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Nektar reported a Q3 loss of $1.63 per share, narrower than the $2.16 consensus estimate.
Nektar cut 2026 revenue guidance to $38 million from $40-$45 million, while lowering R&D spending.
All three ZENITH AD Phase III studies are underway, with initial top-line data expected in summer 2028.
Nektar Therapeutics (NKTR - Free Report) reported a loss of $1.63 per share for the third quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of $2.16. The company had incurred a loss of $1.87 per share in the year-ago quarter.
Total revenues in the third quarter came in at $9.4 million, down 20.4% year over year. The reported figure missed the Zacks Consensus Estimate of $10 million.
Nektar sold its Huntsville manufacturing facility in December 2024, following which the company no longer records product revenues and lower non-cash royalty revenues. The company’s top line currently comprises non-cash royalty revenues.
Shares of Nektar fell 4.5% in after-hours trading on Thursday following the announcement of mixed third-quarter 2026 results and a reduction in its full-year 2026 revenue guidance.
Year to date, shares of Nektar have plunged 11.9% against the industry’s rise of 0.6%.
Image Source: Zacks Investment Research
NKTR's Q3 Results in Detail
In the third quarter, R&D expenses were $44.1 million, up 61.9% year over year. The increase reflected higher costs associated with the phase III ZENITH AD and ZENITH AA programs, along with manufacturing activities related to rezpeg.
General and administrative (G&A) expenses increased 52.9% year over year to $24.6 million, primarily due to higher legal expenses.
As of Sept. 30, 2026, Nektar had cash, cash equivalents and marketable securities worth $952.9 million compared with $1.02 billion as of June 30, 2026.
NKTR 2026 Guidance
Nektar now expects non-cash royalty revenues of approximately $38 million in 2026, down from its previous guidance of $40-$45 million.
R&D expenses for 2026 are now expected to be between $185 million and $200 million, lower than the previously projected $210-$230 million. The updated guidance includes approximately $5-$10 million of non-cash depreciation and stock-based compensation expenses.
G&A expenses are anticipated to be approximately $65 million, including around $5 million in non-cash expenses. NKTR expects to end 2026 with more than $840 million in cash.
NKTR's Key Pipeline Updates
Nektar's lead pipeline candidate, rezpeg, is being developed as a self-administered injection for several autoimmune and inflammatory diseases. Rezpeg selectively activates regulatory T-cells to calm the immune system and reduce inflammation.
All three phase III studies under the ZENITH AD program have now been initiated. ZENITH AD-1 evaluates rezpeg in treatment-naive patients, while ZENITH AD-3 focuses on patients previously treated with biologics or JAK inhibitors.
Following regulatory feedback, ZENITH AD-2 was modified to evaluate rezpeg in combination with topical corticosteroids in both treatment-naive and experienced patients.
Initial top-line data from the ZENITH AD program are expected to be announced in the summer of 2028. If successful, the company expects to file a biologics license application for rezpeg to treat moderate-to-severe atopic dermatitis by the end of 2029.
Beyond atopic dermatitis, rezpeg is being developed for alopecia areata. Nektar plans to initiate the phase III ZENITH AA study in December 2026, earlier than previously anticipated. Data are expected in 2029.
Meanwhile, Nektar plans to initiate a proof-of-concept study evaluating rezpeg in approximately 30 patients with vitiligo. Initial data are expected in late 2027 or early 2028.
The TrialNet-sponsored phase II study evaluating rezpeg in patients with new-onset type I diabetes is also ongoing. Initial cohort data are anticipated in late 2027 or early 2028.
Nektar regained full rights to rezpeg from pharma giant Eli Lilly (LLY - Free Report) in April 2023 and took charge of its clinical development. Rezpeg was earlier developed in collaboration with LLY for several autoimmune indications.
Rezpeg is now a wholly-owned asset of Nektar, and the company owes no royalty payments to Eli Lilly.
Nektar Therapeutics Price, Consensus and EPS Surprise
Over the past 30 days, estimates for Collegium Pharmaceutical’s 2026 earnings per share have risen from $7.15 to $7.39, while estimates for 2027 have increased from $5.75 to $6.84 during the same time. COLL shares have plunged 46.1% year to date.
Collegium Pharmaceutical’s earnings beat estimates in three of the trailing four quarters, while missing estimates on the remaining occasion, with the average surprise being 10.53%.
