A month has gone by since the last earnings report for Madrigal (MDGL Quick QuoteMDGL - Free Report) . Shares have added about 21.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Madrigal due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Madrigal Pharmaceuticals, Inc. before we dive into how investors and analysts have reacted as of late.

Madrigal Q3 Earnings Miss, MASH Drug Sales Drive Top Line

Madrigalreported a third-quarter 2025 loss of $5.08 per share, wider than the Zacks Consensus Estimate of a loss of $1.98. In the year-ago quarter, the company had incurred a loss of $4.92 per share.

During the quarter, the company generated total revenues of $287.3 million entirely from product sales of Rezdiffra. The metric beat the Zacks Consensus Estimate of $249 million.

MDGL’s Q3 Results in Detail

Rezdiffra’s commercial launch is off to a strong start in the country, driven by early patient demand for the drug. Per Madrigal, more than 29,500patients are currently receiving the treatment and more than 10,000 healthcare providers are prescribing Rezdiffra, as of Sept. 30, 2025.

During the quarter, research and development expenses more than doubled to $174 million in the third quarter of 2025. The massive increase can be primarily attributed to the upfront expense for CSPC Pharma, partially offset by a reduction in expenses related to clinical studies.

Selling, general and administrative expenses also nearly doubled in the reported quarter to $209.1 million. This rise was on account of increased commercial launch activities for Rezdiffra, including significant surges in headcount to support commercialization efforts.

Madrigal had cash, cash equivalents and marketable securities worth $1.1 billion as of Sept. 30, 2025 compared with $802 million as of June 30, 2025. The increase mainly reflects Madrigal’s entry into a new $350 million senior secured term loan with Blue Owl Capital, which partially refinanced its prior loan facility and supported ongoing operational funding.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 176.32% due to these changes.

VGM Scores

At this time, Madrigal has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Madrigal has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Madrigal belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Ionis Pharmaceuticals (IONS Quick QuoteIONS - Free Report) , has gained 9.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Ionis Pharmaceuticals reported revenues of $157 million in the last reported quarter, representing a year-over-year change of +17.2%. EPS of -$0.61 for the same period compares with -$0.95 a year ago.

Ionis Pharmaceuticals is expected to post a loss of $1.27 per share for the current quarter, representing a year-over-year change of -92.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ionis Pharmaceuticals. Also, the stock has a VGM Score of D.