OPKO Health Stock Up as Q2 Earnings & Revenues Beat Estimates

The better-than-expected performance reflected higher pharmaceutical revenues, including income related to the amended Nicoya licensing agreement, partially offset by lower Diagnostics revenues following last year's oncology asset divestiture.

OPK shares gained 11.3% in today’s pre-market session.

Segment Details

Total pharmaceutical revenues increased 59.8% year over year to $89 million. The upside was primarily driven by higher product sales and a significant increase in revenues from intellectual property transfers and other sources.

Diagnostics service revenues declined 26.3% year over year to $74.5 million. The comparison was affected by the sale of OPKO's oncology assets to Labcorp in September 2025, which contributed $24.9 million to revenues in the prior-year quarter.

Excluding the divested oncology business, core diagnostics revenues declined modestly to $68.2 million from $69.3 million a year ago. Revenues from the 4Kscore prostate cancer test fell to $6.3 million from $6.9 million. Management attributed the decline primarily to changes in test mix following the transfer of certain lower-margin esoteric tests to strategic partners.

Product Sales Improve

Product revenues increased 5.4% year over year to $42.9 million. Growth was supported by higher sales volumes in the company's Spanish and Mexican operations, along with a favorable foreign exchange impact of $1.8 million. These gains were partially offset by approximately $1.7 million of lower revenues across other international markets.

RAYALDEE revenues increased to $8.1 million from $7.2 million in the prior-year quarter, mainly due to favorable gross-to-net adjustments. Management stated that international pharmaceutical operations continued to perform well, while RAYALDEE sales remained ahead of internal expectations.

OPK’s Margin Expands as Costs Decline

For the second quarter, gross profit increased to $80 million from $49.4 million a year ago, while gross margin expanded to 48.9% from 31.5%. The improvement reflected lower service costs following the Diagnostics asset sale and a higher contribution from intellectual property and other revenues, including income tied to the amended Nicoya agreement.

Total costs and expenses declined 21.4% year over year to $170.5 million. Cost of service revenues fell 29.1% year over year to $58.4 million, while selling, general and administrative expenses declined 11.2% to $52.9 million. Research and development expenses increased 9.6% year over year to $33.2 million, reflecting continued investment in early-stage clinical programs.

Consolidated operating loss narrowed to $7 million from $60 million, aided by higher pharmaceutical revenues, lower Diagnostics costs and an $18.1-million Labcorp earnout gain. The Diagnostics segment posted an operating income of $4.8 million against an operating loss of $18.2 million a year ago.

Cash Position

OPKO exited the second quarter with cash, cash equivalents, marketable securities and restricted cash of $314.4 million compared with $341.9 million at the first-quarter end.

During the quarter, the company repurchased $13.2 million worth of common stock. As of June 30, 2026, cumulative share repurchases under the existing authorization totaled approximately $105.3 million, with $94.7 million still available for future buybacks.

Cumulative net cash used in operating activities at the end of second-quarter 2026 was $62.8 million compared with $117.9 million a year ago.

Q3 & FY26 Guidance

For the third quarter of 2026, OPKO expects total revenues in the range of $131-$142 million. The outlook includes service revenues of $73-$78 million, product revenues of $40-$44 million and intellectual property and other revenues of $16-$20 million.

Management raised its full-year 2026 revenue guidance to $560-$585 million from the previous range of $530-$560 million.

The company lowered its full-year cost and expense outlook to $710-$740 million from the earlier projection of $725-$750 million. Expected research and development spending remains unchanged at $125-$135 million.

OPK’s Pipeline Progress and Business Expansion

OPK exited the second quarter with better-than-expected earnings and revenues, supported by higher pharmaceutical revenues, income tied to the amended Nicoya agreement and a leaner Diagnostics cost base. Operating loss narrowed sharply year over year, while the Diagnostics business generated operating income, aided by the Labcorp earnout.

BioReference continues to focus on its regional New York and New Jersey laboratory operations, the correctional health business and the 4Kscore franchise. Management remains focused on improving reimbursement, broadening payer coverage and aligning the cost structure with the retained testing footprint as the unit works toward sustainable profitability.

Within therapeutics, OPKO Health continued to advance a broad clinical pipeline. ModeX is enrolling patients in the Phase 1 studies of MDX2003 in relapsed or refractory B-cell lymphoma, MDX2001 in solid tumors and MDX2004 in heavily pretreated cancer patients. The BARDA-funded Phase 1 study of MDX2301 for COVID-19 prevention is expected to complete enrollment in the third quarter, with early data targeted for late 2026 or early 2027. The company also initiated a Phase 1/2a study of OPK-88006, its once-weekly dual GLP-1/glucagon agonist, in healthy volunteers and participants with presumed MASH. ModeX presented preclinical data on its antibody-targeted in vivo CAR-T platform at ASGCT and plans to move MDX3001 into clinical testing in late 2026 or early 2027, initially targeting autoimmune disease. OPKO Biologics also plans to advance long-acting growth hormone receptor antagonist OPK8801001 into clinical trials by year-end.

On business development, OPKO amended its agreement with Nicoya to support RAYALDEE commercialization in Greater China, receiving a 15% equity stake while retaining eligibility for up to $115 million in development, regulatory and sales milestones. The Regeneron collaboration continues across four discovery programs, with potential milestones exceeding $1 billion and tiered royalties on future sales.

OPKO and Entera Bio are also advancing oral peptide programs EB612 for hypoparathyroidism and EB618 for obesity and metabolic disorders toward first-in-human development. Meanwhile, NGENLA continues to expand commercially through Pfizer, with label-expansion studies underway, while OPKO’s active share repurchase program provides an additional avenue for capital deployment alongside continued investment in research and development.

OPK’s Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader medical space are McKesson MCK, Phibro Animal Health PAHC and Cardinal Health CAH.

McKesson carries a Zacks Rank #2 (Buy) at present and has an estimated long-term growth rate of 13.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.09%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Globus Medical’s shares have gained 8.8% against the industry’s 12.7% decline in the year-to-date period.

Phibro Animal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.25%.

Phibro Animal Health stock has climbed 44.2% against the industry’s 17.1% decline in the year-to-date period.

Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%.

Cardinal Health’s shares have lost 2.6% compared with the industry’s 3.1% decline in the year-to-date period.

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