Halozyme (HALO) Stock Falls 13.9% After Q3 Earnings

Halozyme Therapeutics (NASDAQ: HALO) shares were down 13.93% in regular trading on Friday, November 6, 2026, as of mid-session. The drop came after the third quarter report released the previous evening, in which total revenue rose 39% year over year to $493 million and full year guidance was raised.

What Halozyme Therapeutics reported

Metric	Q3 2026	Q3 2025	Change
Total revenue	$493.0M	$354.3M	+39%
Royalty revenue	$341.0M	$236.0M	+44%
Net income	$247.0M	$175.2M	+41%
Adjusted EBITDA	$336.2M	$248.2M	+35%
Non-GAAP diluted EPS	$2.39	$1.72	+39%

Adjusted EBITDA is profit before interest, taxes, depreciation and amortization, excluding one-time items. Non-GAAP EPS is profit per share with items such as share-based pay and intangible amortization removed. Guidance, the company's own forecast, now calls for 2026 total revenue of $1.860 to $1.925 billion, up from $1.835 to $1.910 billion. Royalty revenue guidance moved to $1.235 to $1.255 billion from $1.220 to $1.245 billion.

In October, a Dutch patent court found Merck infringing one of Halozyme's MDASE patents and barred the launch of Keytruda Qlex in eight European countries, including France, Italy and the Netherlands. Cash and marketable securities reached $1.08 billion on September 30, up from $145.4 million at the end of 2025, mainly from a $1.5 billion convertible note issue.

Why the stock fell 13.9%

The drop was about five times a typical day's swing for the stock. The profit guidance moved only slightly: adjusted EBITDA to $1.240 to $1.290 billion from $1.225 to $1.280 billion, and non-GAAP EPS to $8.75 to $9.05 from $8.65 to $9.00. Both include about $60 million of new spending on the Hypercon and Aerocon technologies. Quarterly costs also climbed, with selling, general and administrative expense rising to $58.2 million from $46.1 million, partly on patent litigation.

What to watch next

The status of the Dutch injunction against Merck's Keytruda Qlex in Europe.
Progress of the ENHANZE programs with Pfizer, Incyte and argenx that entered Phase 1 trials.
Retirement of the remaining 2027 and 2028 convertible notes at maturity.

FAQ

What drove Halozyme's royalty growth?

The company credited continued sales of partner drugs using its ENHANZE technology, mainly argenx's VYVGART Hytrulo, Janssen's DARZALEX SC and Roche's Phesgo.

Is Halozyme buying back its own shares?

Yes. It repurchased about 0.8 million shares in the third quarter for $67.2 million at an average of $79.47 each, bringing 2026 buybacks to $400 million.

Sources

This article is for information only and is not investment advice.