. Capex was $27.5 million, or roughly 1.6% of revenue, versus $43.8 million a year ago.
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Liquidity strengthened despite modest debt increase
Cash, cash equivalents and restricted cash increased $671.0 million from December 31 to $5.281 billion at June 30, while total debt increased $53.9 million to $1.073 billion. Management said this liquidity supports the operating plan and long-term investments for at least 12 months.
What to watch
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China tax settlement raised tax expense
A China tax-audit settlement produced approximately $59.0 million of discrete Q2 tax expense; the company paid approximately RMB446 million, including tax and late-payment interest, in July 2026. Gross unrecognized tax benefits were $26.0 million at June 30, leaving exposure to different outcomes from ongoing audits.
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Floating-rate debt creates rate sensitivity
The company had $1.1 billion of floating-rate debt at June 30, and a 100-basis-point rate increase would raise annual pre-tax interest expense by approximately $10.9 million. It expects to repay $201.1 million of bank loans over the next 12 months.
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New pharmaceutical tariff exposure
The updated international-operations risk notes U.S. tariffs of 10% to 100% on certain patented pharmaceutical articles and associated ingredients beginning in September 2026. The scope and applicability remain uncertain, but could raise supply-chain costs or affect commercial viability.
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AbbVie trade-secret litigation continues
AbbVie's trade-secret litigation over the BTK degrader program remains ongoing after the court denied BeOne's motion to dismiss on May 12, 2026. The complaint seeks an unspecified amount of monetary damages and no trial date has been scheduled.
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Two product lines declined year over year
KYPROLIS revenue declined $4.3 million, or 22.0%, to $15.1 million, while POBEVCY declined $1.6 million, or 14.3%, to $9.6 million. These declines partially offset growth in BRUKINSA, TEVIMBRA, and Amgen products.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance. Management expects operating cash flow and existing cash to fund operating expenses and planned long-term investments for at least the next 12 months, and expects to repay approximately $201.1 million of bank loans in that period.
Earlier filings 4
10-K · February 26, 2026
BeOne Medicines reported strong 2025 results with total revenue of approximately $5.3 billion (up ~40.2% year-over-year), GAAP net income of $286.9 million, and positive free cash flow of $941.7 million. Commercial…
10-Q · November 6, 2025
BeOne Medicines (filed as BeOne/previously BeiGene) reported a strong quarter with total revenues of $1,412,284 (in thousands) vs $1,001,599 in the year-ago quarter and returned to profitability with net income of…
10-Q · May 7, 2025
BeiGene reported strong Q1 results with total revenues of $1,117,279 (amounts in thousands) versus $751,652 in Q1 2024, driven by higher product and collaboration revenue. Gross profit expanded to $952,277 (thousands)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.