Why Exelixis stock is on investors’ radar after Q1 2026

Exelixis (EXEL) is back in focus after first quarter 2026 earnings, with revenue of US$610.81 million, net income of US$210.47 million, and FDA progress on zanzalintinib alongside active share repurchases.

The stock has cooled slightly after earnings, with a 1 day share price decline of 5.11% to US$46.21. However, a 1 year total shareholder return of 26.60% and a 3 year total shareholder return of about 14x signal strong longer term momentum.

If Exelixis’s oncology focus has your attention, it can be useful to see what else is moving in the sector and check out 35 healthcare AI stocks

With Exelixis trading at US$46.21, only about 6% below the average analyst price target and screening well on value metrics, the key question is whether recent pipeline progress and buybacks leave room for upside or if the market is already pricing in future growth.

Most Popular Narrative: 3% Undervalued

With Exelixis closing at US$46.21 against a narrative fair value of about US$47.53, the widely followed model sees modest upside grounded in detailed long term forecasts.

The recent introduction and rapid uptake of CABOMETYX in neuroendocrine tumors, combined with its continued strength and market leadership in renal cell carcinoma, signals an expanding patient base in tumor types with high unmet need; this is poised to drive strong durable revenue growth as aging populations and rising cancer incidence increase long-term demand for oncology therapeutics.

Want to see what this growth story actually assumes? Revenue rising faster than costs, margins holding up, and a long term earnings multiple that needs to compress. The exact mix of growth, profitability and discount rate is laid out in full inside the narrative.

The fair value here is built on analysts modeling revenue expansion, gradual margin shifts and a specific discount rate of 7.16%, then translating that into an implied future P/E that is lower than today. If you want to understand how those moving parts connect to the current price, the narrative spells out the earnings path, share count assumptions and what has to happen by 2029 for US$47.53 to look reasonable.

Result: Fair Value of $47.53 (UNDERVALUED)

However, the story can shift quickly if CABOMETYX faces faster than expected competitive pressure or if key late stage trials fail to deliver on current expectations.

Next Steps

With both risks and rewards in play, do you feel the balance of this story leans too positive or too cautious? Act while the data is fresh, look through the details for yourself, then weigh the 4 key rewards and 1 important warning sign.

Looking for more investment ideas?

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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.