Sanofi (SAN1N) Q2 2026 Earnings Report

The call was predominantly positive, supported by strong Q2 sales, EPS growth, broad launch momentum, continued Dupixent demand, raised 2026 guidance and higher Dupixent and combined 2030 ambitions. However, management also acknowledged meaningful challenges, including expected second-half moderation, vaccine declines and a lower vaccine ambition, R&D productivity issues, multiple pipeline setbacks, China momentum challenges and investor credibility concerns. The strength of the reported results and commercial outlook outweighed the stated risks and setbacks.

For full year 2026, Sanofi expects sales growth of around 10% at constant exchange rates, with business EPS growing slightly faster than sales, a tax rate of around 21%, and vaccine sales growth to be slightly negative, mainly crystallizing in H2; for Q3 specifically, it expects a low to mid-teens sales decrease. 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 in sales, with the 3 items combined upgraded by almost 10% on a like-for-like basis at constant exchange rates; reaching EUR 10 billion for new launches requires average CAGR by 15%. R&D spend is expected to have moderate increases in the short term, at a lower level than sales, while approximately 1 new Phase I start every 2 months is planned this year; Sanofi expects final Phase III readouts for Sarclisa in the remainder of 2026, frexalimab and riliprubart in 2027, and multiple Phase III readouts in 2028, and aims to provide a broader perspective on strategy and the pipeline at latest by the end of this year.