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Additional Reading from MarketBeat Media Exelixis Reports Solid Earnings—Are New Highs Back on the Table?Author: Chris Markoch. First Published: 2/12/2026. 
Exelixis Inc. (NASDAQ: EXEL) stock is down about 2% in early trading the day after the company delivered a solid, but mixed earnings report. The company reported earnings per share (EPS) of $0.94, which was 27% above the consensus estimate and 95% higher year-over-year. That outperformance improved operating margins, and management says it plans to reinvest those gains into research and development to support its franchise strategy. Exelixis also repurchased $264.5 million of its outstanding shares. The revenue picture was mixed. Quarterly revenue of $598.66 million missed estimates of $609.17 million but was 5% higher than the $566.76 million reported in the same quarter a year earlier. Sales were largely driven by Cabometyx, the company's branded formulation of cabozantinib used across multiple cancer types. Exelixis forecasts 2026 revenue of $2.52 billion to $2.62 billion. That outlook does not include potential sales from zanzalintinib, its pipeline candidate for colorectal cancer, should it receive regulatory approval. What Makes Exelixis Different? On one level, Exelixis offers investors the same risk-reward profile as other biotech companies. Where it distinguishes itself is in its franchise strategy. Exelixis is building comprehensive treatment ecosystems around specific drug molecules. The goal is to develop deep expertise in particular tumor types, offering multiple treatment lines and combinations that physicians can use at different stages of care. Put simply, the company is working to have multiple options for treating specific cancers — first-line, second-line, and combination therapies — with the aim of becoming a go-to choice for oncologists treating kidney cancer, colorectal cancer, or neuroendocrine tumors. Two key takeaways from the fourth-quarter report: - Cabozantinib is effective in kidney cancer, both as monotherapy and combined with immunotherapy, and it is the main revenue driver today.
- Zanzalintinib is positioned as "the foundation of future oncology franchises" and carries upside potential that management pegs at as much as $5 billion in peak annual sales.
Consolidation Now, Growth Later Trading at roughly 18x trailing twelve-month earnings and 21x forward earnings, EXEL stock carries a modest premium to the broader biotechnology sector. The company's franchise model and deep pipeline help justify that premium if projected growth materializes. The EXEL chart looks constructive: the stock is sitting just below the 50-day simple moving average (SMA), which has recently acted as a support level. Momentum indicators were neutral heading into earnings; the stock was about 8.6% below its consensus price target of $46.12. After the earnings release, Wells Fargo reiterated an Equal Weight rating and raised its price target to $35 from $30. That follows Barclays, which raised its target to $44 from $41 on Feb. 4. For now, EXEL is in a consolidation phase, but if the company's growth drivers come through, all-time highs could be within reach over the next 12 months.   Exelixis Is at an Inflection Point
The story isn't just about beating earnings estimates or hitting revenue milestones. Exelixis is transforming from a single-product company into a multi-franchise oncology player, and 2026 is shaping up as the year that transition becomes tangible. The FDA decision on zanzalintinib in colorectal cancer (PDUFA date: Dec. 3, 2026) represents the company's first major expansion beyond cabozantinib. If approved, zanzalintinib could open the door to a potential $5 billion peak sales opportunity and would validate the franchise approach Exelixis has been building. R&D spending is the real measure to watch. Despite stronger profitability, Exelixis is maintaining roughly $1 billion in annual R&D investment while continuing share buybacks — a sign of confidence in its pipeline assumptions. That spending supports seven pivotal trials for zanzalintinib alone, plus four earlier-stage programs progressing toward full development. For context, the expanded gastrointestinal and neuroendocrine sales teams aren't just chasing near-term growth; they're pre-positioning for a potential zanzalintinib launch later this year. The pieces are aligning for a different kind of biotech story: sustainable, multi-product growth anchored in deep tumor expertise rather than a single binary drug bet.
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