REGN
Regeneron Pharmaceuticals, Inc.
Healthcare · Biotechnology · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 57.5/100 reflects a company with genuinely strong profitability metrics in FY2025 — net margin of 31.4%, operating margin of 24.9%, and ROA of 11.1% — offset by weak near-term momentum as earnings have declined sharply in recent quarters.
- The dividend factor contributed positively given the conservative 8.2% payout ratio, while the macro theme assignment to Biotech & Genomics did not translate into a positive scoring outcome under the model's methodology.
- Top-line growth of only +1.0% and the decelerating earnings trend limited the growth and momentum contributions to the composite, keeping the overall score in the mid-range.
Why Not Higher
- The sharp sequential declines in both net income and operating income across the trailing four quarters — with net income falling to $727,200,000 in 2026Q1 — weighed heavily on the momentum factor and capped the composite score.
- Revenue growth of just +1.0% in FY2025 and the absence of a positive theme scoring outcome further constrained the total score, preventing the strong profitability metrics from lifting the composite into higher territory.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew modestly from FY2024 to FY2025, rising +1.0% to $14,342,900,000, while net income increased +2.1% to $4,504,900,000 over the same period. Diluted EPS showed a stronger gain of +8.2%, moving from $38.34 in FY2024 to $41.48 in FY2025.
The model reflects a mixed growth picture: top-line and bottom-line expansion was incremental at roughly 1-2%, which limits the score, though the more meaningful EPS improvement of +8.2% from FY2024 to FY2025 provided partial support.
In FY2025, Regeneron posted a net margin of 31.4%, an operating margin of 24.9%, and a return on assets of 11.1%, all reflecting substantial earnings power relative to revenue and asset base.
These FY2025 figures indicate a highly profitable business, and the model rewarded the combination of a net margin above 30%, a solid operating margin, and a double-digit return on assets with a near-maximum profitability score.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue moved from $3,675,600,000 in 2025Q2 to a peak of $3,884,300,000 in 2025Q4 before declining to $3,605,400,000 in 2026Q1. Net income and operating income showed a more pronounced deterioration, with net income falling from $1,460,000,000 in 2025Q3 to $727,200,000 in 2026Q1, and operating income declining from $1,079,500,000 in 2025Q2 to $642,900,000 in 2026Q1.
The model penalized the decelerating earnings trend: while revenue showed only a modest pullback in the most recent quarter, the sharp sequential drops in both net income and operating income across the trailing four quarters signal weakening profitability momentum, driving the below-average score.
In FY2025, Regeneron's dividend payout ratio was 8.2% of net income, indicating that dividends are being paid at a conservative and well-covered level.
The model awards a perfect score here, reflecting that a low payout ratio signals the dividend is highly sustainable relative to earnings, leaving ample retained capital for reinvestment while still returning cash to shareholders.
Regeneron is assigned to the Biotech & Genomics macro theme.
Although the company carries the Biotech & Genomics theme assignment, this assignment did not translate into a positive score under the model's current methodology; the theme label reflects the sector classification, not a scoring outcome.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Regeneron Pharmaceuticals posted modest top-line and bottom-line growth in FY2025, with revenue rising +1.0% to $14,342,900,000 and net income up +2.1% to $4,504,900,000, while diluted EPS delivered a stronger +8.2% gain to $41.48. The company's profitability profile remains a standout, with a net margin of 31.4%, an operating margin of 24.9%, and a return on assets of 11.1% in FY2025. However, recent quarterly trends reveal a meaningful deterioration in earnings momentum, as operating income declined from $1,079,500,000 in 2025Q2 to $642,900,000 in 2026Q1 and net income fell sharply to $727,200,000 in 2026Q1. The dividend payout ratio of 8.2% of net income signals a highly sustainable capital return policy, though the composite score of 57.5/100 with a Medium risk rating reflects the tension between strong structural profitability and weakening near-term momentum.
Plain English
Regeneron is a highly profitable biotech company that grew steadily in FY2025, but its most recent quarterly earnings have been falling sharply, which makes the overall picture mixed and warrants further research before drawing conclusions.
Bull Case vs. Bear Case
Bull Case
- Regeneron's net margin of 31.4% and operating margin of 24.9% in FY2025 demonstrate exceptional earnings power relative to its revenue base, reflecting a structurally profitable business.
- Diluted EPS grew +8.2% from FY2024 to FY2025, outpacing the modest 1-2% growth in revenue and net income, suggesting improving capital efficiency and shareholder value on a per-share basis.
- A dividend payout ratio of just 8.2% of FY2025 net income indicates the dividend is highly sustainable and leaves substantial retained capital available for reinvestment or future growth initiatives.
Bear Case
- Operating income declined steadily from $1,079,500,000 in 2025Q2 to $642,900,000 in 2026Q1, signaling a pronounced and accelerating deterioration in profitability momentum over the trailing four quarters.
- Net income dropped sharply from $1,460,000,000 in 2025Q3 to $727,200,000 in 2026Q1, a steep sequential decline that raises concerns about near-term earnings sustainability.
- Revenue growth of only +1.0% from FY2024 to FY2025 reflects limited top-line expansion, and the most recent quarter showed revenue pulling back to $3,605,400,000 after peaking at $3,884,300,000 in 2025Q4.
What Could Change the Picture
Bullish Triggers
- A sustained reversal in quarterly operating income and net income trends — returning toward the levels seen in 2025Q2 and 2025Q3 — would signal that the recent earnings deterioration is temporary rather than structural.
- Acceleration in revenue growth beyond the current +1.0% annual rate, combined with maintained or expanding margins, would strengthen the case for a more constructive outlook.
Bearish Triggers
- If the sharp sequential declines in net income and operating income through 2026Q1 continue or deepen in subsequent quarters, the profitability strengths seen in FY2025 annual figures may prove unsustainable.
- A further pullback in quarterly revenue below the $3,605,400,000 level seen in 2026Q1 would compound concerns about both top-line and bottom-line momentum.
Risk Profile
Medium RiskThe Medium risk rating reflects the tension between Regeneron's solid FY2025 balance sheet — with total assets of $40,558,700,000 — and the pronounced deterioration in quarterly earnings momentum, where net income fell to $727,200,000 and operating income dropped to $642,900,000 in 2026Q1, raising questions about near-term earnings stability.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.