Regeneron (REGN) AI Stock Analysis

• Market Cap: $83.73B
• Dividend Yield: 0.45%
• Average Volume (3M): 823.16K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.73
• Revenue Growth: 2.89%
• EPS Growth: 0.50%
• Country: US
• Employees: 15,158
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 11.44
• Shares Outstanding: 103,902,660
• 10 Day Avg. Volume: 736,369
• 30 Day Avg. Volume: 823,162
• PEG Ratio: 3.38
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 5.63
• P/FCF Ratio: 19.79
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 5.62
• Enterprise Value/Gross Profit: 6.58
• Enterprise Value/Ebitda: 13.85
• 1Y Price Target: $870.90
• Price Target Upside: 11.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $895.00 ▲(14.79% Upside)

REGN scores well primarily on strong financial quality (high margins, very low leverage, and robust cash generation) and a favorable earnings-call backdrop highlighting durable franchise strength and a deep pipeline. Technicals are supportive with an uptrend and positive momentum indicators. Valuation is fair rather than compelling, and near-term risks (EYLEA biosimilar pressure, inventory timing, and manufacturing/regulatory uncertainty) keep the score from being higher.

Positive Factors

High Profitability

Sustained gross margins in the mid-80s and healthy net margins indicate durable pricing power and manufacturing efficiency. Those margins support recurring operating cash generation, fund R&D and M&A optionality, and provide a long-term buffer versus competitive and pricing pressures.

Conservative Balance Sheet

Very low leverage and growing equity/assets give Regeneron financial flexibility to invest in late-stage programs, absorb biosimilar headwinds, and continue buybacks/dividends. A strong balance sheet materially lowers bankruptcy and refinancing risk over the medium term.

Deep, Near‑term Pipeline

A broad late-stage portfolio and platform capabilities (human genetics/proteomics) create multiple discrete, durable growth levers. Successful approvals and Phase III initiations can re‑rate revenue mix, sustain future growth beyond current blockbusters, and de‑risk single-product concentration.

Negative Factors

EYLEA Biosimilar Pressure

EYLEA remains a material revenue contributor, so sustained biosimilar entry and anticipated double‑digit demand declines create a durable revenue headwind. Even with new EYLEA HD uptake, structural share erosion can compress top-line predictability and strain margins over multiple quarters.

Volatile Free Cash Flow

Absolute cash generation is sizable, but pronounced FCF volatility and a steep recent decline reduce capital allocation predictability. That volatility can constrain funding for high-cost Phase III programs, inorganic investment, or sustained repurchases if clinical or working‑capital swings persist.

Higher Operating Spend & Mix Risk

Planned increases in R&D and SG&A to support a large late‑stage pipeline raise fixed costs and amplify binary clinical risk. Combined with changing product mix and margin normalization from prior peaks, higher operating spend makes earnings more sensitive to trial or launch setbacks over the medium term.

Regeneron Business Overview & Revenue Model

Company Description

Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. The company's products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema; myopic choroidal neovascularization; and diabetic retinopathy, as well as macular edema following retinal vein occlusion, including macular edema following central retinal vein occlusion and macular edema following branch retinal vein occlusion. It also provides Dupixent injection to treat atopic dermatitis and asthma in adults and pediatrics; Libtayo injection to treat metastatic or locally advanced cutaneous squamous cell carcinoma;Praluent injection for heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease in adults; REGEN-COV for covid-19; and Kevzara solution for treating rheumatoid arthritis in adults. In addition, the company offers Inmazeb injection for infection caused by Zaire ebolavirus; ARCALYST injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome; and ZALTRAP injection for intravenous infusion to treat metastatic colorectal cancer; and develops product candidates for treating patients with eye, allergic and inflammatory, cardiovascular and metabolic, infectious, and rare diseases; and cancer, pain, and hematologic conditions. It has collaboration and license agreements with Sanofi; Bayer; Teva Pharmaceutical Industries Ltd.; Mitsubishi Tanabe Pharma Corporation; Alnylam Pharmaceuticals, Inc.; Roche Pharmaceuticals; and Kiniksa Pharmaceuticals, Ltd., as well as has an agreement with the U.S. Department of Health and Human Services, as well as with Zai Lab Limited; Intellia Therapeutics, Inc.; Biomedical Advanced Research Development Authority; and AstraZeneca PLC. The company was incorporated in 1988 and is headquartered in Tarrytown, New York.

How the Company Makes Money

Regeneron generates revenue primarily through the sale of its proprietary pharmaceutical products. The company's key revenue streams include sales of EYLEA and Dupixent, which are significant contributors to its overall earnings. Additionally, Regeneron engages in partnerships and collaborations with other pharmaceutical companies and research institutions to develop new therapies, which can also provide financial benefits through milestone payments and royalties. For example, Regeneron has a notable collaboration with Sanofi for the development and commercialization of Dupixent. The company's revenue model is further supported by its robust pipeline of investigational drugs, which, if successfully developed and approved, can lead to additional revenue streams in the future.

