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EXEL Q3 Earnings Beat Estimates on Strong Cabometyx Sales
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Key Takeaways
Exelixis reports Q3 earnings of 94 cents per share, up 20.5% and revenue growth of 10.2%.
Cabometyx sales rise, with prescription share in the tracked RCC oral TKI market reaching 49%.
EXEL maintains 2026 revenue guidance, repurchases $250 million in shares and advances zanzalintinib trials.
Exelixis (EXEL - Free Report) reported better-than-expected results for the third quarter of 2026, with earnings and revenues surpassing the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of 94 cents beat the Zacks Consensus Estimate of 89 cents. The company reported adjusted EPS of 78 cents in the year-ago quarter, reflecting growth of 20.5%. Adjusted earnings excluded the impact of stock-based compensation expenses.
Including stock-based compensation expenses, EPS was 85 cents compared with 69 cents in the year-ago period.
Revenues increased 10.2% year over year to $658.7 million, beating the Zacks Consensus Estimate of $653 million. Growth was primarily driven by higher Cabometyx (cabozantinib) sales.
Year to date, Exelixis’ shares have risen 51.1% compared with the industry’s growth of 8.4%.
Image Source: Zacks Investment Research
EXEL's Product Sales Maintain Growth
Net product revenues increased 11.4% year over year to $604.9 million from $542.9 million, primarily due to higher sales volume and an increase in average net selling price.
Cabometyx generated revenues of $603.2 million, which surpassed the Zacks Consensus Estimate of $592 million and our model estimate of $584.7 million. The drug is approved for advanced renal cell carcinoma ("RCC"), previously treated hepatocellular carcinoma and certain previously treated neuroendocrine tumors ("NET").
Cabometyx maintained its leadership position among prescribed tyrosine kinase inhibitors ("TKI") in RCC. Its total prescription share in the tracked oral TKI market increased to 49% from 46% a year earlier. Prescription volume grew 13%, outpacing the market's 6% growth.
The NET business continued expanding, with Cabometyx capturing more than 50% of the second-line and later new-patient oral therapy market. More than 1,000 unique NET prescribers have been activated since launch.
Cometriq (cabozantinib capsules) generated $1.8 million in net product revenues during the quarter for treating medullary thyroid cancer.
Collaboration revenues decreased 1.9% year over year to $53.8 million from $54.8 million.
The decline primarily reflected lower milestone-related revenues and development cost reimbursements, partially offset by higher royalties on cabozantinib sales outside the United States by partner Ipsen.
EXEL earned $51.8 million in royalty revenues from partners Ipsen and Takeda during the quarter.
EXEL's Costs Rise as Operating Income Expands
Research and development expenses increased 5.2% year over year to $209.5 million, primarily due to higher personnel expenses and clinical trial costs, partially offset by lower license and collaboration expenses.
Selling, general and administrative expenses increased 25% to $154.6 million, reflecting higher personnel costs, marketing activities and legal and advisory fees.
Exelixis Maintains Its 2026 Revenue Outlook
Management maintained its 2026 total revenue guidance of $2.50-$2.55 billion and net product revenue guidance of $2.30-$2.35 billion.
The revenue guidance excludes potential contributions from zanzalintinib in previously treated metastatic colorectal cancer.
The company reaffirmed its research and development expense projection of $825-$875 million and selling, general and administrative expense guidance of $575-$625 million.
However, EXEL lowered its expected effective tax rate to 16-18% from 21-23%. Cost of goods sold is expected to represent approximately 4% of net product revenues.
EXEL Advances Share Repurchase Program
Exelixis ended the third quarter with approximately $1.4 billion in cash and marketable securities, supporting continued investment in its oncology pipeline.
The company repurchased approximately $250 million of its outstanding shares during the quarter, retiring around 4.5 million shares at an average price of $55.77 per share.
Approximately $348 million remained available under the $750 million share repurchase program authorized in May 2026, which runs through December 2027.
EXEL Advances Its Zanzalintinib Pipeline
Exelixis continues advancing zanzalintinib as its next potential oncology franchise. The FDA is reviewing zanzalintinib in combination with Roche’s (RHHBY - Free Report) Tecentriq for previously treated metastatic colorectal cancer. The regulatory decision date has been extended by three months from Dec. 3, 2026, to March 3, 2027, following the submission of updated safety and efficacy data. Its approval would establish zanzalintinib as Exelixis’ second commercial oncology franchise and broaden the portfolio beyond cabozantinib.
