Biotechnology company Moderna (NASDAQ: MRNA) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 2.1% year on year to $145 million. Its GAAP loss of $1.97 per share was 4.2% above analysts’ consensus estimates.

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Company Overview

Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Moderna struggled to consistently generate demand over the last five years as its sales dropped at a 20.5% annual rate. This was below our standards and is a sign of poor business quality.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Moderna’s recent performance shows its demand remained suppressed as its revenue has declined by 33.6% annually over the last two years.

This quarter, Moderna reported modest year-on-year revenue growth of 2.1% but beat Wall Street’s estimates by 35.8%.

Looking ahead, sell-side analysts expect revenue to decline by 8.5% over the next 12 months. Although this projection is better than its two-year trend, it’s hard to get excited about a company that is struggling with demand.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Moderna has done a decent job managing its cost base over the last five years. The company has produced an average adjusted operating margin of 14.9%, higher than the broader healthcare sector.

Looking at the trend in its profitability, Moderna’s adjusted operating margin decreased significantly over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 49.2 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

In Q2, Moderna generated an adjusted operating margin profit margin of negative 562%, down 14.9 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Moderna, its EPS declined by 24.5% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.

Diving into the nuances of Moderna’s earnings can give us a better understanding of its performance. As we mentioned earlier, Moderna’s adjusted operating margin declined by 202.4 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q2, Moderna reported EPS of negative $1.97, up from negative $2.13 in the same quarter last year. This print beat analysts’ estimates by 4.3%. Over the next 12 months, Wall Street expects Moderna to improve its earnings losses. Analysts forecast its full-year EPS will improve from negative $7.99 to negative $7.22. This is unusual as its revenue and operating margin are anticipated to fall, signaling the increase likely stems from “below-the-line” items such as taxes.

Key Takeaways from Moderna’s Q2 Results

We were impressed that Moderna beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a mixed print as investors were likely hoping for more, and shares traded down 4.1% to $55.56 immediately after reporting.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).