Key Takeaways
- Novavax delivered Q4 EPS of $0.11, surpassing analyst expectations by $0.60
- Fourth-quarter revenue reached $147M, significantly exceeding the $90.25M consensus forecast
- The biotech firm achieved an $18M net profit, reversing an $81M loss from the prior year
- Management elevated its 2026 adjusted revenue projection to $230M–$270M from the previous $185M–$205M range
- A $530M Matrix-M adjuvant licensing agreement with Pfizer headlines strategic partnerships fueling growth
Novavax (NVAX) delivered an impressive fourth-quarter performance that exceeded analyst projections on both the top and bottom lines, while simultaneously upgrading its revenue expectations for 2026.
The biotech company posted fourth-quarter earnings per share of $0.11, dramatically outperforming the Street’s estimate of -$0.49 by a margin of $0.60. Top-line performance was equally robust, with revenue reaching $147 million—a 67% jump from the year-ago period and substantially higher than Wall Street’s approximately $90 million projection.
The company recorded net income of $18 million for the quarter. This marks a significant reversal from the $81 million net loss reported in the corresponding quarter last year, reflecting the impact of operational efficiencies and revenue from strategic licensing arrangements.
Shares of NVAX settled at $9.53 during trading. The stock has climbed 35.18% over the trailing three-month period and has gained 34.99% year-over-year.
According to InvestingPro, Novavax earns a “great performance” rating for its Financial Health score.
The quarter’s success extended beyond traditional vaccine revenue streams. Strategic licensing partnerships have emerged as a cornerstone of Novavax’s business model, contributing meaningfully to quarterly results.
In the previous month, Novavax entered into a licensing arrangement with Pfizer worth up to $530 million for its proprietary Matrix-M adjuvant technology. This adjuvant serves as a critical component in the company’s Nuvaxovid vaccine, functioning to amplify immune system responses.
Chief Executive John Jacobs highlighted surging demand for the company’s platform. “We have more interest than I’ve ever seen in three years in our tech and some great conversations going on,” he told Reuters.
Enhanced 2026 Revenue Projections
Novavax has upgraded its 2026 adjusted revenue guidance to a range of $230 million to $270 million. This represents a substantial increase from the company’s previous forecast of $185 million to $205 million.
These projections do not incorporate revenue or royalty streams from the company’s strategic collaboration with Sanofi, which represents additional growth potential beyond the updated guidance.
Management anticipates that milestone payments stemming from vaccine supply contracts and licensing arrangements will help counterbalance declining demand in the COVID-19 vaccine market.
Navigating the Regulatory Environment
COVID-19 vaccination uptake in the United States has declined under recent policy changes from the current administration, creating headwinds across the vaccine industry.
Jacobs addressed these challenges candidly. “We probably disagree as a scientific community and an industry with some of their positions,” he noted, while expressing optimism that “we do see a pathway forward.”
Earlier in the month, the FDA initially rejected Moderna’s mRNA-based influenza vaccine submission before reversing course following amendments to the application. Jacobs welcomed the development, stating it was “good to see them have a regulatory path forward.”
Novavax is working toward achieving full profitability by 2028, with key product introductions from its Sanofi collaboration serving as catalysts. Among these is a combination COVID-influenza vaccine incorporating the Nuvaxovid platform.
In the 90-day period preceding the earnings announcement, the company experienced 0 upward EPS revisions and 2 downward EPS revisions from analysts.
The fourth-quarter revenue figure of $147 million substantially exceeded the average analyst projection of $78.84 million compiled by LSEG data.
