Royalty Pharma's core royalty model generates robust cash flows, with revenue growing 16.5% year-over-year in 2026Q2 and operating cash flow consistently exceeding net income (OCF/NI ratio of 80.9x in 2026Q2).
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew 16.5% year-over-year to $674.1M in 2026Q2, but gross margin dipped to 60.2% from near-100% levels, and net income fell 42.9% year-over-year to $17.9M, reflecting significant non-operating losses.
Royalty Pharma reported robust Q1 2026 results with 10% YoY growth in portfolio receipts and raised full-year 2026 guidance, indicating strong financial health.
The company holds a diversified portfolio of 35+ marketed therapies and 15+ development-stage assets, reducing risk and providing stable cash flows.
Royalty Pharma's asset-light model provides exposure to pharmaceutical upside without the inherent risks of R&D, making it a resilient investment.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | $1.21+2.5% vs $1.18 | $890M+0.6% vs $885M |
Q3 2026 Aug 5, 2026 | $1.32+3.9% vs $1.27 | $773M+1.9% vs $759M |
Q2 2026 May 6, 2026 | $1.30+7.4% vs $1.21 | $925M+4.9% vs $882M |
Q1 2026 Feb 11, 2026 | $1.46+13.2% vs $1.29 | $874M+8.3% vs $807M |
Royalty Pharma (RPRX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Royalty Pharma plc is the global leader in acquiring biopharmaceutical royalties, offering investors exposure to blockbuster therapies and megatrend-driven growth. RPRX focuses on de-risked, post-proof-of-concept assets, delivering attractive risk-adjusted returns with a return on invested capital around 15% and equity returns near 21%. The business model is defensive, uncorrelated with macro trends, and benefits from scale, high operating margins, and expert capital allocation.
Royalty Pharma NASDAQ: RPRX reported third-quarter portfolio receipts of $890 million, up 9% from a year earlier, as growth in its diversified royalty portfolio offset declines in certain products. The company raised its full-year 2026 outlook for the third consecutive quarter, citing continued momentum in recurring royalty receipts.
Royalty Pharma plc (RPRX) Q3 2026 Earnings Call Transcript
Benchmark RPRX against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Royalty Pharma plc (RPRX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $67.30 | $29.83B | 55.77 | 5.06% | 25.68% | 6.85% | 1% | |
| $18.28 | $2.3B | -5.23 | -4.26% | -445% | -90.04% | — | |
| $36.22 | $6.79B | 24.14 | 47.52% | 78.04% | 19.57% | 0.52% | |
| $136.31 | $61.9B | 30.23 | 83.33% | 64.66% | 22.96% | 0.49% | |
| $265.81 | $22.56B | 26.91 | 44.57% | 47.65% | 11.15% | 0.64% | |
| $254.95 | $49.17B | 33.35 | 63.69% | 63.79% | 19.08% | 0.56% |
Royalty Pharma plc (RPRX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Royalty Pharma plc (RPRX) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 5, 2026·SEC
Jun 4, 2026·SEC
May 28, 2026·SEC
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Royalty Pharma plc (RPRX) stock FAQ — growth, dividends, profitability & financials explained
Royalty Pharma plc (RPRX) reported $2.62B in revenue over the trailing twelve months. Revenue was $2.38B in fiscal year 2025. That is 49% more than the $1.60B of fiscal year 2017.
Royalty Pharma plc (RPRX) grew revenue by 11.4% over the trailing twelve months, compared with the twelve months before.
Yes. Royalty Pharma plc (RPRX) earned $672.1M in net income over the trailing twelve months (a 25.7% net margin).
Yes. Royalty Pharma plc (RPRX) pays a dividend that yields 1.00% at the current price, a moderate yield.
Royalty Pharma plc (RPRX) had a return on equity (ROE) of 6.9% over the trailing twelve months. That is below the market's typical 10-15%.
Royalty Pharma plc (RPRX) generated $2.96B in free cash flow over the trailing twelve months.
