Arcus Biosciences (NYSE:RCUS) Releases Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Arcus beat quarterly expectations: The company reported an adjusted EPS loss of $0.72, $0.17 better than estimates, while revenue of $41 million exceeded forecasts of $21.98 million. However, revenue declined 74.4% year over year and the company remained unprofitable.
• Casdatifan development is advancing: Arcus expects to complete enrollment in the phase 3 PEAK-1 trial by year-end and begin the frontline PEAK-20 study by the end of 2026. Substantial efficacy and safety data from more than 200 patients are expected in October.
• Financial resources and outlook remain concerns: Cash and investments fell to $775 million from $876 million in the prior quarter, while 2026 revenue guidance is $65 million–$75 million as collaboration revenue declines with the Gilead domvanalimab program winding down.

Arcus Biosciences (NYSE:RCUS - Get Free Report) issued its earnings results on Wednesday. The company reported ($0.72) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.89) by $0.17, FiscalAI reports. The business had revenue of $41.00 million for the quarter, compared to analyst estimates of $21.98 million. Arcus Biosciences had a negative net margin of 156.36% and a negative return on equity of 68.97%. The business's revenue for the quarter was down 74.4% on a year-over-year basis.

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

• Arcus remains on track to complete enrollment in the phase 3 PEAK-1 trial of casdatifan plus cabozantinib in second-line clear-cell renal cell carcinoma by year-end and plans to initiate the frontline PEAK-20 registrational study by the end of 2026.
• The company expects substantial casdatifan data in October, including first-line, second-line and late-line efficacy and safety readouts from more than 200 patients. Management believes the data could support casdatifan’s potential as a backbone therapy across the RCC treatment paradigm.
• Arcus expanded clinical collaborations with BMS, Summit Therapeutics and AVEO Oncology to test casdatifan in additional combinations and settings while retaining its rights, supporting a broader and more capital-efficient development strategy.
• Arcus plans to initiate human dosing of its oral MRGPRX2 antagonist AB102 this month, with initial pharmacokinetic data expected in the fourth quarter, while its selective TNF receptor 1 inhibitor is expected to enter the clinic in early 2027.
• Cash and investments declined to $775 million from $876 million in the prior quarter, and full-year 2026 revenue guidance is $65 million–$75 million; management also expects lower collaboration revenue as the Gilead domvanalimab program winds down.

Arcus Biosciences Stock Performance

Shares of RCUS stock traded down $0.89 during trading on Wednesday, reaching $27.91. The company had a trading volume of 1,043,811 shares, compared to its average volume of 1,022,413. Arcus Biosciences has a one year low of $8.88 and a one year high of $31.74. The company has a market capitalization of $3.51 billion, a PE ratio of -8.78 and a beta of 0.80. The company has a debt-to-equity ratio of 0.19, a current ratio of 4.04 and a quick ratio of 4.04. The firm's 50 day simple moving average is $27.26 and its two-hundred day simple moving average is $24.18.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on RCUS shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Arcus Biosciences in a report on Friday, July 17th. The Goldman Sachs Group raised their target price on shares of Arcus Biosciences from $30.00 to $34.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Wall Street Zen lowered shares of Arcus Biosciences from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Morgan Stanley increased their price objective on shares of Arcus Biosciences from $20.00 to $22.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Finally, HC Wainwright raised their price objective on shares of Arcus Biosciences from $32.00 to $45.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Eight analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $36.40.

Insider Buying and Selling

In related news, CFO Robert C. Goeltz II sold 7,763 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $25.63, for a total value of $198,965.69. Following the sale, the chief financial officer directly owned 84,161 shares of the company's stock, valued at approximately $2,157,046.43. The trade was a 8.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Juan C. Jaen sold 48,502 shares of the business's stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $30.05, for a total value of $1,457,485.10. Following the completion of the sale, the president owned 842,307 shares in the company, valued at approximately $25,311,325.35. This trade represents a 5.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 110,325 shares of company stock worth $3,174,319 in the last quarter. 7.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RCUS. T. Rowe Price Investment Management Inc. acquired a new stake in shares of Arcus Biosciences during the fourth quarter worth $39,000. Invesco Ltd. boosted its stake in shares of Arcus Biosciences by 41.7% in the 4th quarter. Invesco Ltd. now owns 414,365 shares of the company's stock worth $9,874,000 after buying an additional 121,961 shares during the last quarter. State of Tennessee Department of Treasury grew its holdings in shares of Arcus Biosciences by 34.2% in the fourth quarter. State of Tennessee Department of Treasury now owns 34,855 shares of the company's stock valued at $831,000 after acquiring an additional 8,886 shares in the last quarter. VestGen Advisors LLC bought a new position in shares of Arcus Biosciences in the fourth quarter valued at approximately $647,000. Finally, Wellington Management Group LLP grew its holdings in shares of Arcus Biosciences by 309.4% in the fourth quarter. Wellington Management Group LLP now owns 5,184,509 shares of the company's stock valued at $123,547,000 after acquiring an additional 3,918,220 shares in the last quarter. 92.89% of the stock is owned by institutional investors and hedge funds.

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.

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