Exelixis (NASDAQ:EXEL) Announces Earnings Results

Key Points

• Q1 beat: Exelixis reported $0.87 EPS vs. $0.75 expected and revenue of $610.8M (up 10% YoY) with a strong net margin (~33.7%), about $1.4B in cash/marketable securities, ~$430.8M of stock repurchases in the quarter and a new $750M buyback authorization.
• Commercial and pipeline momentum: U.S. CABOMETYX net product revenues rose 8% to $555M (global CABO $764M) with record new patient starts and rising TRX share, while the NDA for ZANZA (zanzalitinib) + atezolizumab in 3L+ CRC is under FDA review with a PDUFA in early December and several pivotal trials underway.
• Near‑term risks and guidance: Higher gross‑to‑net deductions (30.2% in Q1) and intensifying competition in the RCC franchise could pressure realized revenue, and FY‑2026 guidance of $2.5B–$2.6B sits at the lower end of consensus, limiting near‑term upside.

Exelixis (NASDAQ:EXEL - Get Free Report) issued its earnings results on Tuesday. The biotechnology company reported $0.87 EPS for the quarter, topping analysts' consensus estimates of $0.75 by $0.12, FiscalAI reports. Exelixis had a net margin of 33.73% and a return on equity of 36.29%. The company had revenue of $610.81 million for the quarter, compared to the consensus estimate of $607.51 million. During the same period in the previous year, the firm earned $0.55 earnings per share. Exelixis's quarterly revenue was up 10.0% compared to the same quarter last year.

Here are the key takeaways from Exelixis' conference call:

• CABOMETYX commercial momentum: U.S. CABO franchise net product revenues rose 8% year‑over‑year to $555M (global CABO revenues grew 12.5% to $764M), with the highest quarterly new patient starts ever and TRX share rising from 44% to 47% versus Q1 2025.
• ZANZA regulatory and pivotal progress: The NDA for zanzalitinib (ZANZA) + atezolizumab in 3L+ CRC (STELLAR‑303) is under FDA review with a PDUFA in early December and the program includes seven ongoing/soon‑to‑start pivotal trials, positioning ZANZA as the company’s next potential franchise.
• Solid Q1 financials and capital returns: Total revenues were ~$611M with GAAP net income of ~$210.5M ($0.79 diluted) and non‑GAAP net income of ~$232.8M ($0.87 diluted); cash and marketable securities were ~$1.4B, the company repurchased ~$430.8M (~10M shares) in Q1 and the board authorized a new $750M buyback.
• Higher gross‑to‑net deductions (30.2% in Q1) increased due to elevated 340B volume, Medicare Part D discounts/rebates and co‑pay assistance, which could pressure realized net product revenue despite underlying demand.
• Broad R&D pipeline and enrollment momentum: four early clinical assets (XL309, XB010, XB628, XB371) are in development, STELLAR‑311 (NET) is enrolling ahead of plan, STELLAR‑316 (MRD adjuvant CRC) and STELLAR‑201 (meningioma) are advancing, and the company is prioritizing disciplined R&D investment and targeted BD to expand future franchises.

Exelixis Trading Up 0.6%

EXEL traded up $0.25 during trading hours on Tuesday, hitting $44.42. 3,561,628 shares of the company's stock were exchanged, compared to its average volume of 2,516,225. Exelixis has a 12-month low of $33.76 and a 12-month high of $49.62. The firm has a 50 day moving average of $43.32 and a 200 day moving average of $42.86. The firm has a market cap of $11.28 billion, a P/E ratio of 16.04, a price-to-earnings-growth ratio of 0.99 and a beta of 0.38.

Key Headlines Impacting Exelixis

Here are the key news stories impacting Exelixis this week:

