Harmony Biosciences Holdings, Inc. (HRMY)
NASDAQHealth CareBiotechnologySnapshot 2026-09-04
$42.25+0.93%
Close 2026-09-04 · 1-day change
NASDAQHealth CareBiotechnologySnapshot 2026-09-04
Intact: The reason to own it still holds.
Harmony grows revenue about 18% yearly, aiming for $1.02 billion in 2026. Profit margins are stable with a price-to-earnings ratio of 12.3, cheaper than peers. Cash flow is positive and supports growth. The company has strong management focused on growth.
Profit fell 39% in Q1 2026, showing cost control issues. Cash from operations dropped from $33.9M to $27.8M. If revenue growth slows below 10%, the business risks losing momentum.
The price is about 56% below our fair value near $88. Analysts expect 18.5% revenue growth, which matches our view.
Breaks if: Cash from operations falls below $25 million next year
Breaks if: Operating income falls below $30 million next year
Revenue falls below $1 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth and innovation in the healthcare sector. The current thesis state is stable, supported by recent strong financial results and management's commitment to revenue goals.
The market currently prices HRMY as cheap compared to its peers, with an expectations gap indicating that future growth may not be fully accounted for. There is a low level of fragility in the stock, suggesting that it is not overly sensitive to immediate market changes.
Fundamentals are likely to show continued growth, as management is on track to meet its revenue targets for 2026. However, there are mixed signals regarding the protection of its key products and the advancement of its drug pipeline, which could introduce some uncertainty.
The most important moves since the prior daily snapshot.
Signal changed from 'favorable' to 'mild_favorable'.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
The thesis hinges on several factors, including the performance of sector leaders and the broader economic environment. If HRMY maintains its guidance and sector momentum continues, it could benefit. Conversely, any cuts to guidance or worsening economic indicators could negatively impact the stock.
Overall, HRMY appears to be in a solid position for the next 1 to 3 years, but investors should remain aware of potential risks. Not investment advice.