Arcus Biosciences Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.73%.
Did RCUS Beat Earnings? Q1 2026 Results
Arcus Biosciences delivered a sharply disappointing first quarter for fiscal 2026, missing on both the top and bottom lines as the fallout from its abandoned lung cancer program weighed heavily on results. The company posted an EPS loss of $1.02, coming in 23.26% below the consensus estimate of $0.83, while revenue of $17.00 million missed expectations by 42.34% and fell 39.3% from $28.00 million a year ago, with the decline driven primarily by lower development services revenue from its Gilead collaboration following the April discontinuation of the Phase 3 STAR-121 domvanalimab study after an independent monitoring committee found no overall survival benefit. Net loss widened to $128.00 million from $112.00 million, and analysts have since trimmed their 2026 revenue forecasts meaningfully in response. Management is pivoting sharply toward casdatifan in clear cell renal cell carcinoma, targeting multiple Phase 3 initiations by year-end, and guided for full-year 2026 revenue of $50.00 million to $65.00 million, with $600.00 million in projected year-end cash supporting a runway into at least the second half of 2028.
- Revenue decline driven by lower development services revenue from Gilead collaboration
- R&D expenses flat as increased casdatifan and PRISM-1 spending offset domvanalimab wind-down
- G&A increase driven by stock-based compensation related to officer separation agreement
- Partnership reimbursements decreased as Gilead-led activities represent larger share of joint development costs
“Arcus is entering a new era, with a clear path for casdatifan to be both first and best in the first-line setting, and a portfolio of wholly owned molecules for inflammation and immunology that provide a new strategic optionality as they move into and through development.”
Arcus Biosciences CEO, on the earnings call
Forward Guidance & Outlook
Arcus expects to recognize GAAP revenue of between $50 million and $65 million for full-year 2026. The company expects to end 2026 with approximately $600 million in cash, with cash runway sufficient to fund operations until at least the second half of 2028. R&D expenses are expected to decline in the near term as domvanalimab studies wind down, partially offset by increased investment in casdatifan development and inflammation/immunology programs. PEAK-1 enrollment completion and initiation of a first-line Phase 3 study for casdatifan are both expected by year-end 2026. AB102 (MRGPRX2 antagonist) is expected to enter the clinic in Q3 2026, with potential proof-of-concept data in early 2027. An oral TNF inhibitor and a CCR6 antagonist are expected to enter the clinic in early 2027 and first half of 2027, respectively. PRISM-1 results for quemliclustat in pancreatic cancer are expected in the first half of 2027.
RCUS YoY Financials
RCUS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.