Exelixis, Inc. (EXEL) Earnings & Analysis

Latest quarter

Exelixis reported Q2 FY2026 revenue of $628.7 million, up 10.6% from Q2 FY2025. Revenue, as the consensus counts it, was $628.7 million against consensus revenue of $635.0 million, a −0.99% result against the consensus. Exelixis reported adjusted EPS, as the consensus counts it, of $0.91 against consensus adjusted EPS of $0.86, a 5.81% beat.

The 10-Q attributed higher net product revenue primarily to increased CABOMETYX unit sales and a higher average net selling price. The company reported cabozantinib franchise revenue growth of 10.0% in Q2 FY2026, while Cabometyx revenue was $571.0 million. Diluted EPS was $0.82, compared with $0.65 a year earlier. Gross margin was 96.7%, compared with 96.6%, and operating margin was 39.5%, compared with 37.6%. Exelixis reported free cash flow of $298.4 million, compared with $45.4 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the earnings call, P.J. Houghton said a recruiting clinical study could draw potential patients from the commercial patient pool, although Exelixis believed that effect could be small. Houghton said the timing of patients moving to therapy in later settings was the main factor, describing the tumor type as more indolent. He said Exelixis was not changing its outlook, while the commercial ramp was more gradual. Houghton also said the company achieved new-patient market share above 45% during the quarter and continued to expect that patients selecting therapy would choose Cabo in most cases.

Dana Landry said Exelixis expected to achieve the planned number of events in the second half of 2026. Landry declined to speculate on exactly when the events would occur or when data might be available at a medical meeting, saying the company would communicate at the appropriate time. She said enrollment and event rates can shift from projections and characterized the second-half timing as the company’s current estimate based on event rates.

Andrew Peters said Exelixis could not discuss specifics of agreements with other ANDA generic filers. Peters said the scenario raised by an analyst was not particularly common in such agreements and was not something he expected. On products submitted through the 505 pathway, Peters said labeling, therapeutic equivalence and interchangeability differ from the standard ANDA pathway. He said Exelixis was focused on patient safety and its intellectual-property rights.

Michael M. Miller said Exelixis was evaluating options for potentially partnering an asset outside the U.S. Miller said the company had options and interest, and that its assessment would continue as it obtained further pivotal-trial results.

Guidance

Exelixis’ August 5 results release set FY2026 total-revenue guidance at $2.5 billion to $2.6 billion, versus its previous $2.525 billion to $2.625 billion. The company set FY2026 net product revenue guidance at $2.3 billion to $2.4 billion, versus $2.325 billion to $2.425 billion previously. Exelixis set research and development expense guidance at $825.0 million to $875.0 million, versus $875 million to $925 million previously.