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Friday's Exclusive Content Exelixis Reports Solid Earnings—Are New Highs Back on the Table?Reported by Chris Markoch. Published: 2/12/2026. 
Exelixis Inc. (NASDAQ: EXEL) shares fell 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. Higher profits improved operating margins, which the company says it will deploy into research and development to support its franchise strategy. Exelixis also repurchased $264.5 million of its stock. Almost no one sees it coming, but AI is about to split America into two over the next 12 months. On one hand, it'll make America's one-percenters richer and more powerful than ever. On the other hand, it's set to trap millions of hardworking Americans in financial quicksand. Former Google exec Kai-Fu Lee says AI could wipe out 50% of jobs by 2027. Elon Musk has said AI will surpass human intelligence by 2027. Mark Zuckerberg has said half of all coding could be done by AI within the next year. One ex-hedge fund manager whose team predicted Nvidia's rise in 2020 calls this the AI End Game, and he says there are three critical moves every American should make in the next 12 months to protect and grow their wealth through this paradigm shift. See the three moves before the AI split happens The revenue picture was mixed. Revenue of $598.66 million missed expectations of $609.17 million, but it was about 5% higher than the $566.76 million reported 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 revenue between $2.52 billion and $2.62 billion for 2026. That outlook carries an important caveat: it does not include potential sales from zanzalintinib, the pipeline candidate for colorectal cancer, should it receive regulatory approval. What Makes Exelixis Different? On one level, Exelixis presents a similar risk-reward profile to other biotech companies. The distinction lies in the company's franchise strategy. Exelixis is building comprehensive treatment ecosystems around specific drug molecules. The aim is to develop deep expertise in particular tumor types with multiple treatment lines and combinations that physicians can use at different stages of care. Put simply, Exelixis is working to have multiple therapeutic options for specific cancers — first-line, second-line, and combination therapies — to become a go-to choice for oncologists treating kidney cancer, colorectal cancer, and neuroendocrine cancers. Two key takeaways from the fourth-quarter earnings report: - Cabozantinib is the primary revenue driver today and has demonstrated activity in kidney cancer both as monotherapy and in combination with immunotherapy.
- Zanzalintinib is described as "the foundation of future oncology franchises" and could reach as much as $5 billion in peak annual sales if approved and successfully launched.
Consolidation Now, Growth Later Exelixis shares trade at about 18x trailing twelve-month earnings and 21x forward earnings, a modest premium to the broader biotechnology sector. The company's franchise model and deep pipeline, however, may justify that premium for investors expecting growth. The EXEL chart appears constructive: the stock sits just below the 50-day simple moving average (SMA), which recently served as support. Momentum indicators were neutral heading into earnings, and the share price remained about 8.6% below the consensus price target of $46.12. After earnings, Wells Fargo reiterated an Equal Weight rating on EXEL and raised its price target to $35 from $30. Barclays raised its target to $44 from $41 on Feb. 4. While EXEL is in a consolidation pattern for now, if the company's growth thesis plays out, new all-time highs could be achievable within the next 12 months.   Exelixis Is at an Inflection Point
The story isn't just about beating earnings or hitting revenue targets. Exelixis is evolving from a single-product company into a multi-franchise oncology player, and 2026 is shaping up to be a pivotal year in that transition. The U.S. 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 toward. R&D spending is the real signal. Despite improved profitability, Exelixis is maintaining roughly $1 billion in annual R&D investment while also executing share buybacks — a balance that suggests confidence in its pipeline. The company is investing across seven pivotal trials for zanzalintinib alone, plus four early-stage programs advancing toward later development. For context, the expanded gastrointestinal sales team is not merely targeting net growth; it is positioning the company for a potential zanzalintinib launch later this year. The pieces are being put in place for a different kind of biotech story: sustained, multi-product growth anchored in tumor-specific expertise rather than binary, single-drug bets.
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