Sanofi (SNY) AI Stock Analysis
SNY AI stock analysis summary
AI ResearchSanofi (SNY) is a global healthcare company specializing in pharmaceuticals, vaccines, and consumer healthcare products. In FY2025, the company delivered revenue of $46.72B and net income of $7.81B, supported by a 5-year revenue CAGR of 4.6%. The stock trades at a forward P/E of 8.6x and offers an annual dividend forward yield of 5.96%.
- Market cap
- $97.31B
- Revenue (TTM)
- $48.92B
- P/E
- 21.4x fwd 8.6x
- 1Y return
- -14.3% S&P 500 16.8%
- Avg. target
- $53.61 32.0% vs last close
Bull case
- Free cash flow surged to $10.14B in FY2025, supporting $5.68B in share buybacks and $5.39B in dividends.
- Forward valuation is modest at an 8.6x forward P/E, sitting well below the US-listed Healthcare peer median of 17.3x.
- Analysts maintain a mean price target of $53.61, indicating a 32.0% upside over the last close of $40.61.
Bear case
- Quarterly earnings declined 91.2% year-over-year in the latest quarter ending June 30, 2026.
- Over the past 1-year period, the stock fell 14.3% while the S&P 500 gained 16.8%.
- Net debt remains elevated at $17.23B as of June 30, 2026, accompanied by a current ratio below parity at 0.99.
What Sanofi does
Sanofi focuses on researching, developing, manufacturing, and marketing therapeutic solutions worldwide across Pharmaceuticals, Vaccines, and Consumer Healthcare. Its specialty care portfolio includes human monoclonal antibodies and treatments for multiple sclerosis, neurology, inflammatory diseases, immunology, rare diseases, oncology, and rare blood disorders. It also provides medications for diabetes, cardiovascular conditions, and established prescription products. The vaccines segment supplies pediatric vaccines for poliomyelitis, pertussis, and hib, along with influenza, adult booster, meningitis, and endemic disease vaccines. Additionally, Sanofi offers consumer healthcare products such as allergy medications, cough and cold remedies, pain relievers, liver care, probiotics, and nutritional supplements.
Growth and profitability
Between FY2021 and FY2025, Sanofi expanded annual revenue from $39.17B to $46.72B, reflecting a 5-year revenue CAGR of 4.6%. Over that span, gross margin improved from 68.7% in FY2021 to 72.1% in FY2025, while operating margin shifted from 20.7% to 20.5%. Net income rose to $7.81B in FY2025 with diluted earnings per share of $4.53, up from $6.22B and $3.86 in FY2021. For the trailing twelve months ended June 30, 2026, revenue stood at $48.92B with an operating margin of 21.0%. In the latest quarter, quarterly revenue grew 14.6% year-over-year, while quarterly earnings declined 91.2%.
Balance sheet and cash flow
As of June 30, 2026, Sanofi held $6.35B in cash and short-term investments against total debt of $23.58B, leaving net debt at $17.23B. Total assets stood at $129.06B, with shareholders' equity of $69.21B, a current ratio of 0.99, and a debt-to-equity ratio of 0.34. In FY2025, operating cash flow reached $12.13B and free cash flow was $10.14B. Capital allocation during FY2025 included capital expenditures of $1.99B, share buybacks of $5.68B, and dividends paid of $5.39B. Over five years, the company's share count was reduced by 4.6%.
Valuation and performance
Sanofi trades at a trailing P/E of 21.4x and a forward P/E of 8.6x, compared to medians of 24.6x and 17.3x for its US-listed Healthcare peers. Its enterprise value of $121.92B corresponds to an EV-to-EBITDA multiple of 12.9x, slightly above the peer median of 12.0x, while its price-to-sales ratio of 2.0x sits below the peer median of 4.1x. Over the past year, the stock fell 14.3%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, Sanofi achieved a return of 3.2%, compared to an 83.0% gain for SPY.
SNY dividend
Sanofi paid an annual forward dividend of $2.42 per share, translating to a dividend yield of 5.96% with a payout ratio of 49.3%. The company has paid dividends for 24 consecutive years and posted an annualized 5-year dividend growth rate of 4.8%. Its last ex-dividend date was May 4, 2026.
What analysts expect
Sanofi has 11 tracked analyst ratings, consisting of 5 Strong Buy, 0 Buy, 6 Hold, 0 Sell, and 0 Strong Sell recommendations. The mean price target is $53.61, representing a 32.0% upside from the last close of $40.61 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $47.40B and EPS of $4.93. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is October 30, 2026.
Key risks and what to watch
- Net debt stands at $17.23B with total debt of $23.58B versus cash and short-term investments of $6.35B.
- The current ratio of 0.99 indicates short-term assets are slightly below short-term obligations.
- Quarterly earnings volatility is significant, evidenced by a 91.2% year-over-year earnings decline in the quarter ended June 30, 2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SNY AI stock analysis
This page is an AI-written research summary of Sanofi (SNY). 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.
Related: SNY income statement, SNY balance sheet, SNY key metrics, SNY analyst forecast, SNY chart. See the SNY stock overview for the latest quote and news.
SNY AI stock analysis FAQ
Does Sanofi pay a dividend?
Yes, Sanofi pays an annual dividend with a forward rate of $2.42 per share, yielding 5.96% with a payout ratio of 49.3%. The company has paid consecutive dividends for 24 years.
What are Sanofi's consensus revenue and earnings estimates for FY2026?
For the fiscal year ending December 31, 2026, analysts expect revenue of $47.40B and earnings per share of $4.93, representing projected EPS growth of 5.6%.
How is Sanofi valued compared to its healthcare industry peers?
Sanofi trades at a forward P/E of 8.6x and a price-to-sales ratio of 2.0x, both below the US-listed Healthcare peer medians of 17.3x and 4.1x, respectively.
When is Sanofi's next earnings report?
Sanofi is scheduled to report its next earnings on October 30, 2026, having beaten EPS estimates in all 4 of its last 4 quarters.