Royalty Pharma (NASDAQ:RPRX) Releases Earnings Results, Beats Estimates By $0.13 EPS

Royalty Pharma (NASDAQ:RPRX) announced its earnings results on Wednesday. The biopharmaceutical company reported $1.46 EPS for the quarter, topping the consensus estimate of $1.33 by $0.13, Zacks reports. Royalty Pharma had a return on equity of 26.36% and a net margin of 32.51%.The company had revenue of $621.99 million for the quarter, compared to analysts’ expectations of $839.97 million.

Here are the key takeaways from Royalty Pharma’s conference call:

• Royalty Pharma reported a landmark 2025 with double‑digit growth in portfolio and royalty receipts, delivered ROIC of 15.8% and ROIE of 22.8%, and issued 2026 guidance implying ~3%–8% royalty receipt growth and portfolio receipts of $3.275B–$3.425B.
• The company completed the internalization of its external manager in 2025, saying this improved alignment and governance and will drive meaningful cost savings (operating/professional costs guided to 5.5%–6.5% of portfolio receipts in 2026 vs 8.9% in 2025).
• Capital deployment remained active—announced transaction value of $4.7B and $2.6B deployed in 2025—while returning a record $1.7B to shareholders via $1.2B buybacks and $500M+ in dividends (dividend hiked 7% in Q1 2026).
• Synthetic royalty transactions accelerated materially in 2025 (four synthetic deals >$2B), with synthetics exceeding existing royalties by announced value for the first time, and management expects synthetic royalties to be a key growth driver going forward.
• The development‑stage pipeline includes multiple near‑term pivotal readouts (e.g., RMC‑6236, Novartis pelacarsen, Biogen litifilimab, aficamten non‑obstructive) and management estimates >$43B combined peak sales (non‑risk adjusted) potentially translating to ~$2.1B peak annual royalties, but these outcomes are uncertain and value is contingent on trial results and approvals.

Royalty Pharma Trading Up 1.2%

Shares of Royalty Pharma stock traded up $0.55 during trading hours on Thursday, hitting $44.80. The company’s stock had a trading volume of 5,713,973 shares, compared to its average volume of 4,015,951. The company has a market capitalization of $25.86 billion, a PE ratio of 33.94, a price-to-earnings-growth ratio of 1.69 and a beta of 0.42. The company has a debt-to-equity ratio of 0.89, a current ratio of 3.48 and a quick ratio of 3.48. The stock has a 50 day moving average of $40.18 and a 200 day moving average of $38.17. Royalty Pharma has a 12 month low of $29.66 and a 12 month high of $45.27.

Royalty Pharma Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 20th will be paid a $0.235 dividend. The ex-dividend date of this dividend is Friday, February 20th. This is a positive change from Royalty Pharma’s previous quarterly dividend of $0.22. This represents a $0.94 dividend on an annualized basis and a yield of 2.1%. Royalty Pharma’s payout ratio is presently 71.21%.

More Royalty Pharma News

Here are the key news stories impacting Royalty Pharma this week:

• Positive Sentiment: Management reported robust portfolio receipts and raised forward expectations — Portfolio Receipts were $874M in Q4 and $3,254M for FY‑2025, and Royalty issued 2026 guidance for Portfolio Receipts of $3,275M–$3,425M, which supports recurring cash flow visibility. Royalty Pharma Reports Q4 and Full Year 2025 Results
• Positive Sentiment: Earnings per share topped Street estimates — GAAP EPS of $1.46 beat consensus $1.33, reflecting strong margins and profitability metrics (net margin ~32.5%, ROE ~26%). That EPS beat likely helped limit downside. MarketBeat Q4 Earnings Summary
• Positive Sentiment: Operating cash flow remains strong — net cash from operations was $827M in Q4 and $2.49B for FY‑2025, giving the company flexibility for new deals or return‑of‑capital decisions. GlobeNewswire release
• Neutral Sentiment: Management commentary and slides provide detail on portfolio performance and deal pipeline — read the full call transcript and slide deck for underlying drivers and single‑asset exposures. Useful for modeling but not an immediate catalyst. Earnings Call Transcript
• Neutral Sentiment: Analyst/coverage pieces note recent share‑price momentum and revisit valuation — investors are discussing whether the current P/E and recent run leave limited upside absent new deal announcements. Valuation Assessment
• Negative Sentiment: Revenue materially missed consensus — reported revenue was $621.99M vs. consensus ~$840M, which is a notable shortfall that drove some investor caution despite the EPS beat. MSN: Sales Below Estimates
• Negative Sentiment: Top‑line miss raises questions about timing and sustainability of royalty/portfolio receipts for certain assets — analysts and commentaries (Zacks, WTOP summaries) flagged key metric variances investors should monitor going forward. Zacks analysis

Insider Buying and Selling

In other Royalty Pharma news, CFO Terrance P. Coyne sold 20,163 shares of the firm’s stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $43.29, for a total transaction of $872,856.27. Following the sale, the chief financial officer directly owned 22,885 shares in the company, valued at approximately $990,691.65. This trade represents a 46.84% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Marshall Urist sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, January 30th. The shares were sold at an average price of $41.09, for a total transaction of $821,800.00. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,309,216 shares of company stock valued at $52,015,364. 18.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. CIBC Private Wealth Group LLC grew its holdings in shares of Royalty Pharma by 66.4% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,118 shares of the biopharmaceutical company’s stock worth $43,000 after buying an additional 446 shares in the last quarter. Larson Financial Group LLC grew its stake in shares of Royalty Pharma by 31.9% during the 3rd quarter. Larson Financial Group LLC now owns 1,264 shares of the biopharmaceutical company’s stock worth $45,000 after acquiring an additional 306 shares in the last quarter. Hilltop Holdings Inc. bought a new position in shares of Royalty Pharma during the 3rd quarter worth approximately $205,000. Sherbrooke Park Advisers LLC bought a new position in Royalty Pharma in the third quarter valued at $213,000. Finally, Osaic Holdings Inc. grew its position in Royalty Pharma by 134.8% in the second quarter. Osaic Holdings Inc. now owns 7,104 shares of the biopharmaceutical company’s stock valued at $254,000 after purchasing an additional 4,078 shares in the last quarter. 54.35% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have issued reports on RPRX. Leerink Partners set a $45.00 price objective on Royalty Pharma in a report on Thursday, December 11th. Citigroup raised their price target on Royalty Pharma from $48.00 to $50.00 and gave the company a “buy” rating in a report on Tuesday, January 27th. TD Cowen reissued a “buy” rating on shares of Royalty Pharma in a report on Thursday, December 11th. UBS Group upgraded shares of Royalty Pharma from a “neutral” rating to a “buy” rating and set a $49.00 price target for the company in a research report on Friday, January 30th. Finally, Wall Street Zen raised shares of Royalty Pharma from a “buy” rating to a “strong-buy” rating in a research note on Saturday, January 17th. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $48.67.

Royalty Pharma Company Profile

Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.

The company’s transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.