Exelixis Announces Third Quarter 2026 Financial Results and Provides Corporate Update
EXELIXIS, INC. (EXEL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contacts: Chris Senner Chief Financial Officer Exelixis, Inc. 650-837-7240 csenner@exelixis.com Andrew Peters SVP, Strategy & Investor Relations Exelixis, Inc. 650-837-7248 apeters@exelixis.com Exelixis Announces Third Quarter 2026 Financial Results and Provides Corp
How this was made
The 30-second read
Why it matters
The earnings beat and stable guidance suggest operational strength, likely supporting the stock price in the short term.
Market read
Primary earnings release with updated guidance provides fresh material for traders; the beat in EPS and unchanged revenue outlook may drive modest buying.
What to watch
Potential dilution from the stock repurchase program and upcoming FDA review of zanzalintinib.
Total Revenues of $658.7 million, Cabozantinib Franchise U.S. Net Product Revenues of $604.9 million; GAAP Diluted EPS of $0.85, Non-GAAP Diluted EPS of $0.94
Third-quarter total revenues, net product revenues, GAAP net income and non-GAAP net income were higher than the comparable 2025 period, while Exelixis maintained its revenue and operating-expense guidance ranges and lowered its effective tax-rate guidance.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Fiscal year 2026 total revenues | $2.500 billion - $2.550 billion | Not reported | n/a |
| Fiscal year 2026 net product revenues | $2.300 billion - $2.350 billion | Not reported | n/a |
| Fiscal year 2026 cost of goods sold, % of net product revenues | 3.5% - 4.5% | Not reported | n/a |
| Fiscal year 2026 research and development expenses | $825 million - $875 million | Not reported | n/a |
| Fiscal year 2026 selling, general and administrative expenses | $575 million - $625 million | Not reported | n/a |
| Fiscal year 2026 effective tax rate | 21% - 23% | Not reported | n/a |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $658.7M | – | – |
| Net product revenues, three months ended September 30, 2026GAAP | $604.9M | – | – |
| Collaboration revenues, three months ended September 30, 2026GAAP | $53.8M | – | – |
| Cost of goods sold, three months ended September 30, 2026GAAP | $26.23M | – | – |
| Research and development expenses, three months ended September 30, 2026GAAP | $209.5M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $154.6M | – | – |
| Restructuring, three months ended September 30, 2026GAAP | — | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $390.3M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $268.4M | – | – |
| Interest income, three months ended September 30, 2026GAAP | $14.31M | – | – |
| Other income (expenses), net, three months ended September 30, 2026GAAP | $47K | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $282.8M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | $64.7M | – | – |
| Net income, three months ended September 30, 2026GAAP | $218.1M | – | – |
| Net income per share, basic, three months ended September 30, 2026GAAP | $0.88 | – | – |
| Net income per share, diluted, three months ended September 30, 2026GAAP | $0.85 | – | – |
| Non-GAAP net income, three months ended September 30, 2026non-GAAP | $240.2M | – | – |
| Non-GAAP net income per share, basic, three months ended September 30, 2026non-GAAP | $0.97 | – | – |
| Non-GAAP net income per share, diluted, three months ended September 30, 2026non-GAAP | $0.94 | – | – |
| Weighted-average common shares outstanding, basic, three months ended September 30, 2026GAAP | 246,756 | – | – |
| Weighted-average common shares outstanding, diluted, three months ended September 30, 2026GAAP | 255,754 | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $1.90B | – | – |
| Net product revenues, nine months ended September 30, 2026GAAP | $1.73B | – | – |
| Collaboration revenues, nine months ended September 30, 2026GAAP | $165.3M | – | – |
| Cost of goods sold, nine months ended September 30, 2026GAAP | $66.84M | – | – |
| Research and development expenses, nine months ended September 30, 2026GAAP | $621.4M | – | – |
| Selling, general and administrative expenses, nine months ended September 30, 2026GAAP | $441.8M | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $768.2M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $640.6M | – | – |
| Net income per share, diluted, nine months ended September 30, 2026GAAP | $2.46 | – | – |
| Non-GAAP net income, nine months ended September 30, 2026non-GAAP | $710.1M | – | – |
