Sanofi CEO Paul Hudson: Q4 2025 Results Demonstrate Strong Growth, Profitability and Strategic Momentum

 Sanofi reported robust fourth-quarter and full-year 2025 results that reflect continued execution on its strategic priorities, strong commercial performance, disciplined cost management, and advancing R&D. Under the leadership of Chief Executive Officer Paul Hudson, the company delivered double-digit growth in net sales and business earnings per share, setting the foundation for sustained growth through 2026 and beyond.

Q4 2025 Performance

Sanofi concluded 2025 with strong momentum:

• Net sales for Q4 totaled €11.30 billion, an increase of 13.3% at constant exchange rates (CER) compared with the same period in 2024.

• Business earnings per share (Business EPS) reached €1.53, up 26.7% at CER and 16.8% at actual exchange rates, underscoring the benefit of sales growth combined with disciplined cost control.

• IFRS EPS was a loss of €0.66, reflecting accounting adjustments, including intangible amortization and restructuring items. Sanofi highlights Business EPS as the key operational performance metric.

This performance demonstrates both top-line acceleration and improved profitability leverage compared to the prior year.

Commercial Drivers

Commercial performance in Q4 was driven by several key product areas:

• Dupixent, Sanofi’s flagship immunology therapy, delivered €4.25 billion in sales, up 32.2% year-on-year. The strong quarter capped another year of rapid global uptake across approved indications.

• New product launches generated €1.1 billion in sales, up nearly 49.4%, led by growth in innovative medicines such as Ayvakit and ALTUVIIIO.

• Vaccines revenue was €2.0 billion, slightly lower than the prior year. Despite the modest decline, certain segments — including influenza vaccines — performed well, contributing to overall resilience in the portfolio.

The diverse portfolio mix helped Sanofi navigate varied market dynamics while driving growth in high-value segments.

Full-Year 2025 Financial Results

For the full year:

• Total sales reached €43.63 billion, up 9.9% at CER versus 2024, indicating broad commercial strength across multiple segments.

• Business operating income increased to €12.15 billion, up 11.9% at CER, reflecting improved operational efficiency.

• Business EPS was €7.83, representing a 15.0% increase at CER, outpacing overall revenue growth.

These results reflect the impact of product mix optimization, disciplined expense control, and strategic investments in growth areas.

R&D and Pipeline Progress

Sanofi made notable progress in its R&D pipeline throughout 2025:

• The company achieved ten regulatory approvals across immunology, rare diseases, and additional therapeutic categories, expanding patient access to its innovative medicines.

• Several positive Phase 3 trial outcomes were reported, including progress in immunology and rare disease programs, strengthening Sanofi’s late-stage pipeline.

• Sanofi initiated new clinical programs and regulatory submissions, advancing key assets toward potential future approvals.

While some clinical programs, such as tolebrutinib in primary progressive multiple sclerosis (PPMS), did not meet their primary endpoints, overall pipeline momentum remains a central strategic focus.

Capital Allocation and Shareholder Returns

Sanofi continued to prioritize capital discipline and shareholder returns:

• A €5 billion share repurchase program was completed in 2025, reflecting confidence in Sanofi’s financial position and long-term value creation.

• The Board proposed a dividend of €4.12 per share, representing a 5.1% increase over the prior year, demonstrating commitment to consistent shareholder distributions.

• A new €1 billion share buyback program was announced for 2026, underlining continued commitment to capital return while balancing investments in innovation.

These measures signal confidence in the business model and reinforce financial discipline.

Strategic and Corporate Initiatives

Sanofi undertook strategic actions beyond financial performance in 2025:

• The company advanced strategic acquisitions, including the completion of Vicebio, and progressed the planned acquisition of Dynavax Technologies, strengthening its vaccines and respiratory portfolios.

• Sanofi reached a framework agreement with the U.S. government on drug pricing and innovation commitments, enhancing access while supporting long-term R&D investment strategies.

• Sanofi also engaged in sustainability initiatives and industry collaborations aimed at improving lifecycle environmental performance across its portfolio.

These corporate actions reflect a balance of near-term execution and long-term strategic positioning.

Paul Hudson, Chief Executive Officer of Sanofi, emphasized the strength of the company’s performance and its strategic trajectory:

“In the fourth quarter, sales growth accelerated to 13.3%, delivering another strong performance. Growth was supported by new medicines and Dupixent, reaching a new quarterly high. Business EPS was up by 26.7% with the benefit of cost discipline and growth leverage. We obtained ten regulatory approvals across immunology, rare diseases, and other indications, and had several positive Phase 3 readouts. In 2026, we expect sales to grow by a high single-digit percentage and business EPS to grow slightly faster than sales, reflecting continued profitable growth.”

Hudson’s comments signal confidence in the company’s strategic execution and its ability to sustain profitable growth.

2026 Outlook

Looking ahead, Sanofi provided guidance for 2026:

• Sanofi expects high single-digit sales growth at CER in 2026, reflecting continued demand for core products and new launches.

• Business EPS is anticipated to grow slightly faster than sales, benefiting from operational leverage and margin expansion.

• The company will execute the €1 billion share buyback program, supporting capital return initiatives while preserving flexibility for future investments.

This outlook underscores Sanofi’s commitment to balanced growth, shareholder returns, and strategic investments in innovation.

Sanofi’s Q4 2025 and full-year financial results demonstrate a clear trajectory of growth, profitability, and portfolio diversification. Under CEO Paul Hudson’s leadership, the company delivered strong operational performance, advanced its pipeline, and maintained disciplined capital allocation while preparing for continued progress in 2026. The combination of high-growth products, strategic launches, and financial discipline positions Sanofi for sustainable value creation in the evolving global biopharma landscape.

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