Halozyme's Q2 Earnings Beat Estimates, 2026 Outlook Raised, Stock Up

The top-line growth was primarily driven by increased product sales and higher royalty payments. HALO received royalty payments from J&J JNJ for subcutaneous Darzalex (daratumumab) as well as argenx ARGX for Vyvgart Hytrulo.

Several companies use Halozyme’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. The company has several marketed partnered drugs based on this technology, including the subcutaneous (SC) formulation of J&J’s Darzalex, argenx’s Vyvgart Hytrulo and Roche’s Phesgo.

Shares of Halozyme were up in pre-market trading today owing to the better-than-expected results as well as the increased 2026 outlook.

The stock has rallied 27.5% year to date compared with the industry’s increase of 4.4%.

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HALO's Q2 Earnings in Detail

Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.

Royalty revenues totaled $307.7 million in the second quarter, up 50% from the year-ago quarter’s level. This was mainly due to the robust demand for JNJ's subcutaneous Darzalex and ARGX's Vyvgart Hytrulo, on which it earns royalties.

Royalty revenues beat our model estimate of $277.2 million.

Product sales were $129.6 million in the second quarter, up 59% from the year-ago quarter’s level. HALO has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022.

Product sales beat our model estimate of $99.3 million.

Revenues under collaborative agreements were $43.6 million in the reported quarter, up almost 13.2% year over year.

Adjusted EBITDA was $328.8 million in the reported quarter, compared with $225.5 million in the year-ago quarter.

Halozyme had cash, cash equivalents and marketable securities of $231.9 million as of June 30, 2026, compared with $320.9 million as of March 31, 2026.

HALO's 2026 Guidance

Halozyme raised its total revenue guidance for 2026.

The company now expects total revenues in the range of $1.84 billion to $1.91 billion for 2026, compared with the previous expectation of $1.71 billion to $1.81 billion. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.

Royalty revenues are now anticipated in the range of $1.22-$1.25 billion versus the earlier projection of $1.13-$1.17 billion.

Adjusted EBITDA is expected in the range of $1.23-$1.28 billion, compared with the earlier projection of $1.13-$1.21 billion.

Adjusted earnings are now expected in the range of $8.65-$9.00 per share in 2026, up from $7.75-$8.25 per share guided earlier.

Halozyme’s adjusted earnings per share guidance included the impact of approximately $60 million related to the recent Hypercon and Surf Bio investment. The adjusted earnings per share guidance does not consider the impact of potential future share repurchases.

HALO’s Zacks Rank & Stock to Consider

Halozyme currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the biotech sector is Liquidia Corporation LQDA, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 159.3% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.

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