Jazz Pharmaceuticals — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues reached $1.243 billion in Q3 2026, a 10% increase year-over-year (YoY) from $1.126 billion.
• For the nine months ended September 30, 2026, total revenues were $3.520 billion, up from $3.070 billion in the prior period.
• GAAP net loss for Q3 2026 was $483.4 million ($7.48 per diluted share), compared to GAAP net income of $251.4 million ($4.08 per diluted share) in Q3 2025.
• Non-GAAP adjusted net loss for Q3 2026 was $250.8 million ($3.88 per diluted share), compared to non-GAAP adjusted net income of $500.7 million ($8.13 per diluted share) in Q3 2025.
• GAAP net income for the nine months ended September 30, 2026, was $2.5 million ($0.04 per diluted share), compared to a GAAP net loss of $559.6 million ($9.18 per diluted share) in the prior period.
• Non-GAAP adjusted net income for the nine months ended September 30, 2026, was $565.1 million ($8.23 per diluted share), compared to $101.0 million ($1.63 per diluted share) in the prior period.
• GAAP gross margin on total revenues was 91.1% in Q3 2026, up from 88.6% in Q3 2025; for the nine months, it was 89.7% compared to 88.6%.
• Non-GAAP adjusted gross margin was 91.5% in Q3 2026, up from 92.6% in Q3 2025; for the nine months, it was 91.8% compared to 92.5%.
• Cash from operations was $1.3 billion for the first nine months of 2026, compared to $993.3 million in the prior period.
• As of September 30, 2026, cash, cash equivalents, and investments totaled $2.9 billion.
• Outstanding long-term debt principal was $5.6 billion as of September 30, 2026.
• Undrawn borrowing capacity under the revolving credit facility was $885 million as of September 30, 2026.

Guidance and Future Outlook:

• Full-year 2026 total revenue guidance was raised to a range of $4.775 billion to $4.85 billion, up from the previous range of $4.60 billion to $4.75 billion.
• GAAP SG&A expense guidance for 2026 was increased to $1.544 billion to $1.597 billion to include restructuring expenses.
• Non-GAAP adjusted SG&A expense guidance for 2026 remains $1.330 billion to $1.370 billion.
• GAAP R&D expense guidance for 2026 is $819 million to $876 million.
• Non-GAAP adjusted R&D expense guidance for 2026 is $725 million to $775 million.
• GAAP effective tax rate guidance for 2026 was updated to 20% to 30%, reflecting the impact of acquired IPR&D.
• Non-GAAP adjusted effective tax rate guidance for 2026 is 19.5% to 21.5%.
• Weighted-average diluted shares outstanding guidance for 2026 remains 69 million to 70 million.

Business Segments and Product Lines:

• Xywav: Net product sales increased 12% YoY to $483 million in Q3 2026, driven by approximately 425 net patient adds.
• Epidiolex/Epidyolex: Net product sales decreased 2% YoY to $295 million in Q3 2026, impacted by lower U.S. gross-to-net deductions in Q3 2025 and lower inventory build in Q3 2026. The PDUFA target action date for the oral cannabidiol capsule NDA is April 16, 2027.
• Ziihera: Net product sales were $21 million in Q3 2026 following FDA approval and launch on August 25, 2026, for first-line HER2+ GEA. Early demand showed a ~40% increase in average demand vials per selling day and a threefold increase in new ordering accounts.
• Modeyso: Net product sales were $61 million in Q3 2026, with approximately 725 patients having received the product since its August 2025 launch. An OS interim analysis for the Phase 3 ACTION trial is anticipated in the first half of 2027.
• Zepzelca: Net product sales increased 32% YoY to $104 million in Q3 2026, driven by uptake in the 1L maintenance setting for extensive-stage small-cell lung cancer. The FDA approved a label supplement on September 30, 2026, removing the second-line indication.
• Actio Acquisition: Completed in September 2026, adding ABS-1230 (JZP6979) to the rare epilepsy portfolio. The therapy is being evaluated in the Phase 1b/2a KYRON trial, with initial patient data expected at a medical meeting in Q4 2026.
• HERIZON-GEA-01 Trial: Final analysis presented at ESMO 2026 showed a median overall survival of 27 months with Ziihera plus tislelizumab and chemotherapy, with nearly 40% of patients alive at three years.
• NCCN Guidelines: Updated to include Ziihera combinations as a preferred regimen for first-line treatment of HER2+ GEA.

Market and Competitive Landscape:

• Ziihera-based combinations are positioned as standard-of-care following positive survival data and NCCN guideline updates.
• 80% of new ordering accounts for Ziihera are community-based.
• Continued physician and patient demand exists for the differentiated benefits of low-sodium Xywav.

Risks and Challenges:

• Q3 2026 GAAP and non-GAAP results included a $754.2 million acquired in-process research and development (IPR&D) expense related to the Actio acquisition, impacting earnings by $11.32 per share (GAAP) and $11.03 per share (non-GAAP).
• Q3 2026 SG&A expenses included $34 million in restructuring costs.
• Epidiolex/Epidyolex growth was negatively affected by wholesaler buying patterns and lower gross-to-net deductions in the prior year.
• Zepzelca sales were partially offset by a decline in second-line use following the removal of that indication.

Management Commentary and Tone:

• Renee Gala, President and CEO, stated that third-quarter performance reflects sustained execution and confidence to raise full-year revenue guidance.
• Management highlighted momentum in advancing practice-changing medicines, specifically the rapid launch of Ziihera and the Actio acquisition deepening the rare epilepsy pipeline.
• The tone emphasized urgency and a focus on delivering durable value for shareholders.

Other Key Points:

• Completed a private placement of $1.25 billion aggregate principal amount of 1.875% exchangeable senior notes due 2032.
• Repurchased $225 million of ordinary shares in Q3 2026 using existing cash on hand, exhausting the share repurchase program announced in July 2024.
• Approved a new share repurchase program in October 2026 with no expiration date, authorizing up to $500 million in aggregate purchases.
• Amended and extended the Term Loan B, reducing the applicable margin by 50 basis points and extending maturity to May 2033.
• The company generated $1.3 billion in cash from operations in the first nine months of 2026.