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Jazz Pharmaceuticals (JAZZ)
NASDAQ:JAZZ
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Jazz Pharmaceuticals
(NASDAQ:JAZZ)
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Rating:73Outperform
Price Target:
$194.00
▼(-1.44% Downside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by strong cash generation and improved balance-sheet leverage, alongside constructive technical trend signals. The biggest offsets are the 2025 earnings deterioration (loss year) and mixed forward visibility from guidance (modest 2026 growth and sleep-franchise pressure), while earnings-call highlights—especially oncology pipeline/zanidatamab momentum—help support the overall view.
Positive Factors
Strong cash generation & improved leverage
Consistent, large operating and free cash flow combined with a materially lower debt-to-equity ratio meaningfully increases financial flexibility. This durability supports sustained R&D funding, commercialization of launches, potential M&A, and buffers against cyclical revenue pressure over the next 2–6 months.
Diversified, durable commercial revenue base
Record revenue and two decades of consecutive top-line growth reflect a diversified product mix across sleep, epilepsy, and oncology. Multiple revenue engines reduce single-product dependency and provide steadier cash conversion and planning visibility despite near-term headwinds in one franchise.
High-impact oncology pipeline catalyst
Practice-changing Phase III data and expedited regulatory path for zanidatamab represent a structural growth catalyst that could add a durable oncology franchise. Approval and successful commercialization would meaningfully diversify revenue and reduce long-term reliance on the sleep portfolio.
Negative Factors
Competitive pressure in sleep franchise
Generic entry into high-sodium oxybate and royalty step-downs create a durable headwind to Jazz's largest franchise. Expected multi-hundred-million dollar revenue decline strains overall growth prospects and forces the company to rely on launches and other franchises to offset lost branded sales.
2025 swing to net loss and margin deterioration
A material swing to a loss year undermines earnings quality and highlights margin vulnerability. Even with strong cash flow, volatility in reported profitability complicates forecasting, may limit discretionary investments, and raises the bar for sustaining margins during reinvestment cycles.
Rising R&D and margin pressure from new product mix
Planned increases in R&D to support oncology and other programs are strategically needed but will exert persistent near-term pressure on margins and cash deployment. Higher royalties and investment cadence require sustained commercial upside to maintain long-term margin and free-cash-flow expansion.
Jazz Pharmaceuticals (JAZZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.56B
Dividend YieldN/A
Average Volume (3M)823.54K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth4.14%
EPS Growth-179.96%
CountryUS
Employees2,800
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)6.64
Shares Outstanding61,560,350
10 Day Avg. Volume761,182
30 Day Avg. Volume823,537
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)2.40
Price to Sales (P/S)2.43
P/FCF Ratio7.99
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit3.09
Enterprise Value/Ebitda83.75
Forecast
1Y Price Target
$233.00Price Target Upside18.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Jazz Pharmaceuticals Business Overview & Revenue Model
Company DescriptionJazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally. The company has a portfolio of products and product candidates with a focus in the areas of neuroscience, including sleep medicine and movement disorders; and in oncology, including hematologic and solid tumors. Its lead marketed products include Xyrem, an oral solution for the treatment of cataplexy and excessive daytime sleepiness (EDS) in narcolepsy patients seven years of age and older; Sunosi for the treatment of EDS in patients with narcolepsy and obstructive sleep apnea; Erwinaze to treat acute lymphoblastic leukemia; Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease; Vyxeos liposome for injection, a product for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia; and Zepzelca for the treatment of adult patients with metastatic small cell lung cancer. The company also offers Xywav, an oxybate product candidate, to treat EDS and cataplexy with narcolepsy and idiopathic hypersomnia; JZP-324, a low sodium oxybate formulation with the potential to provide a clinically meaningful option for narcolepsy patients; JZP385, a T-type calcium channel modulator, for the treatment of essential tremor; JZP458, a recombinant Erwinia asparaginase, for use as a component of a multi-agent chemotherapeutic regimen in the treatment of pediatric and adult patients; and JZP150 for treatment of post-traumatic stress disorder. The company has licensing and collaboration agreements with ImmunoGen, Inc.; Codiak BioSciences, Inc.; Pfenex, Inc.; XL-protein GmbH; and Redx Pharma plc. Jazz Pharmaceuticals plc was incorporated in 2003 and is headquartered in Dublin, Ireland.
