Global biotech powerhouse Moderna has reported a mixed start to 2026, posting higher revenue but widening losses, driven largely by a one-time legal settlement charge.
The biotech firm said first-quarter revenue came in at $389 million, up sharply from the same period last year, with roughly 80% generated outside the United States. Growth was supported by stronger COVID vaccine sales and expanded government supply agreements in international markets.
However, profitability deteriorated. Moderna reported a GAAP net loss of $(1.3) billion and GAAP EPS of $(3.40), compared with a $(971) million loss a year earlier. The company said results were heavily impacted by a $0.9 billion non-recurring litigation settlement charge.
“The Moderna team delivered a great start to the year, driving significant revenue growth and substantial cost reductions building on actions taken in 2025. We received two product approvals in Europe, including the world's first flu plus COVID combination vaccine, mCOMBRIAX.
"We also started a new pivotal trial for intismeran-our first Phase 3 monotherapy study for high-risk Stage 1 non-small cell lung cancer patients,” said Stéphane Bancel, Chief Executive Officer of Moderna.
“Building on this strong first quarter momentum, we are excited to return to sales growth in 2026 and expect several additional approvals around the world, including for our seasonal flu vaccine, which would be Moderna's fifth approved product. We also look forward to important pivotal readouts this year for our norovirus, intismeran in melanoma, and propionic acidemia programs.”
Despite the headline loss, Moderna highlighted operational improvements.
Research and development spending fell 24% to $649 million, reflecting the winding down of large late-stage respiratory and CMV programs. Selling, general and administrative expenses also dropped 18% to $173 million, as the company tightened costs across functions.
Cost of sales surged to $955 million, largely due to the litigation settlement charge, which alone accounted for $878 million in expenses. Excluding that item, Moderna said underlying cost trends improved.
Cash reserves stood at $7.5 billion as of March 31, 2026, down from $8.1 billion at the end of 2025, reflecting ongoing R&D investment and pipeline expansion. The settlement payment itself, Moderna noted, is expected later in the year and did not impact first-quarter cash flow.
The company reaffirmed its 2026 outlook, targeting up to 10% revenue growth, continued expense reductions, and multiple regulatory milestones across vaccines and therapeutics. It also expects seasonal flu vaccine decisions beginning this year and key clinical readouts in oncology, including melanoma and lung cancer programs.
Moderna shares the broader focus on rebuilding growth after a post-pandemic slowdown, leaning heavily on next-generation combination vaccines and an expanding oncology pipeline as it attempts to reposition beyond COVID-era demand.
