Exelixis Inc (NASDAQ:EXEL) reported financial results for the fourth quarter and full fiscal year 2025 after the market close on Tuesday, delivering a mixed performance against Wall Street expectations. The oncology company posted strong bottom-line growth but fell slightly short on the top line, a dynamic reflected in the stock's initial after-hours movement.
Earnings Snapshot: A Beat on Profit, A Miss on Sales
The company's flagship cabozantinib franchise continued to drive revenue, but total sales for the quarter came in below analyst forecasts.
- Q4 2025 Revenue: $598.7 million, compared to analyst estimates of approximately $616.2 million.
- Q4 2025 Non-GAAP EPS: $0.94 per share, surpassing the consensus estimate of $0.81 per share.
For the full fiscal year 2025, Exelixis reported total revenues of $2.32 billion, up from $2.17 billion in 2024. The company's net product revenues, primarily from its cabozantinib drugs CABOMETYX and COMETRIQ, saw significant growth, reaching $2.12 billion for the year compared to $1.81 billion in the prior year.
Market Reaction and Forward Guidance
Following the earnings release, shares of Exelixis traded lower in after-hours activity, declining roughly 1.1%. This muted negative reaction suggests investors are weighing the earnings per share beat against the revenue miss and digesting the company's outlook for the year ahead.
Management maintained its previously provided financial guidance for fiscal year 2026, which does not yet include any potential contribution from its new drug candidate, zanzalintinib. The guidance ranges are as follows:
- Total Revenues: $2.525 billion to $2.625 billion.
- Net Product Revenues: $2.325 billion to $2.425 billion.
Notably, the midpoint of the company's total revenue guidance ($2.575 billion) sits below the current analyst consensus estimate of approximately $2.665 billion for the full year 2026. This conservative outlook, which executives attributed to not yet factoring in a potential zanzalintinib launch, may be contributing to the cautious market sentiment.
Key Corporate and Pipeline Highlights
Beyond the financial figures, the earnings report and corporate update outlined several significant developments for Exelixis as it seeks to build beyond its cabozantinib franchise:
- Cabozantinib Strength: The drug generated global net product revenues of $2.9 billion in 2025 across Exelixis and its partners. New data in neuroendocrine tumors (NET) was presented, building on the drug's recent FDA approval for advanced pancreatic and extra-pancreatic NET.
- Zanzalintinib Progress: The company highlighted the U.S. FDA acceptance of its New Drug Application (NDA) for zanzalintinib in combination with atezolizumab for previously treated metastatic colorectal cancer (CRC), with a target action date of December 3, 2026. This represents the most near-term potential for a new commercial product.
- Pipeline Expansion: Several pivotal trial initiations and readouts are planned for 2026, including the STELLAR-304 trial in non-clear cell renal cell carcinoma and the STELLAR-316 trial in earlier-stage CRC. A collaboration with Merck on a new renal cell carcinoma trial was also noted.
- Capital Return: The company completed a $500 million stock repurchase program in 2025 and has a new $750 million authorization in place, having repurchased $264.5 million worth of shares in Q4.
Balancing Current Execution with Future Potential
Exelixis finds itself in a transitional period. Its established cabozantinib franchise continues to exhibit robust growth and market expansion, funding both substantial shareholder returns and aggressive pipeline investment. However, the slight revenue miss and a 2026 outlook that trails analyst expectations underscore the market's focus on the company's ability to successfully launch its next major product, zanzalintinib, and diversify its revenue base. The coming year, filled with anticipated clinical milestones and regulatory decisions, will be critical in determining whether Exelixis can build the "second oncology franchise" its leadership envisions.
For a detailed look at Exelixis's historical earnings and future estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
