revenue
3400–3500 $million
FY 2026
official guidance
ROYALTY PHARMA PLC
Last · —$58.99+2.42 (+4.28%)live · yahoo · 1h ago
Market cap$34.73B—
P/E · TTM30.7fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $2.5B |
|---|---|
| Operating income | $1.5B |
| Net income | $815.0M |
| Operating margin | 59.6% |
| Net margin | 32.1% |
| Return on equity | 11.9% |
| Period | TTM 2026-06-30 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong recurring cash-flow growth and raised guidance outweigh pipeline and leverage risks.
Royalty Pharma delivered a strong Q2 and raised 2026 guidance for the second consecutive quarter:
Portfolio Receipts grew 6% to $773 million, recurring Royalty Receipts rose 14%, and full-year Portfolio Receipts guidance increased to $3.4-$3.5 billion. The diversified portfolio, 95% Portfolio Cash Flow margin, and expanding late-stage pipeline support a buy, although cliramitug remains dependent on unproven Phase 3 outcomes and leverage is still meaningful.
Themes
- Q2 2026 Results
- Raised Guidance
- Royalty Receipts
- Cliramitug
- Attr Cm
- Development Pipeline
Near term
Pelacarsen outcomes data expected in 2026 could materially affect the value of Royalty Pharma’s Lp(a) exposure.
Promacta loss of exclusivity, U.S. Tysabri biosimilar launch, and potential IRA effects remain embedded in guidance but could still pressure near-term receipts.
Q3 interest expense is expected at approximately $175 million, creating a seasonal cash-flow headwind.
Additional royalty acquisitions or synthetic royalty deals could improve growth beyond current guidance, which excludes future acquisitions.
Longer term
The development-stage pipeline has grown to 19 potential therapies, with approximately $2 billion of peak potential royalties in the late-stage pipeline and key readouts extending through 2027.
Cliramitug offers substantial upside in ATTR-CM, but its Phase 3 outcomes trial is not expected to report until 2028 and the mechanism has not yet been validated by outcomes data.
The company’s claimed moat—$22 billion of invested capital, unique royalty assets, scale, expertise, and investment-grade funding access—is credible but difficult to independently quantify.
China could become a meaningful sourcing market for royalties, but management acknowledged that capital deployment is still early and policy conditions remain uncertain.
Synthetic royalties and pharmaceutical R&D co-funding are potentially large growth markets, though greater exposure increases the importance of avoiding adverse selection.
Red flags
Management did not quantify how it tests for adverse selection in R&D co-funding beyond stating that its investment bar is high and that it seeks partners’ most exciting assets.
Cliramitug’s investment case relies on biomarker correlations and analogies to other amyloid diseases; the cardiovascular benefit remains unproven until the approximately 1,200-patient Phase 3 trial reports.
Portfolio Receipts growth is being supported by recurring royalties, but 2026 milestones and other contractual receipts are expected to fall to approximately $60 million from $128 million in 2025.
Debt outstanding was $9.2 billion and leverage was 2.8x total debt to Adjusted EBITDA, limiting some flexibility if royalty acquisition opportunities become aggressively priced.
Forward outlook
revenue growth
7–10 pct
FY 2026
official guidance
gross margin
5.5–6.5 pct
FY 2026
official guidance
revenue
60 $million
FY 2026
official guidance
ebitda
350–360 $million
FY 2026
official guidance
revenue
—
FY 2030
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-02-11
- Royalty Asset Growth
- Vertex Concentration
- Biopharma Development Risk
- Leverage
- Accounting Volatility
- Unapproved Assets
- Internalization
- Share Dilution
Red flags
- Vertex accounted for 32% of current financial royalty assets at December 31, 2025, creating meaningful exposure to one marketer and payor.
- $8.95 billion of debt was outstanding at year-end, including a $380 million term loan classified as current and $2.0 billion of 2025 Notes issued at a 5.61% weighted-average effective interest rate.
- $1.4 billion of financial royalty assets were unapproved at year-end, including $522.6 million related to frexalimab and assets tied primarily to olpasiran, pelacarsen, neladalkib and olanzapine.
- Revolution Medicines funding commitments totaled up to $2.0 billion, with $1.75 billion still unfunded at year-end; Royalty Pharma recorded an $89.0 million allowance for credit losses on the unfunded commitments.
- The $17.1 billion net financial royalty asset balance included a $3.19 billion cumulative allowance for changes in expected cash flows and a further $212.0 million allowance for credit losses.
- The 24.5 million RP Holdings Class E Interests issued in 2025 are exchangeable into an equal number of Class A shares upon vesting, creating potential dilution.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$1.18
Est. revenue
884.8M
Earnings transcripts
Press & signals
- GlobeNewswire
Royalty Pharma and Zealand Pharma enter into rusfertide funding agreement for $100 million
- GlobeNewswire
Royalty Pharma reports second quarter 2026 results
- GlobeNewswire
Royalty Pharma appoints Greg Raskin as Senior Vice President, Head of Academic Initiatives
The rest of this company's wire — with summaries and source links — is part of Pro.
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