Sanofi Pipeline Strength In Focus -- Earnings Preview

Dow Jones01-28

By Billy Gray

Sanofi is scheduled to report results for the fourth quarter on Thursday. Here is what you need to know.

SALES FORECAST: The French drugmaker is expected to post net sales of 11.14 billion euros ($13.41 billion), according to consensus estimates provided by Vara Research. Sanofi posted 10.56 billion euros in sales for the prior-year period.

OPERATING-PROFIT FORECAST: The company is expected to post business operating profit of 2.37 billion euros, according to Vara Research. It reported business operating profit---one of the company's preferred metrics, which strips out exceptional items--of 2.08 billion euros for the same period the previous year.

Sanofi shares rose 5.3% over the fourth quarter and have fallen 3.7% year to date.

WHAT TO WATCH:

--DRUG DEVELOPMENT: Pipeline softness ahead of major patent-exclusivity losses has set off investor worries, and there is speculation that the group could offset those concerns with increased merger activity. That solution carries "significant uncertainty and risks, and also reduces the possibility of systematic buybacks to boost [earnings-per-share] growth," UBS analysts said.

--2026 GUIDANCE: A rally in major European pharma stocks over recent weeks has made the sector's companies "vulnerable should [their] 2026 guidance disappoint," Bank of America analysts said.

--PRICE UNCERTAINTY: While President Trump last week backed away from levying tariffs on European Union countries opposed to his administration's move to purchase Greenland, the potential remains for future political volatility to affect performance. Developments in the White House's move to lower U.S. drug prices--and how pharma companies like Sanofi respond--could also affect performance. Sanofi shares surged in early October after Pfizer signed a deal with the White House over U.S. drug prices, and investors are watching to see if more companies follow suit.

Write to Billy Gray at william.gray@wsj.com

(END) Dow Jones Newswires

January 28, 2026 02:29 ET (07:29 GMT)

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Sanofi Pipeline Strength In Focus -- Earnings Preview

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