Why Is Exelixis (EXEL) Up 9% Since Last Earnings Report?

It has been about a month since the last earnings report for Exelixis (EXEL). Shares have added about 9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Exelixis due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Exelixis, Inc. before we dive into how investors and analysts have reacted as of late.

EXEL Tops Q3 Earnings Estimates, Cabometyx Fuels Product Sales

Exelixis reported better-than-expected results for the third quarter of 2025.

Adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate of 68 cents. The company registered adjusted earnings of 47 cents per share in the year-ago quarter. Adjusted earnings exclude the impact of stock-based compensation expenses.

Including stock-based compensation expense, earnings were 69 cents per share compared with 40 cents in the year-ago period.

Net revenues of $598 million beat the Zacks Consensus Estimate of $589 million. The top line was also up 10.8% year over year.

EXEL’s Q3 Results in Detail

The year-over-year growth in revenues can be attributed to higher product sales offset by lower collaboration revenues.

Net product revenues were $542.9 million, up 13.5% year over year. This rise was primarily driven by increased sales volume.

Cabometyx (cabozantinib) generated revenues of $540 million, which marginally beat the Zacks Consensus Estimate of $539 million and our model estimate of $532 million. The drug is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma. Cometriq (cabozantinib capsules) generated $3.1 million in net product revenues for treating medullary thyroid cancer.  

In March 2025, Exelixis obtained FDA approval for the label expansion of Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated pancreatic and extra-pancreatic neuroendocrine tumors (pNET) and adult and pediatric patients 12 years of age and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated extra-pancreatic NET (epNET).  

Demand for Cabometyx in neuroendocrine tumors grew about 50% and contributed approximately 6% to third-quarter business.

Collaboration revenues, comprising license and collaboration services revenues, totaled $54.8 million. The figure was down 10.8% from $61.5 million recorded in the year-ago quarter. The decrease was primarily related to lower milestone-related revenues recognized in the quarter and lower development cost reimbursements earned, partially offset by higher royalty revenues from the sales of cabozantinib outside the United States, generated by Exelixis’ collaboration partner Ipsen Pharma.

Research and development expenses (including stock-based compensation) amounted to $199.2 million, down 10.5% year over year. The decline was primarily related to a decrease in clinical trial costs and license and other collaboration costs.

Selling, general and administrative expenses totaled $123.7 million, up 10.6% year over year, primarily related to increases in stock-based compensation and consulting and outside services.

In August 2024, Exelixis announced that the board of directors authorized the repurchase of up to $500 million of its common stock. Subsequently, in February 2025, EXEL’s board of directors authorized the repurchase of up to an additional $500 million of its common stock.

Under these programs, as of Sept. 30, 2025, Exelixis repurchased $895.3 million of its common stock. Exelixis completed repurchases under the August 2024 repurchase program in the second quarter of 2025 and plans to complete repurchases under the February 2025 authorization in the fourth quarter of 2025.

In October, the board of directors authorized the repurchase of up to an additional $750 million, before Dec. 31, 2026.

EXEL Updates 2025 Guidance

Total revenues are now expected to be between $2.30 billion and $2.35 billion (previous guidance:  $2.25-$2.35 billion). Net product revenues are estimated to be in the range of $2.10-$2.15 billion (previous guidance: $2.05-$2.15 billion).

The current guidance includes the impact of a 2.8% price increase of Cabometyx in the United States, effective Jan. 1, 2025.

Research and Development expenses are now expected to be in the range of $850-$900 million (previous guidance: $925-$975 million). Selling, general and administrative expenses are now anticipated to be in the $500-$525 million range (previous guidance: $475-$525 million). The effective tax rate for the company is now anticipated to be in the 17-18% range for 2025 (previous guidance: 21-23%).

Key Pipeline and Regulatory Updates From EXEL

The company is developing zanzalintinib, a next-generation oral investigational tyrosine kinase inhibitor (TKI).

In October, Exelixis presented detailed results from STELLAR-303 study evaluating zanzalintinib in combination with Roche’s Tecentriq (atezolizumab) versus regorafenib in patients with previously treated non-microsatellite instability (MSI)-high metastatic colorectal cancer (CRC).

Exelixis had earlier announced that the STELLAR-303 study met one of its dual primary endpoints, demonstrating a statistically significant in the risk of death in the intent-to-treat (ITT) population when treated with zanzalintinib in combination with Tecentriq compared with the current standard-of-care drug, regorafenib.

Exelixis stated that the trial will continue to a final analysis of the second primary endpoint — overall survival in the subgroup without liver metastases (non-liver metastases, or NLM).

Roche’s Tecentriq is a cancer immunotherapy that is approved around the world, either alone or in combination with targeted therapies and/or chemotherapies, for various types of cancers.

Based on positive data from the study, Exelixis intends to submit a new drug application for zanzalintinib in combination with atezolizumab for the treatment of patients with previously treated metastatic CRC in the United States by the end of 2025.

In July, Exelixis announced several updates to its development program for zanzalintinib, including the initiation of the late-stage STELLAR-311 study in advanced NET. STELLAR-311 is evaluating zanzalintinib versus everolimus as a first oral therapy in patients with advanced NET, regardless of site of origin. The company also announced that planning is underway for the next wave of zanzalintinib pivotal trials in post-chemotherapy adjuvant CRC settings, as well as in high grade and/or recurrent meningiomas.

In July, Exelixis announced that its partner Ipsen received European Commission approval for the use of Cabometyx in adult patients with unresectable or metastatic, well-differentiated pNET and epNET who have progressed following at least one prior systemic therapy other than somatostatin analogues.

In August, Exelixis initiated a phase I study of XB371, the company’s next-generation tissue factor-targeting antibody-drug conjugate (TF-targeting ADC) program, following FDA clearance of its investigational new drug application in July. Exelixis now has four ongoing phase I studies for its pipeline programs — XL309, XB010, XB628 and XB371.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 19.65% due to these changes.

VGM Scores

At this time, Exelixis has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Exelixis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Exelixis is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Myriad Genetics (MYGN), a stock from the same industry, has gained 11.4%. The company reported its results for the quarter ended September 2025 more than a month ago.

Myriad reported revenues of $205.7 million in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $0.00 for the same period compares with $0.06 a year ago.

Myriad is expected to post a loss of $0.01 per share for the current quarter, representing a year-over-year change of -133.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.1%.

Myriad has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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