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Additional Reading from MarketBeat Exelixis Reports Solid Earnings—Are New Highs Back on the Table?Authored by 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. Exelixis 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 Exelixis plans to reinvest into research and development for its franchise strategy. The company 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 was 5% above the $566.76 million reported in the same quarter a year earlier. That revenue was largely driven by Cabometyx, the company's branded formulation of cabozantinib used across multiple cancer types. Exelixis forecasts 2026 revenue between $2.52 billion and $2.62 billion. That outlook comes with an important caveat: it excludes potential revenue from zanzalintinib, the company's colorectal cancer candidate, if it receives regulatory approval. What Makes Exelixis Different? At a glance, Exelixis carries the same risk-reward profile as many other biotech companies, but its franchise strategy deserves closer attention. Exelixis is building comprehensive treatment ecosystems around specific drug molecules. The goal is to develop deep expertise in particular tumor types with multiple treatment lines and combination options physicians can deploy at different stages of care. In plain terms, Exelixis is working to have multiple arrows in its quiver for specific cancers—first-line, second-line, and combination therapies—positioning itself as a go-to choice for oncologists treating kidney, colorectal, or neuroendocrine cancers. There are two key takeaways from the fourth-quarter report: - Cabozantinib is effective in kidney cancer, both as monotherapy and combined with immunotherapy, and is the main revenue driver today.
- Zanzalintinib is viewed as "the foundation of future oncology franchises" and has the potential to reach $5 billion in peak annual sales.
Consolidation Now, Growth Later At roughly 18x trailing twelve-month earnings and 21x forward earnings, EXEL trades at a slight premium to the broader biotechnology sector. Still, the company's franchise model and deep pipeline may justify that premium if growth materializes. The EXEL chart looks constructive: the stock sits just below the 50-day simple moving average (SMA), a level that 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. After the results, Wells Fargo reiterated an Equal Weight rating and raised its price target to $35 from $30. That follows Barclays' Feb. 4 raise to $44 from $41. 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
This story isn't just about beating earnings expectations or meeting revenue milestones. Exelixis is transitioning from a single-product company to a multi-franchise oncology player, and 2026 is shaping up to be a pivotal year. The FDA decision on zanzalintinib in colorectal cancer (Prescription Drug User Fee Act date: Dec. 3, 2026) marks the company's first major expansion beyond cabozantinib. Approval would validate the franchise strategy and open the door to a potential $5 billion peak sales opportunity. Importantly, Exelixis is maintaining roughly $1 billion in annual R&D investment despite improved profitability and ongoing share buybacks. That suggests confidence in the pipeline and a deliberate approach to balancing shareholder returns with aggressive development—seven pivotal trials for zanzalintinib alone, plus four early-stage programs advancing toward later-stage development. For context, the expanded gastro-intestinal and neuroendocrine sales efforts aren't just about incremental growth; they're pre-positioning for a potential zanzalintinib launch later this year. The pieces are coming together for a different kind of biotech story: sustainable, multi-product growth anchored in deep tumor expertise rather than binary, single-drug bets.
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