Zai Lab (NASDAQ:ZLAB) Announces Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Zai Lab (NASDAQ:ZLAB) released its quarterly earnings results on Thursday. The company reported ($0.46) EPS for the quarter, missing the consensus estimate of ($0.44) by ($0.02), Zacks reports. The business had revenue of $127.60 million during the quarter, compared to analyst estimates of $122.67 million. Zai Lab had a negative net margin of 46.83% and a negative return on equity of 25.83%.

Here are the key takeaways from Zai Lab’s conference call:

• Zoci has advanced from IND to a global registrational Phase 3 in under two years for 2L/3L small cell lung cancer, with management targeting an accelerated approval submission in 2027 and first global approval in 2028; clinical data show intracranial activity (80% ORR in 10 patients) and a favorable safety profile supporting planned first-line combination programs.
• R&D momentum is strong with multiple global programs progressing — IND clearance for ZL-6201, IND-enabling work for ZL-1222, an IND plan for TCE ZL-1311 by year-end, and expected first-in-human data this year for immunology bispecific ZL-1503 — signaling a broadened pipeline beyond oncology.
• The China commercial business continues to stabilize the company: full-year revenue rose 15% to $460.2M and Q4 revenue grew 17% to $127.6M, operating leverage improved (R&D and SG&A down as a percentage of revenue), and the company ended the quarter with a strong cash position of $790M.
• Management calls 2026 a transition year and declined to give full-year guidance, citing near-term headwinds from pricing/NRDL dynamics and hospital purchasing patterns (notably affecting VYVGART and ZEJULA) as well as launch timing and modest incremental SG&A investment needs, introducing execution and timing risk for near-term profitability.

Zai Lab Trading Up 1.5%

NASDAQ:ZLAB traded up $0.30 during midday trading on Thursday, hitting $19.69. 528,375 shares of the stock were exchanged, compared to its average volume of 652,140. Zai Lab has a one year low of $15.96 and a one year high of $44.34. The business has a 50-day moving average price of $18.42 and a two-hundred day moving average price of $24.42. The company has a market capitalization of $2.22 billion, a price-to-earnings ratio of -10.10 and a beta of 0.88.

Wall Street Analysts Forecast Growth

ZLAB has been the topic of a number of recent research reports. Zacks Research lowered shares of Zai Lab from a “hold” rating to a “strong sell” rating in a research note on Friday, January 23rd. JPMorgan Chase & Co. dropped their price target on shares of Zai Lab from $46.00 to $39.00 and set an “overweight” rating on the stock in a research note on Thursday, February 5th. Jefferies Financial Group upgraded shares of Zai Lab to a “strong-buy” rating in a report on Monday, January 19th. UBS Group initiated coverage on Zai Lab in a research report on Wednesday, January 7th. They set a “buy” rating and a $35.00 target price on the stock. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Zai Lab in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $51.59.

Insider Activity

In other Zai Lab news, insider Rafael Amado sold 10,787 shares of the company’s stock in a transaction dated Wednesday, December 31st. The shares were sold at an average price of $17.43, for a total transaction of $188,017.41. Following the completion of the sale, the insider directly owned 52,391 shares of the company’s stock, valued at approximately $913,175.13. This represents a 17.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 4.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zai Lab

A hedge fund recently raised its stake in Zai Lab stock. Royal Bank of Canada increased its holdings in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) by 214.3% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 13,771 shares of the company’s stock after purchasing an additional 9,390 shares during the period. Royal Bank of Canada’s holdings in Zai Lab were worth $498,000 at the end of the most recent reporting period. 41.65% of the stock is currently owned by institutional investors.

Zai Lab Company Profile

Zai Lab Ltd (NASDAQ: ZLAB) is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company’s end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company’s marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton’s tyrosine kinase inhibitor approved for several B-cell malignancies.