Sanofi (SAN) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales grew 10.1% at constant exchange rates, led by innovation, new launches, and strong performance in Vaccines and Dupixent, with new launches contributing nearly €1 billion and representing 10% of total sales.

• Dupixent sales rose 21.1% to €3.8 billion, with robust growth across all indications and geographies, and ALTUVIIIO and Ayvakit are on track for blockbuster status.

• Vaccine business grew 10.3%, supported by Beyfortus expansion and late flu season effects.

• Major acquisitions included Blueprint Medicines, Dren-0201, Vigil Neuroscience, and ViceBio, strengthening rare immunology, neurology, and pipeline.

• Sustainability strategy recognized globally, ranking #10 among the world's most sustainable companies in 2025 and #1 in pharma/biotech for sustainability.

Financial highlights

• Q2 2025 net sales reached €9,994m, up 10.1% year-over-year; H1 2025 net sales were €19,889m, up 8.3% reported and 9.9% at CER.

• Gross margin improved by 1.5pp to 77.5% in Q2 and 77.7% in H1, driven by specialty care and product mix.

• Business EPS reached €1.59 in Q2 (+8.3% CER), €3.39 in H1 (+12% CER), and IFRS EPS was €3.24 in Q2 (+264%).

• Free cash flow for H1 2025 was €2,458m, up from €428m in H1 2024; net debt reduced to €5,102m from €8,772m at year-end 2024.

• R&D expenses rose 17.7% in Q2 and 11.5% in H1, reflecting continued investment in innovation.

Outlook and guidance

• 2025 sales guidance refined to high single-digit percentage growth at constant exchange rates, at the upper end of previous guidance.

• Business EPS guidance confirmed at low double-digit percentage growth at CER, before share buybacks, absorbing additional R&D costs from acquisitions.

• Currency impact expected to reduce sales by ~4% and business EPS by ~6% for FY 2025.

• €5 billion share buyback program for 2025 is on track, with over 80% completed by mid-year.