Regeneron Financial Statement Overview

Summary

Strong overall fundamentals: high profitability (gross margin ~83–86% and solid net margins), a conservatively financed balance sheet with very low leverage (~0.09 debt-to-equity in 2024–2025), and sizable operating/free cash flow. Offsets include margin normalization from 2021 highs, uneven revenue/earnings trajectory, and softer cash conversion plus volatile/negative FCF growth in recent years (including a steep 2025 decline).

Income Statement

Regeneron shows strong profitability with consistently high gross margins (~83–86%) and solid net margins (~30–50%), indicating durable pricing power and cost discipline. Revenue has grown meaningfully since 2020, but the trajectory has been uneven: a major step-up in 2021, a sharp decline in 2022, then a return to modest growth in 2023–2024 and a large acceleration in 2025. A key watch item is margin compression from 2021 highs (EBIT margin down meaningfully by 2023–2025), even as earnings remain strong.

Balance Sheet

The balance sheet is conservatively positioned with low leverage: debt-to-equity improves over time and remains very low in 2024–2025 (~0.09). Equity and total assets have expanded steadily across the period, supporting financial flexibility. Returns on equity are healthy (mid-teens recently), though well below the exceptionally high levels seen in 2020–2021, suggesting profitability has normalized even as capital has grown.

Cash Flow

Cash generation is strong in absolute terms, with operating cash flow and free cash flow remaining sizable and generally tracking earnings. Cash conversion is decent but has softened: operating cash flow is below net income in 2025 (coverage below 1), and free cash flow is also below net income (~0.82), pointing to some working-capital or timing headwinds. Free cash flow growth has been volatile and negative in multiple recent years, including a steep decline in 2025, which tempers the otherwise solid cash profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.34B	14.20B	13.12B	12.17B	16.07B
Gross Profit	12.24B	12.23B	10.87B	10.47B	13.35B
EBITDA	5.82B	5.32B	4.69B	5.26B	9.67B
Net Income	4.50B	4.41B	3.95B	4.34B	8.08B
Balance Sheet
Total Assets	40.56B	37.76B	33.08B	29.21B	25.43B
Cash, Cash Equivalents and Short-Term Investments	8.61B	9.01B	10.84B	7.74B	5.69B
Total Debt	2.71B	2.70B	2.70B	2.70B	2.70B
Total Liabilities	9.30B	8.41B	7.11B	6.55B	6.67B
Stockholders Equity	31.26B	29.35B	25.97B	22.66B	18.77B
Cash Flow
Free Cash Flow	4.08B	3.66B	3.67B	4.42B	6.53B
Operating Cash Flow	4.98B	4.42B	4.59B	5.01B	7.08B
Investing Cash Flow	-629.10M	-2.47B	-3.19B	-3.78B	-5.38B
Financing Cash Flow	-3.72B	-2.20B	-1.79B	-1.01B	-1.01B

Regeneron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 779.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REGN, the sentiment is Positive. The current price of 779.67 is above the 20-day moving average (MA) of 770.10, above the 50-day MA of 764.54, and above the 200-day MA of 630.44, indicating a bullish trend. The MACD of 8.12 indicates Negative momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 55.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REGN.

Regeneron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCY	83 Outperform	$20.50B	15.89	29.87%	―	18.09%	3563.21%
REGN	81 Outperform	$83.73B	19.10	14.87%	0.45%	2.89%	0.50%
ARGX	79 Outperform	$51.98B	39.80	24.75%	―	89.58%	―
VRTX	74 Outperform	$119.47B	30.60	22.54%	―	10.53%	―
ALNY	55 Neutral	$44.12B	150.36	73.28%	―	53.24%	―
BNTX	53 Neutral	$25.96B	-41.99	-2.94%	―	7.04%	-25.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Regeneron Corporate Events

Regeneron Highlights Growth Strategy and Pipeline at JPM Conference

At the J.P. Morgan Healthcare Conference on January 12, 2026, Regeneron Pharmaceuticals outlined its growth strategy centered on a robust pipeline of approximately 45 clinical programs and a portfolio of 14 internally discovered, already approved therapies. Management emphasized how the company’s integrated use of human genetics, proteomics and big data, combined with proprietary platform technologies, is intended to sustain R&D productivity and expand its leadership in key therapeutic categories, positioning Regeneron for continued growth and reinforcing its competitive standing in the biopharmaceutical sector.

The most recent analyst rating on (REGN) stock is a Buy with a $914.00 price target. To see the full list of analyst forecasts on Regeneron stock, see the REGN Stock Forecast page.