Moderna Reports $1.18 Billion Loss – Stock Rises Anyway
This article was created with the help of artificial intelligence.
Key Takeaways
- Moderna posted a net loss of $1.18 billion in Q1 2026 (prior year: $79 million profit), equating to $3.07 per share.
- Revenue nearly tripled to $389 million, driven by international COVID-19 vaccine sales that beat expectations.
- Moderna generated $37 million from collaborations, licenses, and grants, up 68 percent year-over-year.
- The pharmaceutical company expanded its partnership with Merck and exercised an option for joint development of a personalized mRNA cancer vaccine (PCV mRNA-4157/V940).
- Moderna expects 10 percent revenue growth for 2026 and anticipates approvals for a new flu vaccine.
US biotech company Moderna reported a net loss of $1.18 billion in the first quarter of 2026, equivalent to a loss of $3.07 per share. In the same period of the previous year, the company had posted a profit of $79 million. Despite the significant losses, the stock reacted positively as revenue growth exceeded expectations.
Revenue Tripled by International COVID Vaccine Sales
Moderna's total revenue rose to $389 million in the first quarter – more than triple the prior-year period. The main driver was international sales of COVID-19 vaccines, which significantly outperformed expectations. Additionally, Moderna generated $37 million from grants, collaborations, licensing, and royalties, up 68 percent year-over-year.
These collaboration revenues stem from agreements with established pharmaceutical companies such as Merck and Vertex Pharmaceuticals. The partnership with Merck was recently expanded: the company exercised an option for joint development and commercialization of a personalized cancer vaccine (PCV mRNA-4157/V940) based on mRNA technology.
Strategic Reorientation Despite Losses
The high net loss reflects significant burdens from ongoing litigation and investments in the product pipeline. Following the decline in pandemic-driven demand, Moderna is diversifying its business model. The company expects 10 percent revenue growth for full-year 2026 and anticipates approvals for a new flu vaccine.
Total revenues for the trailing twelve months (through January 2026) amount to $2.20 billion – a significant decline from peak pandemic levels, but a stabilizing signal for the post-COVID phase.
Assessment for Investors
For retail investors, Moderna presents a classic picture of a biotech company in transition: high losses from research spending and legal costs offset by growing revenues from new markets. The positive stock reaction suggests the market weights revenue momentum more heavily than current losses.
By comparison, Merck & Co. (not to be confused with German Merck KGaA) reported worldwide revenues of $16.3 billion in the first quarter of 2026 and is also pursuing portfolio diversification. The different scale underscores that Moderna, despite its mRNA pioneer role, remains a small player in the pharmaceutical market.
The collaboration with established players like Merck on cancer vaccine development could unlock new revenue streams in the medium term. However, investors should keep a close eye on persistently high losses and dependence on a limited number of products.