Moderna raised its 2026 revenue growth outlook to 15% to 25%, up from previous guidance of up to 10%, after the biotech company beat third-quarter earnings and revenue estimates on Friday.
Third-quarter revenue jumped 29% to $1.31 billion, driven by higher Covid vaccine sales in international markets and long-term government partnerships. U.S. revenue reached $780 million while international markets contributed $533 million. The company posted net income of $162 million, or 38 cents per share, compared with a net loss of 51 cents per share in the year-ago period.
CEO Stéphane Bancel attributed the strong results to newer products and geographic diversification. The company's next-generation mRNA Covid vaccine, approved in May 2025, is now seeing full-year impact after a small launch last year due to vaccine contract timing in the first quarter. Moderna's new flu shot, approved in the U.S. in August, will have a limited launch in 2026 given its late approval timing, Bancel said.
Expansion into Canada, the U.K., and Asia also boosted results. Cost reductions contributed to the quarter's profitability. "It's the sales that are stronger and the costs that are also lower," Bancel said on CNBC's "Squawk Box."
Moderna shares rose roughly 3% in premarket trading Friday. The stock has climbed more than 700% this year, largely driven by optimism about the company's experimental personalized cancer vaccine developed with Merck, which showed promising late-stage data in melanoma patients.