BeOne Raises Outlook as Operating Margin Widens
Free cash flow nearly doubled to $435 million in the second quarter.
BeOne Medicines (ONC), the global oncology company, reported a 270% increase in second-quarter operating income as revenue growth outpaced spending and margins widened.
The quarter extended a steady rise in profitability even as top-line growth moderated. The implied GAAP operating margin reached about 19.1%, up from 16.5% in the first quarter and 6.7% a year earlier.
Revenue rose 30% from a year earlier to $1.705 billion and increased 12.7% sequentially. The annual growth rate slowed from 35% in the first quarter. GAAP net income climbed 151% to $237 million, and diluted earnings increased to $2.05 a share from $0.84 a year earlier.
BRUKINSA remained the principal growth driver, with global revenue rising 31% to $1.2 billion. U.S. revenue increased 17.3% from the first quarter to $893 million, though BRUKINSA's global annual growth slowed from 38% in the preceding quarter. TEVIMBRA revenue rose 18% from a year earlier to $229 million.
A richer BRUKINSA sales mix and lower product costs lifted GAAP gross margin to 90% from 87% a year earlier. Operating expenses increased 13% to $1.205 billion, less than half the pace of revenue growth, as SG&A declined to 35% of product sales from 41%. R&D spending rose 17% to $612 million as more programs moved into clinical and late-stage development.
BeOne raised its 2026 revenue forecast by $300 million at both ends to a range of $6.6 billion to $6.8 billion. It also increased its GAAP operating-income outlook to $1.0 billion to $1.1 billion from $750 million to $850 million, even as it lifted expected operating expenses by $100 million at both ends.
The company added a marketed product during the quarter when the Food and Drug Administration granted accelerated approval to BEQALZI for certain adults with relapsed or refractory mantle cell lymphoma. BeOne also announced a $300 million expansion of its Hopewell, New Jersey, manufacturing and research center, adding capacity as its commercial portfolio and development spending grew.