Halozyme Therapeutics HALO reported first-quarter 2026 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate of $1.54. Earnings rose 44.1% year over year.
Total revenues in the first quarter increased 42% year over year to $376.7 million. Revenues too surpassed the Zacks Consensus Estimate of $358 million.
The top-line growth was primarily driven by an increase in product sales as well as higher royalty payments. HALO received royalty payments from Roche RHHBY for Phesgo and J&J JNJ for subcutaneous Darzalex (daratumumab), as well as argenx ARGX for Vyvgart Hytrulo.
Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. Halozyme now has several marketed partnered drugs based on this technology, including the subcutaneous (SC) formulation of J&J’s Darzalex, Roche’s Phesgo and argenx’s Vyvgart Hytrulo.
Shares of Halozyme were up 3.6% in after-hours trading on Monday owing to the better-than-expected results.
However, the stock has lost 1.3% year to date compared with the industry’s 2.6% decline.
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HALO's Q1 Earnings in Detail
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $240.7 million in the first quarter, up 43% from the year-ago quarter’s level. This was mainly due to the robust demand for RHHBY's Phesgo, JNJ's subcutaneous Darzalex and ARGX's Vyvgart Hytrulo, on which it earns royalties.
Royalty revenues, however, missed our model estimate of $256.6 million.
Product sales were $130.4 million in the first quarter, up 67.2% from the year-ago quarter’s level. HALO has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022.
Product sales beat our model estimate of $91.1 million.
Revenues under collaborative agreements were $5.6 million in the reported quarter, down almost 70% year over year.
Adjusted EBITDA was $229.5 million in the reported quarter, compared with $162 million in the year-ago quarter.
Halozyme had cash, cash equivalents and marketable securities of $320.9 million as of March 31, 2026, compared with $145.4 million as of Dec. 31, 2025.
HALO's 2026 Guidance
Halozyme reiterated its total revenue guidance for 2026, which it had provided earlier this year.
The company continues to expect total revenues in the range of $1.71 billion to $1.81 billion for 2026, implying year-over-year growth of 22% to 30%. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.
Royalty revenues are anticipated in the range of $1.13-$1.17 billion, implying year-over-year growth of 30% to 35%.
Adjusted EBITDA is expected in the band of $1.13-$1.21 billion, implying a year-over-year surge of 71% to 83%.
Adjusted earnings are expected in the range of $7.75-$8.25 per share in 2026, implying growth of 87% to 99% year over year.
HALO’s adjusted earnings per share guidance included the impact of approximately $60 million related to the recent Hypercon and Surf Bio investment. The adjusted earnings per share guidance does not consider the impact of potential future share repurchases.
Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise
Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. Quote
HALO’s Zacks Rank
Halozyme currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).