Jazz Pharmaceuticals (NASDAQ:JAZZ) reported second-quarter 2026 revenue of $1.21 billion, up 16% from a year earlier, as growth across its sleep, epilepsy and oncology portfolios drove record quarterly sales. The company raised its full-year revenue outlook and said it is preparing for a potential August approval and launch of zanidatamab in first-line HER2-positive metastatic gastroesophageal adenocarcinoma, or GEA.
President and Chief Executive Officer Renee Gala said the company’s first-half performance reflected demand for its commercial medicines, coordinated execution across its portfolio and progress on long-term growth initiatives. Jazz now expects 2026 total revenue of $4.60 billion to $4.75 billion.
Sleep and Epilepsy Products Drive Growth
XYWAV, Jazz’s low-sodium oxybate therapy for narcolepsy and idiopathic hypersomnia, generated $471 million in second-quarter net product sales, an increase of 13% year over year. Chief Commercial Officer Sam Pearce said the medicine added approximately 525 net patients during the quarter, bringing total active patients to about 17,125, up more than 12% from a year earlier.
Of the quarterly patient additions, approximately 200 were in narcolepsy and 325 were in idiopathic hypersomnia, according to Pearce. He said demand remained strong and that high-sodium generic oxybate products had so far had limited effect on the franchise.
Chief Financial Officer Phil Johnson said Jazz now expects double-digit XYWAV growth for the full year, compared with its prior expectation for results ranging from flat to mid-single-digit growth. The revised outlook reflects slower-than-anticipated uptake of high-sodium generics, he said.
Jazz raised its rare sleep revenue outlook to a range of $2.025 billion to $2.125 billion for 2026. The company said it continues to invest in digital outreach, media spending and patient-support programs for XYWAV.
Epidiolex reported net product sales of $292 million, up 16% year over year. Pearce attributed the increase primarily to underlying demand in pediatric and adult settings, including continued growth in long-term care. He said there were no significant unusual U.S. inventory movements during the quarter, though Johnson noted that comparisons with the prior-year period benefited from one-time ex-U.S. pricing adjustments and foreign-exchange effects.
Jazz has submitted a new drug application to the Food and Drug Administration for a capsule formulation of Epidiolex for its currently approved indications: Lennox-Gastaut syndrome, Dravet syndrome and tuberous sclerosis complex. The company also plans new studies in adult Lennox-Gastaut syndrome, developmental and epileptic encephalopathies, and juvenile myoclonic epilepsy.
Oncology Sales Expand as Ziihera Decision Nears
Jazz’s oncology portfolio grew 32% year over year in the quarter. Zepzelca generated $106 million in net product sales, up 42%, while Modeyso contributed $48 million and Ziihera recorded $15 million.
Pearce said Zepzelca’s growth was driven by adoption in the first-line maintenance setting for metastatic small cell lung cancer, which offset a declining second-line business. Jazz estimates that first-line maintenance now accounts for 30% to 40% of overall U.S. Zepzelca sales.
Robert Iannone, Global Head of R&D and Chief Medical Officer, said Jazz plans to submit a labeling supplement to remove Zepzelca’s second-line indication during the third quarter, based on results from the LAGOON trial and discussions with the FDA. The first-line maintenance indication will not be affected.
Modeyso, launched in August 2025, had treated more than 600 patients through the end of the second quarter, according to Pearce. Jazz expects the overall-survival interim analysis for its Phase III ACTION trial of Modeyso to occur in the first half of 2027.
Ziihera, Jazz’s zanidatamab product, has achieved more than 50% of the addressable U.S. market in second-line biliary tract cancer since launch, Pearce said. The company is awaiting an FDA decision by its Aug. 25 Prescription Drug User Fee Act date for zanidatamab in first-line HER2-positive metastatic GEA.
Iannone said Jazz had been “productively engaged” with the FDA and remained highly confident in approval on or before the PDUFA date. He also said the company expects results from a second interim overall-survival analysis of zanidatamab plus chemotherapy in the third quarter.
Jazz cited published Phase III HERIZON-GEA-01 results showing median overall survival of 26.4 months for zanidatamab plus tislelizumab and chemotherapy, more than seven months longer than the trastuzumab control arm. The company said it has submitted the data to oncology pathways and the National Comprehensive Cancer Network for potential guideline consideration.
Expenses, Earnings and Capital Deployment
Johnson said non-GAAP adjusted gross margin declined slightly year over year because Zepzelca and Modeyso carry third-party royalties. Non-GAAP adjusted selling, general and administrative expenses and research and development expenses each rose 11%, reflecting commercial investments, clinical trial costs and zanidatamab-related spending.
Jazz reported non-GAAP adjusted earnings per share of $5.71 for the quarter, including $0.94 in in-process research-and-development charges. Operating cash flow totaled $824 million for the first half of 2026, and the company paid off its 2026 convertible notes during the second quarter.
The company modestly increased its SG&A expense guidance to support investment in XYWAV, Epidiolex, its rare-disease strategy and business-development activities. Gala said Jazz expects to announce one or more business-development deals in 2026, spanning opportunities from preclinical programs to commercial or near-commercial assets.
Jazz recently entered a preclinical collaboration with AbCellera focused on discovering multispecific antibodies using a T-cell engager platform. Gala said the agreement complements Jazz’s oncology capabilities and its refined rare-disease strategy.
About Jazz Pharmaceuticals (NASDAQ:JAZZ)
Jazz Pharmaceuticals plc is a global biopharmaceutical company focused on developing and commercializing therapies in neuroscience and oncology. The company’s research and development efforts target unmet medical needs in sleep disorders, hematologic malignancies, rare neurological conditions and solid tumors. Jazz’s product portfolio includes therapies for narcolepsy, hepatic veno-occlusive disease, acute myeloid leukemia and other serious disorders.
Flagship products from Jazz Pharmaceuticals include Xyrem® (sodium oxybate) and Xywav® (calcium, magnesium, potassium, and sodium oxybates) for the treatment of cataplexy and excessive daytime sleepiness in patients with narcolepsy.
