Start here if you're new
what it is
Jazz sells specialty drugs for sleep disorders, epilepsy, cancer, and pain, then tries to turn those prescriptions into steady cash flow.
how it gets paid
Last year Jazz Pharma made $4.3B in revenue. sleep franchise was the main engine at $2.10B, or 49% of sales.
why it's growing
Revenue grew 4.9% last year. 88.2% gross margin matters because it says the underlying products still have serious pricing power even while reported earnings look broken.
what just happened
Jazz beat earnings estimates with $6.64 EPS, but the bigger story is that the latest reported quarter still showed a -$9.18 GAAP EPS mess.
At a glance
B+ balance sheet — decent shape, but not bulletproof
55/100 earnings predictability — expect surprises
20.8x trailing p/e — priced about right
15.5% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
Jazz sells specialty drugs for sleep disorders, epilepsy, cancer, and pain, then tries to turn those prescriptions into steady cash flow.
You do not get an 88.2% gross margin by selling a commodity. Gross margin → money left after making the drug → pricing power. If your treatment controls narcolepsy or rare epilepsy, switching is painful, and that lets Jazz keep more of each sales dollar than most drug companies.
How they make money
$4.3B
annual revenue · their business grew +4.9% last year
sleep franchise
$2.10B
+1.0%
epilepsy franchise
$1.00B
+14.0%
oncology franchise
$0.78B
+12.0%
pain franchise
$0.17B
3.0%
other products
$0.25B
5.0%
The products that matter
marketed medicines portfolio
Commercialized Drug Portfolio
$4.3B revenue · +4.9%
it's the cash engine. this portfolio generated the full $4.3B shown on this page and grew 4.9% last year.
core
pre-commercial drug development
Clinical pipeline
no revenue breakout here
there is no separate pipeline revenue disclosed on this page, which tells you the current $4.3B business still has to do the heavy lifting while you wait for new assets.
future optionality
launch and access infrastructure
Commercial platform
31.2% net margin
this is how Jazz turns approved products into profits. a 31.2% net margin says the platform works, but only if the portfolio stays defensible.
execution layer
Key numbers
15.5%
return on capital
Return on capital → profit earned on the money tied up in the business → Jazz is still producing decent economics despite ugly GAAP swings.
$4.3B
annual revenue
That is the base you are buying today, and it grew 4.9% vs. prior year according to the SEC filing.
20.8x
trailing p/e
Price-to-earnings → how many dollars you pay for one dollar of profit → you are not getting a distressed multiple here.
~$4.3B
long-term debt
Same dollar order as annual sales by coincidence—debt is a balance-sheet line, not revenue. ~30% of capital: leverage, not an emergency.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $4.3B (30% of capital)
- net profit margin 31.5% — keeps 32 cents of every dollar in revenue
- return on equity 26% — $0.26 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in JAZZ 3 years ago → it's now worth $10,980.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Jazz beat earnings estimates with $6.64 EPS, but the bigger story is that the latest reported quarter still showed a -$9.18 GAAP EPS mess.
Revenue reached $1.2 billion in the latest quarter, up 10% vs. prior year, while annual revenue hit $4.3 billion, up 4.9%. The gap between strong sales and ugly EPS points to acquisition and integration noise, not a simple demand problem.
$1.2B
quarter revenue
-$9.18
GAAP EPS (loss)
88.2%
gross margin
the number that mattered
88.2% gross margin matters because it says the underlying products still have serious pricing power even while reported earnings look broken.
-
the investment community appears to be taking a step back from jazz pharmaceuticals stock.the company is scheduled to release 2025 fourth-quarter and full-year results after this issue is published.
-
we still anticipate that the financial performance was mixed.
-
sales likely advanced vs. prior year.
-
however, share earnings were expected to decline due to integration expenses associated with jazz’s $935 million acquisition of chimerix last year.although there are some developments on the regulatory and research fronts (see below), the stock has traded in a tight band since our latenovember report.
-
the company is expected to record decent results in 2026 and 2027.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is the aftertaste of the $145M Xyrem legal settlement — because once a mature drug franchise picks up legal baggage, investors start questioning durability, not just the one-time charge.
med
xyrem litigation fallout
Jazz agreed to pay $145M to settle lawsuits over delaying a generic version of Xyrem. That's roughly 3% of the $4.3B revenue base shown on this page.
The cash hit looks manageable. The reputational and franchise questions are harder to model, which is why the overhang matters.
med
revenue durability slipping toward the $4B estimate
Last annual revenue was $4.3B. The FY2026 estimate shown here is roughly $4B. That gap tells you the market is not assuming a smooth next leg of growth.
If revenue lands closer to $4B and margins soften at the same time, the current 20.8x trailing multiple stops looking ordinary.
med
investors deciding this deserves a lower multiple
JAZZ trades at $166.31 while the 3–5 year midpoint target sits at $146. When a stock already trades above its modeled midpoint, you need execution to stay consistently clean.
That is the quiet part: the stock can disappoint you without the business imploding. It just has to be a little less convincing.
$145M on its own is survivable. Pair it with revenue drifting toward $4B and a middling 55/100 predictability score, and the market has a clear reason to pay less for the same company.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings release
You want two things from the next report: revenue holding near the current $4.3B run-rate and no fresh legal surprise attached to a core franchise.
trend
revenue direction versus the $4B estimate
The page shows $4.3B in last annual revenue and roughly $4B for FY2026. That gap is small, but it tells you growth confidence is not automatic.
risk
post-settlement franchise durability
The $145M settlement is already known. What matters next is whether it stays a one-off cost or turns into a longer debate about franchise quality.
metric
earnings predictability
55 / 100 is not a disaster. It is a warning label. If that score improves, the stock gets easier to own. If it slips, the market will notice.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong short-term edge either way.
risk profile
average
stability score 3 — this sits near the middle of the pack, not a bunker stock and not a blowtorch.
chart momentum
average
technical score 3 — the chart is not screaming anything dramatic right now.
earnings predictability
55 / 100
expect more variance than you would from a steadier large-cap healthcare name.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 211 buyers vs. 247 sellers in 3q2025. total institutional holdings: 60.3M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$76
$216
$166
current price
$146
target midpoint · 12% from current · 3-5yr high: $265 (+60% · 12% ann'l return)
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