Sanofi

Q2 delivered strong growth and upgraded 2026 outlook (good) - Net sales: +17.8% YoY to €11.6bn (noted as largely volume-driven, plus “a couple of hundred million” positive gross-to-net adjustments). - EPS: Business EPS +33.3% YoY (underlying business EPS growth cited as ~+21%, excluding share buyback and one-offs). - Profitability: Gross margin +3.7pp (includes reversal of inventory provisions tied to Sarclisa SC approval; underlying gross margin improvement ~+1.7pp). - Guidance: Based on strong H1 performance and expectation for H2, company upgraded full-year 2026 guidance (details: see next bullet).

Full-year 2026 forecast + H2 deceleration expectations (important forecasts) - 2026 sales growth: now ~+10% at constant exchange rates (business EPS expected to grow slightly faster than sales). - H2 challenge: tougher comps and deceleration expected—H2 lapping strong prior-year momentum (Dupixent new indication annualizing; Ayvakit consolidation starting July 2025). - Gross margin one-offs fading in H2: fewer one-off benefits; no further Regeneron development balance reimbursement; reduced share buyback benefits. - Vaccines: slightly negative full-year 2026 growth expected; explains Q3 specifically as low-to-mid teens sales decrease due to seasonality distribution shift.

Dupixent and launch portfolio remain primary growth engine; vaccines resilient (opportunity) - Dupixent: +37% YoY in Q2, driven largely by volume/patient adoption; sales >€5bn in the quarter for the first time. - Dupixent outlook: company expects growth rate to moderate in H2 (annualizing new indications and tougher comparables). - U.S. gross-to-net adjustment benefited Q2 results; also recent U.S. approval for chronic spontaneous urticaria in children supports expansion. - Launches: Pharma launches delivered ~+50% YoY, and recent launches are ~13% of sales, growing >60% in Q2 (key contributors: Ayvakit, ALTUVIIIO, Sarclisa; plus Heplisav-B, and early momentum in Wayrilz/Qfitlia). - Vaccines: €1.15bn (-5% YoY) due to high influenza comps, but offsets from Beyfortus (+54%) to €108m and Heplisav-B (+43% pro forma) to €113m—management called franchise “resilient.”