Novavax Inc. (NASDAQ:NVAX) reported second-quarter results that came in ahead of Wall Street expectations, while also increasing its full-year revenue outlook as its partnership with Sanofi continued to move forward. The shares edged 0.4% higher in pre-market trading on Thursday.
Although revenue declined sharply from a year earlier, the comparison was affected by significant one-off milestone payments received during the prior-year period.
Revenue and earnings exceed expectations
Novavax posted a second-quarter loss of $0.32 per share, outperforming analysts’ expectations for a loss of $0.40 per share.
Revenue totaled $57 million, ahead of the consensus estimate of $52.06 million. However, sales were down 76% from $239 million in the same quarter last year.
The year-over-year decline largely reflected the absence of one-time payments booked in the second quarter of 2025, including a $175 million milestone linked to U.S. approval of Nuvaxovid and a $27 million amendment agreement with Takeda.
Meanwhile, product revenue increased 76% to $19 million, supported by stronger demand for the company’s Matrix-M adjuvant and higher sales to licensing partners.
Company raises 2026 revenue guidance
Following the quarter, Novavax lifted its adjusted total revenue forecast for 2026 to a range of $235 million to $275 million, compared with its previous guidance of $230 million to $270 million.
President and Chief Executive Officer John C. Jacobs said: “We’re encouraged by the momentum we’re seeing across our business as we continue to advance our strategy.”
Sanofi partnership continues to advance
Management highlighted further progress with Sanofi, noting that its partner is in advanced discussions with regulators regarding the timing of a Phase 3 trial for its combined COVID-19 and influenza vaccine.
The launch of that study would trigger a $125 million milestone payment to Novavax.
In addition, the transfer of Nuvaxovid manufacturing technology to Sanofi remains on schedule for completion in mid-2027, which would unlock another $75 million milestone payment.
Cost guidance improves despite quarterly loss
Novavax also reduced its projected operating expenses for the year.
The company now expects combined research and development, together with selling, general and administrative expenses, to total between $370 million and $410 million during 2026, improving the midpoint of its previous guidance by approximately $10 million.
Its non-GAAP expense outlook remained unchanged at $310 million to $340 million.
For the quarter, Novavax recorded a net loss of $53 million, compared with net income of $107 million in the same period last year.
Cash and cash equivalents stood at $724 million as of June 30, 2026, providing the company with a solid liquidity position.
Novavax stock price
