JAZZ 3Q26 Results: Guidance Raised Again on Sleep, Ziihera Launch Underway

Jazz reported 3Q26 revenue of $1,243M (+10% YoY), in line with MSe, and raised FY26 revenue guidance for the second quarter in a row to $4.775–4.85B from $4.60–4.75B, with management attributing a little over half the raise to rare sleep; the new rare sleep guide implies 4Q26 sleep revenue of $553–603M against $552M in 3Q26. Xywav grew 12% to $483M with 425 net adds and about 17,550 active patients, split roughly 11,375 narcolepsy and 6,175 IH. Xyrem was $31M and the high-sodium AG royalty $38M, both ahead as high-sodium generic erosion stayed limited. Ziihera's first full month in 1L GEA showed a threefold increase in new ordering accounts. We raise Xywav estimates and our price target to $319 from $314. While 1H oxybate revenues are likely to remain robust, risk in 2H with 2+ generic entrants is clearly negative as volumes scale with REMS build-outs.