What Did Halozyme Stock Investors Miss Before The Run

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Halozyme Therapeutics (HALO) stock returned 94.3% in the twelve months to October 27, 2026. Management said royalties, the fees Halozyme earns when drugmakers sell medications utilizing its ENHANZE technology, led growth in the company's latest quarter. Yet in the six months before that twelve-month window began, the stock gained just 9.4%. The shares were still near $66.54 at the end of May 2026, so most of the climb came after that. So was Halozyme's royalty-led growth already visible before October 2025?

Halozyme Reported Record Royalties In October 2024

It was, and management pointed this out on a call held almost a year before the run. Partners use ENHANZE to administer drugs such as DARZALEX and VYVGART Hytrulo as under-the-skin injections.

During the September 2024 quarter call on October 31, 2024, management said royalty revenue grew 36% from a year earlier to a record $155 million. Total revenue reached an all-time high of $290 million, meaning royalties already accounted for more than half of what Halozyme took in.

Halozyme Raised Its 2025 Forecast Twice

Halozyme reported faster royalty growth in 2025, and management raised the year's forecast in May and again in August. On May 6, 2025, the company posted March-quarter royalty revenue of $168 million, up 39% from a year earlier, and increased its 2025 guidance. On August 5, 2025, it reported June-quarter royalty revenue of $206 million, a 65% increase. Management said that growth came from its three blockbuster drugs, DARZALEX SC, Phesgo and VYVGART Hytrulo. The company raised its 2025 total revenue forecast again, to $1,275 million to $1,355 million.

None of this was hidden. The figures sat in Halozyme's own releases and calls. Both 2025 reports came out in the six months before the run, when the stock gained just 9.4%. A reader in 2025 could not know whether royalty growth that fast would hold through 2026.

How Far Did Halozyme Stock Outrun The S&P 500?

The S&P 500 returned 15.0% in the twelve months to October 27, 2026, against Halozyme's 94.3%, so the stock beat the broader market by a wide margin. Three of Halozyme's listed peers, AbbVie, Pfizer and Becton Dickinson, returned between 28.8% and 36.9%, and Halozyme ran well ahead of them too.

The business grew fast as well. By the June 2026 quarter, royalty revenue reached $307.7 million, nearly double the record management reported in October 2024. Those fees accounted for about 64% of Halozyme's $481 million in total revenue.

Is Halozyme's Royalty Growth Still Building?

Yes in dollars, though more slowly than a year earlier. Royalty revenue in the June 2026 quarter grew 50%, compared with 65% in the same quarter of 2025. Growth sat at 43% in the March 2026 quarter, so the pace picked up again from there.

In August 2026, management raised its 2026 royalty forecast to $1.22 billion to $1.245 billion, up from $1.13 billion to $1.17 billion in May, just as it had raised its forecast in August 2025. Management also expects royalty revenue to keep growing from quarter to quarter through the second half, with smaller jumps than the increase from the first quarter to the second.

Royalty revenue growth for the September 2026 quarter is the figure to watch when Halozyme reports, expected in November 2026.

How To Act On HALO?

Not necessarily on Halozyme Therapeutics alone, if your goal is long-term wealth. Wealth is built by owning the companies that keep outperforming, the leaders of their industries, wherever they are. Halozyme Therapeutics is one. Over the five years to October 2026, its stock rose 243%, ahead of 340 of the 362 other companies in Biotechnology, where the typical company fell 82%.

Finding companies like these takes comparison across industries and sectors, and that is what the Trefis High Quality (HQ) Portfolio does. It holds 30 quality companies in equal weight and, since its inception in September 2020, has returned more than 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000. See how we find the leaders.

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