Phathom Pharmaceuticals (NASDAQ:PHAT) Releases Earnings Results, Misses Expectations By $0.02 EPS

Phathom Pharmaceuticals (NASDAQ:PHAT) posted its quarterly earnings data on Thursday. The company reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02), Zacks reports. The firm had revenue of $74.27 million during the quarter, compared to analyst estimates of $72.70 million.

Here are the key takeaways from Phathom Pharmaceuticals’ conference call:

• Q2 revenue rose 88% year over year to $74.3 million, while cash operating expenses fell 34% to $56.4 million. Phathom reported its first operating profit excluding stock-based compensation and generated approximately $1.6 million in operating cash flow.
• Phathom lowered its 2026 revenue outlook to $310 million–$325 million, citing physician and patient friction around prior authorizations, documentation, and prescription fulfillment for VOQUEZNA—particularly among less-severe GERD patients.
• The company plans to initiate a Phase III trial of VOQUEZNA as an as-needed treatment for non-erosive GERD in Q4 2026. Management believes this could expand the addressable market without materially cannibalizing daily-use patients and could support future primary-care and direct-to-consumer marketing.
• Enrollment was completed ahead of schedule in the Phase II eosinophilic esophagitis study, with topline 12-week data expected in Q4 2026. Favorable results could support a Phase III program and potentially extend VOQUEZNA exclusivity by six months, although the pathway depends on FDA discussions and future pediatric studies.
• Management reiterated that it expects operating profitability excluding stock compensation to continue through the remainder of 2026 and durable cash-flow positivity in 2027, while believing existing cash and future operating cash flow will cover debt obligations without another debt or equity raise.

Phathom Pharmaceuticals Stock Down 22.4%

NASDAQ PHAT traded down $2.61 on Thursday, hitting $9.03. 7,610,176 shares of the stock were exchanged, compared to its average volume of 1,210,371. Phathom Pharmaceuticals has a fifty-two week low of $8.02 and a fifty-two week high of $18.31. The company has a market cap of $720.23 million, a PE ratio of -4.26 and a beta of 0.49. The company has a 50-day moving average price of $10.87 and a 200-day moving average price of $11.76.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Phathom Pharmaceuticals in a report on Friday, July 17th. Needham & Company LLC cut their price target on Phathom Pharmaceuticals from $28.00 to $22.00 and set a “buy” rating on the stock in a report on Thursday. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $26.00 price target on shares of Phathom Pharmaceuticals in a research report on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Phathom Pharmaceuticals has a consensus rating of “Moderate Buy” and a consensus target price of $24.14.

Institutional Investors Weigh In On Phathom Pharmaceuticals

A number of hedge funds and other institutional investors have recently modified their holdings of PHAT. Caitong International Asset Management Co. Ltd purchased a new position in Phathom Pharmaceuticals in the fourth quarter valued at $27,000. Kestra Advisory Services LLC acquired a new stake in shares of Phathom Pharmaceuticals during the 4th quarter worth about $38,000. Raymond James Financial Inc. purchased a new stake in Phathom Pharmaceuticals during the second quarter worth approximately $30,000. BNP Paribas Financial Markets lifted its stake in Phathom Pharmaceuticals by 71.9% during the second quarter. BNP Paribas Financial Markets now owns 5,072 shares of the company’s stock worth $49,000 after purchasing an additional 2,122 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in Phathom Pharmaceuticals by 58.3% in the second quarter. Tower Research Capital LLC TRC now owns 5,710 shares of the company’s stock valued at $55,000 after purchasing an additional 2,102 shares in the last quarter. 99.01% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Phathom Pharmaceuticals

Here are the key news stories impacting Phathom Pharmaceuticals this week:

• Positive Sentiment: Needham maintained a “Buy” rating while lowering its price target from $28 to $22. The revised target still implies substantial upside from recent trading levels, suggesting the analyst believes Phathom’s commercial opportunity remains intact. Needham price target report
• Positive Sentiment: Second-quarter revenue beat expectations. Phathom reported $74.27 million in revenue, above the $72.70 million consensus estimate. Earnings also improved significantly from the prior-year period; Zacks characterized the quarter as break-even compared with a $0.79-per-share loss a year earlier. Phathom Q2 earnings report
• Neutral Sentiment: Phathom continues expanding commercialization of its gastrointestinal treatments, with a sales force of more than 290 representatives. The investment could support future growth, but it also increases near-term operating expenses and execution requirements. Phathom business update
• Negative Sentiment: Full-year 2026 revenue guidance was cut to $310 million-$325 million, below the prior top-end outlook of $345 million and the $334.3 million analyst consensus. The company also reported a $0.08-per-share quarterly loss, slightly worse than the expected $0.06 loss. The lowered outlook has prompted an investor investigation notice, adding potential legal and reputational overhang. Phathom investigation notice

Phathom Pharmaceuticals Company Profile

Phathom Pharmaceuticals is a clinical‐stage biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases. The company’s core mission centers on addressing serious GI disorders by leveraging innovative mechanisms of action to improve patient outcomes. Phathom’s research and development efforts concentrate on conditions such as Helicobacter pylori infection, erosive esophagitis, gastroparesis and other functional GI disorders where significant unmet medical needs persist.

The company’s lead asset is vonoprazan, a potassium‐competitive acid blocker (P-CAB) licensed for use in the United States.