Madrigal Pharmaceuticals (NASDAQ:MDGL) Announces Earnings Results, Beats Expectations By $0.69 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) announced its earnings results on Thursday. The biopharmaceutical company reported ($1.99) EPS for the quarter, topping the consensus estimate of ($2.68) by $0.69, FiscalAI reports. The firm had revenue of $364.25 million for the quarter, compared to the consensus estimate of $352.13 million. Madrigal Pharmaceuticals had a negative net margin of 27.32% and a negative return on equity of 50.15%. The business’s quarterly revenue was up 71.2% on a year-over-year basis. During the same period last year, the company posted ($1.90) EPS.

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

• Rezdiffra sales and patient growth remained strong: Second-quarter net sales reached $364.3 million, up 71% year over year, with more than 49,000 active patients at quarter-end and over 50,000 reached in July. Management said it remains comfortable with consensus growth expectations for the rest of 2026.
• The U.S. addressable F2/F3 MASH market has expanded nearly 50% since year-end 2023, while diagnosis and treatment penetration remain low. Madrigal expects double-digit market growth for the foreseeable future and views the untreated F4C population as potentially capable of doubling Rezdiffra’s opportunity.
• Madrigal reported progress in extending Rezdiffra’s commercial life and building its pipeline, including new patents supporting F2/F3 protection through 2045 and additional F4C protection into the 2040s. The company expects to initiate three Phase II combination trials in 2027 involving an oral GLP-1, a DGAT2 inhibitor, and an siRNA targeting PNPLA3.
• The F4C MAESTRO-NASH Outcomes trial continues to accrue events and remains on track for a 2027 readout, but executives did not provide a more precise timing estimate or confirm the final event threshold. Management emphasized that the trial is pioneering and that event-rate uncertainty makes timing difficult to narrow.
• Despite strong revenue growth, the company posted a second-quarter net loss of $57.9 million, while cash, restricted cash, and marketable securities declined to $838.9 million from $988.6 million at year-end 2025. SG&A is expected to rise in 2026 as Madrigal continues commercial investment, and European revenue is expected to remain negligible because of reimbursement and pricing uncertainty.

Madrigal Pharmaceuticals Stock Down 9.8%

MDGL traded down $53.77 on Thursday, hitting $493.11. 1,487,641 shares of the company were exchanged, compared to its average volume of 269,116. The stock’s fifty day moving average is $517.48 and its 200-day moving average is $499.27. Madrigal Pharmaceuticals has a 12 month low of $290.00 and a 12 month high of $615.00. The company has a debt-to-equity ratio of 0.63, a quick ratio of 3.16 and a current ratio of 3.50. The company has a market cap of $11.37 billion, a PE ratio of -38.52 and a beta of -1.05.

Insider Buying and Selling

In other news, Director Richard S. Levy sold 5,682 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $515.44, for a total transaction of $2,928,730.08. Following the sale, the director owned 22,015 shares in the company, valued at $11,347,411.60. This represents a 20.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Soergel sold 1,042 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $495.74, for a total value of $516,561.08. Following the completion of the sale, the insider directly owned 10,033 shares of the company’s stock, valued at approximately $4,973,759.42. The trade was a 9.41% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 7,568 shares of company stock valued at $3,880,711. Corporate insiders own 17.60% of the company’s stock.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

A number of institutional investors and hedge funds have recently modified their holdings of the company. Hsbc Holdings PLC acquired a new stake in Madrigal Pharmaceuticals in the 2nd quarter valued at about $309,000. Qube Research & Technologies Ltd bought a new position in Madrigal Pharmaceuticals during the second quarter worth about $1,163,000. Sei Investments Co. increased its position in Madrigal Pharmaceuticals by 73.6% during the second quarter. Sei Investments Co. now owns 17,542 shares of the biopharmaceutical company’s stock worth $5,309,000 after buying an additional 7,438 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in Madrigal Pharmaceuticals by 2.1% during the second quarter. The Manufacturers Life Insurance Company now owns 23,416 shares of the biopharmaceutical company’s stock worth $7,087,000 after buying an additional 471 shares during the last quarter. Finally, Bayesian Capital Management LP bought a new stake in Madrigal Pharmaceuticals in the second quarter valued at approximately $418,000. 98.50% of the stock is owned by institutional investors.

Analysts Set New Price Targets

MDGL has been the subject of several research analyst reports. Truist Financial upped their price target on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Bank of America dropped their price objective on shares of Madrigal Pharmaceuticals from $550.00 to $542.00 and set a “neutral” rating on the stock in a report on Thursday, June 11th. Wells Fargo & Company started coverage on shares of Madrigal Pharmaceuticals in a research report on Monday. They issued an “overweight” rating and a $685.00 price objective on the stock. Evercore set a $649.00 target price on shares of Madrigal Pharmaceuticals in a research note on Thursday, May 7th. Finally, Citigroup restated an “outperform” rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $688.33.

Madrigal Pharmaceuticals News Roundup

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

• Positive Sentiment: Revenue and EPS beat expectations. Madrigal reported second-quarter revenue of $364.25 million, up 71.2% year over year and above the $352.13 million consensus estimate. Its loss of $1.99 per share was also narrower than analysts’ expected $2.68 loss. Madrigal Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Commercial performance remains a key strength. The substantial year-over-year revenue increase supports the continued launch and adoption of Madrigal’s MASH therapy, Rezdiffra, and provides evidence of growing demand for the company’s lead product. Madrigal Second-Quarter 2026 Results
• Positive Sentiment: Wells Fargo maintained a constructive view. Analysts at Wells Fargo assigned MDGL an Overweight rating, indicating expectations for further upside despite near-term volatility. Wells Fargo Overweight Rating
• Neutral Sentiment: Management’s earnings call and presentation provided additional corporate updates. Investors are focused on product execution, commercial expansion and the company’s progress toward improving operating results. Q2 2026 Earnings Call Transcript
• Negative Sentiment: Madrigal remains unprofitable. Although the quarterly loss beat estimates, the company continues to report negative net margin and return on equity, while analysts expect a full-year loss. That ongoing cash-burn and execution risk may be weighing on the shares, particularly after their strong prior performance. Madrigal Q2 2026 Earnings

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the development of innovative therapies for cardiovascular, metabolic and liver diseases. The company’s pipeline centers on novel, liver-directed agents designed to address significant unmet medical needs, with an emphasis on nonalcoholic steatohepatitis (NASH) and related metabolic disorders.

The lead product candidate, resmetirom (MGL-3196), is an orally administered, selective thyroid hormone receptor-β agonist in Phase 3 development for the treatment of NASH.