ANI Pharmaceuticals (NASDAQ:ANIP) Beats Expectations in Strong Q4 CY2025, Stock Jumps 12.4%

Specialty pharmaceutical company ANI Pharmaceuticals (NASDAQ:ANIP) announced better-than-expected revenue in Q4 CY2025, with sales up 29.6% year on year to $247.1 million. The company’s full-year revenue guidance of $1.09 billion at the midpoint came in 4.8% above analysts’ estimates. Its non-GAAP profit of $2.33 per share was 17.9% above analysts’ consensus estimates.

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“2025 was a year of significant growth for our Rare Disease and Generics businesses, which drove expansion to both our top- and bottom-line,” said Nikhil Lalwani, President and CEO of ANI.

Company Overview

With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ:ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, ANI Pharmaceuticals’s 33.5% annualized revenue growth over the last five years was incredible. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. ANI Pharmaceuticals’s annualized revenue growth of 34.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, ANI Pharmaceuticals reported robust year-on-year revenue growth of 29.6%, and its $247.1 million of revenue topped Wall Street estimates by 6.9%.

Looking ahead, sell-side analysts expect revenue to grow 13.7% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is admirable and implies the market is baking in success for its products and services.

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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.

ANI Pharmaceuticals was profitable over the last five years but held back by its large cost base. Its average operating margin of 3.3% was weak for a healthcare business.

On the plus side, ANI Pharmaceuticals’s operating margin rose by 31 percentage points over the last five years, as its sales growth gave it immense operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 2.9 percentage points on a two-year basis.

In Q4, ANI Pharmaceuticals generated an operating margin profit margin of 14.1%, up 16.4 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

ANI Pharmaceuticals’s EPS grew at an astounding 17.6% compounded annual growth rate over the last five years. Despite its operating margin improvement during that time, this performance was lower than its 33.5% annualized revenue growth, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings.

Diving into ANI Pharmaceuticals’s quality of earnings can give us a better understanding of its performance. A five-year view shows ANI Pharmaceuticals has diluted its shareholders, growing its share count by 81.5%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, ANI Pharmaceuticals reported adjusted EPS of $2.33, up from $1.63 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects ANI Pharmaceuticals’s full-year EPS of $7.87 to grow 8.1%.

Key Takeaways from ANI Pharmaceuticals’s Q4 Results

We were impressed by how significantly ANI Pharmaceuticals blew past analysts’ revenue expectations this quarter. We were also excited its full-year EPS guidance outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 12.4% to $86.71 immediately after reporting.

Indeed, ANI Pharmaceuticals had a rock-solid quarterly earnings result, but is this stock a good investment here? 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).