| Non-GAAP net income per share, diluted, nine months ended September 30, 2026non-GAAP | $2.72 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Net product revenuesThe increase in net product revenues was primarily due to an increase in sales volume and an increase in average net selling price. | $604.9M | – | – |
| Collaboration revenuesThe decrease was primarily related to lower milestone-related revenues recognized in the quarter and lower development cost reimbursements earned, partially offset by higher royalty revenues for sales of cabozantinib outside the U.S. generated by Ipsen. | $53.8M | – | – |
| Cabozantinib franchise U.S. net product revenuesIncluded net product revenues of $603.2 million from CABOMETYX and $1.8 million from COMETRIQ. | $604.9M | – | – |
| CABOMETYX net product revenuesCABOMETYX was the principal contributor to cabozantinib franchise U.S. net product revenues. | $603.2M | – | – |
| COMETRIQ net product revenuesCOMETRIQ contributed to cabozantinib franchise U.S. net product revenues. | $1.8M | – | – |
Fiscal year 2026 outlook
- RevenueTotal revenues $2.500 billion - $2.550 billion; Net product revenues $2.300 billion - $2.350 billion
- Operating expensesResearch and development expenses $825 million - $875 million; Selling, general and administrative expenses $575 million - $625 million
- Tax rate16% - 18%
- NoteCost of goods sold, % of net product revenues ~4%
- NoteNet product and total revenues guidance do not currently reflect any revenues resulting from a potential U.S. regulatory approval and commercial launch of zanzalintinib for previously treated metastatic colorectal cancer.
- NoteNet product revenues guidance range includes the impact of a U.S. wholesale acquisition cost increase of 3.0% for CABOMETYX and COMETRIQ effective January 1, 2026.
- NoteResearch and development expenses guidance includes $50.0 million of non-cash stock-based compensation.
- NoteSelling, general and administrative expenses guidance includes $75.0 million of non-cash stock-based compensation.
Capital returns
- In May 2026, the Board authorized the repurchase of up to $750 million of outstanding common stock before December 31, 2027.
- As of the end of the third quarter of 2026, Exelixis repurchased $402.1 million of outstanding common stock at an average price of $54.03 per share under the May 2026 stock repurchase program.
- Since the first stock repurchase program was authorized in March 2023, Exelixis repurchased a total of $3.2 billion of outstanding common stock, retiring 97.8 million shares, at an average price of $32.25 per share, as of the end of the third quarter of 2026.
What drove it
- Higher net product revenues reflected increased sales volume and increased average net selling price.
- Research and development expense increased primarily because of personnel expenses and clinical trial costs, partially offset by lower license and other collaboration costs.
- Selling, general and administrative expense increased primarily because of personnel expenses, marketing activities, and legal and advisory fees.
- GAAP net income per share was favorably impacted by lower weighted-average common shares outstanding resulting from stock repurchase programs.
- Exelixis earned $51.8 million in royalty revenues based upon cabozantinib-related net product revenues generated by Ipsen and Takeda Pharmaceutical Company Limited during the quarter ended September 30, 2026.
Concerns
- Collaboration revenues declined primarily because of lower milestone-related revenues and lower development cost reimbursements.
- The FDA extended the zanzalintinib NDA review period by three months after Exelixis submitted updated safety and efficacy data in response to an FDA information request.
- The updated PDUFA target action date for zanzalintinib in combination with atezolizumab for previously treated metastatic CRC is March 3, 2027.
- The final analysis of the STELLAR-303 non-liver metastases subpopulation showed a non-statistically significant trend in overall survival favoring zanzalintinib in combination with atezolizumab.
- Fiscal year 2026 net product and total revenue guidance do not reflect potential revenue from a U.S. regulatory approval and commercial launch of zanzalintinib for previously treated metastatic CRC.
What to watch
- FDA action on the zanzalintinib NDA in combination with atezolizumab for previously treated metastatic CRC, with a PDUFA target action date of March 3, 2027.
- Topline results from the phase 3 STELLAR-304 pivotal trial, expected in the first quarter of 2027.
- Enrollment progress in STELLAR-316, STELLAR-311, LITESPARK-033, LITESPARK-034, STELLAR-002, STELLAR-202 and STELLAR-201.
