Exelixis, Inc.
EXEL · NASDAQ-GS
Next quarter
Reports Oct 29, 2026, after the close.
Consensus is $0.79 EPS for Sep 2026 across 5 estimates, ranging $0.71 to $0.84.
EXEL Jun 2026
- 9.33%
- -7.94%
- $0.75
- $0.82
- —
- $628.69M
Reported results
- $628.69M
- $248.41M
- $212.05M
- $0.82
Highlights
- Revenue growth: Second-quarter revenue rose 11% year over year to $628.7 million, up from $568.3 million, and increased 3% from $610.8 million in the prior quarter.
- Cabozantinib demand: Net product revenue increased 10% year over year to $573.0 million, including $570.6 million from CABOMETYX; unit volume rose 6% and average net selling price rose 4%.
- EPS beat: GAAP diluted EPS was $0.82 versus consensus of $0.75, a 9.33% surprise, while non-GAAP diluted EPS was $0.91 versus $0.75 a year ago.
- Profitability: Net income rose 15% year over year to $212.1 million and operating income increased 16% to $248.4 million, despite higher R&D and commercial spending.
- 2026 guidance reset: Total revenue guidance was reduced to $2.500-$2.550 billion from $2.525-$2.625 billion, and net product revenue guidance to $2.300-$2.350 billion from $2.325-$2.425 billion.
- Zanzalintinib catalyst: The FDA is reviewing zanzalintinib with atezolizumab for previously treated metastatic colorectal cancer, with a December 3, 2026 PDUFA date; the outlook excludes any potential launch revenue.
- Pipeline execution: Exelixis expects STELLAR-304 topline results in the second half of 2026, remains on track to initiate STELLAR-316, and continues enrollment in STELLAR-311.
- Capital return: The company repurchased $311.6 million of stock in the quarter and had repurchased $902.2 million, or 20.2 million shares, through June 30; $597.8 million remained under the newer authorization.
Analysis
Exelixis delivered a stronger-than-expected second quarter, led by continued CABOMETYX demand and lower share count from aggressive repurchases. GAAP diluted EPS of $0.82 exceeded the $0.75 consensus estimate by 9.33%, while revenue of $628.7 million increased 11% from $568.3 million a year ago and 3% from $610.8 million in the prior quarter. Net income rose 15% year over year to $212.1 million, and operating income increased 16% to $248.4 million. The share count reduction also helped EPS: diluted weighted-average shares fell to 259.7 million from 284.4 million a year ago.
The print was nevertheless marked by a more conservative full-year outlook. Exelixis lowered the midpoint of total revenue guidance by about 2% to $2.525 billion and reduced the midpoint of R&D guidance by 6% to $850 million, while maintaining SG&A guidance. Management is continuing to invest behind zanzalintinib, whose potential colorectal cancer launch is excluded from guidance and awaits a December 3 FDA decision. The development calendar remains the central forward-looking focus, with STELLAR-304 results expected in the second half and multiple additional trials advancing. Operating cash flow reached $559.6 million in the first half, funding both pipeline investment and $753.3 million of year-to-date repurchases.
Cabozantinib franchise
The commercial business remained the quarter’s earnings engine. U.S. cabozantinib net product revenue was $573.0 million, comprising $570.6 million from CABOMETYX and $2.4 million from COMETRIQ. CABOMETYX revenue increased 10% year over year, driven primarily by a 6% increase in units sold and supported by a 4% increase in average net selling price. Management attributed volume growth to refills, longer duration of therapy for CABOMETYX combined with nivolumab, and share gains in metastatic RCC and neuroendocrine tumors. Royalty revenue from partners Ipsen and Takeda added $53.2 million, with Ipsen royalties rising to $50.5 million from $39.5 million a year earlier.
- Product mix: CABOMETYX represented $570.6 million of the $573.0 million in net product revenue, while COMETRIQ contributed $2.4 million.
- Collaboration revenue: Collaboration revenue increased 15% year over year to $55.7 million, primarily because of higher Ipsen royalties, partly offset by lower development cost reimbursements.