How the Company Makes MoneyJazz Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products, with key revenue streams coming from its established drugs in the neuroscience and sleep medicine sectors. The company has a strong focus on research and development, which contributes to the introduction of new products and the expansion of its existing drug portfolio. Additionally, Jazz engages in strategic partnerships and collaborations with other pharmaceutical companies and research organizations, enhancing its ability to innovate and market new therapies. The company also benefits from licensing agreements and royalties related to its products, further diversifying its income sources.
Jazz Pharmaceuticals Key Performance Indicators (KPIs)
Any
Neroscience Revenue Breakdown
Highlights revenue generated from neuroscience products, indicating the company's strength and focus in treating neurological disorders, and potential growth in this specialized market.
Highlights revenue generated from neuroscience products, indicating the company's strength and focus in treating neurological disorders, and potential growth in this specialized market.
Data provided by:
The Fly
The FlyJazz Pharmaceuticals Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution and multiple material positives: record revenues, blockbuster Epidiolex, robust Xywav performance, the highly important practice-changing Phase III zanidatamab data with an expedited regulatory path, a promising Modeyso launch, substantial cash generation, and meaningful litigation and tax benefits. Offsetting items include evolving competitive pressure in the sleep (high-sodium oxybate) market leading to an expected modest decline in Rare Sleep revenue in 2026, increased R&D investment and modest margin pressure, the termination of one orexin program (JZP441), a conservative 2026 top-line growth guide (~2.5% at midpoint) and no EPS guidance, and potential share dilution from convertible note conversions. Overall, the positive commercial momentum, high-impact oncology data and strong financial position outweigh the challenges and near-term headwinds.Q4-2025 Updates
Positive Updates
Record Revenue and Sustained Topline Growth
Total 2025 revenue reached a record $4.3 billion (21st consecutive year of topline growth). Fourth quarter 2025 revenue was a record $1.2 billion, up 10% year-over-year.
Strong Cash Generation and Profitability
Full year 2025 non-GAAP adjusted net income was approximately $522 million with non-GAAP adjusted EPS of $8.38. Cash from operations totaled ~$1.4 billion and year-end cash and investments were $2.4 billion.
Xywav Growth and Market Position
Xywav generated approximately $1.7 billion in 2025 (up 12% year-over-year). Fourth quarter Xywav revenue was $465 million (up 16% YoY). More than 16,000 patients on Xywav, ~500 net patient adds in Q4 and >2,000 net patient adds in 2025; active IH patients grew ~34%.
Epidiolex Reaches Blockbuster Status
Epidiolex achieved $1.1 billion in 2025 revenue (up 9% year-over-year) with 7% volume growth. Fourth quarter revenue was $287 million (up 4% YoY). Company highlights continued investment to expand adult patient uptake and new formulations.
Zanidatamab (Ziihera) — Practice-Changing Phase III Data
Phase III zanidatamab plus atezolizumab and chemotherapy in first-line HER2-positive metastatic GEA showed median OS >2 years, >7 months improvement vs control and a 28% reduction in risk of death; PFS improvement of >4 months. FDA granted Breakthrough Therapy designation; supplemental BLA submission under real-time oncology review planned in Q1 with potential launch in H2 2026.
Modeyso Launch and Early Uptake
Following the April acquisition of Chimerix, Modeyso launched in August and generated $48 million in 2025 revenue (4.5 months of launch). >360 patients treated in 2025; company believes U.S. commercial opportunity >$500 million contingent on broader uptake and ACTION trial outcomes.
Zepzelca Expansion and Growth
Zepzelca expanded into first-line maintenance (with atezolizumab) and generated $307 million in 2025 revenue. Fourth quarter revenue ~ $90 million, up 15% YoY, driven in part by initial first-line demand.
