Jazz Pharmaceuticals JAZZ reported first-quarter 2026 adjusted earnings per share (EPS) of $6.34, which beat the Zacks Consensus Estimate of $4.67. In the year-ago quarter, the company posted EPS of $1.68, which was significantly impacted by higher operating expenses.
Total revenues rose 19% year over year to $1.07 billion, which beat the Zacks Consensus Estimate of $972 million.
Shares of Jazz edged higher in after-hours trading yesterday, likely driven by the stronger-than-expected earnings performance. The stock also continued to rise in pre-market trading today.
Year to date, Jazz stock has gained 25% against the industry’s 2% decline.
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More on JAZZ’s Earnings
Net product sales increased 22% year over year to $1.03 billion. The reported figure beat both the Zacks Consensus Estimate of $925 million and our model estimate of $924 million.
Jazz recorded $36.3 million in royalty revenues from high-sodium oxybate authorized generic (AG), down about 26% year over year. Other royalties and contract revenues declined 23% to $7.3 million.
JAZZ’s Neuroscience Segment
Net product sales for the combined oxybate business (Xyrem + Xywav) rose 15% to $439.4 million. This combined figure beat both the Zacks Consensus Estimate of $390 million and our model estimates of $393 million.
Sales of the sleep disorder drug Xyrem declined 16% year over year to $31.2 million due to patients switching to Xywav and the launch of AGs in 2023.
Xywav, a low-sodium formulation of Xyrem, recorded sales of $408.2 million in the quarter, up 18%. This upside can be attributed to the encouraging uptake of the drug in narcolepsy and idiopathic hypersomnia indications. This drug is currently Jazz’s most extensive product by net sales.
Sales of the epilepsy drug Epidiolex/Epidyolex rose 15% to $249.8 million, driven by continued strong demand. This metric also beat the Zacks Consensus Estimate of $238 million and our model estimate of $234 million.
JAZZ’s Oncology Segment
Oncology product sales rose 45% to $333.4 million.
Chemotherapy drug Rylaze/Enrylaze posted sales of $103.7 million, up 10% year over year. This figure beat the Zacks Consensus Estimate and our model estimate, each pegged at $97 million.
Zepzelca, approved for small-cell lung cancer (SCLC), recorded sales of $101 million, up 60% year over year. This upside was primarily driven by continued uptake of the drug in the recently approved front-line SCLC setting.
Acute myeloid leukemia drug Vyxeos generated sales of $26.6 million, down 10%. Defitelio sales rose more than 16% to $47.4 million.
Sales of Ziihera, which was approved by the FDA in December 2024 for the biliary tract cancer indication, added $13.3 million to the top line compared with $8.5 million in the previous quarter.
Jazz recorded revenues worth $41.4 million from the sales of its recently launched brain tumor drug Modeyso, compared to $36.5 million in the previous quarter. This drug was approved by the FDA in August last year.
Discussion on JAZZ’s Operating Costs
Adjusted selling, general and administrative expenses (SG&A) declined 35% year over year to $308.5 million. This downtick was primarily attributed to certain Xyrem antitrust litigation settlements worth $172 million incurred in the year-ago period.
Adjusted research and development (R&D) expenses rose 8% to $172.3 million, mainly due to the addition of costs relating to Modeyso incurred during the quarter.
JAZZ Reiterates 2026 Guidance
Total revenues are expected to be in the range of $4.25-$4.50 billion, suggesting 2.5% year-over-year growth at the midpoint compared with the 2025 level.
While adjusted SG&A expenses are anticipated to be between $1.26 billion and $1.32 billion, adjusted R&D expenses are expected to be in the range of $725-$775 million.
The effective tax rate is expected to be between 11.5% and 13.5%.
JAZZ’s Zacks Rank
Jazz currently carries a Zacks Rank #3 (Hold).
Jazz Pharmaceuticals PLC Price
Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC Quote
Our Key Picks Among Biotech Stocks
Some better-ranked stocks include Castle Biosciences CSTL and Catalyst Pharmaceuticals CPRX. While CSTL sports a Zacks Rank #1 (Strong Buy) at present, CPRX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, estimates for Castle Biosciences’ 2026 loss per share have narrowed from $1.42 to $1.40. Over the same period, loss per share estimates for 2027 have narrowed from 79 cents to 78 cents. CSTL shares have lost 37% year to date.
Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 34.69%.
Over the past 30 days, estimates for Catalyst Pharmaceuticals’ 2026 EPS have risen from $2.78 to $2.79. Over the same period, EPS estimates for 2027 have increased from $3.25 to $3.28. CPRX shares have gained 32% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
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Jazz Pharmaceuticals PLC (JAZZ): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).