BeOne Medicines slides on earnings despite Q4 revenue beat
BRUKINSA sales jump 38% to $1.1B, but 2026 guidance disappoints investors
BeOne Medicines reported better-than-expected fourth-quarter results on Thursday, but shares fell as investors focused on the company's revenue guidance for 2026, which fell short of Wall Street forecasts.
The oncology company reported non-GAAP diluted earnings per American Depository Share of $1.95, beating analyst estimates, while global revenues reached $1.5 billion, a 33% increase from the year-ago quarter. The stock declined 2.62% in pre-market trading following the announcement.
The market reaction centered on BeOne's 2026 revenue guidance of $6.2 billion to $6.4 billion, which fell below the consensus estimate of $6.441 billion. Despite the quarterly beat, investors appeared to lock in gains after a recent rally that had pushed shares close to 52-week highs.
BRUKINSA, the company's flagship BTK inhibitor, drove much of the quarterly growth, generating global sales of $1.1 billion, up 38% year-over-year. For the full year 2025, BRUKINSA reached $3.9 billion in global sales, a 49% increase from 2024. U.S. sales of the drug climbed 45% to $2.8 billion for the full year, reaching $845 million in the fourth quarter alone.
"We delivered strong revenue growth in 2025, driven by the global expansion of BRUKINSA and continued momentum in our foundational oncology business," the company stated in its earnings announcement.
Full-year 2025 revenue climbed 40% to $5.34 billion, with product revenue accounting for $5.3 billion of that total. Beyond BRUKINSA, TEVIMBRA (tislelizumab) contributed $737 million, up 19% year-over-year, while Amgen in-licensed products added $486 million, a 33% increase.
The company returned to profitability in the fourth quarter, with GAAP net income of $66.5 million compared to a net loss of $151.9 million in the same period last year. Free cash flow reached $380 million, an improvement of $397 million from the fourth quarter of 2024.
For 2026, BeOne guided to GAAP operating income of $700 million to $800 million, with non-GAAP operating income expected between $1.4 billion and $1.5 billion. The company projects GAAP gross margins in the high-80% range and combined research and development plus selling, general and administrative expenses of $4.7 billion to $4.9 billion.
Analysts have largely maintained positive ratings on the stock. The consensus rating stands at "Moderate Buy," with 15 analysts covering the company, including 13 "Buy" recommendations, one "Hold," and one "Sell." The average 12-month price target among analysts is approximately $381 to $399, suggesting upside from current levels around $352.
Several firms have raised their price targets in early 2026, including Nomura, which increased its target to $442.91 from $366.06 in February, and RBC, which lifted its target to $417 from $408 in January. Barclays and Morgan Stanley have also set price targets of $394 and $405, respectively.
Despite the optimistic analyst outlook, valuation concerns persist. BeOne trades at a forward price-to-earnings multiple of approximately 48x, reflecting investor expectations for continued growth but also raising questions about how much of that growth is already priced into the stock.
The company is scheduled to participate in several investor conferences in early March, including events hosted by TD Cowen, Leerink, Citizens, and Barclays, where management will have the opportunity to address investor concerns about the 2026 outlook and provide more detail on growth drivers for BRUKINSA and its expanding oncology portfolio.