• In early May 2026, Exelixis reported first-quarter revenue of US$610.81 million and net income of US$210.47 million, maintained its 2026 revenue guidance of US$2.53–US$2.63 billion, expanded its share repurchase authorizations, and scheduled a Bank of America healthcare conference presentation featuring CEO Michael Morrissey.
• A key development is the focus on zanzalintinib, with new combination studies in additional cancer indications and financial guidance that excludes any potential contribution from a possible future U.S. colorectal cancer approval, underscoring how central this pipeline asset has become to Exelixis’s outlook.
• We’ll now explore how the strengthened buyback program and zanzalintinib combination studies could reshape Exelixis’s existing investment narrative.

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Exelixis Investment Narrative Recap

To own Exelixis, you need to believe it can convert its cabozantinib cash flows into a broader oncology franchise, with zanzalintinib as a cornerstone. The latest earnings beat and reiterated 2026 revenue guidance keep the near term focus on regulatory decisions and data for zanzalintinib, while the main risk remains Exelixis’ dependence on cabozantinib and exposure to pricing pressure. The May news supports the existing thesis but does not materially change that risk balance.

The new US$750 million share repurchase authorization is the most relevant development here, because it runs alongside intensified investment in zanzalintinib studies across multiple tumor types. For catalysts tied to that drug to matter, Exelixis must keep funding trials and potential launches without undermining financial flexibility. The expanded buyback signals confidence in current cash generation, but it also sits against rising R&D needs and regulatory headwinds that could weigh on future profitability.

Yet beneath the strong quarter and larger buyback, there is a risk investors should be aware of if zanzalintinib trials or pricing trends start to...

Exelixis' narrative projects $3.3 billion revenue and $1.1 billion earnings by 2029.

Uncover how Exelixis' forecasts yield a $47.53 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were assuming revenue of about US$2.4 billion and earnings near US$590 million by 2029, so compared with the recent zanzalintinib updates and buyback expansion, their far more pessimistic view on margin pressure and competition could easily shift as new data and guidance filter through, which is why you should weigh several viewpoints before deciding how this story fits your own expectations.

Explore 9 other fair value estimates on Exelixis - why the stock might be worth over 4x more than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Exelixis research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Exelixis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Exelixis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.