French pharmaceutical giant Sanofi SA (SNY, SNYNF, SAN.PA) reported a dramatic drop in second-quarter net profit while business earnings and sales climbed sharply higher.
The company has now upgraded its fiscal 2026 guidance, projecting sales growth of approximately 10 percent at constant exchange rates for the full year.
That revised outlook represents an improvement over its previous forecast of high single-digit percentage sales growth at constant exchange rates.
Sanofi also expects business earnings per share to expand slightly faster than sales growth for the full fiscal year, consistent with its prior guidance framework.
Net income attributable to equity holders collapsed to €343 million in the second quarter, compared to €3.939 billion in the same period last year.
Basic earnings per share fell sharply to €0.29, down from €3.24 recorded in the year-ago quarter, reflecting the steep decline in reported net profit.
On a continuing operations basis, net income came in at €377 million, or €0.29 per share, versus €1.236 billion, or €1.02 per share, a year earlier.
Despite the net income drop, business net income told a very different story, rising 28.9 percent to €2.501 billion from €1.940 billion in the prior year period.
Business earnings per share climbed 31.4 percent to €2.09, up from €1.59 in the year-ago quarter, signaling underlying operational strength across the business.
Second-quarter net sales reached €11.597 billion, a gain of 17.8 percent compared to €9.994 billion in the same quarter of 2025.
The sales increase was driven by pharmaceutical launches, contributions from recent acquisitions, and a powerful performance from Dupixent, which surged 37.6 percent year-over-year.
Dupixent’s outsized growth continues to position it as a critical revenue engine for the company as it pursues expansion into additional therapeutic indications.
The gap between reported net profit and business profit highlights significant one-time or non-recurring items weighing on Sanofi’s bottom-line earnings figure this quarter.
Investors will be watching closely to see whether Sanofi can sustain Dupixent’s momentum and execute on its upgraded full-year guidance through the second half of 2026.
