Overview
Guggenheim has raised its price objective on Biogen Inc. (NASDAQ:BIIB) to $246.00 from $185.00 while maintaining a Buy rating, following the company’s fourth-quarter 2025 financial update. The move comes as Biogen traded near its 52-week high of $202.41, with recent price performance showing a 12.33% gain over the past week and a 53.96% rise across the last six months. InvestingPro analysis cited in company data indicates Biogen appears undervalued on a Fair Value basis.
Fourth-quarter results
For the fourth quarter of 2025, Biogen reported non-GAAP earnings per share of $1.99. That figure represents a 59% decline quarter-over-quarter and a 42% decline year-over-year. Revenue for the period was approximately $2.28 billion, down 10% sequentially and down 7% compared with the same quarter a year earlier. Despite these declines, Biogen remains profitable for the trailing twelve months, reporting diluted EPS of $8.79 and sustaining a gross profit margin of 78.95%.
The company’s revenue performance modestly outpaced analyst expectations. Consensus estimates stood at about $2.2 billion, and Biogen’s reported top line exceeded that by roughly 4%. The beat was attributed largely to continued resilience within the multiple sclerosis franchise, with particularly strong demand for Vumerity helping to offset ongoing erosion in legacy MS products.
Outlook for fiscal 2026 and pipeline focus
Biogen has provided guidance for fiscal 2026 that includes non-GAAP EPS in the range of $15.25 to $16.25. The company expects revenue to decrease by a mid-single-digit percentage versus fiscal 2025, reflecting anticipated further declines in MS product revenue that management says should be partially offset by growth from newer products.
Guggenheim emphasized that investor attention is likely to shift toward Biogen’s development pipeline as a primary driver of future upside. The firm highlighted that multiple registrational readouts are expected over the next 18 months, including Phase III studies of litifilimab in lupus and proof-of-concept results from several other candidates. Guggenheim characterized this sequence of potential milestones as creating the chance for "a durable, growth-led inflection beyond 2026."
Analyst reactions and peer target moves
Following the company’s earnings report, several other brokerages adjusted their targets and ratings. Canaccord Genuity raised its price target to $230 while retaining a Buy rating. H.C. Wainwright increased its target to $228, citing diversification of the pipeline and anticipated growth from assets such as Skyclarys, Zurzuvae, and Leqembi. Baird reiterated an Outperform rating with a $250 price target. Oppenheimer also raised its target to $250 and maintained an Outperform rating, noting a favorable long-term growth outlook.
Market context and implications
The juxtaposition of near-term revenue and earnings declines with expanding analyst price targets underscores the market’s focus on future pipeline-driven growth potential. Biogen’s fourth-quarter results show ongoing pressure in legacy revenue streams, while management and external analysts point to newer assets and pending clinical readouts as the likely catalysts for a subsequent revenue inflection.
Key takeaways
- Guggenheim raised its Biogen price target to $246 and kept a Buy rating after Q4 2025 results.
- Q4 non-GAAP EPS was $1.99, down 59% sequentially and 42% year-over-year, with revenue of about $2.28 billion, down 10% quarter-over-quarter and 7% year-over-year.
- Biogen expects fiscal 2026 non-GAAP EPS of $15.25-16.25 and anticipates mid-single-digit revenue declines versus FY2025, with pipeline readouts over the next 18 months seen as potential drivers of growth beyond 2026.
Analysis limitations and closing note
The company’s recent performance presents a mixed near-term picture: reported earnings and revenues declined on both a sequential and year-over-year basis, yet revenues beat estimates and several analysts raised price targets based on expected pipeline progress and growth from newer products. The extent to which upcoming registrational and proof-of-concept readouts translate into sustained revenue growth remains contingent on the outcomes of those clinical programs.