Jazz Pharmaceuticals plc

Jazz reported second-quarter 2026 revenue of $1.21 billion, up 16% year over year. Non-GAAP adjusted EPS was $5.71, including $0.94 of IPR&D charges. Gross margin declined slightly year over year because of higher sales of Zepzelca and Modeyso, which carry third-party royalties, while non-GAAP adjusted SG&A and R&D each increased 11%. Operating cash flow was $824 million in the first half, and the company paid off its 2026 convertible notes in the second quarter. For 2026, management raised total revenue guidance to $4.60 billion-$4.75 billion, now expects double-digit Xywav growth, and sees rare sleep revenue of $2.025 billion-$2.125 billion. SG&A guidance was modestly increased, and share count guidance is 69 million-70 million shares.

Renée Galá described the quarter as another outstanding result and emphasized that Jazz is executing across a diversified portfolio while building toward the expected zanidatamab milestone. She framed the company as entering a new growth phase, with the August 25 PDUFA date for first-line HER2-positive metastatic GEA as a key near-term catalyst and commercial, medical and market access teams ready to launch. Her tone was confident and forward-looking, with recurring emphasis on disciplined execution, durable value creation and use of financial strength to fund both internal R&D and external innovation.

Phil Johnson highlighted record revenue of $1.21 billion, 16% growth year over year, and pointed to growth of 32% in oncology, 13% in Xywav and 16% in Epidiolex. He said adjusted gross margin was slightly lower year over year due to higher sales of royalty-bearing Zepzelca and Modeyso, while SG&A and R&D each grew 11% because of Modeyso, Ziihera first-line GEA, commercial capabilities, digital/AI and higher zanidatamab trial costs. He also noted $824 million of operating cash flow in the first half, repayment of the 2026 convertible notes, $2.2 billion of cash on the balance sheet, and a modest increase to SG&A guidance tied to investments in Xywav, Epidiolex and corporate development.

Analysts pressed for more color on Epidiolex strength, zanidatamab approval timing, Xywav durability against generics and future orexin competition, Zepzelca mix between front-line and second-line use, and GEA launch readiness. Management said Epidiolex’s outperformance was driven by underlying demand rather than unusual inventory movements, while zanidatamab is viewed as highly likely to be approved “on or before” the PDUFA date and the team feels the doublet has improved odds at the upcoming OS interim. For Xywav, management said generic uptake has been slower than expected and that the business remains durable because it is still the only low-sodium oxybate and the only FDA-approved option for IH. On Zepzelca, management said 30% to 40% of U.S. sales are already coming from first-line maintenance, and the second-line business is expected to erode further, while GEA launch plans are built around >90% physician overlap, an existing J-code and NCCN/pathway submissions.