Roche’s Tecentriq is a cancer immunotherapy that is approved around the world, either alone or in combination with targeted therapies and/or chemotherapies, for various types of cancer.
EXEL has collaborated with Merck & Co. (MRK - Free Report) to evaluate zanzalintinib in combination with subcutaneous Keytruda Qlex in the planned phase III STELLAR-316 study for resected stage II/III colorectal cancer ("CRC").
Under the agreement, Exelixis will sponsor the STELLAR-316 study, while Merck will provide Keytruda Qlex for use in the same. Keytruda is approved for several types of cancer.
In August, Exelixis initiated the STELLAR-316 study, evaluating zanzalintinib with and without Keytruda Qlex in patients with resected stage II/III CRC who, following definitive therapy, have tested positive for molecular residual disease (MRD+) and have no radiographic evidence of disease, a high-risk population with substantial unmet need.
The Merck partnership extends beyond colorectal cancer. Exelixis and Merck are advancing two global phase III studies, LITESPARK-033 and LITESPARK-034, evaluating zanzalintinib in combination with WELIREG (belzutifan) for advanced renal cell carcinoma. Both studies are active and enrolling patients. LITESPARK-033 is evaluating the combination against cabozantinib in first-line advanced RCC following adjuvant immunotherapy, while LITESPARK-034 is comparing the combination with WELIREG alone in patients whose disease has progressed after prior PD-1/L1 and VEGFR-TKI treatments.
Exelixis initiated the phase II STELLAR-202 trial in October 2026 to evaluate zanzalintinib plus pembrolizumab as maintenance therapy for squamous NSCLC. The study is currently enrolling patients. Enrollment is also ongoing in the phase II STELLAR-201 trial, which is evaluating zanzalintinib in patients with recurrent meningioma. Positive results could position the drug as the first systemic treatment for this condition, which currently has no approved systemic therapies.
EXEL’s Zacks Rank
Exelixis currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
EXEL Q3 Earnings Beat Estimates on Strong Cabometyx Sales
Key Takeaways
Exelixis (EXEL - Free Report) reported better-than-expected results for the third quarter of 2026, with earnings and revenues surpassing the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of 94 cents beat the Zacks Consensus Estimate of 89 cents. The company reported adjusted EPS of 78 cents in the year-ago quarter, reflecting growth of 20.5%. Adjusted earnings excluded the impact of stock-based compensation expenses.
Including stock-based compensation expenses, EPS was 85 cents compared with 69 cents in the year-ago period.
Revenues increased 10.2% year over year to $658.7 million, beating the Zacks Consensus Estimate of $653 million. Growth was primarily driven by higher Cabometyx (cabozantinib) sales.
Year to date, Exelixis’ shares have risen 51.1% compared with the industry’s growth of 8.4%.
Image Source: Zacks Investment Research
EXEL's Product Sales Maintain Growth
Net product revenues increased 11.4% year over year to $604.9 million from $542.9 million, primarily due to higher sales volume and an increase in average net selling price.
Cabometyx generated revenues of $603.2 million, which surpassed the Zacks Consensus Estimate of $592 million and our model estimate of $584.7 million. The drug is approved for advanced renal cell carcinoma ("RCC"), previously treated hepatocellular carcinoma and certain previously treated neuroendocrine tumors ("NET").
Cabometyx maintained its leadership position among prescribed tyrosine kinase inhibitors ("TKI") in RCC. Its total prescription share in the tracked oral TKI market increased to 49% from 46% a year earlier. Prescription volume grew 13%, outpacing the market's 6% growth.
The NET business continued expanding, with Cabometyx capturing more than 50% of the second-line and later new-patient oral therapy market. More than 1,000 unique NET prescribers have been activated since launch.
Cometriq (cabozantinib capsules) generated $1.8 million in net product revenues during the quarter for treating medullary thyroid cancer.
Collaboration revenues decreased 1.9% year over year to $53.8 million from $54.8 million.
