Why Biogen Stock Surged Almost 9% Higher on Friday

Core Insights - Biogen has shown potential for returning to growth, with a significant stock price increase of nearly 9% following the release of its 2025 fundamentals, which exceeded analyst expectations for profitability [1][4]. Financial Performance - In Q4, Biogen reported total revenue of approximately $2.28 billion, a decline of 7% year-over-year, while non-GAAP net income fell to just under $294 million ($1.99 per share) from over $502 million in the previous year [2][4]. - The company's product revenue, the main contributor to total revenue, decreased by 9% to under $1.67 billion, with multiple sclerosis (MS) treatments experiencing a 14% drop to $917 million due to competition from generics and biosimilars [5][2]. Analyst Expectations - Despite the revenue decline, Biogen's headline numbers surpassed consensus analyst estimates, which predicted revenue of $2.21 billion and non-GAAP net income of $1.61 per share [4][2]. Future Guidance - Biogen provided guidance for 2026, expecting mid-single-digit revenue decline from 2025 results, with adjusted net income projected between $15.25 and $16.25, above the average analyst estimate of $14.92 [8][9]. - The company is moving beyond its historical reliance on the MS portfolio, with its "New Biogen" medicines achieving 6% sales growth and a strong pipeline expected to support future growth [9].