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

Royalty Pharma (NASDAQ:RPRX) issued its quarterly earnings results on Wednesday. The biopharmaceutical company reported $1.46 earnings per share (EPS) for the quarter, beating 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 the consensus estimate 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 1.3%

RPRX stock traded up $0.56 during midday trading on Thursday, reaching $44.81. The company’s stock had a trading volume of 3,552,598 shares, compared to its average volume of 3,928,924. The business’s 50-day simple moving average is $40.18 and its 200-day simple moving average is $38.17. The company has a quick ratio of 3.48, a current ratio of 3.48 and a debt-to-equity ratio of 0.89. Royalty Pharma has a 52 week low of $29.66 and a 52 week high of $45.27. The stock has a market cap of $25.87 billion, a PE ratio of 33.95, a price-to-earnings-growth ratio of 1.69 and a beta of 0.42.

Royalty Pharma Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 20th will be issued a dividend of $0.235 per share. The ex-dividend date of this dividend is Friday, February 20th. This represents a $0.94 annualized dividend and a yield of 2.1%. This is an increase from Royalty Pharma’s previous quarterly dividend of $0.22. Royalty Pharma’s dividend payout ratio (DPR) is presently 71.21%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. The Goldman Sachs Group reissued a “buy” rating on shares of Royalty Pharma in a report on Thursday. Morgan Stanley reaffirmed an “overweight” rating and issued a $61.00 target price on shares of Royalty Pharma in a report on Thursday. UBS Group raised shares of Royalty Pharma from a “neutral” rating to a “buy” rating and set a $49.00 price target for the company in a report on Friday, January 30th. TD Cowen reaffirmed a “buy” rating on shares of Royalty Pharma in a report on Thursday, December 11th. Finally, Citigroup boosted their target price on Royalty Pharma from $48.00 to $50.00 and gave the stock a “buy” rating in a report on Tuesday, January 27th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $48.67.

Insiders Place Their Bets

In other news, CFO Terrance P. Coyne sold 114,954 shares of the firm’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $42.84, for a total value of $4,924,629.36. Following the transaction, the chief financial officer directly owned 23,972 shares in the company, valued at $1,026,960.48. This trade represents a 82.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP George W. Lloyd sold 132,426 shares of the company’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $38.34, for a total value of $5,077,212.84. The SEC filing for this sale provides additional information. In the last three months, insiders sold 1,309,216 shares of company stock worth $52,015,364. 18.90% of the stock is currently owned by company insiders.

Institutional Trading of Royalty Pharma

A number of large investors have recently bought and sold shares of the business. CIBC Private Wealth Group LLC boosted its holdings in shares of Royalty Pharma by 66.4% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,118 shares of the biopharmaceutical company’s stock valued at $43,000 after buying an additional 446 shares during the last quarter. Larson Financial Group LLC grew its position in shares of Royalty Pharma by 31.9% in the 3rd quarter. Larson Financial Group LLC now owns 1,264 shares of the biopharmaceutical company’s stock valued at $45,000 after acquiring an additional 306 shares during the period. Hilltop Holdings Inc. bought a new position in shares of Royalty Pharma in the 3rd quarter valued at about $205,000. Sherbrooke Park Advisers LLC acquired a new position in shares of Royalty Pharma during the 3rd quarter worth about $213,000. Finally, Private Advisor Group LLC bought a new stake in shares of Royalty Pharma in the 3rd quarter valued at about $252,000. 54.35% of the stock is owned by institutional investors.

Trending Headlines about Royalty Pharma

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

• Positive Sentiment: Company issued upbeat 2026 guidance and reported strong portfolio receipts: Q4 portfolio receipts of $874M and full‑year 2025 portfolio receipts of $3,254M; management guided FY2026 portfolio receipts to $3,275M–$3,425M, supporting recurring cash expectations and longer‑term revenue visibility. Royalty Pharma Reports Q4 and Full Year 2025 Results
• Positive Sentiment: Strong operating cash generation: net cash provided by operations was $827M in Q4 and $2.49B for FY2025 — a sign the business is converting royalties into free cash flow, which supports dividend policy and potential deal activity. Royalty Pharma Reports Q4 and Full Year 2025 Results
• Neutral Sentiment: Analysts and commentators are reassessing valuation after recent share strength — some writeups examine whether the current P/E and growth outlook justify the rally. This piece frames the valuation discussion for investors. Assessing Royalty Pharma (RPRX) Valuation After Recent Share Price Momentum
• Neutral Sentiment: Full earnings materials and call transcripts/slides are available for deeper review — useful for investors wanting detail on portfolio composition, contract expiries, and one‑off items that affected reported results. Q4 Slide Deck / Press Release Earnings Call Transcript
• Negative Sentiment: Reported Q4 results missed Street estimates meaningfully: EPS of $0.38 vs. ~$1.33 consensus and revenue of $622M vs. ~$840M consensus — headline misses that can pressure near‑term sentiment and raise questions about timing of royalty cash flows and one‑time items. Royalty Pharma Q4 Earnings Snapshot / Results
• Negative Sentiment: Analyst metric breakdowns highlight the gap vs. estimates and year‑ago comparables — investors should watch guidance execution and whether future receipts are front‑loaded or subject to volatility. Zacks Q4 Metrics Analysis

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.