- Commercial durability: The company said the volume increase reflected refills and longer treatment duration, rather than only pricing; discounts and allowances rose to $239.8 million from $225.3 million.
Zanzalintinib pipeline
Zanzalintinib remains the strategic center of the company’s next phase. The FDA accepted the NDA for zanzalintinib plus atezolizumab in previously treated metastatic colorectal cancer and assigned a December 3, 2026 PDUFA date. The final STELLAR-303 analysis showed a non-statistically significant overall-survival trend in the non-liver-metastases subgroup, with a hazard ratio of 0.83, a 95% confidence interval of 0.66-1.05, and median overall survival of 15.9 months versus 12.7 months for regorafenib. Exelixis is preparing for a possible launch but has excluded the indication from 2026 revenue guidance.
- Near-term data: Topline results from the phase 3 STELLAR-304 trial in previously untreated advanced non-clear cell RCC are expected in the second half of 2026, depending on event rates.
- Trial expansion: Exelixis remains on track to initiate the phase 3 STELLAR-316 trial in mid-2026 with Merck and Natera, evaluating zanzalintinib with and without KEYTRUDA QLEX in MRD-positive resected stage II/III colorectal cancer.
- Broader development: STELLAR-311 continues enrolling in neuroendocrine tumors, while STELLAR-201 in recurrent meningioma and additional bladder cancer and prostate cancer cohorts are active or advancing.
Guidance and spending
The company’s updated outlook is more cautious on reported revenue but not on the pipeline investment required to support zanzalintinib. Total 2026 revenue guidance is now $2.500-$2.550 billion, versus $2.525-$2.625 billion previously, and net product revenue guidance is $2.300-$2.350 billion versus $2.325-$2.425 billion. The midpoint reductions are approximately 2% in both cases. R&D guidance fell to $825-$875 million from $875-$925 million, while SG&A guidance was unchanged at $575-$625 million. Second-quarter R&D increased 6% year over year to $212.0 million, led by clinical, manufacturing and collaboration costs; SG&A rose 9% to $147.6 million on marketing and personnel expenses.
- Margin profile: Gross margin remained approximately 96%, with cost of goods sold increasing 6% to $20.7 million, broadly in line with higher CABOMETYX sales and royalties.
- Cash generation: First-half operating cash flow more than doubled to $559.6 million from $260.4 million a year earlier, partly reflecting higher product collections and lower cash taxes.
- Liquidity: Cash, cash equivalents and marketable securities totaled $1.384 billion at June 30, down from $1.663 billion at year-end after repurchases and development spending.
Capital allocation
Exelixis continued to prioritize shareholder returns alongside pipeline spending. It repurchased $311.6 million of stock during the quarter at an average price of $47.85 per share, completing the $750 million authorization established in October 2025. The board authorized another $750 million program in May 2026, of which $597.8 million remained available at quarter-end. Since the first program was authorized in March 2023, the company had repurchased $2.9 billion of stock and retired 93.3 million shares at an average price of $31.12.
- Share count benefit: Diluted weighted-average shares declined 9% year over year to 259.7 million, contributing to the increase in diluted EPS alongside higher earnings.
- Year-to-date activity: First-half cash used for repurchases was $753.3 million, compared with $585.9 million in the prior-year period.
- Balance between uses: Management framed capital allocation around simultaneously funding R&D, returning capital and retaining flexibility for opportunistic business development.
CABOMETYX patent risk
The filing continued to identify several potential generic and follow-on threats to CABOMETYX, which supplies the majority of current revenue. MSN’s appeal in one litigation remains pending after June 2026 oral argument, while a consolidated trial involving MSN and Azurity is scheduled for November 2, 2026. Exelixis also filed litigation against Accord in July and against Handa in July after receiving additional applications. The company said it cannot estimate the likelihood or potential amount of loss, but an earlier-than-expected launch of competing cabozantinib products could materially reduce U.S. CABOMETYX revenue.
