Biogen Inc.

NASDAQ Global Select
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Somewhat Bullish +50

Why Biogen Stock Was a Winner on Wednesday

Biogen (NASDAQ: BIIB) saw its stock rise 6% on Wednesday after publishing quarterly earnings that beat analyst estimates for revenue and EPS.

Total revenue for Q1 2026 reached $2.48 billion, marking a 2% year-over-year increase above the consensus forecast of $2.25 billion.

Non-GAAP attributable net income surged by 19% to $529 million, translating to $3.57 per share, which exceeded the analysts' modeled projection of $2.95 per share.

The "growth products" portfolio drove revenue growth, with Leqembi sales jumping 74% to $168 million and Skyclarys showing double-digit growth.

Despite strong results, Biogen lowered its full-year adjusted net income guidance by approximately $1 per share due to anticipated charges from in-process R&D at the newly acquired Apellis Pharmaceuticals.

Revenue is still projected to decline at a mid-single-digit rate for 2026 compared to 2025 figures.

The pending acquisition of Apellis Pharmaceuticals, valued at $5.6 billion, is expected to close soon and will significantly impact future financial projections.

Biogen remains strategically pivoting away from its legacy multiple sclerosis treatments toward high-potential therapies like Alzheimer's and Friedreich's ataxia treatments.

Analysts view this strategic transformation as effective, with one contributor explicitly stating they would be a buyer of Biogen stock.

The Motley Fool Stock Advisor team did not include Biogen in their current list of 10 best stocks for investors to buy now.

The article notes that investing in past recommendations by the same team yielded massive returns for Netflix and Nvidia over many years.

Stock Advisor claims an average return of 985% compared to the S&P 500's 200%, though specific returns are cited as of April 29, 2026.

Disclosure statements confirm Eric Volkman holds no position in Biogen while The Motley Fool itself recommends holding the stock.

Bullish Signals
  • Biogen shares gained 6% by the end of trading on Wednesday as investors piled into the stock despite a guidance cut.
  • The company reported first-quarter 2026 revenue of $2.48 billion, up 2% year-over-year and topping the consensus forecast of $2.25 billion.
  • Attributable non-GAAP net income rose 19% to over $529 million, or $3.57 per share, beating analyst estimates of $2.95 per share.
  • Sales of Leqembi, which targets early Alzheimer's disease, surged 74% year-over-year to reach $168 million.
  • Other portfolio growth drivers included Skyclarys, the only FDA-approved medication for Friedreich's ataxia, which also posted double-digit growth.
  • The acquisition of Apellis Pharmaceuticals is valued at $5.6 billion and is expected to close in the near future, adding significant value.
Risk Factors
  • Despite beating earnings estimates, Biogen was forced to cut its full-year profitability guidance significantly, revising adjusted net income expectations down by $1 per share to a range of $14.25 to $15.25.
  • Revenue is projected to decline at a mid-single-digit percentage rate compared to 2025 levels, indicating an ongoing contraction in the company's top line despite recent growth in specific products.
  • The acquisition of Apellis Pharmaceuticals will introduce significant liabilities due to anticipated charges for in-process research and development, negatively impacting near-term profitability.
  • As part of its strategic pivot away from multiple sclerosis treatments, Biogen may face a loss of core revenue streams, raising concerns about the stability of its traditional business segment.
  • The company was excluded from The Motley Fool Stock Advisor's list of top 10 stocks to buy for current investors, suggesting analyst caution compared to high-growth peers like Nvidia and Netflix.
Full Analysis
Biogen (NASDAQ: BIIB) shares rose approximately 6% on Wednesday following the release of first-quarter fiscal 2026 earnings that significantly exceeded analyst expectations. The company reported total revenue of $2.48 billion, a 2% increase from the prior year, which surpassed the consensus forecast of $2.25 billion. More notably, attributable non-GAAP net income surged by 19% to $529 million, or $3.57 per share, beating the estimated $2.95 per share; this strong performance was driven primarily by growth products in its portfolio, specifically a 74% jump in Leqembi sales for Alzheimer's treatment and double-digit gains in Skyclarys for Friedreich’s ataxia. Despite the impressive top-line results, Biogen lowered its full-year profit guidance to an adjusted net income range of $14.25 to $15.25 per share, down from a previous projection of $15.25 to $16.25, due to anticipated charges related to acquired in-process research and development. The company also reiterated expectations for a mid-single-digit percentage revenue decline compared to 2025 figures. These financial updates were contextualized by the upcoming completion of its $5.6 billion acquisition of Apellis Pharmaceuticals, which is expected to close soon and represents a major pivot away from multiple sclerosis treatments toward high-potential neurodegenerative therapies like Leqembi. Following the earnings report, Motley Fool analyst Eric Volkman issued a "Buy" recommendation for Biogen, citing the smart strategy of transformation as already producing results. However, the article concludes with a promotional pitch for Motley Fool's Stock Advisor service, noting that Biogen was not included in their current top 10 list of stocks to buy and highlighting historical performance of other recommendations like Netflix and Nvidia from 2004 and 2005, respectively. The full disclosure indicates that Eric Volkman has no position in any mentioned stocks.