Jazz Pharmaceuticals drew 11 news stories in the 24 hours to 3 November, against a usual 0.6 a day. This spike centers on third-quarter results and late-stage brain cancer trial data.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 6.1% | 17.6% | 33.4% |
| FY25 Q1 | 5.8% | 14.6% | 37.2% |
| FY25 Q2 | 4.5% | -7.1% | 31.0% |
| FY25 Q3 | 4.1% | -11.9% | 32.1% |
| FY25 Q4 | 4.9% | -10.1% | 30.4% |
| FY26 Q1 | 9.2% | -0.9% | 28.6% |
| FY26 Q2 | 12.6% | 19.5% | 34.6% |
| FY26 Q3 | 13.5% | 9.0% | 34.4% |
The value hinges on growth more than margins
Profit is falling faster than sales are rising. Net income over the twelve months was $206.0 million, which fell 93.9% on the year before. Revenue for the same period was $4.7 billion, up 13.5%. The trailing net margin stands at 4.4%, while the operating margin widened 20.9 percentage points to 9.0%.
Cash generation is moving in the opposite direction from reported profit. Free cash flow rose 21.3% over the year to $1.6 billion. Operating cash flow increased 21.6% to $1.7 billion. Capital spending was only $70.8 million, or 1.5% of revenue. This divergence means less of each dollar of sales is left in net income, but more is retained as cash.
Share count growth is diluting the per-share claim on these results. The average diluted share count rose 3.1% over the year. With net income down 93.9%, the numerator shrinks while the denominator grows. Each share’s claim on profit therefore grows more slowly than the total profit itself would imply if shares were constant.
The valuation model is sensitive to growth rather than margins. A free-cash-flow margin 1 percentage point lower would reduce it by only 3.1%.
Where Jazz Pharmaceuticals' figures sit in its own record
Today’s free-cash-flow margin of 34.4% is higher than 43% of the company's own past quarterly readings. Those historical readings have ranged from 20.1% to 55.2%. The current operating margin of 9.0% is higher than 19% of past readings, which have spanned from −11.9% to 46.9%. Revenue growth of 13.5% is higher than 54% of past readings, which have ranged from 0.0% to 115.2%.
What Jazz Pharmaceuticals' share price implies against our model
Our model shows high sensitivity to growth assumptions. Margin changes have a smaller impact; a 1 percentage point drop in free-cash-flow margin reduces value by 3.1%. This structure means that small shifts in revenue trajectory drive large swings in estimated value, while minor margin adjustments have limited effect.
What the filings cannot tell you at Jazz Pharmaceuticals
Our figures run to Q3 2026, from the company's own filings; they cannot confirm, explain or rule out anything in the reports. The net income decline and revenue growth bear directly on the coverage of third-quarter results and analyst commentary regarding valuation.