Exelixis Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.73%.
Did EXEL Beat Earnings? Q1 2026 Results
Exelixis posted a stronger-than-expected first quarter of 2026, with non-GAAP diluted EPS of $0.87 beating the $0.76 consensus by 14.02% and total revenues of $610.81 million edging ahead of the $604.87 million estimate, reflecting 10.0% year-over-year growth. The cabozantinib franchise was the primary engine behind the results, with CABOMETYX alone contributing $552.80 million in U.S. net product revenues on the back of higher sales volumes, while collaboration revenues climbed to $55.84 million driven by stronger royalty income from partner Ipsen's ex-U.S. sales. Income from operations expanded meaningfully to $251.34 million from $186.86 million a year earlier, aided by a decline in R&D spending to $199.92 million as clinical trial and manufacturing costs eased. Shares touched a 52-week high of $49.63 in the wake of the results. Exelixis maintained its full-year 2026 guidance of $2.53 billion to $2.63 billion in total revenues, with potential upside excluded given that guidance does not yet reflect a possible zanzalintinib launch in colorectal cancer ahead of its December 3, 2026 PDUFA date.
- Increased cabozantinib sales volume driving net product revenue growth
- Higher royalty revenues from Ipsen's ex-U.S. cabozantinib sales
- Higher milestone-related revenues recognized in the quarter
- Lower R&D expenses from decreased clinical trial and manufacturing costs
- Reduced weighted-average shares outstanding from stock repurchase programs favorably impacting EPS
“Exelixis made significant progress in the first quarter of 2026 as we remain focused on our goal of building next-generation oncology franchises. Our first New Drug Application for zanzalintinib, for its initial potential indication in previously treated metastatic colorectal cancer, was accepted by U.S. regulatory authorities and is under active review, with a target action date of December 3, 2026. We also completed the expansion of our GI Sales team to accelerate cabozantinib's momentum in neuroendocrine tumors and prepare for potential future indications with zanzalintinib. As the cabozantinib franchise continues to grow and we execute across seven ongoing or soon-to-start pivotal studies for zanzalintinib, we remain committed to strengthening our leadership in GU and GI oncology to improve standards of care for patients and drive long-term value for our shareholders.”
Exelixis CEO, on the earnings call
Forward Guidance & Outlook
Exelixis maintained its fiscal year 2026 financial guidance: total revenues of $2.525 billion to $2.625 billion; net product revenues of $2.325 billion to $2.425 billion (including a 3.0% U.S. wholesale acquisition cost increase for CABOMETYX and COMETRIQ effective January 1, 2026); cost of goods sold of 3.5%-4.5% of net product revenues; R&D expenses of $875 million to $925 million (including $50 million non-cash stock-based compensation); SG&A expenses of $575 million to $625 million (including $75 million non-cash stock-based compensation); and an effective tax rate of 21%-23%. Guidance does not currently reflect any revenues from a potential U.S. regulatory approval and commercial launch of zanzalintinib for previously treated metastatic CRC, which has a PDUFA target action date of December 3, 2026. Key expected milestones include topline results from STELLAR-304 in the second half of 2026, the STELLAR-303 final analysis of OS in patients without liver metastases in mid-2026, and initiation of STELLAR-316 in mid-2026.
EXEL YoY Financials
EXEL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.