Can These 5 Biotech Stocks Beat Wall Street's Q2 Estimates?

The earnings season for the drug and biotech sector kicked off around mid-July when bellwether Johnson & Johnson reported strong second-quarter results, beating estimates for earnings and sales. J&J consequently raised its sales expectations for 2026 to reflect a strong operational performance so far this year.

Swiss pharma giant Novartis’ earnings beat the top and bottom lines, as high demand for key drugs like Kisqali (breast cancer), Kesimpta (multiple sclerosis) and Scemblix (chronic myeloid leukemia) offset the decline in sales of cardiovascular drug Entresto and Promacta (oncology). Consequently, Novartis reiterated its 2026 guidance.

Viking Therapeutics VKTX, Biogen BIIB, Bristol Myers BMY, Regeneron Pharmaceuticals REGN and AbbVie ABBV are some of the bigger companies slated to release theirquarterly results this week. Let us examine how these biotech/pharma companies are likely to have performed in the soon-to-be-reported quarter.

Viking Therapeutics

Viking Therapeutics’performance has been dismal over the past four quarters. Its earnings missed estimates in each of the trailing four quarters, delivering a negative average surprise of 36.70%. In the last reported quarter, VKTX delivered a negative earnings surprise of 44.21%.

Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Viking Therapeutics has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for earnings for the second quarter is pegged at a loss of $1.21 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.

Since Viking Therapeutics lacks a marketed drug in its portfolio, no revenues are expected to have been recorded.Investor focus will likely be on pipeline updates. Viking Therapeutics’ lead candidate is VK2735, which is being developed to treat obesity.

Viking Therapeutics is scheduled to release its quarterly earnings results after the market closes on July 29.

Biogen

Biogen has an impeccable earnings track record. It beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 26.87%.In the last reported quarter, the company's earnings beat expectations by 21.02%. 

For the quarter to be reported, Biogen’s Earnings ESP is +229.44%, and it has a Zacks Rank #3 at present, indicating a likely surprise. The Zacks Consensus Estimate for second-quarter sales and earnings is pegged at $2.50 billion and 89 cents per share, respectively.

Biogen's second-quarter 2026 results are expected to be affected by the continued decline in sales of multiple sclerosis products such as Tecfidera and Tysabri, due to generic and biosimilar competition, as well as softer Spinraza sales. However, these headwinds are likely to be partially offset by strong sequential growth from newer products, including Vumerity, Skyclarys, Zurzuvae, and higher Alzheimer's collaboration revenues from Leqembi.

Investors will also focus on the initial contribution from the recently acquired Apellis portfolio (Empaveli and Syfovre). However, one-time in-process R&D (IPR&D) charges related to the Apellis acquisition and Biogen's felzartamab licensing deal could hurt its EPS.

Biogen is scheduled to report its second-quarter 2026 earnings results on July 29, before market open.

Bristol Myers

Bristol Myersalsohas an excellent earnings track record. BMY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.47%. In the last reported quarter, Bristol Myers’ earnings surpassed estimates by 9.72%.

Bristol Myers has an Earnings ESP of +0.51% and a Zacks Rank #3 at present, indicating a likely surprise. The Zacks Consensus Estimate for sales and earnings for the second quarter is pegged at $11.67 billion and $1.59 per share, respectively.

Bristol Myers’ revenues in the second quarter of 2026 are likely to have been aided by an increase in growth portfolio sales. The growth portfolio primarily comprises drugs like Opdivo Qvantig, Reblozyl, Opdualag, Breyanzi, Camzyos, Orencia, Yervoy, Cobenfy, Sotyktu and others. However, total quarterly revenues are likely to have been affected by a decline in sales from the legacy portfolio, which includesEliquis, Revlimid, Pomalyst, Sprycel and Abraxane, among others.

Bristol Myers is slated to release its quarterly earnings results before the opening bell on July 30.

Regeneron Pharmaceuticals

Regeneron Pharmaceuticals has an impeccable earnings surprise history so far. The company beat estimates in each of the trailing four reported quarters, delivering an average surprise of 26.33%. In the last reported quarter, the company delivered a surprise of 11.15%.

REGN has an Earnings ESP of +1.22% and a Zacks Rank #3 at present, indicating a likely surprise. The Zacks Consensus Estimate for revenues and earnings per share for the second quarter is pegged at $3.84 billion and $10, respectively.

Regeneron Pharmaceuticals’ second-quarter 2026 sales are expected to be driven by strong Dupixent profit sharing, robust uptake of Eylea HD and continued growth in Libtayo. However, continued competitive pressure and the ongoing decline in legacy Eylea sales as patients transition to Eylea HD are likely to remain key headwinds.

Regeneron Pharmaceuticals is slated to report its second-quarter 2026 earnings results on July 30, before market open.

AbbVie

AbbVie has an encouraging earnings track record to date. ABBV’s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 2.72%. In the last reported quarter, AbbVie’s earnings beat estimates by 1.15%.

For the quarter to be reported, AbbVie has an Earnings ESP of -1.01% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for sales and earnings for the second quarter is pegged at $16.81 billion and $3.66 per share, respectively.

AbbVie’s top line is expected to have been driven by robust sales of key drugs Rinvoq, Skyrizi, Venclexta and Vraylar, coupled with significant contributions from newer drugs, namely Ubrelvy, Epkinly, Qulipta and Vyalev.

ABBV is scheduled to report its quarterly earnings results on July 31, before the opening bell.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research