Exelixis Inc., a biotechnology company specializing in cancer therapies, achieved a new all-time high of $57.68 in trading, just 1% below its 52-week peak of $57.57. The stock’s year-over-year increase of 53% reflects robust investor confidence, buoyed by second-quarter 2026 financial results that exceeded expectations despite a downward revision to full-year guidance. BMO Capital initiated coverage with a Market Perform rating and a price target of $54.00, signaling optimism about the company’s franchise performance and pipeline developments.
In second-quarter 2026, Exelixis reported adjusted earnings per share (EPS) of $0.91, surpassing the Wall Street consensus estimate of $0.84. Revenue of $628.69 million fell short of the $633.8 million expected, prompting the company to adjust its full-year 2026 revenue guidance downward, citing slower-than-anticipated growth in its NET business segment. The franchise for cabozantinib, a key product under the brand CABOMETYX, saw net product revenue increase by 10% year-over-year, while the global cabozantinib franchise generated $806 million in revenue for 2025, including contributions from partners Ipsen and Takeda. That franchise alone contributed approximately $2.12 billion in fiscal year 2025 revenue.
Exelixis remains focused on advancing its pipeline, with zanzalintinib—an investigational therapy for colorectal cancer—expected to launch later this year. The company also faces challenges from an upcoming patent cliff, which could impact revenue streams from existing therapies. Despite these considerations, the stock’s recent surge reflects strong performance in its core franchise and investor expectations for continued innovation in oncology treatments.
Exelixis operates within the biotechnology sector, where it competes with peers like Novartis and Roche, though its specific focus on targeted cancer therapies positions it as a niche leader in the space.
