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Get filing alertsUnited Therapeutics Q1 revenue falls 2% to $781.5M, launches $2B buyback program
Filed May 6, 2026 · Period ending May 6, 2026 · ~1 min read
Key Changes
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high
Q1 2026 revenues declined 2% YoY to $781.5M while net income fell 15% to $274.9M ($5.82 per diluted share vs. $6.63 prior year), driven by 22% drop in Nebulized Tyvaso sales partially offset by 9% Tyvaso DPI growth.
Exhibit 99.1 view on EDGAR → -
high
Cost of sales surged 44% to $133.4M, including a $26.8M estimated loss from a Tyvaso DPI commercial supply agreement to maintain sufficient inventory for patient needs.
Exhibit 99.1 view on EDGAR → -
high
Board approved $2B share repurchase program through March 2027; company executed $1.5B via accelerated repurchase agreements with Citibank in Q1, receiving 2.16M shares, with $500M authorization remaining.
Exhibit 99.1 view on EDGAR → -
high
Positive results from ADVANCE OUTCOMES and TETON-1 studies; company announced development plans for ralinepag DPI targeting once-daily dosing in pulmonary hypertension and fibrosis to broaden therapeutic reach.
Exhibit 99.1 view on EDGAR → -
medium
Effective tax rate decreased from 24% to 14% YoY, primarily due to increased excess tax benefits from share-based compensation, partially offsetting lower operating income impact.
Exhibit 99.1 view on EDGAR →
Summary
United Therapeutics reported mixed Q1 2026 results with revenue declining 2% to $781.5 million while net income fell more sharply at 15% to $274.9 million. The revenue decline reflects a challenging product mix shift: Nebulized Tyvaso sales dropped 22% to $127.2 million while the newer Tyvaso DPI grew 9% to $330.3 million.
More concerning, cost of sales jumped 44% driven by a $26.8 million inventory reserve related to a Tyvaso DPI supply agreement, compressing margins significantly. The company responded with a substantial $2 billion share repurchase program, immediately deploying $1.5 billion through accelerated agreements that retired 2.16 million shares in the quarter.
This aggressive capital return signals management confidence despite near-term headwinds. On the pipeline front, positive clinical results from ADVANCE OUTCOMES and TETON-1 studies support the company's announcement of ralinepag DPI development plans, a once-daily candidate targeting pulmonary hypertension and fibrosis that could diversify revenue streams beyond the Tyvaso franchise. The 10-percentage-point tax rate decline to 14% provided some earnings cushion but couldn't fully offset operational pressures.
Section-by-Section Diff
Event · Exhibit 99.1
United Therapeutics reported Q1 2026 revenues down 2% YoY to $781.5M, net income down 15% to $274.9M, and announced a $2B share repurchase program.
Added in current filing · view on EDGAR →
Total revenues in the first quarter of 2026 decreased by two percent year-over-year to $781.5 million, compared to $794.4 million in the first quarter of 2025.
United Therapeutics reported first quarter 2026 total revenues of $781.5 million, a 2% decline from $794.4 million in Q1 2025. Net income fell 15% to $274.9 million from $322.2 million, with diluted EPS declining from $6.63 to $5.82. The revenue decline was driven by a 22% drop in Nebulized Tyvaso sales to $127.2 million, partially offset by 9% growth in Tyvaso DPI to $330.3 million.
Added in current filing · view on EDGAR →
The increase in cost of sales for the three months ended March 31, 2026, compared to the same period in 2025, was mainly due to an increase in inventory reserve expense. Of this increase amount, $26.8 million relates to an estimated loss from a commercial supply agreement that we maintain to provide sufficient Tyvaso DPI inventory to meet the needs of our patients.
Cost of sales increased 44% to $133.4 million from $92.5 million in Q1 2025, primarily due to inventory reserve expense. The company recorded a $26.8 million estimated loss related to a commercial supply agreement for Tyvaso DPI inventory. This significant cost increase contributed to the 15% decline in net income despite only a 2% revenue decline.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 2, 2026 · How we verify