Prominent biotech Biogen (NASDAQ: BIIB) loomed large on the stock market on Wednesday. It published its latest set of quarterly earnings, and investors greeted the estimates-beating numbers by piling into the stock, despite a notable guidance cut. By the end of the trading day, Biogen’s shares had gained 6%.
Growth in the bottle
Biogen’s total revenue for the first quarter of 2026 was $2.48 billion, up 2% year over year. This was sufficient to top the consensus prognosticator forecast of $2.25 billion.
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Profitability saw a more dramatic improvement. The veteran biotech‘s attributable net income not under generally accepted accounting principles (GAAP) rose by 19% to slightly over $529 million, or $3.57 per share. Collectively, analysts were modeling only $2.95 per share.
As befits their name, Biogen’s “growth products” portfolio was the motor of the year-over-year revenue improvement. Sales of Leqembi, which targets early Alzheimer’s disease, zoomed 74% higher to $168 million. Other double-digit growers included Skyclarys, currently the only Food and Drug Administration (FDA)-approved medication for the neurodegenerative disorder Friedreich’s ataxia.
The $1 difference
On a less positive note, Biogen lowered its full-year profitability guidance. It’s now expecting adjusted net income to land at $14.25 to $15.25 per share, a full $1 on either end of the range from the previous forecast of $15.25 to $16.25. This is due to the anticipated impact of acquired in-process research and development charges.
As for revenue, Biogen continues to expect it to decline at a mid-single-digit percentage rate compared to 2025.
However, these projections do not include Apellis Pharmaceuticals, the peer Biogen is currently in the process of acquiring in a deal valued at $5.6 billion. The acquisition is expected to close in the near future.
Biogen continues its long-term transformation from a specialist in multiple sclerosis treatments to other, more high-potential therapies. I think this is a smart strategy that’s already producing results and will continue to do so. I’d be a buyer of Biogen stock.
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