Biogen filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $10.3 billion, a rise of 2.3% on the year before. That growth rate was up 2.0 percentage points on the rate a quarter earlier.
What stands out in the filings
Net income fell 78.4% over the year while free cash flow fell 10.1%, meaning reported profit and cash are moving at different speeds. Capital spending rose 18.2% while operating cash flow fell 8.4%, so less of the cash generated was left over.
Profit and margins
Reported cash is holding up better than reported profit. The trailing gross margin was 74.0%. The trailing net margin was 3.4%. Net income over the twelve months was $347.5 million, which fell 78.4% on the year before.
The cash picture
Spending is outrunning the cash the business brings in, so less is left over. Operating cash flow over the twelve months was $2.2 billion, down 8.4% on the year before. Capital spending was $176.4 million, or 1.7% of revenue. Free cash flow, operating cash flow less capital spending, was $2.1 billion, down 10.1% on the year before. Free cash flow was 20.1% of revenue (the free-cash-flow margin), down 2.8 percentage points from a year earlier.
Shares outstanding
The average diluted share count rose 1.2% over the year.
How today compares
In the context of past results: today’s free-cash-flow margin of 20.1% is higher than 13% of the company’s own past quarterly readings, which have ranged from 10.6% to 45.7%. Today’s twelve-month revenue growth rate of 2.3% is higher than 33% of past readings (−22.2% to 41.4%).
Guidance
The company raised its fy 2026 guidance for FY 2026 non-gaap diluted EPS guidance, underlying guidance (adjusted) to a range of $15.85 to $16.85. The company gave its full year 2026 guidance for dilution to non-gaap diluted EPS (adjusted) of $0.85. The company gave its second half of 2026 guidance for combined non-gaap R&D expense and non-gaap SG&A expense (adjusted) of $2.65 billion to $2.7 billion. The company gave its exiting 2027 guidance for transaction run rate synergies exiting 2027 of $250.0 million.
What it means for our valuation
These trends feed directly into what the shares are worth in our model. In our model, growth 5 percentage points lower would lower the value by 29.7%, and 5 percentage points higher would raise it by 39.1%. A free-cash-flow margin 1 percentage point lower would lower it by 5.3%.
What comes next
The next filing will show whether the trends above continue, slow or reverse.
