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Further Reading from MarketBeat Media Exelixis Reports Solid Earnings—Are New Highs Back on the Table?Authored by Chris Markoch. Article 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 — 27% above the consensus estimate and 95% higher year-over-year (YoY). Profitability also improved operating margins, which Exelixis plans to reinvest in research and development to support its franchise strategy. The company also repurchased $264.5 million of its stock. The revenue picture was mixed. Revenue of $598.66 million missed expectations of $609.17 million but was up 5% from $566.76 million in the same quarter last year. That revenue was 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. An important caveat: that guidance excludes potential revenue if zanzalintinib, the company's colorectal cancer candidate, receives regulatory approval. What Makes Exelixis Different? At one level, Exelixis offers the same risk-reward profile as other biotech companies. But investors should pay attention to its franchise strategy. Exelixis is building comprehensive treatment ecosystems around specific drug molecules. The goal is to develop deep expertise in particular tumor types and offer multiple lines and combination therapies that physicians can use at different stages. Put simply, the company is aiming to have multiple arrows in its quiver for specific cancers — first-line, second-line, and combination therapies — to become a go-to choice for oncologists treating kidney, colorectal, and neuroendocrine cancers. Two key takeaways from the fourth-quarter report: - Cabozantinib is effective in kidney cancer both as monotherapy and combined with immunotherapy, and it remains the primary revenue driver today.
- Zanzalintinib is described as "the foundation of future oncology franchises" and has the potential to reach $5 billion in peak annual sales.
Consolidation Now, Growth Later Exelixis trades at about 18x trailing twelve-month earnings and roughly 21x forward earnings, a slight premium to the broader biotechnology sector. The company's franchise model and deep pipeline help justify that premium for investors expecting growth. The EXEL chart looks constructive: the stock sits just below the 50-day simple moving average (SMA), which recently acted as support. Momentum indicators were neutral heading into earnings, and the stock was 8.6% below its consensus price target of $46.12. On the analyst front, Wells Fargo reiterated an Equal Weight rating on EXEL and raised its price target to $35 from $30 the day after earnings. Barclays also lifted its target to $44 from $41 on Feb. 4. While EXEL is in a consolidation pattern for now, if the company's growth plans come to fruition, 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 expectations or hitting revenue milestones. Exelixis is shifting from a single-product company to a multi-franchise oncology player, and 2026 is when 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. Approval would open the door to a potential $5 billion peak sales opportunity and validate the franchise strategy Exelixis has been building. The real indicator is R&D spending. Despite improved profitability, Exelixis is maintaining roughly $1 billion in annual R&D investment while executing share buybacks — a sign the company is confident in its pipeline. That spending supports seven pivotal trials for zanzalintinib alone, plus four early-stage programs advancing toward full development. For context, the expanded gastrointestinal and neuroendocrine tumor (NET) sales teams aren't just about near-term sales — they're pre-positioning for a potential zanzalintinib launch later this year. The pieces are being arranged for a different kind of biotech story: sustainable, multi-product growth anchored in deep tumor expertise rather than binary drug bets.
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