Results and guidance both revised upward; core product growth supports target price increase to USD 484.91

Overview

BeOne’s second-quarter results announced on August 5, 2026 were clearly ahead of expectations. Revenue grew 30% YoY to USD 1.7bn, and net profit grew 151% YoY to USD 237mn. Growth was mainly driven by strong overseas sales of zanubrutinib and steady growth of tislelizumab in the China market, while margin improvement from higher sales scale and U.S. tax credit benefits further boosted earnings. Management raised FY2026 revenue and operating profit guidance, and Nomura accordingly raised its forecasts and target price.

Core views

The report believes this quarter’s results were strong, with the core logic being that zanubrutinib continues to lead market growth and expand overseas sales scale. The company raised full-year revenue and operating profit guidance, indicating commercialization momentum and profitability were better than previously expected. Nomura raised its FY2026 revenue forecast by 5.3% and earnings forecast by 53.9%, and increased the target price from USD 454.75 to USD 484.91 based on DCF valuation. Medium- to long-term catalysts come from Phase III clinical progress of pipeline assets such as CDK4, B7-H4 ADC, and GPC3×4-1BB bispecific antibody.

Analysis framework

The report combines quarterly actual results with institutional and consensus expectations for variance analysis, breaks down the sales contributions of major products and regions, and compares zanubrutinib competitively with ibrutinib, acalabrutinib, and pirtobrutinib; it then revises revenue and earnings forecasts based on management’s latest full-year guidance, and finally uses a DCF model to calculate the target price.

Methodology notes

• Earnings analysisActual results versus expectations variance analysis

  Compare actual revenue and net profit with analyst forecasts and consensus expectations

  Identify the sources of the earnings beat through differences in revenue, profit, product sales, margins, and tax items.

• Competitive analysisSales growth comparison of peer drugs

  Compare zanubrutinib with major competing drugs in terms of sales and YoY/QoQ growth

  Zanubrutinib’s second-quarter sales were USD 1.25bn, up 31% YoY; over the same period, ibrutinib sales declined, while acalabrutinib and pirtobrutinib maintained growth, indicating that market competition remains intense.

• Valuation methodsDiscounted cash flow model (DCF)

  Estimate intrinsic value based on future cash flows, cost of capital, and perpetual growth rate

  The target price of USD 484.91 is calculated using a DCF model, with WACC of 10.6% and a perpetual growth rate of 4.0%.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• BEONE MEDICINES LTD（ONC.US；6160.HK）

  Core covered company in the report

  Strengths

  Core product zanubrutinib sales growth is strong, and overseas commercialization expansion is evident; tislelizumab is growing steadily in the China market; the company has more than 40 commercialized or clinical-stage drugs and drug candidates.

  Weaknesses

  Current results and valuation are relatively dependent on the continued growth of zanubrutinib, and early-stage R&D assets still carry high clinical uncertainty.

  Comparison

  Zanubrutinib’s second-quarter sales were USD 1.25bn; over the same period, sales of ibrutinib, acalabrutinib, and pirtobrutinib were USD 598mn, USD 1.022bn, and USD 192mn, respectively.

  Risks

  Slower sales growth of core products, disappointing clinical data for early-stage assets, and geopolitical tensions affecting investor sentiment.

Key data

• 2Q26 revenueUSD 1.7bn, up 30% YoYAbove Nomura’s forecast and consensus expectations of USD 1.6bn.
• 2Q26 net profitUSD 237mn, up 151% YoYAbove Nomura’s forecast of USD 55mn and consensus expectations of USD 182mn.
• Zanubrutinib salesUSD 1.25bn, up 31% YoY and 14% QoQSales in the U.S., Europe, and China were USD 893mn, USD 196mn, and USD 97mn, respectively.
• Tislelizumab salesUSD 229mn, up 18% YoY and 11% QoQMainly contributed by the China market.
• FY2026 revenue guidanceUSD 6.6-6.8bnPrevious guidance was USD 6.3-6.5bn.
• FY2026 GAAP operating profit guidanceUSD 1.0-1.1bnPrevious guidance was USD 750-850mn.
• FY2026 non-GAAP operating profit guidanceUSD 1.7-1.8bnPrevious guidance was USD 1.45-1.55bn.
• Forecast revisionsRevenue raised by 5.3%, earnings raised by 53.9%Corresponds to Nomura’s latest forecast revisions for FY2026.
• Target priceUSD 484.91Raised from USD 454.75, implying 50.1% upside from the closing price of USD 323.01.
• Valuation parametersWACC 10.6%, perpetual growth rate 4.0%Used for the DCF target price calculation.

Impact & implications

The earnings beat and full-year guidance raise strengthened market confidence in BeOne’s revenue growth and earnings release. Zanubrutinib’s continued expansion in the U.S. and Europe is the core support for near-term valuation improvement, while multiple Phase III clinical programs provide potential catalysts for medium- to long-term portfolio expansion. The target price increase reflects improved earnings forecasts, but realization of the valuation still depends on the sustainability of core product growth, the quality of clinical data, and the external risk environment.

Risks

• Zanubrutinib sales growth may slow.
• Clinical data for early-stage R&D assets may fall short of expectations.
• Geopolitical tensions may weigh on investor sentiment and valuation.
• Continued growth of competing drugs may intensify market competition in related therapeutic areas.
• If actual earnings are below the latest forecasts, the target price may not be achieved.

What to watch

• Zanubrutinib sales growth and market share changes in the U.S., Europe, and China markets.
• Whether the company can achieve FY2026 revenue guidance of USD 6.6-6.8bn.
• Whether GAAP and non-GAAP operating profit can reach the raised guidance ranges.
• Phase III clinical progress of the CDK4 program for HR+/HER2- breast cancer treatment.
• Launch status of the Phase III trial of B7-H4 ADC for first-line ovarian cancer maintenance therapy.
• Phase III trial progress of the GPC3×4-1BB bispecific antibody for second-line hepatocellular carcinoma.
• Sustainability of margins and net profit after the tax credit benefits fade.