It has been about a month since the last earnings report for Jazz Pharmaceuticals (JAZZ). Shares have added about 24.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jazz due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Q3 Earnings & Sales Beat Estimates
Jazz Pharmaceuticals reported third-quarter 2025 adjusted earnings per share (EPS) of $8.13 per share, beating the Zacks Consensus Estimate of $5.74. Earnings rose 24% year over year.
Total revenues rose 7% year over year to $1.13 billion, which also beat the Zacks Consensus Estimate of $1.10 billion.
Quarter in Detail
Net product sales increased nearly 8% year over year to $1.06 billion. The reported figure beat the Zacks Consensus Estimate of $1.04 billion and our model estimate of $1.03 billion.
Jazz recorded $53 million in royalty revenues from high-sodium oxybate authorized generic (AG), down 9% year over year. The metric missed the Zacks Consensus Estimate and our model estimate of $55 million each.
Other royalties and contract revenues were nearly $9 million, up 23% from the year-ago period levels.
Neuroscience Products
Sales of Jazz’s neuroscience products rose 10% year over year to $774 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) rose about 5% to $467 million. While this combined figure was in line with the Zacks Consensus Estimate, it beat our model estimates of $455 million.
Sales of Xyrem plunged 39% year over year to nearly $36 million due to patients switching to Xywav and the launch of AGs in 2023.
Xywav recorded sales of over $431 million in the quarter, up 11%. 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 Epidiolex/Epidyolex rose 20% to about $303 million, driven by volume growth and favorable gross to net deductions in the United States. The reported figure beat the Zacks Consensus Estimate and our model estimate of $274 million each.
Cannabis-based mouth spray Sativex recorded sales of nearly $5 million in the quarter, up 4% year over year.
Oncology Products
Oncology product sales rose 1% to about $288 million.
Rylaze/Enrylaze posted sales of $100 million, which rose 1% year over year. However, this figure missed both the Zacks Consensus Estimate and our model estimate of $104 million and $108 million, respectively. Per Jazz, this soft sales performance was attributed to reduced overall asparaginase use following updates to pediatric acute lymphoblastic leukemia protocols that affect the timing of administration. Still, the company noted that Rylaze demand remains stable within the asparaginase class.
Zepzelca recorded sales of over $79 million, down 8% year over year. This downside was attributed to increased competition in the second-line SCLC setting.
Vyxeos generated sales of about $38 million, up 10% from the year-ago period’s level. Defitelio sales declined 21% to $52 million.
Sales of Ziihera added over $8 million to the top line compared with $6 million in the previous quarter.
Jazz also recorded revenues worth $11 million from the sales of Modeyso, which was approved by the FDA in August 2025.
Cost Discussion
Adjusted selling, general and administrative expenses (SG&A) rose 59% year over year to $460 million. This uptick was primarily owing to litigation settlements, including $90 million related to the Avadel dispute and $61.5 million tied to a Xyrem antitrust matter.
Adjusted research and development (R&D) expenses declined 6% to $170 million, mainly due to lower clinical program costs incurred during the quarter.
2025 Guidance
Jazz revised its financial guidance for the full year. It now expects total revenues in the range of $4.18-$4.28 billion, compared to the previously guided range of $4.15-$4.30 billion. This narrowed guidance implies an increase of around 3% year over year at the midpoint.
Adjusted SG&A expenses are now anticipated to be between $1.59 billion and $1.63 billion compared with the prior guidance of $1.45 billion and $1.50 billion. Jazz lowered its forecasts for adjusted R&D expenses, now expected to be in the band of $680-$710 million (previously: $730-$780 million).
The company now projects a benefit in income tax in the range of 15% to 20%, versus its previous guidance of a 27-37% tax expense.
The company expects 2025 adjusted EPS to be in the range of $7.65-$8.45, a significant increase over the previous guidance of $4.80 to $5.60.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 8.54% due to these changes.
VGM Scores
Currently, Jazz has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Jazz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Jazz is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Regeneron (REGN), a stock from the same industry, has gained 11.7%. The company reported its results for the quarter ended September 2025 more than a month ago.
Regeneron reported revenues of $3.75 billion in the last reported quarter, representing a year-over-year change of +0.9%. EPS of $11.83 for the same period compares with $12.46 a year ago.
Regeneron is expected to post earnings of $10.65 per share for the current quarter, representing a year-over-year change of -11.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Regeneron. Also, the stock has a VGM Score of B.
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Jazz Pharmaceuticals PLC (JAZZ): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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