WS Investor
30 Jul 2026, 15:25
Sanofi Stock Falls Despite Strong Q2 Growth and Higher 2026 Guidance
Sanofi (NASDAQ: SNY) shares fell 6.7% on Thursday despite reporting another strong quarter of double-digit sales and earnings growth while upgrading its full-year 2026 outlook. Investors appeared to focus on strategic pipeline changes and the sharp decline in IFRS earnings caused by one-off items.
Second-quarter net sales increased 17.8% at constant exchange rates (CER) to €11.6 billion, while business EPS rose 33.3% at CER to €2.09. Business operating income climbed 35.8% at CER, supported by strong commercial execution and disciplined cost management. However, IFRS EPS fell sharply to €0.29 due to non-recurring items.
Dupixent and New Launches Fuel Growth
Sanofi's growth continued to be led by its pharmaceutical business. Dupixent generated €5.2 billion in quarterly sales, increasing 37.6% year over year and surpassing the €5 billion quarterly mark for the first time.
The company's recently launched medicines also continued to gain momentum, with launch-product sales rising 48.3% to €1.3 billion, driven primarily by Ayvakit, ALTUVIIIO and Sarclisa. While vaccine sales declined 4.7% because of a difficult comparison in influenza vaccines, the strength of the broader pharmaceutical portfolio more than offset the weakness.
Pipeline Progress and Higher Outlook
Sanofi reported seven regulatory approvals and two positive Phase 3 trial readouts during the quarter while also accepting several regulatory submissions. At the same time, management discontinued the development of amlitelimab for global regulatory submission, itepekimab and balinatunfib as part of a broader pipeline prioritization strategy.
Reflecting the strong first-half performance, the company upgraded its 2026 outlook and now expects sales to grow around 10% at constant exchange rates, with business EPS projected to increase slightly faster than revenue. Sanofi also completed its €1 billion share buyback program during the quarter.
What to Watch
Despite the stronger guidance, investors appeared concerned about the company's strategic pipeline restructuring and normalization of growth expected in the second half of the year. Going forward, markets will closely monitor continued Dupixent expansion, the commercial performance of Sanofi's recent product launches and progress in strengthening its late-stage pipeline while delivering sustainable earnings growth.
Sanofi (NASDAQ: SNY) shares fell 6.7% on Thursday despite reporting another strong quarter of double-digit sales and earnings growth while upgrading its full-year 2026 outlook. Investors appeared to focus on strategic pipeline changes and the sharp decline in IFRS earnings caused by one-off items.
Second-quarter net sales increased 17.8% at constant exchange rates (CER) to €11.6 billion, while business EPS rose 33.3% at CER to €2.09. Business operating income climbed 35.8% at CER, supported by strong commercial execution and disciplined cost management. However, IFRS EPS fell sharply to €0.29 due to non-recurring items.
Dupixent and New Launches Fuel Growth
Sanofi's growth continued to be led by its pharmaceutical business. Dupixent generated €5.2 billion in quarterly sales, increasing 37.6% year over year and surpassing the €5 billion quarterly mark for the first time.
The company's recently launched medicines also continued to gain momentum, with launch-product sales rising 48.3% to €1.3 billion, driven primarily by Ayvakit, ALTUVIIIO and Sarclisa. While vaccine sales declined 4.7% because of a difficult comparison in influenza vaccines, the strength of the broader pharmaceutical portfolio more than offset the weakness.
Pipeline Progress and Higher Outlook
Sanofi reported seven regulatory approvals and two positive Phase 3 trial readouts during the quarter while also accepting several regulatory submissions. At the same time, management discontinued the development of amlitelimab for global regulatory submission, itepekimab and balinatunfib as part of a broader pipeline prioritization strategy.
Reflecting the strong first-half performance, the company upgraded its 2026 outlook and now expects sales to grow around 10% at constant exchange rates, with business EPS projected to increase slightly faster than revenue. Sanofi also completed its €1 billion share buyback program during the quarter.
What to Watch
Despite the stronger guidance, investors appeared concerned about the company's strategic pipeline restructuring and normalization of growth expected in the second half of the year. Going forward, markets will closely monitor continued Dupixent expansion, the commercial performance of Sanofi's recent product launches and progress in strengthening its late-stage pipeline while delivering sustainable earnings growth.
