GET DAILY SIGNALSExelixis (EXEL) Delivers Solid Q3 2026 Results as Revenue Rises 10.2%
Key Takeaways
- Exelixis reported third-quarter 2026 total revenues of $658.7 million, up 10.2% from $597.8 million a year earlier, exceeding consensus estimates.
- GAAP diluted earnings per share (EPS) reached $0.85, up 23.2% year over year, while non-GAAP diluted EPS came in at $0.94.
- U.S. net product revenues from the cabozantinib franchise climbed to $604.9 million, driven by higher sales volume and a stronger average net selling price.
- Management held full-year 2026 revenue guidance steady at $2.50 billion to $2.55 billion and lowered its effective tax-rate outlook, a potential cushion for future earnings.
- Investor focus now shifts to the zanzalintinib regulatory timeline and upcoming pipeline readouts.
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Putting These Results in Context
Exelixis is an oncology company whose growth has long been anchored to cabozantinib, marketed as CABOMETYX, with a maturing pipeline led by the investigational therapy zanzalintinib. The third-quarter 2026 report matters because it tests whether the flagship franchise can sustain momentum while the company invests toward its next potential growth driver. Coming off a second quarter in which management trimmed full-year revenue guidance due to a slower-than-expected ramp in a key indication, this print offered an important signal on the durability of product demand, expense discipline, and capital allocation. For investors, the results also set expectations ahead of a dense stretch of regulatory and clinical catalysts. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
A Closer Look at the Quarter’s Numbers
For the third quarter of fiscal 2026, Exelixis reported total revenues of $658.7 million, a 10.2% increase from $597.8 million in the prior-year period and above the consensus estimate of roughly $646.5 million. Net product revenues rose to $604.9 million from $542.9 million, while collaboration revenues edged down to $53.8 million from $54.8 million, reflecting lower milestone-related revenues and development cost reimbursements.
GAAP net income attributable to common shareholders was $218.1 million, up 12.7% year over year, translating to GAAP diluted EPS of $0.85, which topped the consensus estimate of about $0.80. Non-GAAP diluted EPS, which excludes the impact of stock-based compensation, was $0.94, also ahead of expectations. Research and development (R&D) expenses increased to $209.5 million from $199.2 million as the company advanced its clinical programs.
Management reaffirmed full-year 2026 total revenue guidance of $2.50 billion to $2.55 billion and updated its effective tax-rate outlook to 16%–18%, down from a prior range of 21%–23%.
How the Market Responded
Exelixis entered the report with strong momentum, having risen roughly 51% year to date, outperforming the broader market. The fifth consecutive quarter of topping consensus EPS reinforced confidence in the cabozantinib franchise's durability. In after-hours trading following the release, shares held near the $66 level, reflecting a relatively measured initial response as investors weighed the solid beat against the upcoming regulatory decision on zanzalintinib. From what I see, sentiment remains constructive but selectively cautious. Analysts have been adjusting price targets in the weeks ahead of the print, and attention is now concentrated on whether the next phase of growth, centered on zanzalintinib, can materialize on schedule. The unchanged revenue guidance suggests management is balancing near-term execution with disciplined investment in the pipeline.
What to Watch Going Forward
The most significant near-term catalyst is the U.S. Food and Drug Administration (FDA) review of zanzalintinib in previously treated metastatic colorectal cancer, with a target action date of March 3, 2027. Current full-year guidance excludes any revenue from a potential approval, meaning a favorable decision would be additive to the top line.
Investors should also watch for topline results from the STELLAR-304 trial in non-clear cell renal cell carcinoma, expected in the first quarter of 2027, as a second pipeline catalyst that could broaden the franchise opportunity.
On the commercial side, the trajectory of CABOMETYX sales volume, net selling price, and gross-to-net deductions will remain key indicators of franchise health. Collaboration and royalty revenues from partners such as Ipsen and Takeda are another variable worth monitoring.
Finally, capital allocation continues to matter. Exelixis repurchased $402.1 million of stock under its current authorization, a practice that supports EPS by reducing the share count while the company funds its R&D priorities and evaluates external innovation opportunities.
Exploring AI-Powered Research Tools
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
EXEL's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for EXEL turned positive on October 09, 2026. Looking at past instances where EXEL's MACD turned positive, the stock continued to rise in 34 of 43 cases over the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 02, 2026. You may want to consider a long position or call options on EXEL as a result. In 67 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
Following a +1.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where EXEL advanced for three days, in 206 of 304 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 166 of 268 cases where EXEL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 62%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EXEL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
EXEL broke above its upper Bollinger Band on October 30, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
The Tickeron SMR rating for this company is 23 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 26 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. EXEL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 90 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.325) is normal, around the industry mean (3.154). P/E Ratio (21.091) is within average values for comparable stocks, (-1.071). Projected Growth (PEG Ratio) (2.618) is also within normal values, averaging (9.059). Dividend Yield (0.000) settles around the average of (131.299) among similar stocks. P/S Ratio (6.305) is also within normal values, averaging (439.237).
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General Information
a developer of small molecule therapies for the treatment of cancer
Industry Biotechnology
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