Sanofi (SAN) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales rose 17.8% at constant exchange rates (CER) to €11.6 billion, with business EPS up 33.3% at CER to €2.09, driven by strong pharma launches and Dupixent growth.

• Upgraded full-year 2026 guidance and 2030 ambitions, targeting ~€25 billion in Dupixent sales and ~€10 billion from pharma launches by 2030.

• New CEO Belén Garijo emphasized urgency in strategy execution, R&D transformation, and disciplined capital allocation.

• Major events included the acquisition of Dynavax, a €2.3 billion bond issue, and leadership changes.

Financial highlights

• Q2 2026 net sales: €11,597m (+17.8% CER, +16.0% actual); H1 2026 net sales: €22,106m (+15.7% CER, +11.1% actual).

• Business gross margin improved to 81.2% in Q2 (+3.7pp), aided by product mix and reversal of Sarclisa SC provision.

• Q2 2026 business operating income rose 35.8% at CER to €3.29 billion; business net income up 31.0% at CER to €2.5 billion.

• Free cash flow for H1 2026 was €3,724m, up 51.5% year-over-year; net debt increased to €15,513m as of June 30, 2026.

• IFRS net income dropped 91.3% in Q2 due to significant non-recurring charges, including impairments and restructuring.

Outlook and guidance

• 2026 sales now expected to grow around 10% at CER, with business EPS growth slightly outpacing sales.

• Currency impacts estimated at -1% on sales and -2% on business EPS.

• Vaccines segment expected to see slightly negative growth in 2026, with Q3 decline in low to mid-teens.

• Tax rate for 2026 anticipated at ~21%.