Madrigal Pharmaceuticals (NASDAQ:MDGL) Posts Earnings Results, Beats Expectations By $0.98 EPS

Key Points

• Madrigal reported Q1 adjusted EPS of ($3.25), beating the consensus ($4.23)$311.3M (above $301.1M est.) and LTM Rezdiffra net sales of ~$1.1B, helping shares jump about 7.4% intraday.
• The company expanded its U.S. addressable MASH market to ~460,000 diagnosed F2/F3 patients, is running an event‑driven F4‑C outcomes trial with a planned readout in 2027, and added the in‑licensed siRNA ARO‑PNPLA3 (Phase I liver‑fat reductions up to ~46%).
• Despite commercial momentum, Madrigal remains unprofitable (negative net margin and ROE), has increased R&D and SG&A spending that widened losses and reduced cash to about $818M, and has seen recent insider stock sales.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) released its earnings results on Wednesday. The biopharmaceutical company reported ($3.25) EPS for the quarter, beating the consensus estimate of ($4.23) by $0.98, FiscalAI reports. The business had revenue of $311.34 million during the quarter, compared to analyst estimates of $301.05 million. Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 43.76%. The business's quarterly revenue was up 126.8% on a year-over-year basis. During the same period in the prior year, the business earned ($3.32) earnings per share.

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

• Rezdiffra reached $1.1 billion LTM net sales with Q1 revenue of $311M and >42,250 active patients (2.5x YoY), and management says Q2 momentum is strong.
• The U.S. addressable MASH market has expanded ~50% to ~460,000 diagnosed F2/F3 patients, with diagnosis rates and drug penetration still low (<~10%), implying substantial runway for future growth.
• Madrigal is running an event‑driven F4‑C outcomes trial (potentially doubling the opportunity to ~245,000 patients) with a planned readout in 2027 and supportive open‑label data showing improvement in CSPH‑related risk metrics.
• The company has expanded its pipeline to >10 programs (including the newly in‑licensed siRNA ARO‑PNPLA3 showing up to 46% liver fat reduction in Phase I) while increasing R&D and SG&A spending, widening the net loss and reducing cash to ~$818M—supportive of long‑term upside but with near‑term cost impact.

Madrigal Pharmaceuticals Trading Up 7.4%

Shares of NASDAQ:MDGL traded up $37.26 during mid-day trading on Wednesday, hitting $539.73. The stock had a trading volume of 569,273 shares, compared to its average volume of 255,738. The company's 50 day moving average is $486.52 and its 200-day moving average is $506.47. Madrigal Pharmaceuticals has a 12-month low of $265.00 and a 12-month high of $615.00. The company has a debt-to-equity ratio of 0.56, a quick ratio of 3.77 and a current ratio of 4.01. The company has a market cap of $12.44 billion, a PE ratio of -41.94 and a beta of -1.04.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Bank of America dropped their price target on Madrigal Pharmaceuticals from $570.00 to $529.00 and set a "neutral" rating on the stock in a report on Friday, February 20th. Wolfe Research set a $579.00 target price on Madrigal Pharmaceuticals in a report on Tuesday, January 6th. Citizens Jmp boosted their target price on Madrigal Pharmaceuticals from $527.00 to $745.00 and gave the stock a "market outperform" rating in a research report on Tuesday, January 20th. Citigroup reaffirmed an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 20th. Finally, TD Cowen reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $685.31.

Insider Activity

In other news, General Counsel Shannon T. Kelley sold 360 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, March 6th. The stock was sold at an average price of $431.94, for a total transaction of $155,498.40. Following the transaction, the general counsel owned 12,138 shares in the company, valued at approximately $5,242,887.72. The trade was a 2.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Mardi Dier sold 1,982 shares of the company's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $430.87, for a total value of $853,984.34. Following the transaction, the chief financial officer directly owned 12,490 shares in the company, valued at $5,381,566.30. The trade was a 13.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 6,098 shares of company stock worth $2,626,254. 21.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Several institutional investors and hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP increased its holdings in shares of Madrigal Pharmaceuticals by 5,381.2% in the 3rd quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company's stock valued at $185,507,000 after purchasing an additional 397,076 shares during the period. Deutsche Bank AG boosted its holdings in shares of Madrigal Pharmaceuticals by 414.5% during the fourth quarter. Deutsche Bank AG now owns 192,109 shares of the biopharmaceutical company's stock worth $111,873,000 after purchasing an additional 154,767 shares during the period. Invesco Ltd. grew its position in Madrigal Pharmaceuticals by 49.5% during the third quarter. Invesco Ltd. now owns 299,565 shares of the biopharmaceutical company's stock valued at $137,398,000 after purchasing an additional 99,209 shares in the last quarter. BNP Paribas Financial Markets grew its position in Madrigal Pharmaceuticals by 1,886.1% during the second quarter. BNP Paribas Financial Markets now owns 69,037 shares of the biopharmaceutical company's stock valued at $20,893,000 after purchasing an additional 65,561 shares in the last quarter. Finally, First Light Asset Management LLC increased its stake in Madrigal Pharmaceuticals by 479.2% in the 4th quarter. First Light Asset Management LLC now owns 66,831 shares of the biopharmaceutical company's stock valued at $38,918,000 after buying an additional 55,292 shares during the period. Hedge funds and other institutional investors own 98.50% of the company's stock.

Key Stories Impacting Madrigal Pharmaceuticals

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

• Positive Sentiment: Q1 results beat consensus — MDGL reported EPS of ($3.25) vs. estimates for a larger loss and revenue of $311.3M, topping forecasts and showing strong year‑over‑year revenue growth. This underpinning of near‑term commercial traction is a key reason shares are higher. Zacks: Madrigal (MDGL) Reports Q1 Loss, Beats Revenue Estimates
• Positive Sentiment: Rezdiffra sales growth and expanded MASH strategy — coverage highlights that accelerating Rezdiffra net sales and a broadening pipeline are validating Madrigal’s MASH-focused commercial strategy, boosting confidence in revenue runway. MSN: Madrigal’s MASH Strategy Reinforced By Rezdiffra Sales Growth and Pipeline Expansion
• Positive Sentiment: License of ARO‑PNPLA3 (siRNA) from Arrowhead — the exclusive deal adds a clinical‑stage, genetically targeted asset that showed strong Phase 1 liver‑fat reductions in PNPLA3 homozygotes, strengthening Madrigal’s precision-MASH pipeline and potential addressable market. Yahoo: Should Madrigal’s ARO-PNPLA3 License Deal Reshape the MASH Strategy
• Positive Sentiment: Analyst support — HC Wainwright reaffirmed a “buy” and set a $620 price target, implying material upside vs. the prior price level and lending credibility to the bull case. Benzinga: HC Wainwright Reaffirms Buy on Madrigal
• Neutral Sentiment: Company presentation and call provide detail — management’s Q1 slide deck and earnings call transcript outline commercial performance, expense cadence, and pipeline timelines; useful for modeling but not a single catalyst. Seeking Alpha: Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Corporate filings and press releases — company’s official Q1 release and pipeline announcement provide primary-source detail for investors building forecasts. GlobeNewswire: Q1 2026 Financial Results and Corporate Updates
• Negative Sentiment: Profitability still distant — despite the beat, Madrigal remains unprofitable with negative net margin/ROE and consensus still forecasting multi‑dollar negative EPS for the fiscal year; long‑term valuation depends on durable Rezdiffra growth and successful development of new assets. Stamford Advocate: Madrigal Q1 Earnings Snapshot

Madrigal Pharmaceuticals Company Profile

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.

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