Executive Summary

Strong print with beats on revenue and non-GAAP EPS; Q3 delivered $597.8M revenue vs $590.2M consensus* and $0.78 non-GAAP diluted EPS vs $0.61 consensus*, driven by robust CABOMETYX U.S. demand and early NET launch contribution . Values retrieved from S&P Global.*
Management narrowed FY25 revenue guidance to the upper end ($2.30–$2.35B) and cut R&D/ETR guidance, boosting full-year earnings power; also authorized an additional $750M buyback through 2026, reinforcing capital return momentum .
Commercial execution remains a highlight: U.S. cabozantinib franchise net product revenue grew to $542.9M; gross-to-net ran ~30.4%; NET launch contributed ~6% of CABOMETYX demand and >40% new-patient share in 2L+ oral therapies, supporting 2026 growth trajectory .
Pipeline catalysts in sight: STELLAR-303 (Zanza + atezo) showed a statistically significant OS benefit in 3L+ non‑MSI‑H CRC with NDA filing planned as soon as government reopens; final NLM analyses and STELLAR-304 nccRCC topline targeted around mid‑2026, positioning a second franchise opportunity .
Potential stock reaction catalysts: near-term NDA filing for Zanzalintinib in CRC, continued NET launch ramp, guidance discipline, and sizable buyback authorization .

What Went Well and What Went Wrong

What Went Well

CABOMETYX execution: U.S. cabozantinib net product revenue reached $542.9M; CABOMETYX maintained leadership in RCC and >40% new-patient share in 2L+ NET oral therapies; NET contributed ~6% of Q3 demand and is “vectoring towards exceeding $100M” in FY25 .
Clear estimate beats: Revenue of $597.8M vs $590.2M consensus* and non‑GAAP diluted EPS of $0.78 vs $0.61 consensus*; operating income up to $236.5M (39.6% margin, calc.) . Values retrieved from S&P Global.*
Management tone/confidence on Zanza: “The cabozantinib business has never been stronger, and we're pleased to see Zanzalintinib move to center stage with our first big clinical success in CRC.” – CEO Mike Morrissey . Plans to file NDA “as quickly as possible” for CRC and expand pivotal footprint (meningioma, adjuvant CRC) .

What Went Wrong

Collaboration revenue down YoY: Q3 collaboration revenue declined to $54.8M vs $61.5M in 3Q24 on lower milestones and development reimbursements, partly offset by higher ex-U.S. royalties .
Payer mix pressure: Gross-to-net for the CABO franchise was 30.4% (higher 340B discounts offset by lower Medicare/copay assistance), a watch item for pricing/mix into 2026 .
Restructuring costs: Recognized $19.8M of restructuring (workforce reorg and facility closure), though largely completed in Q3 and tied to efficiency efforts; also carryover optics from prior-year facility impairment .

Financial Results

Note: Exelixis uses a 52/53-week fiscal year; Q3 reflects the period ended October 3, 2025 (referred to as September 30, 2025 for convenience) .

Consolidated financials (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2026 (quarter ended Sep 30, 2025)
Revenue ($M)	$555.4	$568.3	$597.8
GAAP Diluted EPS	$0.55	$0.65	$0.69
Non-GAAP Diluted EPS	$0.62	$0.75	$0.78
Income from Operations ($M)	$186.9	$213.6	$236.5
Operating Margin % (calc.)	33.7% (from cited figures)	37.6% (from cited figures)	39.6% (from cited figures)
Net Income ($M)	$159.6	$184.8	$193.6
Net Income Margin % (calc.)	28.7% (from cited figures)	32.5% (from cited figures)	32.4% (from cited figures)

Actual vs S&P Global Consensus (Q3 2026)

Metric	Actual	Consensus*	Surprise
Revenue ($M)	$597.8	$590.2*	+$7.6
Primary EPS (Non-GAAP diluted)	$0.78	$0.61*	+$0.17
Values retrieved from S&P Global.*

Segment/Revenue mix

Revenue Mix	Q1 2025	Q2 2025	Q3 2026
Net Product Revenues ($M)	$513.3	$520.0	$542.9
– CABOMETYX ($M)	$510.9	$517.9	$539.9
– COMETRIQ ($M)	$2.4	$2.1	$3.1
Collaboration Revenues ($M)	$42.2	$48.2	$54.8
Total Revenues ($M)	$555.4	$568.3	$597.8

Selected KPIs (Q3 2026 unless noted)

KPI	Q1 2025	Q2 2025	Q3 2026
Gross-to-net (CABO franchise)	—	—	30.4%
Trade inventory (weeks)	—	—	~2 weeks
Royalty Revenues ($M)	$36.7	$43.4	$46.3
Cash & Marketable Securities ($B)	—	—	~$1.6
Share Repurchases in Quarter ($M)	—	—	~$99 (2.4M shrs at $41.69)
Weighted-avg Diluted Shares (M)	288.2	284.4	278.5

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues	FY 2025	$2.25B – $2.35B (prev. provided May 13, 2025)	$2.30B – $2.35B	Narrowed to upper end (raised low end)
Net Product Revenues	FY 2025	$2.05B – $2.15B (incl. 2.8% WAC increase)	$2.10B – $2.15B	Raised low end
Cost of Goods Sold	FY 2025	4% – 5% of net product rev.	~4% of net product rev.	Tightened lower
R&D Expense	FY 2025	$925M – $975M (incl. $50M SBC)	$850M – $900M (incl. $40M SBC)	Lowered
SG&A Expense	FY 2025	$475M – $525M (incl. $80M SBC)	$500M – $525M (incl. $80M SBC)	Tightened higher floor
Effective Tax Rate	FY 2025	21% – 23%	17% – 18%	Lowered

