Biogen Exceeds Q2 Revenue Expectations, Raises Full-Year Guidance

Biogen reported Q2 revenue of $2.65 billion, a 7.3% YoY increase, exceeding analyst estimates by 13.8%. Adjusted EPS was $5.47, a 41.3% beat. Management raised full-year adjusted EPS guidance to $15.75, a 5% increase. However, operating margin and free cash flow margin declined from the same quarter last year.

Biogen (NASDAQ:BIIB) reported robust financial performance in the second quarter of 2025, with revenue surging to $2.65 billion, a 7.3% year-on-year increase that exceeded analyst estimates by 13.8%. The company's adjusted earnings per share (EPS) of $5.47 was a 41.3% beat over consensus estimates. Management also raised its full-year adjusted EPS guidance to $15.75, a 5% increase from the previous projection [1].

However, the quarter was not without its challenges. Biogen's operating margin declined to 28.1% from 31.8% in the same quarter last year, while its free cash flow margin fell to 9.9% from 24%. These declines suggest that while Biogen's top-line growth was strong, its cost structure may be expanding at a faster rate than its revenue [1].

Looking ahead, sell-side analysts expect Biogen's revenue to decline by 9.3% over the next 12 months, indicating potential demand challenges for the company's products and services. This projection is particularly notable given that Biogen's revenue over the last two years was relatively flat, suggesting a stabilization in demand following an initial drop [1].

Despite these challenges, Biogen's stock traded up 4.4% to $132.50 immediately after reporting its Q2 results. Investors should consider the company's valuation, business quality, and recent performance when deciding whether to buy the stock. Biogen's strong Q2 performance suggests that the company may be on the right track, but the long-term outlook remains uncertain given the expected revenue decline and margin contraction.

References:
[1] https://finance.yahoo.com/news/biogen-nasdaq-biib-reports-bullish-112454422.html