Key Highlights
- Shares of Moderna climbed approximately 8% during premarket hours following a stronger-than-expected first-quarter performance
- First-quarter revenue surged more than three-fold compared to the same period last year, reaching $389 million versus Wall Street’s $228 million projection
- Overseas markets accounted for $311 million in sales, propelled by strategic agreements in the United Kingdom, Canada, and Australia
- Loss per share of $3.40 came in better than the anticipated $3.96, despite absorbing approximately $900 million in patent settlement expenses
- The biotech firm reaffirmed its projection for 2026 revenue expansion of as much as 10%
Shares of Moderna experienced a significant premarket rally of nearly 8% on Friday following the biotechnology company’s announcement of first-quarter financial results that exceeded analyst projections across key metrics.
First-quarter revenue registered at $389 million, representing a dramatic increase from the $108 million reported in the corresponding quarter of the previous year. This performance substantially outpaced consensus estimates of approximately $228 million compiled by LSEG.
The primary catalyst behind this revenue expansion was robust demand for COVID-19 vaccines in markets outside the United States. Revenue from international territories reached $311 million, significantly overshadowing the $78 million generated domestically.
The company capitalized on established long-term supply agreements with governmental entities in the United Kingdom, Canada, and Australia to accelerate growth. CFO Jamey Mock highlighted that the company’s revenue composition has evolved into “a more balanced international versus U.S. story.”
This represents a meaningful transformation in Moderna’s business trajectory. During recent reporting periods, the company had consistently cautioned stakeholders about weakening COVID vaccine demand. This quarter’s performance signals a reversal of that trend.
Domestic market conditions present ongoing challenges. Broad policy modifications under the direction of Health Secretary Robert F. Kennedy Jr. have contributed to reduced vaccination rates in the United States. Mock indicated the company anticipates “a more stable COVID market in 2026 in the U.S.” and expressed optimism that significant uncertainty may now be “behind us.”
Bottom-Line Performance Improves Despite Major Settlement Impact
The company recorded a net loss totaling $1.34 billion, translating to $3.40 per share. This result exceeded analyst consensus calling for a loss of $3.96 per share.
It’s important to note that these figures incorporate an approximately $900 million expense related to a patent dispute resolution with Genevant Sciences and Arbutus Biopharma. The litigation centered on allegations that Moderna utilized proprietary lipid nanoparticle delivery systems in its Spikevax COVID vaccine without proper authorization.
The settlement agreement was finalized in March. This substantial charge has also elevated the company’s anticipated cost of sales for the complete 2026 fiscal year to $1.8 billion, up from an earlier estimate of $900 million.
Strategic reductions in both research expenditures and general administrative costs during the quarter contributed to the company’s improved loss profile.
Product Development and Forward Guidance
Moderna maintained its previously announced 2026 revenue growth target of up to 10%, with approximately half of total revenue anticipated to originate from international territories—an increase from the 38% contribution recorded last year.
Revenue for the second quarter is projected to fall within a range of $50 million to $100 million, with an even distribution expected between domestic and international sources.
RBC Capital analyst Luca Issi observed that Moderna’s full-year revenue profile remains heavily concentrated in the latter portion of 2026, with merely 15% anticipated during the first six months.
Beyond its COVID vaccine franchise, Moderna is advancing toward critical late-stage clinical readouts for a norovirus prevention vaccine and a personalized cancer treatment developed in collaboration with Merck. Regulatory authorities have established an August 5 target date for a decision on Moderna’s mRNA-based influenza vaccine, following resolution of previous disagreements with the FDA regarding clinical trial methodology.
The company is also progressing development of a therapeutic candidate targeting a rare metabolic condition as it expands its focus beyond traditional infectious disease applications.
