Regeneron (NASDAQ:REGN) Posts Better-Than-Expected Sales In Q4 CY2025

Biotech company Regeneron (NASDAQ:REGN) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 2.5% year on year to $3.88 billion. Its non-GAAP profit of $11.44 per share was 6.9% above analysts’ consensus estimates.

Is now the time to buy Regeneron? Find out by accessing our full research report, it’s free.

"Regeneron performed well in 2025, with financial strength driven by our four blockbuster medicines and future growth supported by our exciting late-stage clinical portfolio," said Leonard S. Schleifer, M.D., Ph.D., Board co-Chair, President and Chief Executive Officer of Regeneron.

Company Overview

Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ:REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Regeneron grew its sales at a decent 11% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Regeneron’s recent performance shows its demand has slowed as its annualized revenue growth of 4.6% over the last two years was below its five-year trend.

We can dig further into the company’s revenue dynamics by analyzing its most important segments, Collaboration and Product & Pipeline, which are 43.1% and 50.7% of revenue. Over the last two years, Regeneron’s Collaboration revenue averaged 13.2% year-on-year growth. On the other hand, its Product & Pipeline revenue averaged 3% declines.

This quarter, Regeneron reported modest year-on-year revenue growth of 2.5% but beat Wall Street’s estimates by 2.8%.

Looking ahead, sell-side analysts expect revenue to grow 7.7% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and suggests its newer products and services will catalyze better top-line performance.

Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.

Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Regeneron has been a well-oiled machine over the last five years. It demonstrated elite profitability for a healthcare business, boasting an average operating margin of 36.2%.

Looking at the trend in its profitability, Regeneron’s operating margin decreased by 30.7 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 5.9 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

In Q4, Regeneron generated an operating margin profit margin of 22.7%, down 3.5 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Regeneron’s EPS grew at a decent 7% compounded annual growth rate over the last five years. However, this performance was lower than its 11% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

Diving into the nuances of Regeneron’s earnings can give us a better understanding of its performance. As we mentioned earlier, Regeneron’s operating margin declined by 30.7 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, Regeneron reported adjusted EPS of $11.44, down from $12.07 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 6.5%. Over the next 12 months, Wall Street expects Regeneron’s full-year EPS of $44.38 to stay about the same.

Key Takeaways from Regeneron’s Q4 Results

We enjoyed seeing Regeneron beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The market seemed to be hoping for more, and the stock traded down 2.7% to $729.26 immediately following the results.

Is Regeneron an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).