Hikma Reiterates 2026 Guidance After Encouraging Start, Announces Inhalation Partnership

Hikma 2026 guidance reaffirmed after strong first-quarter trading

Hikma has used its AGM trading update to do something the market usually welcomes – repeat full-year guidance after an encouraging start to the year. That is not as flashy as an upgrade, but it does tell investors that trading since January has been solid enough for management to stick with its targets.

The message is pretty straightforward. Injectables are going well, Branded is performing very well, and Hikma Rx is on track. On top of that, the group has announced a new device partnership to speed up its generic Ellipta® inhalation programme, which looks strategically important for future growth.

Key Hikma 2026 numbers	What the company said
Group revenue growth	2% to 4%
Group operating profit	$720 million to $770 million
Injectables revenue growth	Low single digits
Injectables core operating margin	27% to 28%
Branded revenue growth	6% to 8%
Branded core operating margin	Around 25%
Hikma Rx revenue growth	Broadly flat
Hikma Rx core operating margin	Close to 20%
Final dividend	48 cents per share
Total 2025 dividend	84 cents per share, up 5%
Share buyback programme	Up to $250 million

When Hikma refers to core operating margin, it means profit margin before certain one-off or exceptional items. That matters because it gives a cleaner view of how the underlying business is performing.

Injectables and Branded are keeping Hikma’s growth story on track

Injectables demand looks healthy across the US, Europe and MENA

The Injectables division has started the year well, with good demand across geographies. In the US, Hikma says it is seeing good demand and is working on supply chain, manufacturing and R&D improvements to support more sustainable growth.

One product singled out was Tyzavan®, Hikma’s ready-to-use vancomycin bag, where demand is accelerating as customers switch over. That matters because products that solve practical problems for hospitals can be sticky and supportive for margins.

Europe also sounds encouraging, especially Germany and France, while MENA Injectables is performing well too. Put together, that gives management enough confidence to keep its 2026 Injectables outlook unchanged at low single-digit revenue growth and a core operating margin of 27% to 28%.

Branded medicines remain a real strength in the Middle East and North Africa

The Branded business reads as the star of the update. Hikma says demand is good across its portfolio and markets, helped by its local commercial reach, market presence and pipeline of in-licensed and internally developed products.

In-licensed products are medicines developed elsewhere that Hikma has licensed to market and sell. That model can be attractive because it broadens the portfolio without having to invent every product from scratch.

Hikma also highlighted oncology, where it has a broad portfolio and local manufacturing. Guidance here remains for revenue growth of 6% to 8% with a core operating margin of around 25%, which is a strong combination of growth and profitability.

Hikma Rx is steady rather than exciting, but the inhalation partnership could matter later

Hikma Rx is performing in line with expectations, but this is clearly the least punchy part of the group outlook. Revenue is still expected to be broadly flat in 2026, although the division should still deliver a core operating margin close to 20%.

The company has launched authorised generics for immediate release and extended release tapentadol in the US in February and March. An authorised generic is effectively a non-branded version of a branded drug, usually launched with the originator’s approval or involvement. It can still be commercially useful, but it is not the same as a major breakthrough launch.

The bigger strategic point is the exclusive co-development and licence agreement for a partner’s device technology across the US, UK, Canada, EU and MENA. Hikma says this will accelerate development of its generic Ellipta® programme.

That is important because inhalation products are technically difficult, and difficult products tend to have fewer competitors if you get them right. Hikma already points to generic Advair Diskus® as an important revenue contributor in Rx, so this looks like an attempt to build depth in a part of pharma where barriers to entry can be useful.

That said, investors should keep one foot on the ground. The financial terms of the device partnership were not disclosed, and there is no near-term revenue figure attached to it in this update. So this is strategically positive, but not yet something you can plug into a spreadsheet with much certainty.

Dividend growth and the Hikma share buyback add support for shareholders

Hikma is also returning cash to shareholders. Subject to approval at the AGM, it will pay a final dividend of 48 cents per share, taking the total dividend for 2025 to 84 cents per share. That is a 5% increase on 2024.

The buyback is also under way, with a programme of up to $250 million. Since 26 February 2026 to 17 April 2026, Hikma says it has purchased 4,374,095 million ordinary shares at a cost of £54.8 million, or $71.5 million.

It is worth saying the share count as written in the RNS looks unusual relative to the cash spent. The announcement does not clarify that wording, so investors should treat that number carefully until the company confirms it elsewhere.

Middle East geopolitical risk and cost inflation are the main watchpoints

Hikma has a large presence in MENA, so it is sensible that the company addressed the geopolitical backdrop directly. It says demand in the region remains robust and that it holds sufficient inventory to help mitigate possible supply chain disruption.

There has been some inflationary pressure, especially in shipping, energy and insurance. Management says it can absorb those costs through strong business performance and disciplined cost control. That is reassuring, but it is still a risk worth watching because these pressures can chip away at margins over time.

Another small negative is the decision to wind down the 503B compounding business. In simple terms, 503B compounding is a US regulated model for preparing certain medicines for healthcare providers. Hikma is exiting it to focus more tightly on core operations, which is strategically tidy, but it also tells you this was not important enough to remain part of the growth plan.

What this Hikma RNS means for retail investors

My read is that this is a good update, just not a spectacular one. The strongest positive is that Hikma has started the year well enough to reaffirm full-year guidance across the group despite geopolitical noise and cost inflation. That gives management a bit more credibility.

The Branded and Injectables businesses are doing most of the heavy lifting, and both sound healthy. Hikma Rx is more of a work in progress, but the inhalation device partnership gives investors a reason to believe management is building towards something more differentiated over the medium term.

If you are a retail investor, the key takeaway is this: Hikma looks operationally steady, cash generative enough to fund a dividend and buyback, and still willing to invest in future growth platforms. The downside is that guidance has been maintained rather than upgraded, Rx is only expected to be flat, and some strategic details – especially around the new partnership – were not disclosed.

So this is not a table-thumping update, but it is a reassuring one. In this market, steady progress, decent margins and disciplined capital returns can go a long way. The next major checkpoint will be interim results on Thursday 6 August 2026.