Jazz Pharmaceuticals Raises 2026 Revenue Guidance After Record Q3 Sales

Jazz Pharmaceuticals plc (Nasdaq: JAZZ) raised its 2026 revenue guidance after third-quarter sales reached a record $1.24 billion, up 10% from a year earlier, as growth in oncology products and Xywav offset softer year-over-year comparisons for Epidiolex. The company also reported a quarterly loss reflecting a large acquired in-process research and development charge tied to its acquisition of Actio Biosciences.

For 2026, Jazz now expects total revenue of $4.775 billion to $4.850 billion, compared with its previous range of $4.60 billion to $4.75 billion. The company continues to expect double-digit growth in combined rare oncology and epilepsy revenue, while rare sleep franchise revenue is projected at $2.125 billion to $2.175 billion. Xywav revenue is expected to grow at a low-double-digit to low-teens rate.

Third-quarter revenue rose to $1.243 billion from $1.126 billion in the prior-year period. Oncology revenue increased 35%, while Xywav revenue grew 12%. Jazz noted that the year-earlier quarter included 14 shipping weeks, versus 13 weeks in the latest period, for its U.S. oncology products. The third quarter of 2025 also benefited from lower U.S. Epidiolex gross-to-net deductions.

Jazz recorded a GAAP net loss of $483.4 million, or $7.48 per diluted share, compared with net income of $251.4 million, or $4.08 per share, a year earlier. On a non-GAAP basis, the company reported a net loss of $250.8 million, or $3.88 per share, versus adjusted net income of $500.7 million, or $8.13 per share. The latest result included a $754.2 million acquired IPR&D charge associated with Actio, reducing non-GAAP earnings by $11.03 per share.

Non-GAAP gross margin declined to 91.5% from 92.6%, primarily because of royalties on higher Modeyso and Zepzelca sales. Non-GAAP research and development expense increased to $188.9 million from $169.9 million as Jazz spent more on evidence-generation studies and its early-stage portfolio. Non-GAAP selling, general and administrative expense fell to $328 million from $460.1 million, though the prior-year period included $151.5 million of litigation settlement expenses.

Xywav and Epidiolex

The rare sleep franchise, which includes Xywav, Xyrem and royalties from an authorized generic high-sodium oxybate, generated $552 million in third-quarter revenue. Xywav added 425 net patients during the quarter, including 325 patients with idiopathic hypersomnia. At quarter-end, the product had approximately 11,375 active narcolepsy patients and 6,175 active idiopathic hypersomnia patients.

Epidiolex generated $295 million in third-quarter net product sales, compared with $303 million a year earlier and $292 million in the second quarter. Jazz said demand continued to grow, but inventory build was lower because of wholesaler purchasing patterns, while the prior-year period benefited from lower gross-to-net deductions.

The U.S. Food and Drug Administration has set an April 16, 2027, PDUFA date for a cannabidiol oral capsule formulation intended for use within Epidiolex’s existing approved indications. If approved, the formulation is designed to provide patients with greater flexibility.

Oncology Growth and New Launches

Modeyso recorded third-quarter net product sales of $61 million, up from $11 million a year earlier. The latest figure included $14 million of initial inventory build in Japan. About 725 patients had received the treatment as of September 30, and Jazz said longer-term treatment-duration data were still maturing. Results from the Phase 3 ACTION study, which could support earlier-line use, are expected in the first half of 2027.

Zepzelca sales increased 32% to $104 million from $79 million, driven by uptake in first-line maintenance treatment for extensive-stage small-cell lung cancer. Jazz said the removal of the second-line indication from the label did not affect the first-line maintenance indication. The company expects competitor data to create a headwind for Zepzelca sales in 2027 and beyond.

Jazz also began selling Ziihera for first-line HER2-positive metastatic gastroesophageal adenocarcinoma following its August 25 approval. In September, the first full month of launch, new ordering accounts tripled month over month, with 80% coming from community settings, while average demand vials per selling day increased about 40%.

The company estimated a $3 billion to $5 billion peak-sales opportunity for zanidatamab, citing approvals in biliary tract cancer and gastroesophageal adenocarcinoma, ongoing registrational studies and planned development in additional HER2-expressing cancers. The Phase 3 EmpowHER-BC-303 breast cancer trial is enrolling, with top-line data expected in late 2027 or early 2028.

Actio Acquisition and Pipeline Priorities

Jazz completed its acquisition of Actio on September 15 for $820 million upfront, net of acquired cash, plus as much as $500 million in potential approval and sales milestone payments. The transaction added ABS-1230, also known as JZP6979, a clinical-stage precision inhibitor targeting KCNT1-related epilepsy.

The company said KCNT1-positive epilepsy affects about 2,500 U.S. patients and has no FDA-approved treatments. ABS-1230 is being evaluated in the registrational Phase 1b/2a KYRON trial, and initial patient efficacy data are scheduled for presentation at a medical meeting in the fourth quarter of 2026.

Jazz ended the quarter with $2.9 billion in cash, cash equivalents and investments after raising $1.25 billion through exchangeable senior notes and completing the Actio transaction. Operating cash flow totaled $1.3 billion for the first nine months of 2026.

Under its updated outlook, Jazz expects a 2026 non-GAAP gross margin of 90.5% to 91.5%, compared with the previous 90% to 91% range. Non-GAAP SG&A guidance remains $1.33 billion to $1.37 billion, and non-GAAP R&D guidance remains $725 million to $775 million despite the addition of Actio expenses. The projected non-GAAP effective tax rate increased to 19.5% to 21.5% from 11.5% to 13.5%, reflecting the non-tax-deductible Actio IPR&D charge.

The outlook remains subject to clinical and regulatory uncertainty, reimbursement and market-access conditions, competition, manufacturing and supply risks, intellectual-property protection, and the company’s ability to integrate acquisitions and commercialize newer products. Jazz also identified competitor data as a specific future pressure on Zepzelca and cautioned that development timelines and regulatory outcomes may differ from current expectations.