The decline primarily reflected lower milestone-related revenues and development cost reimbursements, partially offset by higher royalties on cabozantinib sales outside the United States by partner Ipsen.
EXEL earned $51.8 million in royalty revenues from partners Ipsen and Takeda during the quarter.
EXEL's Costs Rise as Operating Income Expands
Research and development expenses increased 5.2% year over year to $209.5 million, primarily due to higher personnel expenses and clinical trial costs, partially offset by lower license and collaboration expenses.
Selling, general and administrative expenses increased 25% to $154.6 million, reflecting higher personnel costs, marketing activities and legal and advisory fees.
Exelixis Maintains Its 2026 Revenue Outlook
Management maintained its 2026 total revenue guidance of $2.50-$2.55 billion and net product revenue guidance of $2.30-$2.35 billion.
The revenue guidance excludes potential contributions from zanzalintinib in previously treated metastatic colorectal cancer.
The company reaffirmed its research and development expense projection of $825-$875 million and selling, general and administrative expense guidance of $575-$625 million.
However, EXEL lowered its expected effective tax rate to 16-18% from 21-23%. Cost of goods sold is expected to represent approximately 4% of net product revenues.
EXEL Advances Share Repurchase Program
Exelixis ended the third quarter with approximately $1.4 billion in cash and marketable securities, supporting continued investment in its oncology pipeline.
The company repurchased approximately $250 million of its outstanding shares during the quarter, retiring around 4.5 million shares at an average price of $55.77 per share.
Approximately $348 million remained available under the $750 million share repurchase program authorized in May 2026, which runs through December 2027.
EXEL Advances Its Zanzalintinib Pipeline
Exelixis continues advancing zanzalintinib as its next potential oncology franchise. The FDA is reviewing zanzalintinib in combination with Roche’s (RHHBY - Free Report) Tecentriq for previously treated metastatic colorectal cancer. The regulatory decision date has been extended by three months from Dec. 3, 2026, to March 3, 2027, following the submission of updated safety and efficacy data. Its approval would establish zanzalintinib as Exelixis’ second commercial oncology franchise and broaden the portfolio beyond cabozantinib.
Roche’s Tecentriq is a cancer immunotherapy that is approved around the world, either alone or in combination with targeted therapies and/or chemotherapies, for various types of cancer.
EXEL has collaborated with Merck & Co. (MRK - Free Report) to evaluate zanzalintinib in combination with subcutaneous Keytruda Qlex in the planned phase III STELLAR-316 study for resected stage II/III colorectal cancer ("CRC").
Under the agreement, Exelixis will sponsor the STELLAR-316 study, while Merck will provide Keytruda Qlex for use in the same. Keytruda is approved for several types of cancer.
In August, Exelixis initiated the STELLAR-316 study, evaluating zanzalintinib with and without Keytruda Qlex in patients with resected stage II/III CRC who, following definitive therapy, have tested positive for molecular residual disease (MRD+) and have no radiographic evidence of disease, a high-risk population with substantial unmet need.
The Merck partnership extends beyond colorectal cancer. Exelixis and Merck are advancing two global phase III studies, LITESPARK-033 and LITESPARK-034, evaluating zanzalintinib in combination with WELIREG (belzutifan) for advanced renal cell carcinoma. Both studies are active and enrolling patients. LITESPARK-033 is evaluating the combination against cabozantinib in first-line advanced RCC following adjuvant immunotherapy, while LITESPARK-034 is comparing the combination with WELIREG alone in patients whose disease has progressed after prior PD-1/L1 and VEGFR-TKI treatments.
Exelixis initiated the phase II STELLAR-202 trial in October 2026 to evaluate zanzalintinib plus pembrolizumab as maintenance therapy for squamous NSCLC. The study is currently enrolling patients. Enrollment is also ongoing in the phase II STELLAR-201 trial, which is evaluating zanzalintinib in patients with recurrent meningioma. Positive results could position the drug as the first systemic treatment for this condition, which currently has no approved systemic therapies.
EXEL’s Zacks Rank
Exelixis currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Exelixis, Inc. Price, Consensus and EPS Surprise
Exelixis, Inc. price-consensus-eps-surprise-chart | Exelixis, Inc. Quote