NovoCure Limited (NASDAQ: NVCR) saw its shares surge 29.3% to $20.13 in early Nasdaq trading on Thursday, after the company reported stronger-than-expected second-quarter results and raised its full-year 2026 outlook. The stock hit a fresh 52-week high of $20.53 during the session, outperforming the broader medical-device sector. The iShares U.S. Medical Devices ETF (NYSEARCA: IHI) slipped 0.5% over the same period.
Q2 Results Beat Expectations
For the second quarter, NovoCure posted revenue of $183.6 million, exceeding the FactSet consensus of $172.4 million by 6.5%. The company reported a loss per share of $0.13, narrower than the anticipated $0.33 loss. Adjusted EBITDA turned positive at $10.8 million, compared to a loss of $9.9 million in the same period last year, marking a $20.7 million improvement. Active patients on therapy reached a record 5,128, up 18% year over year.
2026 Guidance Raised
Management raised its full-year 2026 revenue guidance to a range of $710 million to $725 million, up from the previous range of $690 million to $710 million. The midpoint of $717.5 million implies required second-half revenue of $352.4 million to $367.4 million, compared to $357.6 million in the first half. The midpoint requires average quarterly sales of $179.9 million in the second half. Second-quarter revenue included $2.8 million in non-recurring gains; excluding those, the underlying run rate was $180.8 million.
Product and Patient Growth
Optune Gio remained the primary product, used by 4,636 patients, up 11% year over year. Optune Lua had 207 active patients, a 51% increase, and the recently launched Optune Pax therapy reached 285 patients. NovoCure recorded 418 prescriptions for Pax in the quarter. Revenue from newer therapies Lua and Pax totaled $7 million, with Pax contributing $1.6 million despite serving more patients. Reimbursement and billing remain key areas to watch.
Cost Management and Margin
Operating expenses fell to $153 million from $156.9 million, while sales and marketing spending rose 8% to support product launches. Gross profit benefited from a $4.9 million tariff refund and a $2.8 million revenue boost. Excluding these one-off items, adjusted EBITDA was approximately $3.1 million, and gross margin stood near 75%, down from the reported 77.6%. This aligns with management's guidance for gross margins in the mid-70% range over the next few quarters.
Management Commentary
Chief Executive Frank Leonard said the company reported its highest net revenues and the most active patients on therapy to date. “This was our strongest quarter to date,” Leonard commented. Chief Financial Officer Christoph Brackmann struck a more cautious tone, describing the second quarter as “exceptional” and noting that “the stars aligned in Q2.” Despite this, management remains committed to delivering results at the upper range of guidance.
Analyst View and Catalysts
Vijay Kumar, analyst at Evercore ISI, noted that the revenue outperformance was broad across geographic areas and described the Pax launch as the standout of the quarter. Kumar maintained his outperform rating and $20 price target, with the stock trading just above that level. The next significant catalyst is anticipated in the fourth quarter, when the U.S. Food and Drug Administration is expected to assess TTFields therapy for brain metastases from lung cancer. NovoCure also plans to finish enrollment for its KEYNOTE D58 glioblastoma study.
Risks and Valuation
Two significant one-off gains were included in Q2, and comprehensive Pax reimbursement has not yet been secured. Prescription conversion is still in its early stages, and management anticipates that margins will decrease as additional patients start therapy without reimbursement. NovoCure's valuation stood at roughly $2.3 billion at $20.13 per share, translating to about 3.2 times the midpoint of forecast 2026 revenue. Cash and short-term investments came to $440.6 million. Following Thursday's revaluation, the shares rely on maintaining the normalized pace seen in Q2.
