Legend Biotech Corporation (NASDAQ: LEGN) saw its shares fall approximately 9 to 10% after reporting first-quarter 2026 results that disappointed investors on profitability.
The decline came despite CARVYKTI net trade sales rising 62% year-over-year to approximately $597 million in the first quarter of 2026.
US sales of CARVYKTI grew 36% during the period, while international sales surged 222%, underlining the therapy’s expanding global commercial footprint.
Despite that strong product momentum, Legend reported a loss of $0.15 per share, considerably wider than analyst estimates of a $0.02 loss, representing a negative 650% earnings surprise.
Revenue came in at $305.10 million, falling just short of estimates of $308.39 million, even as the company posted revenue growth of 56.4% on a year-over-year basis.
The gap between strong sales growth and weak near-term profitability appears to have unsettled investors seeking cleaner earnings leverage from the business.
On an adjusted basis, the net loss improved to $10.5 million from $27.0 million a year earlier, with the overall net loss narrowing to $54.3 million from $101.0 million.
Legend also highlighted manufacturing progress, reporting a 99% manufacturing success rate and more than 95% on-time final product releases during the quarter, metrics critical for cell therapy adoption.
The company ended the period with $834.6 million in cash, cash equivalents, and time deposits, providing financial runway beyond 2026, when it expects to achieve company-wide profit.
Adding further pressure to the share price, Legend announced the pricing of an underwritten public offering of 7.7 million American Depositary Shares at $29.35 per ADS, raising approximately $226 million.
Each ADS represents two ordinary shares, and Legend also granted underwriters a 30-day option to purchase up to an additional 15% of the ADSs sold, implying dilution for existing holders.
H.C. Wainwright reiterated a Buy rating and a $65.00 price target on Legend Biotech following the results, maintaining a constructive view on the stock’s longer-term outlook.
The firm noted that Carvykti sales reached $657 million in the second quarter of 2026, representing a 10% increase from $597 million in the prior quarter, coming in 0.3% above consensus estimates of $655.3 million.
First-half sales totalled $1.254 billion, leaving $1.346 billion needed in the second half of 2026 to reach H.C. Wainwright’s full-year forecast of approximately $2.6 billion.
Analysts broadly predict Legend will turn profitable in 2026, with overall revenue growth remaining robust at 56% over the last twelve months as of the first quarter.