Key Highlights
- Shares of Moderna climbed approximately 8% during premarket hours following stronger-than-expected Q1 performance
- First-quarter revenue surged past $389 million, representing a more than three-fold increase compared to the same period last year, significantly exceeding the $228 million consensus
- Overseas markets accounted for $311 million in sales, with key government agreements in the UK, Canada, and Australia fueling expansion
- Per-share net loss of $3.40 came in better than the anticipated $3.96, despite absorbing approximately $900 million in patent settlement costs
- The company reaffirmed its projection for revenue growth reaching up to 10% in 2026
Shares of Moderna climbed nearly 8% during Friday’s premarket session after the biotech company delivered first-quarter financial results that exceeded Wall Street’s projections across key metrics.
The company reported first-quarter revenue of $389 million, representing a dramatic increase from the $108 million recorded in the year-ago period. This performance handily surpassed the consensus analyst forecast of approximately $228 million, based on LSEG tracking.
The primary catalyst behind this surge was robust international demand for COVID-19 vaccinations. Revenue from international territories reached $311 million, dwarfing the $78 million generated domestically.
The biotech firm capitalized on existing long-term supply agreements with governments in the United Kingdom, Canada, and Australia to drive these results. Chief Financial Officer Jamey Mock emphasized that the company’s revenue composition has evolved into “a more balanced international versus U.S. story.”
This represents a significant pivot from recent trends. In earlier reporting periods, Moderna had cautioned stakeholders about diminishing COVID vaccine demand. The current quarter marks a reversal of that trajectory.
The domestic landscape remains challenging. Policy transformations implemented under Health Secretary Robert F. Kennedy Jr. have dampened U.S. vaccination rates. Mock indicated the organization is “looking for a more stable COVID market in 2026 in the U.S.” and expressed optimism that much of the current volatility is “behind us.”
Bottom Line Improves Despite Substantial Legal Settlement
The company recorded a net loss totaling $1.34 billion, translating to $3.40 per diluted share. This outperformed Wall Street’s expectation of a $3.96 per-share loss.
It’s worth noting that these figures incorporate a settlement charge of roughly $900 million related to intellectual property litigation with Genevant Sciences and Arbutus Biopharma. The two entities had claimed Moderna utilized their proprietary lipid nanoparticle delivery platform in developing the Spikevax COVID vaccine without proper authorization.
A settlement agreement was finalized in March. This obligation also elevated the company’s projected full-year 2026 cost of sales to $1.8 billion, double the previous $900 million guidance.
The biotech reduced spending across both research and general administrative categories during the quarter, which helped offset some of the overall losses.
Product Development and Forward Guidance
Moderna maintained its 2026 revenue growth outlook of up to 10%, with international markets anticipated to contribute approximately half of total sales—an increase from the 38% contribution recorded last year.
For the second quarter, the company projects revenue in the $50 million to $100 million range, with contributions evenly distributed between domestic and international operations.
RBC Capital analyst Luca Issi highlighted that Moderna’s annual revenue profile is heavily back-end loaded, with only approximately 15% expected during the first six months of 2026.
Beyond its COVID franchise, Moderna anticipates late-stage clinical data for a norovirus vaccine candidate and a personalized cancer vaccine developed in collaboration with Merck. The FDA has scheduled an August 5 decision date for the company’s mRNA-based influenza vaccine, following resolution of previous regulatory concerns regarding trial methodology.
Moderna is also advancing a therapeutic candidate targeting a rare metabolic condition as part of its strategic expansion beyond infectious disease applications.
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