Biogen's Q1 2025 Earnings: Can Strong Science Overcome Slowing Revenues?

Biogen (NASDAQ: BIIB) is set to release its Q1 2025 earnings on May 1, 2025, marking a pivotal moment for the biotech giant as it navigates a mix of promising pipeline progress and lingering financial challenges. With revenue expected to dip 2.3% year-over-year and stock prices languishing below analyst targets, investors will scrutinize management’s ability to balance near-term headwinds with long-term growth drivers. Here’s what to watch.

Key Metrics to Watch
Analysts are bracing for a modest revenue decline, projecting $2.24 billion for Q1—a 2.3% drop from the same period in . While this represents an improvement from the 7% decline in Q1 2024, it would mark the second consecutive year of revenue contraction. Investors should compare this figure to the prior quarter’s $2.45 billion, which beat expectations by a slim 2.9% year-over-year rise.

The EPS report will be equally critical. Analysts expect adjusted EPS of $2.99, but the Zacks Consensus Estimate paints a more pessimistic picture, forecasting a 9% year-over-year drop to $3.34. This divergence highlights a cautious market sentiment, given Biogen’s recent miss on full-year EPS guidance. Meanwhile, the Zacks Earnings ESP of -15.8% suggests a heightened risk of falling short of expectations—a stark contrast to Biogen’s four-quarter streak of beating EPS estimates by an average of 0.58%.

The Pipeline’s Pivotal Role
While financial metrics dominate headlines, Biogen’s future hinges on its neuroscience pipeline, particularly its Alzheimer’s therapies. The FDA’s Fast Track designation for BIIB080—a tau-targeting drug—earlier this year has injected optimism, but execution remains key. Investors will demand clarity on:
- Updates on lecanemab’s regulatory review in the EU, a market worth billions.
- Clinical trial timelines for BIIB080 and other programs, such as the phase 3 trial for Aduhelm’s real-world efficacy.

Stock Performance and Analyst Sentiment
Biogen’s stock has been a laggard in 2025, falling 8.6% over the past month compared to a 3.6% decline for biotech peers. At $120.65, it trades nearly 35% below the average analyst price target of $182.55—a gap that underscores both skepticism and potential upside if the company delivers on its promises.

Analysts are divided. Bulls point to Biogen’s historical EPS outperformance and its leadership in Alzheimer’s research, while bears cite macroeconomic risks like U.S. tax reforms and a crowded biotech pipeline. Peer comparisons offer mixed signals: AbbVie’s 8.4% revenue growth (beating estimates) contrasts with Gilead’s flat revenue, underscoring the importance of Biogen’s own execution.

Conclusion: A High-Stakes Crossroads
Biogen’s Q1 results are a litmus test for its transition from a revenue-challenged incumbent to a pipeline-driven innovator. A revenue beat or strong EPS guidance could narrow its valuation gap with peers, while a miss might deepen investor pessimism.

Crucially, management’s commentary on BIIB080’s progress and lecanemab’s regulatory path will be the real catalysts. With the stock at a 52-week low and analysts’ price targets suggesting significant upside potential, the earnings call could redefine Biogen’s narrative.

The numbers tell a cautionary tale: a declining top line, a fragile EPS outlook, and a stock in need of a catalyst. Yet Biogen’s scientific bets—particularly in Alzheimer’s—could prove transformative. For investors, the question is whether the science will outweigh the spreadsheets, or if the company’s legacy drugs will keep it anchored.

In the end, Biogen’s Q1 earnings won’t just be about the past—they’ll shape the future of a company (and a sector) racing to redefine itself.