Sarepta Tumbles 11% as Cautious Outlook Wipes Out Revenue Beat
Drugmaker surpasses Q4 estimates but withholds detailed 2026 forecast for its key gene therapy ELEVIDYS, citing deferred treatments and sparking investor concern.
Shares of Sarepta Therapeutics (NASDAQ: SRPT) plunged over 11% in Tuesday trading as a better-than-expected revenue report was completely overshadowed by the company's decision to withhold a detailed financial forecast for 2026, introducing a dose of uncertainty that investors were quick to punish.
The biotechnology firm, a leader in treatments for Duchenne muscular dystrophy (DMD), announced preliminary fourth-quarter net product revenue of approximately $369.6 million, comfortably beating analyst estimates of $337.0 million by nearly 10%. However, the positive result was not enough to overcome anxiety surrounding the sales trajectory of its flagship gene therapy, ELEVIDYS.
The stock fell $2.66 to close at $21.17, reflecting market jitters over the company's cautious forward-looking statements. In its announcement, Sarepta declined to provide a specific revenue range for 2026, instead reaffirming a sales floor of $500 million for ELEVIDYS. Management stated it would not offer a more detailed outlook until it could better evaluate the results of several new initiatives.
Adding to the uncertainty, CEO Doug Ingram noted that the fourth quarter was negatively impacted by a severe flu season. The company specified that this required at least six patient infusions of ELEVIDYS to be rescheduled from late 2025 into the first quarter of 2026. "While we are pleased with the underlying demand for ELEVIDYS, the deferred revenue from these rescheduled infusions highlights near-term operational variables," the company detailed in its preliminary results statement.
This cautious stance comes just months after a significant corporate overhaul. In July 2025, Sarepta announced a strategic restructuring that included a 36% reduction in its workforce, a move projected to save approximately $120 million annually. This cost-cutting backdrop makes revenue predictability even more critical for investors, who are trying to gauge the company's path to sustainable profitability.
Sarepta's market capitalization now stands at approximately $2.5 billion, a steep drop from its 52-week high of $127.91 per share. The current analyst consensus is mixed, with 14 firms rating the stock a 'Hold' against only 7 'Buy' ratings, suggesting a pre-existing sense of caution on Wall Street. Tuesday's closing price is now just above the average analyst price target of $20.70.
ELEVIDYS is central to Sarepta's growth narrative. As one of the first gene therapies approved for DMD, its launch and sales ramp-up are being intensely monitored as a bellwether for the commercial viability of complex genetic medicines. For the fourth quarter, the therapy generated approximately $110.4 million in net product revenue.
Investors and analysts will now be looking ahead to late February, when Sarepta is expected to release its complete, audited fourth-quarter and full-year 2025 financial results. The market will be searching for any new clarity or a definitive 2026 forecast that can restore confidence in the company's growth trajectory.