0000872589-26-000016
SEC filingRevenue and gross profit grew strongly year-over-year, driven by higher Dupixent-related profits, but net income declined due to a higher effective tax rate and ongoing gross margin pressure from manufacturing disruptions.
The increase in revenue and gross profit for the three months ended March 31, 2026, compared to the same period in 2025, was driven by higher profits primarily associated with an increase in Dupixent sales. This reflects continued global commercial momentum for the product, which remains the largest contributor to Regeneron’s share of profits. In contrast, net product sales of EYLEA decreased due to lower sales volumes — resulting from competitive pressures and the ongoing patient transition to EYLEA HD — as well as a lower net selling price.
Net income declined year-over-year despite top-line growth, primarily due to an increase in the effective tax rate. Management attributes this to lower tax benefits arising from cross-border tax laws and reduced federal tax credits for research activities. This dynamic directly impacted bottom-line results, contributing to the 10.1% decline in net income and the 7.2% decrease in diluted EPS. Operating income grew more modestly (8.7%) than revenue (19.0%), suggesting that expense growth — particularly in areas supporting clinical development and commercial infrastructure — absorbed part of the top-line expansion.