Arcus Biosciences (NYSE:RCUS) Issues Earnings Results

Key Points

• Arcus reported a quarterly loss of ($1.02) EPS, missing the consensus of ($0.92) and revealing revenue of $17.0 million versus an expected $29.49 million, with revenue down ~39% year‑over‑year and negative margins/ROE.
• The company now has full ownership of casdatifan, highlighting differentiated late‑line data (45% confirmed ORR, median PFS 15.1 months) and says Phase III PEAK‑1 is enrolling rapidly while it shifts >80% of portfolio spend to CAS; Arcus also holds a strong cash position of about $876M, providing a runway into at least H2 2028.
• Arcus discontinued STAR‑121 (anti‑TIGIT) for futility— a setback—while other programs remain active (PRISM‑1 fully enrolled with a H1 2027 readout, AB102 expected to enter clinic Q3 2026), all of which carry typical clinical risks.

Arcus Biosciences (NYSE:RCUS - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported ($1.02) EPS for the quarter, missing analysts' consensus estimates of ($0.92) by ($0.10), FiscalAI reports. The company had revenue of $17.00 million for the quarter, compared to the consensus estimate of $29.49 million. Arcus Biosciences had a negative return on equity of 65.77% and a negative net margin of 142.91%.The business's revenue for the quarter was down 39.3% on a year-over-year basis. During the same period in the prior year, the firm posted ($1.14) earnings per share.

Here are the key takeaways from Arcus Biosciences' conference call:

• Arcus now has full ownership of casdatifan and says its phase III PEAK-1 (second-line CAS + cabozantinib) is enrolling rapidly, targeting full enrollment by year-end 2026 and a frontline phase III start by year-end.
• The company highlights differentiated clinical data for casdatifan — ARC-20 100 mg monotherapy showed a confirmed ORR of 45% and a median PFS of 15.1 months in late-line cohorts — and argues this superior pharmacodynamic profile explains competitive advantages versus belzutifan.
• Arcus reports a strong balance sheet with $876 million in cash and a runway into at least H2 2028, expects about $600M at year-end 2026, and plans to focus >80% of portfolio spend on CAS by 2027 while reducing overall R&D/headcount.
• Non-oncology programs and other oncology studies remain active — the PRISM-1 Phase III quemliclustat pancreatic trial is fully enrolled with a H1 2027 readout, AB102 (MRGPRX2 antagonist) is expected to enter the clinic in Q3 2026, and oral TNF and CCR6 candidates are planned for 2027 — all carry typical clinical risk/uncertainty.
• The company announced discontinuation of STAR-121 (domvanalimab + zim + chemo in 1L NSCLC) for futility, a setback for the anti-TIGIT program, although exploratory zim + chemo data were consistent with expectations.

Arcus Biosciences Stock Up 0.1%

NYSE:RCUS traded up $0.04 on Tuesday, hitting $26.09. The stock had a trading volume of 1,150,829 shares, compared to its average volume of 1,297,410. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.36 and a current ratio of 4.36. The stock has a market cap of $3.28 billion, a P/E ratio of -7.90 and a beta of 0.87. Arcus Biosciences has a 1 year low of $7.06 and a 1 year high of $28.72. The firm's fifty day simple moving average is $22.69 and its two-hundred day simple moving average is $21.97.

Institutional Investors Weigh In On Arcus Biosciences

Several institutional investors and hedge funds have recently added to or reduced their stakes in RCUS. T. Rowe Price Investment Management Inc. purchased a new stake in shares of Arcus Biosciences during the 4th quarter worth approximately $39,000. Strs Ohio purchased a new position in Arcus Biosciences in the first quarter valued at approximately $67,000. Tower Research Capital LLC TRC grew its holdings in Arcus Biosciences by 184.2% during the second quarter. Tower Research Capital LLC TRC now owns 8,449 shares of the company's stock valued at $69,000 after purchasing an additional 5,476 shares during the period. Brevan Howard Capital Management LP bought a new position in Arcus Biosciences during the second quarter valued at $97,000. Finally, Corient Private Wealth LLC purchased a new stake in Arcus Biosciences in the second quarter worth $180,000. Hedge funds and other institutional investors own 92.89% of the company's stock.

Analysts Set New Price Targets

RCUS has been the subject of a number of recent research reports. Morgan Stanley reissued an "equal weight" rating and set a $20.00 price objective (down from $23.00) on shares of Arcus Biosciences in a report on Thursday, January 8th. Citigroup boosted their price objective on Arcus Biosciences from $44.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday, March 5th. Wall Street Zen raised Arcus Biosciences from a "sell" rating to a "hold" rating in a report on Saturday, February 28th. Truist Financial upgraded shares of Arcus Biosciences to a "strong-buy" rating in a research note on Monday. Finally, The Goldman Sachs Group upgraded shares of Arcus Biosciences from a "neutral" rating to a "buy" rating and increased their price objective for the company from $16.00 to $28.00 in a research note on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $32.44.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel cancer immunotherapies. The company's research platform centers on modulating tumor microenvironments and immune checkpoints through both small-molecule and antibody-based candidates. Arcus aims to enhance antitumor immune responses by targeting pathways such as the adenosine axis and inhibitory receptors on immune cells.

The company's lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist being evaluated in combination with anti-PD-1 therapy, and domvanalimab, an anti-TIGIT monoclonal antibody.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.