Exelixis Q3 profit rises, lowers 2026 tax rate forecast to 16%-18%
Exelixis said third-quarter 2026 total revenues were $658.7 million and non-GAAP diluted EPS was 94 cents. It lowered its 2026 effective tax rate forecast to 16% to 18%, from 21% to 23%.
Key takeaways
- Exelixis, Inc. (EXEL) reported third-quarter 2026 total revenues of $658.7 million, up from $597.8 million a year earlier, and non-GAAP diluted EPS of 94 cents, versus 78 cents a year earlier. It lowered its 2026 effective tax rate forecast to 16% to 18%, from 21% to 23%. Its zanzalintinib review has a March 3, 2027 action date.
Exelixis, Inc. (EXEL) said on Oct. 29 that total revenues for the third quarter of 2026 were $658.7 million, up from $597.8 million in the comparable period of 2025. Non-GAAP diluted earnings per share were 94 cents, and the company updated its 2026 financial guidance.
The company said in a filing that the results were released in a press release furnished as Exhibit 99.1.
Here's how the company did:
- Total revenues: $658.7 million vs. $597.8 million a year earlier
- Non-GAAP diluted EPS: 94 cents vs. 78 cents a year earlier
- GAAP diluted EPS: 85 cents vs. 69 cents a year earlier
- Net product revenues: $604.9 million vs. $542.9 million a year earlier
Net product revenues were driven by an increase in sales volume and an increase in average net selling price, the company said.
2026 guidance
Exelixis lowered its effective tax rate forecast for 2026 to 16% to 18%, from the 21% to 23% it gave on Aug. 5. It now expects cost of goods sold of about 4% of net product revenues, up from the 3.5% to 4.5% range previously given.
Research and development expenses of $825 million to $875 million and selling, general and administrative expenses of $575 million to $625 million are unchanged. The company said its net product and total revenue guidance does not reflect any revenue from a potential U.S. launch of zanzalintinib for previously treated metastatic colorectal cancer.
Revenue and costs
Net product revenues were $604.9 million, including $603.2 million from CABOMETYX and $1.8 million from COMETRIQ, according to the filing. Collaboration revenues were $53.8 million, compared with $54.8 million a year earlier.
Research and development expenses were $209.5 million, up from $199.2 million. Selling, general and administrative expenses were $154.6 million, up from $123.7 million, which the company attributed to personnel, marketing, and legal and advisory fees.
President and Chief Executive Officer Michael M. Morrissey said: “Exelixis continued to execute across all of our key priorities in the third quarter, driving the cabozantinib franchise forward while preparing for zanzalintinib as our next potential franchise opportunity.” He said the company remains “disciplined in our deployment of capital.”
According to its SEC filings, revenue has risen in each of the last three quarters, from $597.8 million in the third quarter of fiscal 2025 to $628.7 million in the second quarter of fiscal 2026.
Pipeline and buybacks
The U.S. Food and Drug Administration is reviewing the company’s new drug application for zanzalintinib with atezolizumab in previously treated metastatic colorectal cancer. The target action date is March 3, 2027, after the agency extended the review by three months in September.
The company expects topline results from the phase 3 STELLAR-304 pivotal trial in the first quarter of 2027.
Under a stock repurchase authorization approved in May 2026, Exelixis may buy up to $750 million of common stock before Dec. 31, 2027. As of the end of the third quarter, it had repurchased $402.1 million at an average price of $54.03 per share under that program. Since March 2023, it has repurchased $3.2 billion of stock, retiring 97.8 million shares at an average price of $32.25 per share.