Harmony Biosciences Holdings (HRMY) Is Up 8.5% After Strong Q3 Earnings and Margin Growth Has The Bull Case Changed?

• Harmony Biosciences Holdings reported its third quarter 2025 earnings, with net income rising to US$50.87 million and diluted earnings per share from continuing operations reaching US$0.87, both up from the previous year.
• The company also posted a strong year-to-date net income of US$136.2 million, highlighting a consistent upward trend across its key financial metrics.
• We'll examine how Harmony's sustained increases in earnings and profit margins influence its investment narrative in light of the recent report.

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Harmony Biosciences Holdings Investment Narrative Recap

Harmony Biosciences shareholders are putting their confidence in the company’s ability to maintain earnings growth, expand its pipeline beyond WAKIX, and manage competition as key regulatory and patent milestones approach. The recent third-quarter results, which highlight further gains in net income and profit margins, reinforce the short-term narrative centered on sustained WAKIX momentum, but do not materially alter the biggest short-term catalyst: potential late-stage pipeline readouts. The principal risk remains heavy reliance on WAKIX, especially considering future market entrants.

Recent corporate presentations, such as Harmony’s participation at the UBS Global Healthcare Conference, provide transparency and context for current financial trends and upcoming clinical milestones. Events like these are valuable to investors tracking near-term pipeline developments, which hold the key to reducing product concentration risk and supporting earnings stability in the years ahead.

By contrast, investors should also be aware that future competition could challenge WAKIX’s market exclusivity after 2030, which means...

Read the full narrative on Harmony Biosciences Holdings (it's free!)

Harmony Biosciences Holdings is projected to reach $1.2 billion in revenue and $333.5 million in earnings by 2028. This forecast assumes a 17.0% annual revenue growth rate and an earnings increase of $152.6 million from the current earnings of $180.9 million.

Uncover how Harmony Biosciences Holdings' forecasts yield a $44.55 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 7 fair value estimates for Harmony Biosciences, ranging from US$42.28 to US$199.86. While product concentration persists as a central risk, these valuations spotlight just how differently you and others can view Harmony's long-term prospects.

Explore 7 other fair value estimates on Harmony Biosciences Holdings - why the stock might be worth just $42.28!

Build Your Own Harmony Biosciences Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Harmony Biosciences Holdings research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Harmony Biosciences Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Harmony Biosciences Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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