United Therapeutics tops EPS estimates, misses revenue in Q4
Strong profit growth and record annual sales offset quarterly revenue shortfall, with investors eyeing 2026 pipeline data
United Therapeutics reported better-than-expected fourth quarter earnings despite falling short on revenue, sending shares modestly higher in pre-market trading as investors focused on record annual sales and upcoming pipeline catalysts.
The biotechnology company posted earnings per share of $7.70, beating analyst estimates of $6.96 by 10.6%. However, revenue of $790.2 million missed the consensus projection of $812.9 million, representing a 2.8% shortfall. The stock advanced 0.7% to $476.75 before the market open.
For the full year 2025, United Therapeutics achieved record revenue of $3.18 billion, an 11% increase from the previous year. The performance was driven primarily by robust growth in the company's core pulmonary arterial hypertension franchise, with Tyvaso DPI recording a 25% annual increase.
Tyvaso, the company's inhaled formulation of treprostinil, has emerged as the dominant growth driver. In the second quarter of 2025 alone, Tyvaso DPI generated $315 million in revenue, marking 22% year-over-year growth. Total Tyvaso revenues across all formulations reached $469.6 million in that period, an 18% increase compared to the same quarter in 2024.
"We delivered exceptional operating performance in 2025, achieving record annual revenue driven by strong uptake of Tyvaso DPI," the company stated in its earnings announcement.
Management highlighted two key pipeline milestones expected in the first half of 2026 as potential transformational growth drivers. The ADVANCE OUTCOMES trial evaluating once-daily oral ralinepag for pulmonary arterial hypertension completed enrollment of 728 participants in June 2025, with top-line data anticipated in early 2026. Meanwhile, the TETON-1 study investigating nebulized Tyvaso for idiopathic pulmonary fibrosis finished enrolling 598 patients in February 2025, with results also expected in the first half of 2026.
The TETON program has already shown promise, with the TETON-2 trial demonstrating significant improvement in forced vital capacity in IPF patients. Analysts estimate that label expansions for IPF and progressive pulmonary fibrosis could address a combined patient population of approximately 180,000, potentially representing a peak opportunity of $5 billion for Tyvaso.
Analyst sentiment toward United Therapeutics remains broadly positive. The stock currently carries 14 analyst ratings, comprising 1 strong buy, 8 buy, and 5 hold recommendations, with no sell ratings. The average price target of $538.58 suggests roughly 13% upside from current levels.
However, the company faces notable challenges ahead. Morningstar analysts have projected declining sales later in their forecast period due to anticipated pricing pressure and generic competition. Original Tyvaso faces generic competition expected in 2026, while Orenitram could see generics emerge in 2027.
United Therapeutics reported trailing twelve-month revenue of $3.13 billion with a profit margin of 40.6%. The company trades at a trailing price-to-earnings ratio of 17.95 and a price-to-sales ratio of 6.84, reflecting investor optimism about growth prospects despite the near-term revenue headwinds.
The mixed earnings report underscores the delicate balance United Therapeutics must strike between sustaining strong growth in its established pulmonary hypertension business while successfully executing on its pipeline expansion strategy. With two pivotal trial readouts approaching in 2026, investors will be closely watching whether the company can translate clinical success into commercial momentum.