Litigation Resolutions and Tax/One-Time Financial Benefits
Company resolved nearly all major litigation (including ANDA litigation for Epidiolex) extending runways into the very late 2030s. Recognized a deferred tax asset from Chimerix transaction expected to reduce future cash taxes by >$200 million. Sold a priority review voucher for $200 million gross proceeds (50% to Jazz).
Robust Pipeline and Early-Stage Advancements
New INDs/initiations in 2025 include in-house JZP047 (Phase I for absence epilepsy) and Phase Ib Epidiolex in focal onset seizures. Ongoing registrational and exploratory trials across oncology (including breast, PAN-tumor baskets) and rare disease.
Negative Updates
Competitive Pressure in Sleep Franchise from High-Sodium Generics
Two generic high-sodium oxybate products entered the market and Hikma AG remains active. Company expects Rare Sleep revenue to decline from $2.01 billion in 2025 to $1.8–1.9 billion in 2026 (modest decrease driven by Xyrem and AG dynamics). Management expects minimal branded Xywav impact in H1 2026 but increased competitive dynamics in H2 2026.
Guidance and Growth Moderation for 2026
2026 total revenue guidance of $4.25–4.50 billion implies ~2.5% growth at the midpoint versus 2025 — a significant moderation from 2025 growth. Company did not guide to adjusted net income or EPS for 2026.
Increased R&D Spend and Margin Pressure
Non-GAAP adjusted R&D guidance up to $725–775 million for 2026 (increase vs 2025) driven by zanidatamab and multiple programs. Non-GAAP adjusted gross margin guidance of 90–91% is a slight decline due to higher royalties from new product sales and potential tariffs.
Program Termination — JZP441
Development of JZP441 (orexin program with partner Sumitomo) was stopped and the partnership ended, representing the discontinuation of a development program in the sleep area.
Modeyso Peak Opportunity Contingent on Trial Outcome
Modeyso early revenue of $48 million is encouraging but the >$500 million U.S. opportunity is conditional on ACTION trial success (frontline approval to treat immediately after radiotherapy rather than at progression). Current label is post-progression, limiting near-term market size.
Share Count Pressure and Potential Dilution
Fully diluted shares outstanding guidance for 2026 of 65–66 million reflects increases due to employee share issuance and accounting for 2026 and 2030 convertible notes now in-the-money — potential dilution impact for shareholders.
Company Guidance
Jazz guided 2026 total revenue of $4.25–4.50 billion (≈2.5% growth at the midpoint vs. 2025’s $4.3B), expecting double‑digit growth in rare oncology and epilepsy (products that totaled ~$2.2B in 2025, driven by Epidiolex, Modeyso and Ziihera) while Rare Sleep revenue is forecast to decline to $1.8–1.9B (from $2.01B in 2025) amid multiple high‑sodium oxybate generics and a modest Hikma AG royalty step‑down; Xywav is expected to be flat to up mid‑single digits (Xywav was ~$1.7B in 2025 and $465M in Q4), Xyrem generated $146M in 2025, and Modeyso/zanidatamab/Zepzelca launches are key growth drivers. Financial guidance also includes non‑GAAP adjusted gross margin of 90–91%, SG&A of $1.26–1.32B, R&D of $725–775M, an effective tax rate of 11.5–13.5%, and diluted shares of 65–66M; management is not providing adjusted net income/EPS guidance for 2026 (FY2025 non‑GAAP adj. net income ≈$522M, adj. EPS $8.38), and the company closed 2025 with ~$2.4B cash/investments and ~$1.4B cash from operations.Jazz Pharmaceuticals Financial Statement Overview
Summary
Strong operating and free cash flow in 2025 (~$1.36B OCF and ~$1.30B FCF) and a sharply improved leverage profile (debt-to-equity ~0.25) support financial resilience. The main drag is the 2025 swing to a net loss and negative operating profitability versus solid 2023–2024 profitability, which raises uncertainty around near-term margin durability.Income Statement
