Sanofi

Q4 2025 net sales were EUR 11.3 billion, up 13.3% year over year. Full-year 2025 sales were EUR 43.6 billion, up 9.9% at constant exchange rates. Business EPS grew 26.7% in Q4 and 15% for the full year, while full-year business gross margin expanded 1.8 percentage points to 77.5%. Full-year business operating income rose 11.9% and BOI margin reached 27.8%. Free cash flow was EUR 8.1 billion, or 18.5% of sales. For 2026, Sanofi guided to high-single-digit sales growth and business EPS growth slightly faster than sales; it also expects around EUR 200 million of sales reduction from portfolio optimization, slightly lower vaccine sales, around EUR 500 million of capital gains from disposal, around EUR 400 million less R&D reimbursement from Regeneron, and roughly EUR 1 billion of Amvuttra royalties.

Paul Hudson framed 2025 as a transition year toward a more R&D-driven, AI-powered biopharma company, supported by the Opella divestment and reinvestment into business development and M&A. He highlighted innovation, with 3 new medicines and vaccines launched, several positive Phase III readouts, and early pipeline replenishment including gene therapies and entry into ophthalmology. His tone was upbeat and strategic, emphasizing profitable growth, external growth, and a long runway for earnings expansion into the next decade.

François-Xavier Roger focused on the quality of the financial execution: sales grew 9.9%, business gross margin improved to 77.5%, OpEx fell to 39.9% of sales, and free cash flow reached EUR 8.1 billion. He said net debt increased slightly to EUR 11 billion, leverage stayed conservative at 0.8x net debt-to-EBITDA, and the company preserved AA rating flexibility. He also detailed capital returns and deployment: the EUR 5 billion buyback was completed, the dividend is proposed at EUR 4.12, a EUR 1 billion buyback is planned for 2026, and Opella proceeds of EUR 10.4 billion were deployed into acquisitions including Blueprint, Vicebio, Dren Bio DR-0201 and Vigil. For 2026, he flagged moderate R&D growth, higher SG&A to support launches, stable G&A, a placeholder for future acquisitions, and a profit-sharing line rising faster than sales.

Analysts focused on Dupixent’s rollout in COPD and CSU, Beyfortus growth in the U.S. versus ex-U.S., amlitelimab’s data and safety questions, Dupixent patent durability, and the pace and scope of business development. Management said Dupixent’s underlying immunology market is still underpenetrated, with COPD and CSU acting as new growth drivers, while the company expects to update on life-cycle management in the first half of 2026. On Beyfortus, management said 2026 is too early for precise guidance, noted U.S. pediatric schedule changes could create some confusion but no recommendation or coverage changes, and pointed to continued geographic expansion ex-U.S. Questions on amlitelimab included the Kaposi sarcoma case, with management saying the overall benefit-risk remains aligned with prior statements, and that more full data will be presented by the end of March; on Dupixent IP, management said the product remains protected beyond March 31 in the U.S. and they intend to defend the portfolio vigorously.