Exelixis Q3 2026 Earnings: Cabozantinib Sales Lift Profit

Exelixis (NASDAQ: EXEL) reported Q3 2026 total revenue of $658.7 million, up about 10.2% from $597.8 million a year earlier, while GAAP diluted EPS increased to $0.85 from $0.69. Higher cabozantinib sales volume and average net selling price drove the quarter, lifting GAAP net income despite increased research, clinical, marketing and personnel spending.

Core Financial Results

Net product revenue increased by $62.0 million year over year and accounted for most of the company’s revenue growth. Collaboration revenue declined slightly because of lower milestone revenue and development cost reimbursements, partly offset by higher royalties from cabozantinib sales outside the U.S.

GAAP net income rose to $218.1 million, while non-GAAP net income increased to $240.2 million from $217.9 million. Expenses also moved higher, with SG&A rising faster than revenue due to personnel costs, marketing activities, and legal and advisory fees.

Exelixis’ non-GAAP results exclude stock-based compensation after the related tax effect.

Business and Product Performance

The U.S. cabozantinib franchise generated $604.9 million of net product revenue. CABOMETYX contributed $603.2 million, while COMETRIQ generated $1.8 million. The increase reflected both higher sales volume and a higher average net selling price.

Exelixis also earned $51.8 million in royalties based on cabozantinib sales by partners Ipsen and Takeda. Those royalties helped partially offset lower milestone-related revenue and development reimbursements within the collaboration revenue line.

The results show that Exelixis remains highly dependent on its established cabozantinib franchise. CABOMETYX supplied nearly all product revenue during the quarter, while the company continued investing in zanzalintinib as its next potential commercial franchise.

Profitability and Capital Allocation

Revenue growth outweighed higher R&D and SG&A spending, allowing net income to increase. R&D costs rose primarily because of additional personnel and clinical trial expenses, partly offset by lower licensing and collaboration costs. The larger SG&A increase reflected personnel, marketing, legal and advisory spending.

Share repurchases also contributed to faster per-share earnings growth. Exelixis said the lower weighted-average share count favorably affected GAAP EPS compared with the prior-year quarter.

Under the $750 million repurchase program authorized in May 2026, Exelixis had repurchased $402.1 million of stock at an average price of $54.03 per share through the end of Q3. Since the company initiated its first repurchase program in March 2023, it has spent $3.2 billion to retire 97.8 million shares at an average price of $32.25.

Zanzalintinib Timing Separates the 2026 Outlook From the Next Growth Opportunity

The FDA is reviewing zanzalintinib combined with atezolizumab for previously treated metastatic colorectal cancer. The review period was extended by three months after Exelixis submitted updated safety and efficacy data in response to an FDA information request, moving the PDUFA target action date to March 3, 2027.

The application is based on the phase 3 STELLAR-303 trial. The study met its overall-survival endpoint in the intention-to-treat population, but the final analysis in the non-liver metastases subgroup showed a non-statistically significant trend favoring the zanzalintinib combination. This distinction remains important when assessing the regulatory and commercial opportunity.

Because the FDA decision date falls in 2027, Exelixis’ 2026 revenue guidance excludes any potential U.S. revenue from a zanzalintinib approval and launch. Other upcoming milestones include topline STELLAR-304 results expected in Q1 2027, continued enrollment in STELLAR-311, and enrollment in the recently initiated STELLAR-316 trial.

2026 Financial Guidance

Exelixis maintained its revenue and operating expense ranges. The principal change was a lower effective tax-rate outlook, while the cost-of-goods range was narrowed to approximately 4% of net product revenue.

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

Recent Insider Transactions

The six-month insider summary categorized 223,840 shares across 12 purchase transactions and 228,982 shares across 10 sales, resulting in net sales of 5,142 shares, or -0.10%. Total insider holdings were reported at approximately 4.57 million shares; all of the latest 10 listed transactions were direct holdings.

The seven zero-price transactions were director stock grants rather than open-market purchases. The three reported sales had a combined value of $1.22 million.

Risks Investors Should Monitor

• Cabozantinib concentration: CABOMETYX generates nearly all of Exelixis’ product revenue. Changes in demand, reimbursement, competition or market acceptance could therefore have an outsized effect on revenue and profit.
• Zanzalintinib regulatory and clinical uncertainty: The FDA extended its review, and the STELLAR-303 non-liver metastases analysis did not achieve statistical significance. Additional information requests, delays or an unfavorable decision would affect the timing of the company’s next potential franchise.
• Rising commercial and development spending: SG&A grew materially faster than revenue in Q3, while R&D also increased. Continued expense growth without corresponding product or pipeline progress could pressure profitability.
• Patent and generic-entry exposure: Agreements permit potential U.S. entry of Azurity’s proposed product beginning December 1, 2030 and certain generic cabozantinib products beginning January 1, 2031, subject to approvals and customary conditions. The timing of MSN’s proposed product also remains subject to further proceedings and separate litigation.
• Collaboration revenue variability: Milestone revenue and development reimbursements declined during the quarter. Their timing can cause fluctuations that are not directly tied to cabozantinib product demand.

Summary

Exelixis’ Q3 2026 performance was led by higher cabozantinib product sales, which supported increased net income even as the company expanded clinical and commercial spending. The current revenue base remains concentrated in CABOMETYX, while zanzalintinib’s FDA review and 2027 clinical milestones will determine how quickly Exelixis can establish another franchise. For the remainder of 2026, the key financial issues are execution within the maintained revenue ranges, expense control and the benefit of the lower tax-rate outlook.

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