The quarter cleared the available earnings bar, then the outlook reset higher. GAAP diluted EPS of $2.05 per ADS exceeded the published consensus of roughly $1.63; the filing does not provide a comparable published revenue consensus, but it raises full-year revenue, GAAP operating-income, and adjusted operating-income ranges rather than merely reaffirming them. That makes the guidance change the more consequential signal. (Financial Highlights) (FY 2026 Guidance)
| Metric | Q2 2026 | Q2 2025 / prior outlook | What changed |
|---|---|---|---|
| Total revenue | $1.705B (Financial Highlights) | $1.315B | +30% |
| BRUKINSA global sales | $1.2B (BRUKINSA update) | — | +31% year over year |
| GAAP diluted EPS per ADS | $2.05 (Financial Highlights) | $0.84; published consensus ~$1.63 | Above the available earnings expectation |
| Adjusted diluted EPS per ADS | $3.84 (Financial Highlights) | $2.25 | +71% |
| GAAP operating income | $325M (Financial Highlights) | $88M | +270% |
| Free cash flow | $435M (Financial Highlights) | $220M | +98% |
| FY 2026 revenue outlook | $6.6B–$6.8B (FY 2026 Guidance) | Prior $6.3B–$6.5B | Midpoint raised $300M |
| FY 2026 GAAP operating-income outlook | $1.0B–$1.1B (FY 2026 Guidance) | Prior $750M–$850M | Midpoint raised $250M |
This was not growth bought through uncontrolled spending. Revenue rose 30% while GAAP operating expenses increased 13%, expanding GAAP operating income to $325 million from $88 million. Gross margin improved to 90% from 87%, and SG&A fell to 35% of product sales from 41%, showing meaningful operating leverage from the BRUKINSA-led sales base. (Operating Expenses) (Gross Margin) (Income Statement)
The raise includes more investment, but profits still move up more. Management lifted expected combined R&D and SG&A spending by $100 million at the midpoint to $4.8B–$5.0B, yet raised GAAP operating-income guidance by $250 million and adjusted operating-income guidance by $250 million. In plain language: the company expects to spend more on pipeline and commercialization, but expects the incremental sales and margins to more than cover it. (FY 2026 Guidance)
Cash generation reduces the near-term funding concern behind a larger buildout. Quarter-end cash, equivalents and restricted cash reached $5.28B, up from $4.61B at year-end, after generating $435 million of quarterly free cash flow. That provides a substantial internal funding base for the newly announced $300 million New Jersey manufacturing and R&D expansion, though the filing does not specify its construction timing or full cash-spending schedule. (Balance Sheet) (Cash Flow Statement) (Business Updates)
One quality caveat: reported GAAP earnings benefited from a tax item. The $2.05 GAAP diluted EPS includes a $49.8 million discrete tax benefit; adjusted diluted EPS removes that item and was $3.84. The company also says a future reversal of tax valuation allowances could create a material benefit, but gives no timing or amount—so that potential upside is not yet something investors can treat as operating performance. (GAAP-to-Adjusted Net Income Reconciliation) (Income Tax Outlook)
Read the original 8-K on SEC EDGAR ↗