Exelixis (NASDAQ:EXEL) Posts Earnings Results, Beats Estimates By $0.05 EPS

Exelixis (NASDAQ:EXEL) announced its earnings results on Thursday. The biotechnology company reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.05, FiscalAI reports. Exelixis had a return on equity of 44.70% and a net margin of 35.45%. The firm had revenue of $658.70 million during the quarter, compared to analysts’ expectations of $646.51 million. During the same quarter in the prior year, the business earned $0.78 earnings per share. The company’s revenue was up 10.2% on a year-over-year basis.

Here are the key takeaways from Exelixis’ conference call:

• CABOMETYX continued to grow, with U.S. franchise net product revenue rising 11% year over year to $605 million and global franchise revenue increasing 11% to $818 million. RCC and NET both contributed, while CABOMETYX’s share of the oral second-line-plus NET market exceeded 50%.
• Exelixis is advancing zanzalintinib as its next potential oncology franchise. The company reported continued enrollment across Wave 1 studies, initiated the STELLAR-316 colorectal cancer trial and STELLAR-202 lung cancer trial, and expects STELLAR-304 non-clear cell RCC results in the first quarter of 2027.
• The FDA’s action date for the zanzalintinib NDA based on STELLAR-303 was updated to March 3, 2027. Management did not provide additional detail on ongoing FDA discussions or potential labeling.
• The company reported third-quarter revenue of approximately $659 million, GAAP net income of $218 million, and non-GAAP net income of $240 million. Exelixis also repurchased $250 million of stock during the quarter, with $348 million remaining under its current $750 million authorization.
• Operating expenses increased to approximately $390 million from $380 million in the prior quarter, driven by higher legal and advisory fees, marketing expenses, and cost of goods sold. The company also cited the timing-related effects of the NET business when discussing its maintained 2026 revenue outlook and updated its full-year gross-to-net deduction estimate to approximately 30%.

Exelixis Stock Up 4.8%

Shares of NASDAQ EXEL opened at $69.39 on Friday. Exelixis has a 12 month low of $36.00 and a 12 month high of $72.10. The company has a market cap of $17.19 billion, a P/E ratio of 20.78, a P/E/G ratio of 1.86 and a beta of 0.47. The business’s 50 day moving average is $59.39 and its two-hundred day moving average is $50.92.

Insider Buying and Selling at Exelixis

In other news, Director Mary Beckerle sold 9,812 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $53.66, for a total value of $526,511.92. Following the completion of the sale, the director directly owned 16,079 shares of the company’s stock, valued at approximately $862,799.14. This represents a 37.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.60% of the company’s stock.

Exelixis News Summary

Here are the key news stories impacting Exelixis this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations: Exelixis reported adjusted EPS of $0.94 versus the $0.89 consensus estimate and revenue of $658.7 million versus expectations of approximately $646.5 million. Revenue increased 10.2% year over year. EXEL Q3 Earnings Beat Estimates on Strong Cabometyx Sales
• Positive Sentiment: CABOMETYX remained the key growth driver: U.S. net product revenue reached roughly $605 million, with franchise revenue growth of about 11% year over year, supporting confidence in Exelixis’ core commercial business.
• Positive Sentiment: Capital returns and financial strength supported sentiment: The company repurchased approximately $250 million of stock during the quarter and ended the period with about $1.4 billion in cash and marketable securities.
• Positive Sentiment: Pipeline catalyst is approaching: Exelixis outlined a March 3, 2027 FDA decision date for zanzalintinib, while continuing preparations for additional pivotal studies. Exelixis outlines March 3, 2027 PDUFA for zanza
• Positive Sentiment: TD Cowen raised its price target to $76 from $55 and assigned a Buy rating, adding to the bullish reaction following the earnings release. TD Cowen Exelixis ratings
• Neutral Sentiment: Analyst views remain mixed: Morgan Stanley raised its target to $60 but maintained Equalweight, while Truist, RBC, Barclays and other firms also lifted targets that remain below the current trading level.
• Negative Sentiment: Insider trading presents a cautionary signal: Six reported insider open-market transactions over the past six months were sales, with no purchases. This may temper enthusiasm despite the favorable quarterly results.

Analysts Set New Price Targets

EXEL has been the subject of a number of analyst reports. BMO Capital Markets restated a “market perform” rating and issued a $60.00 price objective on shares of Exelixis in a research note on Friday. Wells Fargo & Company raised their target price on shares of Exelixis from $40.00 to $49.00 and gave the company an “equal weight” rating in a research note on Monday, July 13th. Citigroup reiterated a “market outperform” rating on shares of Exelixis in a report on Monday, October 19th. Citizens Jmp lifted their target price on shares of Exelixis from $55.00 to $65.00 and gave the stock a “market outperform” rating in a report on Monday, October 19th. Finally, TD Cowen boosted their target price on shares of Exelixis from $55.00 to $76.00 and gave the stock a “buy” rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $55.21.

Exelixis Company Profile

Exelixis, Inc is a biopharmaceutical company focused on discovering, developing, and commercializing medicines for cancer and other serious diseases. The company’s research programs center primarily on targeted therapies, including treatments designed to inhibit signaling pathways involved in tumor growth and progression.

Exelixis’ lead product is CABOMETYX (cabozantinib), an oral medicine approved in the United States for certain patients with renal cell carcinoma, hepatocellular carcinoma, and differentiated thyroid cancer.