Why Is Jazz (JAZZ) Down 3.9% Since Last Earnings Report?

It has been about a month since the last earnings report for Jazz Pharmaceuticals (JAZZ). Shares have lost about 3.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Jazz due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Jazz Pharmaceuticals PLC before we dive into how investors and analysts have reacted as of late.

Q4 Earnings & Sales Beat Estimates

Jazz Pharmaceuticals reported fourth-quarter 2025 adjusted earnings per share (EPS) of $6.64, which beat the Zacks Consensus Estimate of $6.62. Earnings rose 2% year over year.

Total revenues rose 10% year over year to $1.2 billion, which beat the Zacks Consensus Estimate of $1.18 billion.

Quarter in Detail

Net product sales increased 10.5% year over year to $1.13 billion. The reported figure beat both the Zacks Consensus Estimate and our model estimate, each of which stood at $1.11 billion.

Jazz recorded about $56 million in royalty revenues from high-sodium oxybate authorized generic (AG), up 1% year over year. The metric beat the Zacks Consensus Estimate of $53 million and our model estimate of $51 million.

Other royalties and contract revenues were about $10 million, up 28% from the year-ago period levels.

Neuroscience Products

Sales of Jazz’s neuroscience products rose more than 8% year over year to $792 million.

Net product sales for the combined oxybate business (Xyrem + Xywav) rose 12% to $503 million. This combined figure beat both the Zacks Consensus Estimate of $481 million and our model estimates of $485 million.

Sales of Xyrem declined more than 23% year over year to $37.8 million, primarily due to patients switching to Xywav and the launch of AGs in 2023.

Xywav recorded sales of more than $465 million in the quarter, reflecting 16% year-over-year growth. This upside can be attributed to the encouraging uptake of the drug in narcolepsy and IH indications. This drug is currently Jazz’s most extensive product by net sales.

Sales of Epidiolex/Epidyolex rose 4% to $287 million. Per Jazz, the drug’s sales growth was negatively impacted by higher-than-normal inventory levels in the year-ago period. This likely caused Epidiolex sales to miss the Zacks Consensus Estimate of $297 million and our model estimate of $300 million. Despite this soft performance, the drug achieved blockbuster status in 2025.

Cannabis-based mouth spray Sativex recorded sales of $1.5 million in the quarter, down 71% year over year.

Oncology Products

Oncology product sales rose 16% to over $337 million.

Rylaze/Enrylaze posted sales of more than $108 million, up nearly 7% year over year. This figure beat both the Zacks Consensus Estimate of $106 million and our model estimate of $107 million.

Zepzelca recorded sales over $90 million, up 15% year over year. This upside was primarily driven by initial demand for the drug in the recently approved front-line SCLC setting.

Vyxeos generated sales of about $35 million, down 35% from the year-ago period’s level. Defitelio sales rose 2% to $59 million.

Ziihera added $8.5 million to the top line compared with $8.3 million in the previous quarter.

Jazz recorded revenues worth $36.5 million from the sales of its recently launched brain tumor drug Modeyso, compared to $11 million in the previous quarter.

Cost Discussion

Adjusted selling, general and administrative expenses (SG&A) rose about 12% year over year to $360.5 million. This uptick was primarily attributed to higher compensation-related expenses incurred during the quarter.

Adjusted research and development (R&D) expenses declined 14% to $190 million, mainly due to lower clinical program costs incurred during the quarter.

Full-Year 2025 Results

Jazz reported adjusted EPS of $8.38 for the full year, down 54% year over year.

Total revenues rose 5% year over year to $4.3 billion. The top line included neuroscience and oncology net product sales of $2.9 billion and $1.1 billion, respectively.

2026 Guidance

Jazz issued financial guidance for the full year. Total revenues are expected to be in the range of $4.25-$4.50 billion, suggesting 2.5% year-over-year growth at the midpoint compared with 2025 level. The Zacks Consensus Estimate for this metric is pinned at $4.54 billion.

While the company expects double-digit growth across its combined epilepsy and oncology franchises, Xywav sales are projected to either remain flat or rise by a mid-single-digit percentage.

While adjusted SG&A expenses are anticipated to be between $1.26 billion and $1.32 billion, adjusted R&D expenses are expected to be in the range of $725-$775 million.

The effective tax rate is expected to be between 11.5% and 13.5%.

The company expects 2025 adjusted EPS to be in the range of $7.65-$8.45, representing a significant increase from the previous guidance of $4.80 to $5.60.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

The consensus estimate has shifted 7.35% due to these changes.

VGM Scores

Currently, Jazz has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Jazz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Jazz is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Prothena (PRTA), a stock from the same industry, has gained 4.8%. The company reported its results for the quarter ended December 2025 more than a month ago.

Prothena reported revenues of $0.02 million in the last reported quarter, representing a year-over-year change of -99.1%. EPS of -$0.44 for the same period compares with -$1.08 a year ago.

For the current quarter, Prothena is expected to post a loss of $0.37 per share, indicating a change of +67% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Prothena. Also, the stock has a VGM Score of D.

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