Harmony Biosciences Holdings, Inc. (HRMY) AI Stock Analysis

Harmony Biosciences Holdings, Inc. is a pharmaceutical company that develops and commercializes therapies for individuals suffering from rare neurological disorders in the United States. Established in 2017 and headquartered in Plymouth Meeting, Pennsylvania, the company's core product is WAKIX, an innovative treatment designed for adult patients with narcolepsy to manage excessive daytime sleepiness. Formerly known as Harmony Biosciences II, Inc. until February 2020, the company leverages its clinical expertise and pipeline to address significant unmet medical needs across rare neurological conditions.

Between FY2021 and FY2025, revenue expanded from $305.4M to $868.5M, delivering a five-year revenue CAGR of 40.3% from FY2020 to FY2025. Annual revenue grew 21.5% in FY2025, down from 91.2% in FY2021, while gross margin shifted from 81.8% in FY2021 to 77.2% in FY2025. Net income increased from $34.6M in FY2021 to $158.7M in FY2025, with EPS reaching $3.35. For the trailing twelve months ended June 30, 2026, revenue stood at $959.9M with an operating margin of 34.2% and EPS of $3.10. In the latest quarter ended June 30, 2026, quarterly revenue grew 30.3% year-over-year, and quarterly earnings grew 88.2%.

As of June 30, 2026, the company held $667.8M in cash and short-term investments against total debt of $154.0M, resulting in a net cash balance of $513.8M. Total assets stood at $1.37B and shareholders' equity was $999.2M, supported by a current ratio of 3.48 and a debt-to-equity ratio of 0.15. In FY2025, operating cash flow reached $348.2M, yielding free cash flow of $347.9M after capital expenditures of $310,000. Over five years, the share count declined 2.6%.

At a market capitalization of $2.21B and enterprise value of $1.84B, the stock trades at a trailing P/E of 12.2x and a forward P/E of 10.1x. These multiples sit below the median of its US-listed Healthcare peers, which reflect a trailing P/E of 24.6x and a forward P/E of 17.3x. Its EV-to-EBITDA ratio of 6.6x also trades below the peer median of 12.0x. Over the past year, the shares returned 46.2%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of -3.7% lagged the S&P 500 return of 83.0%.

Wall Street coverage includes 5 Strong Buy, 2 Buy, 3 Hold, and 1 Sell ratings. The mean price target of $48.25 implies 27.1% upside from the last close of $37.95 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.03B and EPS of $5.22, reflecting 45.1% EPS growth. The company beat EPS estimates in 2 of the last 4 quarters, and its next earnings report is scheduled for November 3, 2026.

This page is an AI-written research summary of Harmony Biosciences Holdings, Inc. (HRMY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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