Regeneron Pharmaceuticals drew nine news stories in the 24 hours to 30 October, against a usual one a day. Reports say third-quarter earnings exceeded expectations and that the stock rose on the results. The filings behind that coverage tell a more mixed story: revenue growth accelerated, but profit is not keeping pace and cash generation is declining.
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 | 8.3% | 28.1% | 25.8% |
| FY25 Q1 | 7.5% | 27.2% | 22.0% |
| FY25 Q2 | 5.4% | 27.0% | 27.1% |
| FY25 Q3 | 2.9% | 25.9% | 29.6% |
| FY25 Q4 | 1.0% | 24.9% | 28.4% |
| FY26 Q1 | 5.9% | 24.3% | 27.6% |
| FY26 Q2 | 9.3% | 24.7% | 24.2% |
| FY26 Q3 | 18.6% | 28.8% | 22.6% |
Profit is lagging sales
Growth has picked up. Revenue over the twelve months to Q3 2026 reached $16.9 billion, up 18.6% on the year before, and that growth rate was 9.3 percentage points higher than the rate a quarter earlier. Operating margin widened to 28.8%, up 2.9 percentage points from a year earlier, meaning the company is converting a larger share of each sales dollar into operating profit than it was in the prior period.
Buybacks are adding to each share's claim on profit. The average diluted share count fell 3.2% over the year, so even if total profit were flat, profit per share would still rise. With net income up 5.2% to $4.8 billion, the per-share figure grows faster than the headline number.
Sales are outrunning cash. Revenue rose 18.6% over the year while free cash flow fell 9.4% to $3.8 billion. Operating cash flow, $4.8 billion, declined 4.4%, so the gap between top-line growth and cash generation is not driven by capital spending alone, capital spending was $1.0 billion, or 6.0% of revenue. Free-cash-flow margin fell to 22.6% of revenue, down 7.0 percentage points from a year earlier. That gap sits behind the coverage: reports reference the CFO's remarks on the company's positioning for the year ahead, yet the filings show net income rising only 5.2% while revenue grew 18.6%. Profit is lagging sales.
Where Regeneron Pharmaceuticals' figures sit in its own record
Today's free-cash-flow margin of 22.6% sits above 54% of the company's own past quarterly readings, which have ranged from −46.7% to 55.3%. Revenue growth of 18.6% is higher than 55% of past readings (−25.1% to 209.2%).
What Regeneron Pharmaceuticals' share price implies against our model
In our model, the valuation is sensitive to the growth rate. Growth 5 percentage points lower would lower the value by 22.9%; growth 5 percentage points higher would raise it by 29.3%. A free-cash-flow margin 1 percentage point lower would lower the value by 4.2%.
What the filings cannot tell you at Regeneron 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 revenue growth and its divergence from the net-income figure bear directly on the earnings-beat narrative; the free-cash-flow decline bears on whether the current margin expansion holds in cash terms.