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    JAZZ
    Earnings call· Jun 2026(Q2 FY26)

    Jazz Pharmaceuticals Q2 FY26 earnings call JAZZ

    Aug 3, 2026 Source

    Executive summary

    Jazz Pharmaceuticals Q2 FY26 — Record Revenue and Raised Full-Year Guidance

    Jazz Pharmaceuticals delivered a strong second quarter, driven by robust performance across its diversified portfolio, particularly in rare sleep and oncology. The company raised its full-year revenue guidance, reflecting confidence in sustained demand and strategic investments. Key pipeline advancements, including the anticipated zanidatamab approval, position Jazz for continued growth and value creation, while the company actively manages portfolio evolution and invests in future innovation.

    Highlights

    5

    • Record quarterly revenue of $1.2 billion, representing 16% year-over-year growth.

    • Full-year revenue guidance raised to a range of $4.60 billion to $4.75 billion.

    • Xywav net product sales increased 13% to $471 million, with 525 net patient additions in the quarter.

    • Epidiolex net product sales grew 16% year-over-year to $292 million, driven by 12% volume growth.

    • Oncology portfolio revenue increased 32% year-over-year, with Zepzelca sales up 42% to $106 million.

    Concerns

    3

    • Non-GAAP adjusted gross margin declined slightly year-over-year due to higher sales of Zepzelca and Modeyso, which carry third-party royalties.

    • Non-GAAP adjusted effective tax rate was moderately higher than full-year 2026 guidance due to shifts in the expected geographic mix of income and expenses.

    • Submission for FDA review and subsequent action of a labeling supplement to remove Zepzelca's second-line indication is planned for 3Q '26.

    Guidance & targets

    12
    CategoryTargetConfidence
    Total Revenue
    $4.60B-$4.75B
    high materiality
    High
    Xywav Revenue Growth
    double-digit growth
    medium materiality
    High
    Rare Sleep Revenue
    $2.025B-$2.125B
    medium materiality
    High
    SG&A Expense
    modestly increased
    low materiality
    Medium
    Shares Outstanding
    69M-70M shares
    low materiality
    High
    Zanidatamab PDUFA Date
    August 25
    high materiality
    High
    Zanidatamab Doublet Arm OS Interim Analysis
    3Q '26
    medium materiality
    High
    Zepzelca Second-Line Indication Removal Submission
    3Q '26
    medium materiality
    High
    Modeyso ACTION Trial OS Interim Analysis
    H1 2027
    medium materiality
    Medium
    Ziihera Breast Cancer Trial Enrollment Completion
    mid-2027
    medium materiality
    Medium
    Ziihera Breast Cancer Trial Results
    late 2027 or early 2028
    medium materiality
    Medium
    Business Development Deals
    one or more deals
    medium materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Rare Sleep
    Xywav's low sodium profile continues to drive strong demand and patient additions in narcolepsy and idiopathic hypersomnia, demonstrating durability against high sodium generics.
    Xywav net product sales: $471MXywav net product sales growth YoY: 13%Xywav net patient additions: 525Xywav total active patients: 17,125Xywav total active patients growth YoY: >12%
    		————
    Epilepsy
    Epidiolex delivered outstanding performance driven by robust underlying demand and successful expansion into adult patient populations, reinforcing its leadership in refractory epilepsy.
    Epidiolex net product sales: $292MEpidiolex net product sales growth YoY: 16%Epidiolex volume growth: 12%
    		————
    Oncology
    The oncology portfolio showed strong growth, with Ziihera establishing market leadership in BTC. Modeyso continues its upward trajectory, and Zepzelca's growth is driven by rapid adoption in the first-line maintenance setting.
    Ziihera net product sales: $15MZiihera addressable market share (2L BTC US): >50%Modeyso net product sales: $48MModeyso patients treated (cumulative): >600Zepzelca net product sales: $106MZepzelca net product sales growth YoY: 42%Zepzelca first-line maintenance sales (US): 30-40% of total
    		—32%——

    Operational metrics

    13
    Total Revenue Growth
    16%YoY
    Q2 FY26

    Record quarterly revenue

    Oncology Portfolio Revenue Growth
    32%YoY
    Q2 FY26

    Driven by strong performance across oncology products

    Non-GAAP Adjusted Gross Margin
    declined slightlyYoY
    Q2 FY26

    Impacted by product mix

    Non-GAAP Adjusted SG&A Expense Growth
    11%YoY
    Q2 FY26

    Strategic investments to drive momentum and implement rare disease strategy

    Non-GAAP Adjusted R&D Expense Growth
    11%YoY
    Q2 FY26

    Urgency to generate practice-changing clinical data and speed new medicines to market

    Non-GAAP Adjusted EPS
    $5.71
    Q2 FY26

    Robust bottom line performance

    Non-GAAP Adjusted Effective Tax Rate
    moderately highervs FY26 guidance
    Q2 FY26