View the Zacks #1 Rank List
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NKTR Q3 Earnings Beat Estimates, 2026 Revenue View Cut, Stock Down
Key Takeaways
Nektar Therapeutics (NKTR - Free Report) reported a loss of $1.63 per share for the third quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of $2.16. The company had incurred a loss of $1.87 per share in the year-ago quarter.
Total revenues in the third quarter came in at $9.4 million, down 20.4% year over year. The reported figure missed the Zacks Consensus Estimate of $10 million.
Nektar sold its Huntsville manufacturing facility in December 2024, following which the company no longer records product revenues and lower non-cash royalty revenues. The company’s top line currently comprises non-cash royalty revenues.
Shares of Nektar fell 4.5% in after-hours trading on Thursday following the announcement of mixed third-quarter 2026 results and a reduction in its full-year 2026 revenue guidance.
Year to date, shares of Nektar have plunged 11.9% against the industry’s rise of 0.6%.
Image Source: Zacks Investment Research
NKTR's Q3 Results in Detail
In the third quarter, R&D expenses were $44.1 million, up 61.9% year over year. The increase reflected higher costs associated with the phase III ZENITH AD and ZENITH AA programs, along with manufacturing activities related to rezpeg.
General and administrative (G&A) expenses increased 52.9% year over year to $24.6 million, primarily due to higher legal expenses.
As of Sept. 30, 2026, Nektar had cash, cash equivalents and marketable securities worth $952.9 million compared with $1.02 billion as of June 30, 2026.
NKTR 2026 Guidance
Nektar now expects non-cash royalty revenues of approximately $38 million in 2026, down from its previous guidance of $40-$45 million.
R&D expenses for 2026 are now expected to be between $185 million and $200 million, lower than the previously projected $210-$230 million. The updated guidance includes approximately $5-$10 million of non-cash depreciation and stock-based compensation expenses.
G&A expenses are anticipated to be approximately $65 million, including around $5 million in non-cash expenses. NKTR expects to end 2026 with more than $840 million in cash.
NKTR's Key Pipeline Updates
Nektar's lead pipeline candidate, rezpeg, is being developed as a self-administered injection for several autoimmune and inflammatory diseases. Rezpeg selectively activates regulatory T-cells to calm the immune system and reduce inflammation.
All three phase III studies under the ZENITH AD program have now been initiated. ZENITH AD-1 evaluates rezpeg in treatment-naive patients, while ZENITH AD-3 focuses on patients previously treated with biologics or JAK inhibitors.
Following regulatory feedback, ZENITH AD-2 was modified to evaluate rezpeg in combination with topical corticosteroids in both treatment-naive and experienced patients.
Initial top-line data from the ZENITH AD program are expected to be announced in the summer of 2028. If successful, the company expects to file a biologics license application for rezpeg to treat moderate-to-severe atopic dermatitis by the end of 2029.
Beyond atopic dermatitis, rezpeg is being developed for alopecia areata. Nektar plans to initiate the phase III ZENITH AA study in December 2026, earlier than previously anticipated. Data are expected in 2029.
Meanwhile, Nektar plans to initiate a proof-of-concept study evaluating rezpeg in approximately 30 patients with vitiligo. Initial data are expected in late 2027 or early 2028.
The TrialNet-sponsored phase II study evaluating rezpeg in patients with new-onset type I diabetes is also ongoing. Initial cohort data are anticipated in late 2027 or early 2028.
Nektar regained full rights to rezpeg from pharma giant Eli Lilly (LLY - Free Report) in April 2023 and took charge of its clinical development. Rezpeg was earlier developed in collaboration with LLY for several autoimmune indications.
Rezpeg is now a wholly-owned asset of Nektar, and the company owes no royalty payments to Eli Lilly.
Nektar Therapeutics Price, Consensus and EPS Surprise
Nektar Therapeutics price-consensus-eps-surprise-chart | Nektar Therapeutics Quote
NKTR's Zacks Rank & Other Stock to Consider
Nektar currently carries a Zacks Rank #2 (Buy).
A top-ranked stock in the drug sector is Collegium Pharmaceutical (COLL - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, estimates for Collegium Pharmaceutical’s 2026 earnings per share have risen from $7.15 to $7.39, while estimates for 2027 have increased from $5.75 to $6.84 during the same time. COLL shares have plunged 46.1% year to date.
Collegium Pharmaceutical’s earnings beat estimates in three of the trailing four quarters, while missing estimates on the remaining occasion, with the average surprise being 10.53%.