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More Reading from MarketBeat Media Exelixis Reports Solid Earnings—Are New Highs Back on the Table?Written by Chris Markoch. Date Posted: 2/12/2026. 
Exelixis Inc. (NASDAQ: EXEL) stock is down about 2% in early trading 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. Improved profitability boosted operating margin, which Exelixis plans to reinvest in research and development to support its franchise strategy. The company also repurchased $264.5 million of common stock. Revenue was mixed. Total revenue of $598.66 million missed expectations of $609.17 million, but it was 5% above the $566.76 million reported in the same quarter last year. That performance 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. That guidance excludes any potential revenue from zanzalintinib, its colorectal cancer candidate, should it receive regulatory approval. What Makes Exelixis Different? Exelixis offers a similar risk-reward profile to other biotech companies, but its franchise strategy deserves closer attention. At a high level, Exelixis is building comprehensive treatment ecosystems around specific drug molecules. The company is developing deep expertise in particular tumor types with multiple treatment lines and combinations that physicians can use at different stages of care. In plain terms, Exelixis is assembling multiple arrows in its quiver for specific cancers — first-line, second-line, and combination therapies — aiming to be the go-to choice for oncologists treating kidney, colorectal, and neuroendocrine cancers. There are two key takeaways for investors from the fourth-quarter report: - Cabozantinib is effective in kidney cancer as both monotherapy and in combination with immunotherapy — the primary revenue driver today.
- Zanzalintinib is viewed as the foundation of future oncology franchises, with potential peak annual sales of up to $5 billion.
Consolidation Now, Growth Later Trading at roughly 18x trailing 12-month EPS and 21x forward EPS, EXEL currently carries a modest premium to the broader biotech sector. Exelixis's franchise model and deep pipeline, however, help justify that premium given expected growth. The EXEL chart looks constructive, with the stock sitting just below the 50-day simple moving average (SMA) — a level that has recently acted as support. Momentum indicators were neutral heading into the report; 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 for EXEL and raised its price target to $35 from $30. Barclays similarly raised its target to $44 from $41 on Feb. 4. While EXEL is in a consolidation pattern for now, if the company's growth trajectory plays out, the stock could revisit all-time highs within the next 12 months.   Exelixis Is at an Inflection Point
The story goes beyond beating earnings or hitting revenue marks. Exelixis is transitioning from a single-product company to a multi-franchise oncology player, and 2026 is shaping up to be a pivotal year for that shift. 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 the cited $5 billion peak sales opportunity and validate the franchise strategy Exelixis has been pursuing. Despite improved profitability, Exelixis is maintaining roughly $1 billion in annual R&D investment while continuing share repurchases — a sign of confidence in its pipeline. The company is balancing investor returns with aggressive development across seven pivotal zanzalintinib trials and four earlier-stage programs advancing toward full development. For context, the expanded GI sales team is not just about near-term growth; it's 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: sustainable, multi-product growth anchored in deep tumor expertise rather than binary drug bets.
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