Halozyme Therapeutics Inc. (HALO) is hitting revenue milestones faster than expected, thanks to a combination of expanding partnerships around its ENHANZE drug delivery platform and a couple of strategic acquisitions that management believes will drive growth for decades to come.

The biotech company just raised its 2026 financial guidance substantially, reflecting momentum that's accelerated beyond earlier projections. Halozyme now expects 2026 total revenue between $1.71 billion and $1.81 billion—a significant jump from the prior guidance range of $1.43 billion to $1.53 billion. That represents year-over-year growth of 23% to 30%, driven primarily by royalties and API product sales.

Here's the really interesting part: royalty revenue alone is projected to reach $1.13 billion to $1.17 billion in 2026, crossing the billion-dollar threshold a full year earlier than the company previously anticipated. That's 30% to 35% growth compared to the prior year, and it speaks to the expanding adoption of Halozyme's technology by pharmaceutical partners.

For context, the company released preliminary fiscal 2025 sales of $1.385 billion to $1.4 billion, up 36% to 38% year over year, with royalty revenues contributing $865 million to $870 million of that total.

"In the near-term, our strong 2026 total revenue expectations of 23% to 30% year‑over‑year growth underscore the strength of our royalty revenue, which is projected to exceed $1 billion in 2026, growing at 30% to 35% versus prior year. This is one year earlier than previously projected," said Helen Torley, President and CEO.

Torley also outlined the company's pipeline expansion strategy, noting that by the end of 2026, Halozyme expects to have 15 partner programs in development and to have signed three or more new drug delivery licensing agreements. "Taken together, these drivers reinforce our confidence in delivering durable revenue growth well into the 2040s and support our conviction in Halozyme's long‑term growth profile, which will deliver sustained value for shareholders," she added.

On the profitability front, Halozyme forecast adjusted EBITDA of $1.125 billion to $1.205 billion in 2026, which includes roughly $60 million in new investments tied to its Hypercon and Surf Bio acquisitions. Speaking of which, the company acquired Surf Bio for $300 million upfront, with up to $100 million in additional milestone payments.

Non-GAAP diluted earnings per share are expected to range from $7.75 to $8.25, up from previous guidance of $6.50 to $7.00, excluding any impact from potential share repurchases.

HALO Price Action: Halozyme shares were up 2.95% at $72.29 at the time of publication on Wednesday.