Additional capital return: New $750M share repurchase authorization through end of 2026 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2026)	Trend
CABOMETYX demand and RCC leadership	Strong demand; FY25 guidance raised; early NET launch	U.S. net product rev $520M; EU NET approval via Ipsen	U.S. net product rev $542.9M; RCC leadership maintained; NET >40% 2L+ oral share; ~6% demand contribution	Improving
NET launch	FDA approval late March; rapid mobilization	NET ~4% of CABO business; leadership in new patient starts	>40% new-patient share; >50% QoQ demand growth; FY25 NET rev to exceed $100M	Accelerating
Zanzalintinib (CRC)	Anticipated STELLAR‑303 readout; plan to file quickly	Topline positive OS (ITT); plan to file ASAP	Detailed ESMO/Lancet data; OS HR 0.80; NDA planned ASAP pending govt reopening	Advancing
Zanzalintinib (nccRCC)	STELLAR‑304 enrollment completed; H1’26 topline dependent on events	Same	Topline now mid‑2026 timing; still targeted	Slightly delayed on events
GI commercial build-out	—	Preparing for broader GI opportunity	Expediting GI sales team build in Q4 to prime NET and future Zanza CRC launch	Scaling up
Capital returns	Repurchases ongoing; shares down to 288.2M diluted	Repurchased $796.3M cumulatively; diluted shares 284.4M	Additional $750M authorization; diluted shares 278.5M	Increasing
Tax law benefit	—	—	$147M federal cash tax benefit from R&E repeal (no P&L provision impact)	Positive cash impact

Management Commentary

“Exelixis had a strong third quarter… The Cabozantinib business has never been stronger, and we're pleased to see Zanzalintinib move to center stage with our first big clinical success in CRC.” – CEO Mike Morrissey .
“US Cabo franchise net product revenues grew approximately 14% year-over-year to $543 million… Cabometyx maintained its leadership position as the top TKI for RCC.” – CEO Mike Morrissey .
“We continue to carefully manage capital allocation… we have been authorized to repurchase an additional $750 million of our shares.” – CEO Mike Morrissey .
“Gross-to-net for the Cabozantinib franchise in the third quarter 2025 was 30.4%… trade inventory… approximately two weeks on hand.” – CFO Chris Senner .
“We intend to submit our first new drug application for zanzalintinib in the U.S. before year-end.” – Press release .

Q&A Highlights

Zanza CRC positioning: Physicians value OS benefit and chemo‑free IO combo in non‑MSI‑H CRC; management expects share capture across a fragmented 3L+ market (~1/3 SUNLIGHT, ~1/3 TKIs, ~1/3 other) .
Regulatory approach: Filing based on ITT OS primary endpoint provides broad label basis; NLM dual-primary to read mid‑2026; filing queued “ASAP” once government reopens .
Capital allocation: Company expects to fund R&D (~$850–$900M), BD, and buybacks concurrently given revenue growth and prudent expense management .
nccRCC and meningioma: STELLAR‑304 uses sunitinib as relevant SOC comparator; planning pivotal meningioma and adjuvant CRC starts in 2026 (dose exploration anticipated as moves earlier) .
Commercial color: No clinical trial sales in quarter; NET launch uptake robust; expanding GI field footprint to deepen community reach ahead of potential Zanza launch .

Estimates Context

Q3 results beat Street: Revenue $597.8M vs $590.2M consensus*; Primary EPS (non‑GAAP diluted) $0.78 vs $0.61 consensus*, with 16–17 covering estimates* . Values retrieved from S&P Global.*
Given the magnitude of beat and updated FY25 guidance (higher revenue low end, lower R&D, lower tax rate), estimate revisions should move higher on EPS while revenue tweaks are modest toward the upper end of the range .

Key Takeaways for Investors

Solid top-line and bottom-line beats, with operating margin expansion and disciplined guidance updates enhance near-term earnings quality .
CABOMETYX remains the cash engine; NET launch traction (>40% 2L+ oral share) and GI sales expansion should sustain growth into 2026 .
Zanzalintinib is the next leg: positive, differentiated OS result in non‑MSI‑H CRC with near-term NDA filing, plus a mid‑2026 cadence of additional pivotal data readouts (NLM OS, nccRCC) .
Balance sheet strength and a new $750M buyback provide downside support and EPS accretion as diluted share count continues to trend lower .
Watch items: payer mix (340B) in gross‑to‑net, collaboration revenue variability, and regulatory timing (government shutdown impacts submission timing) .
Near-term trading setup: catalysts include NDA submission/acceptance for Zanza CRC, additional NET share gains, and potential year‑end/early‑year guidance commentary; buyback activity could underpin shares in volatile tape .
Medium-term thesis: durable CABOMETYX + a potentially larger Zanza franchise across CRC and RCC can pivot EXEL to a multi‑franchise oncology company with improving mix and operating leverage .

Notes: Exelixis’ fiscal calendar uses a 52/53‑week year; Q3 reflects period ended October 3, 2025 (presented as September 30, 2025) .

EXELIXIS, INC. (EXEL)·Q3 2026 Earnings Summary