Exelixis Q2 2026 earnings: Cabozantinib growth lifts revenue and EPS

Exelixis (NASDAQ: EXEL) reported Q2 2026 revenue of $628.7 million, up 10.6% from $568.3 million a year earlier, while GAAP diluted EPS increased to $0.82 from $0.65. Higher cabozantinib sales volume drove product revenue, and stock repurchases helped EPS grow faster than net income; the company also lowered its full-year revenue outlook and planned R&D spending.

Core financial results

Net product revenue increased by $53.0 million, accounting for most of the quarter’s $60.4 million revenue gain. Collaboration revenue also rose as higher royalties on cabozantinib sales outside the U.S. more than offset lower development cost reimbursements.

Operating expenses moved higher as Exelixis continued investing in clinical trials, manufacturing and commercialization. Even with R&D and SG&A increases, GAAP net income rose 14.8%, while the lower weighted-average share count contributed to a 26.2% increase in diluted EPS.

Exelixis defines non-GAAP results as GAAP net income excluding stock-based compensation after the related income-tax effect. The company uses a 52- or 53-week fiscal year and presents the fiscal periods ended July 3, 2026 and July 4, 2025 as periods ended June 30.

Business and product performance

Cabozantinib remained the commercial engine

U.S. cabozantinib franchise revenue was $573.0 million, including $570.6 million from CABOMETYX and $2.4 million from COMETRIQ. Management attributed the year-over-year product revenue increase primarily to higher sales volume.

Exelixis also earned $53.2 million in royalties based on cabozantinib sales generated by partners Ipsen and Takeda. Higher royalties on sales outside the U.S. were the primary reason collaboration revenue increased to $55.7 million, although lower development cost reimbursements provided a partial offset.

Zanzalintinib approached key regulatory and clinical milestones

The FDA is reviewing zanzalintinib in combination with atezolizumab for previously treated metastatic colorectal cancer, with a target action date of December 3, 2026. Exelixis is preparing for a potential launch, subject to regulatory approval.

The regulatory process follows mixed details from the phase 3 STELLAR-303 trial. The study previously met its overall-survival endpoint in the intention-to-treat population, but the final analysis of the non-liver-metastases subgroup showed only a non-statistically significant trend favoring the combination.

Other important development milestones include:

• Topline results from the phase 3 STELLAR-304 trial in advanced non-clear cell renal cell carcinoma are expected in the second half of 2026, depending on event rates.
• Enrollment is continuing in the phase 2/3 STELLAR-311 trial for advanced neuroendocrine tumors.
• Merck initiated the phase 3 LITESPARK-034 trial in April 2026, evaluating zanzalintinib with WELIREG in advanced renal cell carcinoma.
• Exelixis said it remained on track to initiate STELLAR-316 in molecular residual disease-positive stage II or III colorectal cancer.
• Enrollment is underway in the phase 2 STELLAR-201 trial for recurrent meningioma and in additional bladder cancer and prostate cancer expansion cohorts.

Profitability and capital allocation

R&D expense increased because of higher clinical trial costs, manufacturing spending for development candidates, and license and collaboration costs. Lower personnel expenses partially offset those increases. SG&A expense rose because of greater marketing activity and personnel costs, including preparations related to a possible zanzalintinib launch.

Exelixis repurchased $311.6 million of its shares during the quarter at an average price of $47.85. The company completed the $750 million program authorized in October 2025 and began repurchases under a separate authorization of up to $750 million that runs through December 31, 2027.

Since the first program was authorized in March 2023, Exelixis has repurchased $2.9 billion of common stock, retiring 93.3 million shares at an average price of $31.12. The resulting reduction in weighted-average shares outstanding helped diluted EPS increase more rapidly than net income in Q2; it does not change the underlying level of companywide profit.

Full-year 2026 guidance

Exelixis lowered and narrowed its total revenue and net product revenue ranges while reducing planned R&D spending. Its SG&A, cost-of-goods-sold and effective tax-rate assumptions were unchanged.

The updated revenue guidance excludes any sales from a potential U.S. approval and launch of zanzalintinib in previously treated metastatic colorectal cancer.

The net product revenue range includes the effect of a 3% U.S. wholesale acquisition cost increase for CABOMETYX and COMETRIQ that took effect on January 1, 2026. R&D guidance includes $50 million of non-cash stock-based compensation, while SG&A guidance includes $75 million.

Management’s view

CEO Michael Morrissey said Exelixis is balancing continued growth of the cabozantinib franchise with investment in zanzalintinib’s regulatory and clinical program. Management’s stated capital-allocation priorities include funding R&D, repurchasing shares and pursuing business-development opportunities when appropriate.

Recent insider transactions

The supplied six-month summary shows 1,658,960 shares purchased across 23 transactions and 688,558 shares sold across 18 transactions, resulting in net purchases of 970,402 shares. The ten most recent reported records consisted of two director sales on June 1 and eight zero-price director stock awards on May 27.

These transactions describe reported activity but do not, by themselves, establish insiders’ views of Exelixis’ prospects.

Risks investors should monitor

• Dependence on cabozantinib: U.S. cabozantinib product revenue represented approximately 91% of total quarterly revenue, leaving results closely tied to the franchise’s sales volume and market position.
• Zanzalintinib regulatory uncertainty: The FDA decision is pending, and the non-liver-metastases subgroup in STELLAR-303 did not show a statistically significant overall-survival benefit.
• Lower revenue guidance: Exelixis reduced both ends of its full-year total revenue and net product revenue ranges, despite reporting year-over-year growth in Q2.
• Rising operating costs: Both R&D and SG&A expenses increased during the quarter. Continued pipeline and launch-related investment could pressure earnings if revenue growth slows.
• Clinical timing and data risk: STELLAR-304 timing depends on event rates, while several other zanzalintinib opportunities remain in ongoing or planned trials.

Summary

Exelixis’ second-quarter growth remained centered on higher cabozantinib sales volume, with increased royalties providing an additional contribution. Net income rose despite higher R&D and commercial spending, while share repurchases amplified per-share earnings growth. The main items ahead are the lowered full-year revenue ranges, the December FDA action date for zanzalintinib and upcoming STELLAR-304 data.

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