Key Takeaways
- Moderna shares surged approximately 8% during premarket hours following impressive Q1 results
- First-quarter revenue climbed to $389 million, representing a threefold increase compared to the prior year and exceeding the $228 million consensus
- Global markets fueled expansion with $311 million in sales, primarily through government agreements in the UK, Canada, and Australia
- Loss per share of $3.40 came in better than the anticipated $3.96, despite absorbing approximately $900 million in patent settlement expenses
- The biotech firm reaffirmed its 2026 revenue expansion outlook of up to 10%
Shares of Moderna climbed approximately 8% in premarket activity Friday following the biotechnology company’s first-quarter financial report that exceeded analyst projections for both top-line performance and bottom-line results.
First-quarter sales totaled $389 million, representing more than a threefold jump from the $108 million recorded during the same period last year. The figure significantly surpassed Wall Street’s consensus estimate of approximately $228 million, based on LSEG figures.
The primary catalyst behind this performance was robust COVID-19 vaccine demand from international territories. Sales from overseas markets reached $311 million, while domestic U.S. revenue contributed $78 million.
Moderna capitalized on established government contracts across the UK, Canada, and Australia to accelerate these figures. According to CFO Jamey Mock, the company’s financial profile has evolved into “a more balanced international versus U.S. story.”
This represents a significant transformation. During earlier reporting periods, the company had been cautioning stakeholders about weakening COVID vaccine demand. This quarter’s performance challenges that trend.
The domestic landscape presents ongoing challenges. Widespread policy modifications to vaccination programs under Health Secretary Robert F. Kennedy Jr. have dampened U.S. vaccine uptake. Mock indicated the organization anticipates “a more stable COVID market in 2026 in the U.S.” and expressed optimism that much of the current volatility is “behind us.”
Bottom-Line Performance Improved Despite Major Legal Settlement
The company reported a net loss of $1.34 billion, translating to $3.40 per diluted share. This outperformed analyst projections calling for a $3.96 per-share loss.
It’s important to note this figure incorporates approximately $900 million in expenses related to a patent dispute resolution with Genevant Sciences and Arbutus Biopharma. Both entities had alleged that Moderna utilized their proprietary lipid nanoparticle delivery platform in its Spikevax COVID vaccine without proper authorization.
The settlement was finalized in March. This expense also elevated the company’s projected cost of sales for the full 2026 fiscal year to $1.8 billion, up from the previous estimate of $900 million.
The biotech firm reduced both research expenditures and general administrative costs during the quarter, contributing to narrower overall losses.
Product Development and Future Guidance
Moderna confirmed its 2026 revenue growth projection of up to 10%, with approximately half anticipated from international territories — an increase from 38% in the previous year.
Second-quarter revenue is projected to range between $50 million and $100 million, with an equal distribution expected between domestic and international markets.
RBC Capital analyst Luca Issi observed that Moderna’s full-year sales are back-loaded, with just 15% projected during the first six months of 2026.
Beyond its COVID franchise, Moderna anticipates late-stage clinical data for a norovirus vaccine candidate and a personalized cancer immunotherapy being co-developed with Merck. The FDA established an August 5 decision deadline for Moderna’s mRNA-based influenza vaccine, following resolution of a previous disagreement with regulators concerning trial methodology issues.
The company is also advancing a therapeutic candidate targeting a rare metabolic condition as part of its strategic expansion beyond infectious disease applications.