• Positive Sentiment: Q1 earnings beat — Exelixis reported $0.87 EPS vs. the $0.75 consensus and revenue of $610.8M vs. ~$607.5M expected; strong net margin (33.7%) and ROE (~36%). This explains much of the intraday strength. Exelixis (EXEL) Tops Q1 Earnings Estimates
• Positive Sentiment: Company release and corporate update highlighted commercial, clinical and pipeline progress — management framed Q1 as advancement toward building next‑generation oncology franchises, supporting investor confidence in the growth story. Exelixis Announces First Quarter 2026 Financial Results and Provides Corporate Update
• Positive Sentiment: Analyst/feature coverage reinforces growth thesis — recent commentary highlights Exelixis as a strong growth stock on fundamentals and style scores, which can support multiple expansion if execution continues. Here's Why Exelixis (EXEL) is a Strong Growth Stock
• Neutral Sentiment: FY‑2026 revenue guidance set at $2.5B–$2.6B — roughly in line with consensus but at the lower end of the range, leaving limited upside in near‑term top‑line expectations; investors will watch guidance detail and cadence. (See company release for guidance context.) Exelixis Announces First Quarter 2026 Financial Results and Provides Corporate Update
• Negative Sentiment: Competitive risk in RCC franchise — coverage ahead of/around earnings questions whether the RCC franchise can sustain share amid intensifying competition; that risk could pressure future growth and is a key watch item for investors. Exelixis earnings on deck: Can RCC franchise weather competition?
• Neutral Sentiment: Earnings roundups and snapshots summarize results and metrics — useful for quick reference but largely reiterate the beats and guidance above. Exelixis: Q1 Earnings Snapshot

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Truist Financial raised shares of Exelixis to a "strong-buy" rating in a research note on Monday, April 27th. Royal Bank Of Canada dropped their price target on shares of Exelixis from $46.00 to $43.00 and set a "sector perform" rating for the company in a research report on Monday, March 2nd. Morgan Stanley lifted their price target on shares of Exelixis from $48.00 to $49.00 and gave the company an "equal weight" rating in a research report on Monday, February 2nd. Zacks Research cut shares of Exelixis from a "strong-buy" rating to a "hold" rating in a research report on Thursday, March 5th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Exelixis in a research report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Exelixis has a consensus rating of "Hold" and an average price target of $47.00.

Insider Activity

In related news, EVP Dana Aftab sold 47,918 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $44.50, for a total transaction of $2,132,351.00. Following the sale, the executive vice president directly owned 616,106 shares of the company's stock, valued at $27,416,717. This represents a 7.22% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Christopher J. Senner sold 30,617 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $43.67, for a total transaction of $1,337,044.39. Following the sale, the chief financial officer directly owned 976,092 shares in the company, valued at approximately $42,625,937.64. The trade was a 3.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 362,849 shares of company stock worth $15,917,463 over the last 90 days. Company insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On Exelixis

A number of large investors have recently modified their holdings of EXEL. AQR Capital Management LLC increased its position in shares of Exelixis by 48.8% in the 4th quarter. AQR Capital Management LLC now owns 13,658,388 shares of the biotechnology company's stock valued at $598,647,000 after purchasing an additional 4,477,029 shares during the last quarter. UBS Group AG boosted its holdings in shares of Exelixis by 100.1% in the 3rd quarter. UBS Group AG now owns 2,655,069 shares of the biotechnology company's stock valued at $109,654,000 after buying an additional 1,328,087 shares in the last quarter. Morgan Stanley boosted its holdings in shares of Exelixis by 31.0% in the 4th quarter. Morgan Stanley now owns 4,206,656 shares of the biotechnology company's stock valued at $184,378,000 after buying an additional 995,949 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of Exelixis by 38.2% in the 2nd quarter. Bank of America Corp DE now owns 2,638,666 shares of the biotechnology company's stock valued at $116,299,000 after buying an additional 728,956 shares in the last quarter. Finally, Voloridge Investment Management LLC boosted its holdings in shares of Exelixis by 203.8% in the 4th quarter. Voloridge Investment Management LLC now owns 960,768 shares of the biotechnology company's stock valued at $42,110,000 after buying an additional 644,495 shares in the last quarter. 85.27% of the stock is owned by hedge funds and other institutional investors.

About Exelixis

Exelixis, Inc is a biotechnology company specializing in the discovery, development and commercialization of small molecule therapies primarily for the treatment of cancer. Building on a platform that leverages model organism genetics and high-throughput screening, the company focuses its research on kinase inhibitors that modulate critical signaling pathways involved in tumor growth and metastasis. Exelixis's translational research approach aims to advance novel compounds from early-stage discovery through clinical development and regulatory approval.

The company's most recognized products include CABOMETYX® (cabozantinib), approved for the treatment of advanced renal cell carcinoma and hepatocellular carcinoma, and COMETRIQ® (cabozantinib) for metastatic medullary thyroid cancer.

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