Could Genmab (GMAB) Stock Win as Royalty Growth Fuels a New Earnings Cycle?

Genmab (GMAB) has raised its full-year 2026 revenue guidance to between $4.325 billion and $4.525 billion, up from the previous range of $4.065 billion to $4.395 billion. The company reported $2,051 million in total revenue for the first half of 2026, a 25% year-over-year growth. Revenue from royalties increased by 24% to $1,708 million, with a significant portion coming from Johnson & Johnson's DARZALEX sales ($8,171 million).

Net sales of EPKINLY/TEPKINLY grew by 48% to $312 million. Operating profit stood at $555 million, while adjusted operating profit rose 18% to $656 million. Analyst Michael Schmidt from Guggenheim raised his price target on Genmab to $42 from $40 and maintained a Buy rating. The company's broad-based top-line expansion, driven by DARZALEX royalties and EPKINLY net sales, demonstrates a diversified revenue model that reduces reliance on any single product.

The Phase III positive Phase 3 FDA submission for epcoritamab in B-cell malignancies expands label potential and long-term royalty streams. Genmab's strong balance sheet and high cash conversion provide ample financing for late-stage programs without risking shareholder dilution. However, rising operating expenses, margin compression, and regulatory hurdles could pose risks.

Institutional investors, including Paradigm Biocapital Advisors and Orbis Investment Management, have increased their holdings in Genmab, signaling positive sentiment.