01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
United Therapeutics Corporation's quarterly report for the period ended March 31, 2026 shows total revenues of $781.5 milliona, down from $794.4 million in the prior-year quarter.
Operating income fell to $325.8 millionb from $382.8 million, and net income was $274.9 million versus $322.2 million, with diluted EPS of $5.82 compared with $6.63. Cost of sales rose to $133.4 million from $92.5 million, driven mainly by inventory reserve expense, including $26.8 million tied to an estimated loss from a commercial supply agreement for Tyvaso DPI. Other expense, net was $46.3 million, primarily reflecting net unrealized losses on equity securities of $61.6 million.
The company repurchased $1.5 billionc of common stock under two accelerated share repurchase agreements entered in March 2026, under a $2.0 billion authorization. Total stockholders' equity declined to $5,901.1 million from $7,096.2 million at December 31, 2025, and cash, cash equivalents and marketable investments totaled $3,471.1 million, down from $4,697.0 million. The 2025 Credit Agreement's $2.5 billion revolving facility had a zero outstanding balance at March 31, 2026.
Management highlighted positive Phase 3 results: TETON-1 and TETON-2 for Nebulized Tyvaso in IPF, with an sNDA planned by the end of summer 2026, and ADVANCE OUTCOMES for ralinepag, with an NDA also planned by the end of summer 2026. Ongoing litigation includes a Sandoz judgment under appeal and patent and trade secret disputes with Liquidia.
02—Key points
Key Highlights
- Total revenues were $781.5 million, down from $794.4 million, with Tyvaso DPI rising to $330.3 million from $302.5 million while Nebulized Tyvaso fell to $127.2 million from $163.8 million.
- Net income was $274.9 million ($5.82 diluted EPS) versus $322.2 million ($6.63 diluted EPS) in the prior-year quarter; the effective tax rate was 14 percent versus 24 percent.
- Cost of sales rose to $133.4 million from $92.5 million, including $44.9 million of inventory reserve expense, of which $26.8 million relates to an estimated loss from a commercial supply agreement.
- The company paid $1.5 billion under two 2026 accelerated share repurchase agreements, leaving $500 million available under the $2.0 billion authorization expiring March 9, 2027.
- Total stockholders' equity decreased to $5,901.1 million from $7,096.2 million, and cash and marketable investments decreased to $3,471.1 million from $4,697.0 million.
- Other expense, net of $46.3 million was driven mainly by $61.6 million of net unrealized losses on equity securities.
- Management plans to submit an sNDA for Nebulized Tyvaso in IPF and an NDA for ralinepag extended-release tablets by the end of summer 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, United Therapeutics kept $0.35.
- Revenue$781.5M100.0%
- Cost of revenue−$133.4M17.1%
- Gross profit$648.1M82.9%
- Operating costs−$322.3M41.2%
- Operating income$325.8M41.7%
- Interest, other & tax−$50.9M6.5%
- Net income$274.9M35.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $781.50M$794.40M | −1.6% |
| Cost of Revenue | $133.40M$92.50M | +44.2% |
| Gross Profit | $648.10M$701.90M | −7.7% |
| R&D Expenses | $138.20M$149.00M | −7.2% |
| SG&A Expenses | $184.10M$170.10M | +8.2% |
| Operating Expenses | $455.70M$411.60M | +10.7% |
| Operating Income | $325.80M$382.80M | −14.9% |
| Net Income | $274.90M$322.20M | −14.7% |
| EPS (Basic) | $6.32$7.18 | −12.0% |
| EPS (Diluted) | $5.82$6.63 | −12.2% |
| Shares Outstanding (Basic) | 43.50M44.90M | −3.1% |
| Shares Outstanding (Diluted) | 47.20M48.60M | −2.9% |
05—Questions
Frequently Asked Questions
How did revenue and profitability change in the first quarter of 2026?
Total revenues declined 2 percent to $781.5 million from $794.4 million. Operating income fell to $325.8 million from $382.8 million, and net income decreased to $274.9 million from $322.2 million, largely due to higher cost of sales from inventory reserves and lower revenue from Nebulized Tyvaso.
Why did cost of sales increase so sharply?
Cost of sales rose to $133.4 million from $92.5 million, mainly due to higher inventory reserve expense. The filing states that $26.8 million of the increase relates to an estimated loss from a commercial supply agreement that provides sufficient Tyvaso DPI inventory for patients.
What did the company do with its cash in the quarter?
United Therapeutics paid $1.5 billion to Citi under two accelerated share repurchase agreements, which initially delivered 1,701,777 shares, and it also spent $100.8 million on property, plant and equipment. Cash and cash equivalents ended the quarter at $1,279.7 million, and the company's 2025 Credit Agreement balance remained zero.
What are the key pipeline catalysts mentioned in the filing?
The company plans to submit an sNDA to add IPF to the Nebulized Tyvaso label, based on TETON-1 and TETON-2 results, and an NDA for ralinepag extended-release tablets, based on the ADVANCE OUTCOMES study, both by the end of summer 2026. Treprostinil SMI and ralinepag DPI are also in development.
What major litigation risks are disclosed?
The company has accrued $71.1 million, plus additional amounts, for a Sandoz judgment that is on appeal before the Third Circuit. It is also in patent and trade secret litigation with Liquidia, including a lawsuit over the '327 patent awaiting a court decision after a June 2025 trial, and faces RICO-related suits from Humana, United and MSP Recovery.
06—Continue