Biogen 2025 Q2 Earnings Beats Expectations as Net Income Rises 8.8%

Biogen (BIIB) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company exceeded analyst expectations with adjusted earnings per share of $5.47, beating consensus estimates of $4.06. Biogen also raised its full-year 2025 non-GAAP diluted EPS guidance to a range of $15.50 to $16, reflecting a stronger business outlook. Additionally, Biogen's revenue reached $2.65 billion, surpassing expectations of $2.32 billion, demonstrating robust growth in key segments and offsetting declines in the multiple sclerosis portfolio.

Revenue
The total revenue of Biogen increased by 7.3% to $2.65 billion in 2025 Q2, up from $2.46 billion in 2024 Q2.

Earnings/Net Income
Biogen's EPS rose 8.0% to $4.33 in 2025 Q2 from $4.01 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $634.80 million in 2025 Q2, marking 8.8% growth from $583.60 million in 2024 Q2. The EPS performance is favorable, demonstrating ongoing profitability improvements.

Price Action
The stock price of Biogen has dropped 3.76% during the latest trading day, has dropped 3.46% during the most recent full trading week, and has edged up 1.92% month-to-date.

Post-Earnings Price Action Review
The strategy of buying BIIB when earnings beat and holding for 30 days resulted in a -43.86% return, significantly underperforming the benchmark return of 85.57%. Despite this, the strategy experienced a maximum drawdown of 0.00%, indicating stability in price fluctuations. The Sharpe ratio stood at -0.26, reflecting a negative risk-adjusted return, and the volatility was recorded at 42.71%, suggesting considerable price variability. This highlights the challenges investors face when betting on short-term post-earnings stock movements, emphasizing the importance of considering broader market conditions and investment horizons.

CEO Commentary
Christopher A. Viehbacher, President, CEO & Director, expressed satisfaction with the second quarter performance, highlighting growth from new product launches that offset declines in the MS portfolio. He noted, "MS has also proven to be a little bit more resilient this quarter," and emphasized the strong performance of VUMERITY and LEQEMBI, attributing growth to factors like approved blood-based biomarkers and upcoming product formulations. Viehbacher conveyed optimism about the pipeline, stating, "we're quite excited about that," and underscored disciplined cost management contributing to robust financial outcomes, positioning Biogen well for future growth with ongoing investments in research and development.

Guidance
Biogen raised its full-year 2025 non-GAAP diluted EPS guidance to a range of $15.50 to $16, up from $14.50 to $15.50, reflecting a stronger business outlook. The company expects total revenue for 2025 to remain approximately flat compared to 2024. Non-GAAP R&D and SG&A expenses are projected to be around $4 billion, with continued investments aimed at accelerating clinical development activities, particularly in rare diseases. The company anticipates ongoing competitive pressures, particularly in the MS market outside the U.S., while emphasizing a commitment to delivering $1 billion in gross savings under its Fit for Growth initiative.

Additional News
Biogen announced a substantial $2 billion investment to expand manufacturing capabilities in North Carolina's Research Triangle Park, focusing on antisense oligonucleotide capabilities and advanced automation. This investment underscores Biogen's commitment to enhancing its production infrastructure and aligns with its 30th anniversary in the region. Furthermore, Biogen and Stoke Therapeutics presented promising data for zorevunersen, their investigational treatment for Dravet syndrome, highlighting cognitive and behavioral improvements. Lastly, Biogen received a positive opinion from the CHMP for ZURZUVAE®, a treatment for postpartum depression, marking a significant step towards addressing unmet medical needs in Europe.