- Detailed findings from the STELLAR-303 non-liver metastases subpopulation, which Exelixis intends to present at a future medical conference.
- The November 2026 trial involving U.S. Patent No. 12,128,039 in separate consolidated litigation with MSN.
Analysis
Exelixis reported third-quarter total revenues of $658.7 million, compared with $597.8 million for the comparable period in 2025. Net product revenues were $604.9 million, compared with $542.9 million, with the company attributing the increase to higher sales volume and a higher average net selling price. U.S. cabozantinib franchise net product revenues were $604.9 million, including $603.2 million from CABOMETYX and $1.8 million from COMETRIQ. Collaboration revenues were $53.8 million, compared with $54.8 million, as lower milestone-related revenue and development cost reimbursements more than offset higher Ipsen royalty revenue.
Costs increased alongside commercial and development activity. Research and development expenses were $209.5 million versus $199.2 million, driven primarily by personnel expense and clinical trial costs. Selling, general and administrative expenses were $154.6 million versus $123.7 million, reflecting personnel, marketing, legal and advisory costs. Despite those increases, income from operations was $268.4 million compared with $236.5 million, and GAAP net income was $218.1 million compared with $193.6 million.
Diluted GAAP EPS was $0.85, compared with $0.69, while diluted non-GAAP EPS was $0.94, compared with $0.78. Exelixis stated that GAAP EPS benefited from lower weighted-average common shares outstanding as a result of its stock repurchase programs. The company repurchased $402.1 million of stock under the May 2026 program through the end of the third quarter, at an average price of $54.03 per share. Since March 2023, it has repurchased $3.2 billion of stock and retired 97.8 million shares.
Fiscal year 2026 total revenue guidance remains $2.500 billion - $2.550 billion, and net product revenue guidance remains $2.300 billion - $2.350 billion. R&D and SG&A guidance also remain unchanged, while effective tax-rate guidance was lowered to 16% - 18% from 21% - 23%. The guide excludes potential zanzalintinib revenue from a U.S. approval and commercial launch in previously treated metastatic CRC. The FDA review now has a March 3, 2027 PDUFA target action date following a three-month extension.
Pipeline execution remains central to the corporate update. STELLAR-316 is enrolling in resected stage II/III CRC patients who are MRD+, STELLAR-311 enrollment is ongoing in advanced neuroendocrine tumors, and STELLAR-304 topline results are expected in the first quarter of 2027 in previously untreated advanced non-clear cell renal cell carcinoma. The reported final analysis in the STELLAR-303 non-liver metastases subpopulation showed a non-statistically significant overall survival trend favoring zanzalintinib plus atezolizumab, making the regulatory review and subsequent clinical readouts key milestones.
Management, verbatim
Exelixis continued to execute across all of our key priorities in the third quarter, driving the cabozantinib franchise forward while preparing for zanzalintinib as our next potential franchise opportunity.
Michael M. Morrissey, Ph.D., President and Chief Executive Officer, Exelixis
Not in the filing
stated, not guessed- Gross margin and prior-year gross margin
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Dividend information
- Third-quarter prior-quarter metrics and sequential changes
- Fiscal year 2026 actual results needed to assess performance against prior fiscal year guidance
- Reported percentage changes for most financial statement line items
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing includes Q3 2026 financials, a comparison to Q3 2025, and FY 2026 guidance for revenue, R&D, SG&A, and tax rate.
Ticker impact
Exelixis filed its 8‑K reporting Q3 2026 results and provided updated FY 2026 revenue and expense guidance.
likely modest upside as the guidance is updated and earnings beat prior period expectations
The fresh earnings release and guidance update are primary information; the beat in GAAP EPS and stable revenue outlook can attract buying pressure.
Market effects
Reinforces positive sentiment for the oncology biotech sector as Exelixis shows growth in its cabozantinib franchise.
Limited to US biotech investors; no broader regional effect.
Minimal global impact beyond biotech peers.
Counterpoint
If the guidance fails to reflect upcoming FDA decisions, the stock could face downside pressure.
Key entities
- companyExelixis, Inc.
Biopharmaceutical company reporting Q3 2026 results and FY 2026 guidance.
