Sanofi (SAN) Q1 2026 earnings summary

Executive summary

• Achieved double-digit sales and earnings growth in Q1 2026, with net sales up 13.6% to €10.5bn, driven by Dupixent, new pharma launches, and recent acquisitions.

• Business operating income rose 10.9% to €2,967m, and business EPS increased 14.0% to €1.88, outpacing sales growth.

• Pharma launches, including Ayvakit, ALTUVIIIO, and Sarclisa, contributed significantly to growth, with launches accounting for 14% of total sales.

• Vaccine sales grew modestly to €1.3bn, supported by the Heplisav-B addition post-Dynavax acquisition.

• Guidance for 2026 remains unchanged, with expectations for continued momentum and high single-digit sales growth.

Financial highlights

• Net sales grew 13.6% year-over-year to €10.5bn in Q1 2026.

• Business operating income reached €2,967m (+10.9%), with a margin of 28.2% (-1.1pp year-over-year).

• Business EPS rose 14.0% to €1.88, and free cash flow reached €1.1bn.

• Operating expenses increased 7%, mainly due to higher SG&A from BD and M&A activity.

• Currency headwinds expected to impact full-year sales by -2% and business EPS by -3%.

Outlook and guidance

• 2026 guidance confirmed: high single-digit sales growth at constant exchange rates, with business EPS expected to grow slightly faster than sales.

• Effective tax rate anticipated to remain stable at ~20%.

• Share buyback program of €1bn underway, with €800m-€921m already purchased.

• Tougher comparison base anticipated in H2 due to prior year launches and acquisitions.

• Expected €400m in capital gains from divestments in 2026.