Strong Full-Year and Q4 Sales Growth
Net sales for full year 2025 were EUR 43.6 billion, a 9.9% increase at constant exchange rates. Q4 2025 sales were EUR 11.3 billion, up 13.3% year-over-year.
Sanofi
· SNY
January 29th, 2026
Summary
- Earnings Call Date:
- 2026-01-29
- Change Since:
- -6.98%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
PositiveThe call presented a largely positive picture: strong top-line growth (9.9% FY, 13.3% Q4), robust launch performance (EUR 5.7bn from new products), significant pipeline delivery and regulatory progress, improved margins and free cash flow, plus strategic BD/M&A activity. Notable challenges include a Phase III failure for tolebrutinib, a safety case in the amlitelimab program that will require monitoring, decreased Regeneron R&D reimbursements (offset partly by higher royalties), and some uncertainty in the U.S. vaccine schedule and vaccine sales in 2026. Overall, positives (growth, profitability, launches, pipeline replenishment and balance sheet flexibility) outweigh the lowlights, though execution and regulatory/safety risks remain important to monitor.
Company Guidance
Sanofi guided to "high single‑digit" sales growth for full‑year 2026 with business EPS expected to grow slightly faster than sales, noting vaccine sales should slightly decline and portfolio divestments will reduce sales by about €200m; management expects gross‑margin expansion to continue, operating income to include ~€500m of capital gains, underlying R&D to increase moderately (a ~€400m decline in Regeneron R&D reimbursement to be more than offset by ~€1bn of Amvuttra royalties), higher financial expenses from increased net debt, and a planned €1bn share buyback in 2026. This outlook builds on a strong 2025 base—sales €43.6bn (+9.9% CER), Q4 sales €11.3bn (+13.3%), business gross margin 77.5%, BOI margin 27.8%, OpEx ~39.9% of sales, business EPS up ~15% including buybacks, free cash flow €8.1bn (18.5% of sales) with a medium‑term target of ≥20% FCF, and a conservative balance sheet (net debt ~€11bn; net debt/EBITDA ~0.8x) that supports ongoing M&A.
Robust Launch Performance and New Product Sales
New launches reached EUR 5.7 billion in sales and grew 34% in 2025. ALTUVIIIO reached blockbuster status with EUR 1.2 billion in full-year sales; AYVAKIT achieved $725 million annual pro forma sales; Beyfortus totaled EUR 1.8 billion (up 9.5%).
Dupixent Momentum
Dupixent posted EUR 4.2 billion in Q4 and EUR 15.7 billion in annual sales, with patient numbers increasing more than 30% over the past year; growth drivers include expansion into COPD, CSU and BP and a new regulatory acceptance for AFRS.
Vaccines Leadership and Impact
Vaccines sales were EUR 7.9 billion for 2025. Beyfortus has protected over 11 million babies across 45+ countries with real-world effectiveness of 87%–98%, estimated to have prevented ~200,000 hospitalizations to date.
Improved Profitability and Margins
Business gross margin expanded by 1.8 percentage points to 77.5%. Business operating income increased 11.9% with a BOI margin of 27.8%. Business EPS grew strongly (Q4 business EPS growth noted at 26.7%); full-year business EPS excluding buyback grew 12.2% and grew 15% including the completed EUR 5 billion buyback.
Strong Free Cash Flow and Balance Sheet
Free cash flow was EUR 8.1 billion (18.5% of sales) in 2025; inventory was reduced by nearly 30 days. Net debt was EUR 11 billion with a conservative 0.8x net debt-to-EBITDA ratio and maintained AA rating, enabling M&A and shareholder returns including a proposed EUR 1 billion buyback in 2026 and a 5% dividend increase to EUR 4.12.
Pipeline Delivery and Regulatory Progress
In 2025 the company delivered 12 Phase III readouts, 15 Phase II readouts, added 10 molecules to Phase I (including 3 gene therapies), obtained 20 regulatory approvals and 22 acceptances (including 9 priority reviews), and launched three new medicines/vaccines (Qfitlia, Wayrilz, Nuvaxovid).
Strategic BD & M&A Deployment
Opella divestment proceeds (~EUR 10.4 billion) were deployed into value-creating BD/M&A including Blueprint, Vicebio, Dren Bio DR-0201, Vigil and the proposed Dynavax acquisition (adds HEPLISAV-B and a shingles candidate).
Operational & Sustainability Initiatives
Continued investments in manufacturing capacity (strategic focus on U.S.) and participation in development of PAS 2090, the first industry-wide global standard for measuring and reducing environmental impact of medicines and vaccines.
2026 Financial Guidance
Guidance for full-year 2026: high single-digit sales growth and business EPS growing slightly faster than sales (profitable growth expected to continue over at least five years).
Thomas Larsen
Hello, everyone, this Thomas Kudsk Larsen from the Sanofi IR team. Welcome to the Q4 and Full Year 2025 Conference Call for investors and analysts. As usual, you can find slides on sanofi.com. Please turn to Slide #3. Here, we have the usual forward-looking statements. We would like to remind you that information presented in this call contains forward-looking statements, which are subject to substantial risks and uncertainties that may cause actual results to differ materially. We encourage you to read the disclaimer in our slide presentation. In addition, we refer you to our Form 20-F on file with the U.S.
SEC and our French Universal Registration Document for a description of these risk factors. As usual, we'll be making comments on our performance using constant exchange rates and other non-IFRS measures. Numbers used are in millions of euros and for Q4 or full year 2025 unless stated otherwise. Please turn to Slide #4. First, we have a presentation, which is a little longer due to full year results, then we will take your questions. We aim at keeping it all to 1 hour, perhaps a little bit more, including questions. We appreciate other companies are also reporting today. For the Q&A, we have Olivier, Brian and Thomas to cover our global businesses as well as Roy, our General Counsel; and Brendan, Head of Manufacturing and Supply.
[Operator Instructions] With all of this, I'll now hand you over to Paul.
Paul Hudson
Well, thank you, and hello, everyone. In 2025, we continued to develop into an R&D-driven, AI-powered biopharma company. Our strategic progress was supported by the compl...
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