Revenue: As of FY2026 Q2, the actual value is USD 119.59 M, beating the estimate of USD 110.98 M.

EPS: As of FY2026 Q2, the actual value is USD -1.14, missing the estimate of USD 0.4875.

EBIT: As of FY2026 Q2, the actual value is USD -102.55 M.

Total Revenue

Innoviva, Inc. reported total revenue of $119.6 million for the second quarter of 2026, an increase of 19% year-on-year compared to $100.3 million in the second quarter of 2025. For the six months ended June 30, 2026, total revenue was $217.585 million, up from $188.915 million for the same period in 2025.

Royalty Revenue

Net royalty revenue for the second quarter of 2026 was $56.334 million, compared to $63.880 million in the second quarter of 2025. Gross royalty revenue from Glaxo Group Limited (“GSK”) was $59.8 million in the second quarter of 2026, representing a 2% increase from $58.6 million in the first quarter of 2026. For the six months ended June 30, 2026, net royalty revenue was $111.501 million, down from $121.687 million in 2025.

Net Product Sales

Net product sales reached $51.8 million in the second quarter of 2026, reflecting a 46% growth compared to $35.5 million in the second quarter of 2025. U.S. net product sales were $36.6 million, growing 26% year-over-year, while ex-U.S. sales were $15.2 million. U.S. net product sales primarily included $21.0 million from GIAPREZA®, $12.0 million from XACDURO®, and $3.3 million from XERAVA®. For the six months ended June 30, 2026, net product sales totaled $93.142 million, an increase from $65.772 million in 2025.

Gross Profit

Gross profit for the second quarter of 2026 was $90.616 million, up from $83.146 million in the second quarter of 2025. For the six months ended June 30, 2026, gross profit was $166.449 million, compared to $156.461 million in 2025.

Operating Expenses

Total operating expenses for the second quarter of 2026 were $39.761 million, an increase from $34.395 million in the second quarter of 2025. This included selling, general and administrative expenses of $34.571 million (compared to $26.412 million in 2025) and research and development expenses of $5.190 million (compared to $7.983 million in 2025). For the six months ended June 30, 2026, total operating expenses were $77.440 million, up from $66.282 million in 2025.

Income from Operations

Income from operations in the second quarter of 2026 was $50.855 million, compared to $48.751 million for the second quarter of 2025. For the six months ended June 30, 2026, income from operations was $89.009 million, slightly down from $90.179 million in 2025.

Net Income (Loss)

Innoviva, Inc. reported a net loss of - $83.420 million for the second quarter of 2026, primarily due to a decrease in the fair value of equity and long-term investments, compared to a net income of $63.688 million in the second quarter of 2025. For the six months ended June 30, 2026, net income was $103.175 million, significantly higher than $17.104 million in 2025.

Equity and Long-Term Investments

Net unfavorable changes in the fair value of equity and long-term investments totaled - $161.0 million in the second quarter of 2026. Innoviva’s strategic healthcare investments were valued at $669.5 million as of June 30, 2026, comprising $457.7 million in Armata Pharmaceuticals, $177.3 million in other strategic equity and convertible debt, and $34.5 million held by ISP Fund. Changes in fair values of equity method investments were - $131.834 million for Q2 2026, and changes in fair values of equity and long-term investments were - $29.153 million for Q2 2026.

Cash and Cash Equivalents

Cash and cash equivalents totaled $570.388 million as of June 30, 2026, compared to $550.941 million as of December 31, 2025. Royalty and net product sales receivables were $110.616 million as of June 30, 2026, representing a 25% year-on-year increase from $88.3 million for the second quarter of 2025.

Cash Flow Summary (Six Months Ended June 30)

Net cash provided by operating activities was $87.254 million in 2026, down from $92.690 million in 2025. Net cash used in investing activities was - $18.256 million in 2026, compared to - $1.552 million in 2025. Net cash used in financing activities was - $49.551 million in 2026, compared to $1.430 million provided in 2025.

Operational Metrics and Business Developments

Innoviva, Inc. launched Nortiva Bio, a wholly-owned subsidiary focused on the LYNX™ long-acting oral drug delivery platform. Innoviva Specialty Therapeutics (IST) entered into an exclusive distribution and licensing agreement with Dr. Reddy’s Laboratories Ltd. for the development and commercialization of XACDURO® in several emerging markets.

Outlook

Innoviva, Inc. remains on track to achieve at least $150 million in IST U.S. net product sales in 2026. The company expresses continued conviction in the long-term prospects of its diversified business model, which combines durable cash generation, strong operating revenue growth, and value creation in high-potential strategic opportunities.