Sanofi (SNW2) Q2 2026 Earnings Report

The call was predominantly positive, supported by strong Q2 sales, EPS and margin growth, an upgraded 2026 outlook, robust Dupixent performance, launch momentum, rare disease growth and several regulatory and pipeline achievements. However, management acknowledged meaningful challenges, including expected second-half deceleration, declining vaccine sales, weaker U.S. vaccination coverage, pipeline failures and discontinuations, an ongoing R&D transformation, weaker China momentum and future one-off-related BOI headwinds. The highlights significantly outweighed the lowlights.

Sanofi upgraded full year 2026 guidance to sales growth of around 10% at constant exchange rates, with business EPS growing slightly faster than sales; vaccine sales growth is expected to be slightly negative in 2026, with a low to mid-teens sales decrease in Q3, and the tax rate is anticipated at around 21%. For 2030, Dupixent sales are expected to reach about EUR 25 billion, pharmaceutical launches should generate about EUR 10 billion in sales, and vaccines are expected to reach about EUR 9 billion, with the sales ambition for the 3 items combined upgraded by almost 10% on a like-for-like basis at constant exchange rates; the EUR 1 billion reduction is split equally between a currency impact and market dynamics. The Amvuttra royalty increase will fully offset the negative BOI impact from the Regeneron development balance reimbursement in 2026, while in '27 there will be a negative EUR 200 million BOI gap, comprising a final negative BOI impact of about EUR 600 million and Amvuttra royalty income expected to increase by about EUR 400 million year-on-year. R&D spend is expected to have moderate increases in the short term, at a lower level than sales, with approximately 1 new Phase I start every 2 months this year; the launch portfolio is expected to reach EUR 5.2 billion, EUR 5.3 billion in full year 2026 and grow on average CAGR by 15% to 2030.