01—Abstract
Summary
Summary of the 8-K filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
United Therapeutics Corporation (Nasdaq: UTHR) furnished an 8-K on May 6, 2026 under Item 2.02 (Results of Operations and Financial Condition), attaching Exhibit 99.1, a press release reporting first quarter 2026 results for the quarter ended March 31, 2026.
Total revenues decreased two percent year-over-year to $781.5 milliona from $794.4 million, and net income fell 15 percent to $274.9 million from $322.2 million. Diluted earnings per share were $5.82 versus $6.63, a 12 percent decline. Management pointed to positive ADVANCE OUTCOMES and TETON-1 study results and announced development plans for ralinepag DPI in pulmonary hypertension and fibrosis.
The revenue decline was driven by Nebulized Tyvaso, which fell 22 percent to $127.2 millionb on lower U.S. quantities sold, partially offset by Tyvaso DPI growth of nine percent to $330.3 million and Orenitram growth of 12 percent to $135.6 million. Cost of sales rose 44 percent to $133.4 million, mainly from higher inventory reserve expense, of which $26.8 million relates to an estimated loss from a commercial supply agreement for Tyvaso DPI inventory. Income tax expense was $43.4 million, with an effective tax rate of 14 percent versus 24 percent a year earlier, which management attributed primarily to increased excess tax benefits from share-based compensation.
Capital allocation was also active: in March 2026 the Board approved a share repurchase program of up to $2.0 billionc expiring March 9, 2027, and the company entered into accelerated share repurchase agreements with Citibank, N.A. for approximately $1.5 billion of common stock, with $500 million remaining under the authorization as of March 31, 2026. Cash, cash equivalents and marketable investments totaled $3,471.1 million at quarter end, against total assets of $6,714.2 million and stockholders' equity of $5,901.1 million.
02—Key points
Key Highlights
- Total revenues fell two percent year-over-year to $781.5 million from $794.4 million in Q1 2025.
- Net income declined 15 percent to $274.9 million; diluted EPS was $5.82 versus $6.63, down 12 percent.
- Nebulized Tyvaso revenues decreased 22 percent to $127.2 million, while Tyvaso DPI grew nine percent to $330.3 million and Orenitram grew 12 percent to $135.6 million.
- Cost of sales increased 45 percent (total cost of sales up 44 percent to $133.4 million), including $26.8 million tied to an estimated loss on a commercial supply agreement for Tyvaso DPI inventory.
- Management cited the competitive landscape for inhaled prostacyclins as dynamic and stated a goal of returning to sequential quarterly revenue growth in the near term.
- The Board approved a $2.0 billion share repurchase program through March 9, 2027; accelerated share repurchase agreements of approximately $1.5 billion were entered into, leaving $500 million available at March 31, 2026.
- Positive ADVANCE OUTCOMES and TETON-1 study results were reported, and development plans were announced for ralinepag DPI in pulmonary hypertension and fibrosis.
03—Questions
Frequently Asked Questions
Why did revenue and net income decline in the first quarter of 2026?
Total revenues fell two percent to $781.5 million, driven mainly by a decrease in Nebulized Tyvaso revenues of $36.6 million (primarily lower U.S. quantities sold of $33.3 million). Net income fell 15 percent to $274.9 million, with higher cost of sales (largely increased inventory reserve expense), higher selling, general and administrative expense, and other expense, net, primarily from net unrealized losses on equity securities, partly offset by lower research and development expense and lower income tax expense.
Which products drove growth this quarter?
Tyvaso DPI revenues rose 9 percent to $330.3 million, primarily on an increase in quantities sold of $16.0 million and, to a lesser extent, a price increase. Orenitram revenues rose 12 percent to $135.6 million, primarily on an increase in quantities sold of $10.2 million.
What is the status of the company's share repurchases?
In March 2026 the Board approved a repurchase program of up to $2.0 billion expiring March 9, 2027. The company entered into accelerated share repurchase agreements with Citibank, N.A. for approximately $1.5 billion of common stock and received 2,164,459 shares during the quarter. As of March 31, 2026, $500 million remained available under the authorization.
What drove the lower effective tax rate?
The effective income tax rate was 14 percent for the quarter ended March 31, 2026, compared with 24 percent a year earlier. Management attributed the decrease primarily to increased excess tax benefits from share-based compensation. Income tax expense was $43.4 million versus $101.3 million.
What did management say about the outlook and pipeline?
Management highlighted positive results from the ADVANCE OUTCOMES and TETON-1 studies, which it said could expand future growth and revenue diversification, and announced development plans for ralinepag DPI in pulmonary hypertension and fibrosis. Management also said it aims to return to sequential quarterly revenue growth across its commercial portfolio in the near term, while noting the competitive landscape for inhaled prostacyclins remains dynamic.
04—Continue