Jazz Pharmaceuticals (JAZZ) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenues of $1.1 billion, up 19% year-over-year, driven by strong commercial execution across sleep, epilepsy, and oncology portfolios, with double-digit growth in Xywav (+18%), Epidiolex (+15%), and Zepzelca (+60%).

• Net income for Q1 2026 was $293.1 million, compared to a net loss of $92.5 million in Q1 2025, reflecting higher revenues, a $122.8 million gain on sale of a priority review voucher, and lower litigation settlement expenses.

• Robust cash flow of $408 million and cash, cash equivalents, and investments totaling $2.9 billion as of March 31, 2026.

• Pipeline advanced with FDA Priority Review for zanidatamab (Ziihera) in HER2+ 1L GEA; PDUFA date set for August 25, 2026.

• Reaffirmed full-year 2026 revenue and expense guidance.

Financial highlights

• Q1 2026 total revenues reached $1,068.9 million, up from $897.8 million in Q1 2025, with product sales rising 22% year-over-year.

• Non-GAAP adjusted EPS was $6.34 in Q1 2026, up from $1.68 in Q1 2025.

• Gross margin (non-GAAP) was 91.6% in Q1 2026, slightly down from 92.2% in Q1 2025.

• Operating cash flow was $408 million for Q1 2026.

• Net income margin for Q1 2026 was 27.4%.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $4.25–$4.5 billion, with gross margin expected at 90–91% (non-GAAP).

• Rare sleep franchise revenue expected at $1.8–$1.9 billion for 2026.

• SG&A expenses projected at $1,260–$1,320 million (non-GAAP); R&D at $725–$775 million (non-GAAP).

• Guidance assumes increased competition in sleep business in H2 2026, with generics and new agents entering the market.

• Anticipates continued growth in first-line maintenance for Zepzelca and potential launch of Ziihera in GEA by or before August 25, 2026.