Revenue has grown steadily across the period (including +2.6% in 2025), and historical profitability was strong in 2023–2024 with solid margins. However, 2025 swung to a net loss (about -8.3% net margin) and negative operating profitability, indicating a meaningful deterioration versus prior-year profits and making earnings quality and near-term momentum less dependable.56
Neutral
Balance Sheet
Leverage improved sharply in 2025, with debt-to-equity falling to ~0.25 from ~1.5–1.9 in 2021–2024, which materially strengthens financial flexibility. The main offset is that 2025 generated a negative return on equity due to the net loss, and prior years show the company has carried elevated leverage at times, suggesting the capital structure can still be a swing factor across cycles.68
Positive
Cash Flow
Cash generation is a clear strength: 2025 produced roughly $1.36B of operating cash flow and ~$1.30B of free cash flow, remaining strong even in a loss year. Free cash flow has been slightly down year-over-year in 2025, and cash flow did not fully cover accounting earnings in some earlier periods, but overall cash conversion and free-cash-flow consistency look robust.78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.27B | 4.07B | 3.83B | 3.66B | 3.09B |
| Gross Profit | 3.76B | 3.62B | 3.40B | 3.12B | 2.65B |
| EBITDA | 108.46M | 1.52B | 1.45B | 1.47B | 1.03B |
| Net Income | -356.15M | 560.12M | 414.83M | -224.06M | -328.95M |
Balance Sheet | |||||
| Total Assets | 11.66B | 12.01B | 11.39B | 10.84B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.39B | 2.99B | 1.63B | 881.48M | 591.45M |
| Total Debt | 1.08B | 6.16B | 5.79B | 5.81B | 6.15B |
| Total Liabilities | 7.34B | 7.92B | 7.66B | 7.75B | 8.33B |
| Stockholders Equity | 4.32B | 4.09B | 3.74B | 3.09B | 3.97B |
Cash Flow | |||||
| Free Cash Flow | 1.30B | 1.35B | 1.07B | 773.78M | 732.98M |
| Operating Cash Flow | 1.36B | 1.40B | 1.09B | 1.27B | 778.51M |
| Investing Cash Flow | -1.51B | -508.19M | -163.06M | -446.23M | -5.21B |
| Financing Cash Flow | -873.38M | 20.52M | -305.25M | -529.49M | 3.97B |
Jazz Pharmaceuticals Technical Analysis
Positive
196.83
Price Trends
168.49
Positive
159.03
Positive
137.48
Positive
Market Momentum
3.46
Negative
84.53
Negative
96.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAZZ, the sentiment is Positive. The current price of 196.83 is above the 20-day moving average (MA) of 168.71, above the 50-day MA of 168.49, and above the 200-day MA of 137.48, indicating a bullish trend. The MACD of 3.46 indicates Negative momentum. The RSI at 84.53 is Negative, neither overbought nor oversold. The STOCH value of 96.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JAZZ.
Jazz Pharmaceuticals Risk Analysis
Jazz Pharmaceuticals disclosed 48 risk factors in its most recent earnings report. Jazz Pharmaceuticals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jazz Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.30B | 28.23 | 153.59% | ― | 31.19% | 59.01% | |
73 Outperform | $10.56B | -32.97 | -9.06% | ― | 4.14% | -179.96% | |
67 Neutral | $3.84B | 44.27 | 16.47% | ― | 17.92% | -26.13% | |
65 Neutral | $9.01B | 106.52 | 3.96% | 0.54% | 3.85% | -48.17% | |
61 Neutral | $20.23B | ― | -17.11% | ― | -83.82% | -109.22% | |
59 Neutral | $20.27B | -19.93 | -60.76% | ― | -100.00% | -44.24% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JAZZ
Jazz Pharmaceuticals
196.83
52.66
36.53%
CORT
Corcept Therapeutics
36.22
-27.15
-42.84%
HALO
Halozyme
70.35
12.43
21.46%
TECH
Bio-Techne
57.87
-5.91
-9.26%
RVMD
Revolution Medicines
103.24
62.74
154.91%
ROIV
Roivant Sciences
28.66
18.06
170.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.