Sarepta's Q2 Earnings & Sales Beat Estimates, '26 Outlook Updated

Sarepta recorded total revenues of $401.3 million, down 34% year over year, primarily due to lower sales of Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD). Yet, the figure beat the Zacks Consensus Estimate of $355.6 million.

Shares of the company were trading higher in after-market trading yesterday, likely due to the better-than-expected results.

Year to date, the stock has lost 26% against the industry’s nearly 4% growth.

Image Source: Zacks Investment Research

SRPT's Product Sales Top Expectations

Sarepta’s commercial portfolio includes three approved RNA-based PMO therapies — Exondys 51, Vyondys 53 and Amondys 45 — and Elevidys, all targeting DMD. Product revenues fell 36% year over year to $328.7 million.

PMO product revenues totaled $230.6 million, relatively flat year over year. The figure beat the Zacks Consensus Estimate of $225.9 million. Management attributed the PMO franchise’s durability to stable demand, extensive real-world experience and established safety profiles.

Elevidys' revenues were $98.1 million, down 65% year over year, primarily due to its decision to suspend shipments to non-ambulatory patients in June 2025 amid safety concerns. Nonetheless, the therapy’s sales marginally beat the Zacks Consensus Estimate of $97.8 million.

Sarepta's Other Revenues Support Results

Collaboration and other revenues totaled $72.6 million, down 26% year over year. The year-ago period benefited from a $63.5 million milestone payment received from Roche RHHBY related to the regulatory approval of Elevidys in Japan, with no comparable payment in the reported quarter.

The decline was partly offset by a $27.4 million increase in contract manufacturing revenues associated with higher commercial Elevidys supply delivered to Roche. Sarepta also recognized $10 million in license revenues related to intellectual property rights granted under a licensing agreement.

Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, RHHBY has exclusive rights to launch and market Elevidys in ex-U.S. markets.

SRPT Cuts Operating Costs

Adjusted research and development (R&D) expenses declined 58% year over year to $76.7 million. The reduction reflected lower manufacturing and clinical spending following Sarepta’s pipeline reprioritization and lower employee-related costs under the July 2025 restructuring program.

Adjusted selling, general and administrative (SG&A) expenses decreased 22% to $88 million, driven by lower personnel costs and reduced professional services related to Elevidys commercialization.

Sarepta Updates 2026 Guidance

Sarepta narrowed its 2026 net product revenue guidance to $1.2-$1.3 billion from the previous range of $1.2-$1.4 billion.

The company expects second-half product revenues to be modestly lower than first-half levels. Elevidys revenues are also projected to decline sequentially in the third quarter because revenue recognition reflects patients who entered the treatment process several months earlier.

Enrollment forms improved sequentially during the second quarter, supported by Sarepta’s expanded commercial team and increased engagement with health care providers. However, the roughly six-month journey from enrollment to infusion means the recent improvement is expected to benefit revenues more meaningfully in 2027.

The company raised its 2026 collaboration and other revenues forecast to $550-$600 million, primarily due to higher expected contract manufacturing revenues. The new guidance marked an increase of $75 million from the midpoint of the company’s previous guidance.

Sarepta tightened its combined adjusted R&D and SG&A expense guidance to $800-$850 million from $800-$900 million.

SRPT Advances Key Pipeline Programs

The FDA recently accepted Sarepta’s regulatory filings seeking to convert the accelerated approvals granted for Vyondys 53 and Amondys 45 into full/traditional approvals. A final decision is expected by Feb. 28, 2027. These filings are supported by data from a late-stage confirmatory study and substantial real-world evidence.

Sarepta expects to complete enrollment in Cohort 8 of the phase Ib ENDEAVOR study by the end of 2026. The cohort is designed to improve the safety profile of Elevidys in non-ambulatory patients by combining it with an enhanced sirolimus-based immunosuppressive regimen.

Full 12-week data are now expected in the first quarter of 2027, later than the company’s previous expectation of a readout before the end of 2026. Management attributed the revised timeline to investigators dosing participants sequentially, which delayed the availability of complete 12-week data from approximately 25 patients.

The company is on track to report data from multiple-ascending-dose (MAD) cohorts of two ongoing phase I/II studies later this year. One study is evaluating SRP-1001 for facioscapulohumeral muscular dystrophy type I, while the other is assessing SRP-1003 for myotonic dystrophy type I. These drugs were acquired as part of a multi-billion-dollar collaboration deal signed last year with Arrowhead Pharmaceuticals ARWR.

SRPT’s Zacks Rank

Sarepta currently has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

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