Shares of Sanofi SA (SNY) plummeted 9.02% in Thursday's trading session following the release of its second-quarter earnings report that fell short of analyst expectations. The French pharmaceutical giant's results revealed a disappointing profit performance, despite meeting sales targets, as higher costs and currency headwinds weighed on the company's bottom line.

Sanofi reported earnings per share of €1.59 for Q2, falling short of the €1.67 estimated by analysts. This represents a modest 1.9% increase from the previous year but disappointed investors who were expecting stronger profit growth. The company's quarterly sales were in line with expectations, primarily driven by continued strong performance of its blockbuster drug Dupixent.

Chief Financial Officer François-Xavier Roger attributed the lower-than-expected earnings partly to increased research and development spending, as Sanofi invests heavily in developing new treatments to diversify beyond Dupixent. The pharmaceutical firm is also facing challenges from currency fluctuations and higher selling, general, and administrative expenses. Despite these headwinds, Roger assured investors that the company remains on track to meet its earnings per share growth targets for the year.

While Sanofi raised its full-year sales guidance to high single-digit percentage growth at constant exchange rates, it maintained its profit outlook for low double-digit percentage growth. This cautious stance on profitability, coupled with the earnings miss, appears to have significantly dampened investor enthusiasm, leading to the sharp decline in Sanofi's stock price during the trading session.