Royalty Pharma PLC (RPRX)
NASDAQ:RPRX
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Earnings Data
Report Date
Aug 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.28Last Year’s EPS
1.14Same Quarter Last Year
Strong Buy
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive: Royalty Pharma reported double-digit recurring revenue growth, attractive returns (ROIC ~14.1%, ROIE ~19.7%), robust cash generation ($722M portfolio cash flow), active capital deployment (>$0.5B) and strategic deal flow including R&D co-funding momentum (J&J and Teva deals) and high-impact clinical/regulatory wins (daraxonrasib, Avlayah, Myqorzo). Key risks highlighted were a material decline in milestone receipts (~53% drop), elevated interest expense timing, some market/policy headwinds (Promacta LOE, biosimilar Tysabri, MFN uncertainty) and optionality/execution risk in future co-funding tranches. Overall, the positive operating and balance-sheet trends and raised guidance outweigh the limited but meaningful risks discussed.Company Guidance
Top-line and Recurring Cash Flow Growth
Portfolio receipts grew 10% in Q1 and royalty receipts (recurring cash flows) grew 13% year-over-year, driven by strong performances from Tremfya, Voranigo and Evrysdi; the company absorbed a ~3% headwind from loss of exclusivity on Promacta and still delivered double-digit royalty growth.
Attractive Returns and Cash Generation
Return on invested capital was ~14.1% (LTM) and return on invested equity ~19.7% (LTM); portfolio cash flow (adjusted EBITDA less net interest) was $722 million in Q1 and reported net margin of around 78%, demonstrating high cash conversion.
Active Capital Deployment and Shareholder Returns
Announced $1.25 billion of transactions on three therapies and deployed $528 million of capital in the quarter; repurchased 1 million shares for $50 million and increased the dividend by 7%.
Strategic Acquisitions with Blockbuster Potential
Acquired a 30% slice of Ziihera royalties for $250 million (translating to a low- to mid-single-digit royalty for Royalty Pharma); Ziihera submitted for gastric cancer where consensus peak sales > $2 billion and transaction expected to deliver a low double-digit unlevered IRR.
Major Clinical and Regulatory Wins
Revolution Medicines' daraxonrasib Phase III nearly doubled overall survival in 2L pancreatic cancer (from ~7 months to >13 months); Denali's Avlayah received FDA approval; positive pivotal and Phase II readouts across the pipeline (Myqorzo, obexelimab, litifilimab, neladalkib) that support near-term royalty-generation.
R&D Co-funding Momentum and New Market Opportunity
Signed R&D co-funding deals with J&J and Teva in Q1 totaling ~$1 billion in announced value; highlighted a broader co-funding pipeline (5 deals since 2022 with up to $1.8 billion potential at announcement) and positioned the company to capture a large market opportunity amid an expected >$1 trillion cumulative R&D spend by global biopharma over 5 years.
Balance Sheet Strength and Financial Flexibility
Cash and equivalents of $586 million, investment-grade debt of $9.2 billion with a ~12-year weighted average duration, undrawn $1.8 billion revolver; Fitch upgraded rating to BBB from BBB- and leverage at ~2.9x total debt / adjusted EBITDA (2.7x net), providing access to approximately $4 billion of financial flexibility.
Raised 2026 Guidance
Increased full-year 2026 portfolio receipts guidance to $3.325 billion–$3.45 billion (previously $3.275 billion–$3.425 billion); expects royalty receipts growth of ~4%–8% for the year and provided Q2 portfolio receipts guidance of $740 million–$760 million.
Operational Efficiency Gains
Operating and professional costs were 3.9% of portfolio receipts in Q1 (benefiting from internalization), with full-year expense guidance of ~5.5%–6.5%, indicating improved cost structure and efficiency.
RPRX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RPRX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 06, 2026 | $50.22 | $50.50 | +0.55% |
Feb 11, 2026 | $43.79 | $43.83 | +0.09% |
Nov 05, 2025 | $37.27 | $39.81 | +6.82% |
Aug 06, 2025 | $37.11 | $36.34 | -2.08% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Royalty Pharma PLC (RPRX) report earnings?
Royalty Pharma PLC (RPRX) is schdueled to report earning on Aug 12, 2026, Before Open (Confirmed).
What is Royalty Pharma PLC (RPRX) earnings time?
Royalty Pharma PLC (RPRX) earnings time is at Aug 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RPRX EPS forecast?
RPRX EPS forecast for the fiscal quarter 2026 (Q2) is 1.28.