    Impacted by geographic mix

    Cash and Cash Equivalents
    $2.2B
    Q2 FY26

    Strong financial position to invest in internal R&D and external innovation

    Shares Outstanding
    69M-70Mguidance
    FY26

    Reflects accounting effect of higher share price

    Xywav Total Active Patients
    17,125>12% YoY growth
    Q2 FY26

    Reflects sustained demand and targeted campaigns

    Xywav Net Patient Additions
    525
    Q2 FY26

    Highest number of adds for a year, demonstrating continued momentum

    Modeyso Patients Treated
    >600cumulative
    Q2 FY26

    Remarkable progress since launch in August last year

    Xywav Generic Impact
    muted impactslower than anticipated
    H2 FY26

    Uptake of high sodium generics has been quite limited

    Industry KPIs

    8
    MetricValueDetails
    EPS revenue guidance$4.60B-$4.75BUSD
    Pipeline clinical milestonesAt least 5trials
    Regulatory approvals filingsAugust 25date
    Therapeutic drug market share>50%%
    Price volume mix decomposition12%%
    Geographic regional revenue growthHelped drive growthdirectional
    Clinical trial efficacy safety data26.4 monthsmedian OS
    Business development capacity deal appetite$2.2BUSD

    Product announcements

    1
    ProductTypeDetails
    Epidiolex capsule formulationlaunch

    Deals & partnerships

    1
    AbCelleraPreclinical research collaboration leveraging their T-cell engager platform to discover novel multi-specific antibodies.

    Agreement directly complements oncology expertise and supports refined rare disease strategy.

    Risks & headwinds

    4
    Non-GAAP adjusted gross margin declineQ2 FY26

    declined slightly

    Non-GAAP adjusted effective tax rate increaseQ2 FY26

    moderately higher

    Zepzelca second-line indication removal3Q '26

    May accelerate decline of second-line business

    Mitigation: Focus on first-line maintenance indication, which is not affected and elevated to Category 1 in NCCN guidelines.

    Future competition for XywavLonger term

    Potential availability of orexin-2 agonists

    Mitigation: Xywav's differentiation as the only low sodium oxybate and only FDA-approved option for IH patients; Xywav addresses the root cause of disrupted nighttime sleep and can be complemented by daytime agents.

    What to watch in Q3 FY26

    5

    Zanidatamab GEA Approval

    Q3 FY26
    CurrentPDUFA date August 25, 2026
    TargetFDA approval decision

    Why it matters

    Approval and subsequent launch of zanidatamab in first-line HER2-positive metastatic GEA is a major growth driver and significant milestone for the company.

    As we approach a significant milestone with the August 25 PDUFA date for zanidatamab in first-line HER2-positive metastatic GEA, our commercial, medical and market access teams are fully prepared to successfully launch zanidatamab.

    Q&A highlights

    5

    Inquired about the drivers behind Epidiolex's better-than-expected quarter, specifically asking about inventory movements or new indications.

    Management attributed growth to robust underlying demand, 12% volume growth, and focus on the long-term care setting. Noted no significant unusual inventory movements, but mentioned prior year's ex-U.S. pricing adjustments and FX impact as factors.

    “This is 12% volume growth, which again, just reflects really good strong demand in both the pediatric and the adult settings, reinforcing our position as the #1 branded antiseizure medication in refractory epilepsy.”

    asked by Marc Goodman · answered by Samantha Pearce

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Commercial Execution Across Diversified Portfolio

    Jazz Pharmaceuticals achieved record quarterly revenue of $1.2 billion, a 16% year-over-year increase, driven by double-digit growth across its key promoted brands. The rare sleep franchise, led by Xywav, demonstrated robust demand with 525 net patient additions, bringing total active patients to 17,125. Epidiolex also delivered strong performance with 16% year-over-year sales growth, supported by 12% volume growth and successful expansion into adult segments.

    02

    Oncology Portfolio Momentum and Zanidatamab Readiness

    The oncology portfolio saw significant growth of 32% year-over-year. Ziihera established over 50% market share in second-line BTC, providing a strong commercial foundation for the anticipated launch of zanidatamab in first-line HER2-positive metastatic GEA. With a PDUFA date of August 25, the company is fully prepared for launch, leveraging existing infrastructure, a permanent J-code, and submitted data to oncology pathways to ensure rapid uptake and patient access.

    03

    Pipeline Advancements and Strategic Investments

    Jazz is actively advancing its pipeline with several key milestones. The Phase III Horizon GEA 01 trial results for zanidatamab were published in the New England Journal of Medicine, and breakthrough therapy designation was granted for HER2-positive colorectal cancer. The company is initiating three new clinical trials for Epidiolex, including a pivotal Phase II/III trial for a novel capsule formulation in JME, and submitted an NDA for the capsule to broaden utilization.

    04

    Portfolio Optimization and Future Growth Drivers

    While Zepzelca's first-line maintenance indication was elevated to Category 1 in NCCN guidelines, the company plans to submit for removal of its second-line indication in Q3 '26, reflecting a strategic focus on its highest clinical value. The preclinical research collaboration with AbCellera expands Jazz's oncology expertise, and the company remains active in business development, targeting one or more deals in 2026 to enhance growth prospects.

    05

    Financial Strength and Capital Deployment

    Jazz generated strong operating cash flow of $824 million in the first half of the year and holds $2.2 billion in cash on its balance sheet. This financial strength supports continued investment in marketed products, pipeline development, and strategic business development activities, reinforcing the company's ability to drive robust returns for shareholders and execute on its rare disease strategy.

    AI-generated summary of the company’s earnings call. Not investment advice.