Compugen (NasdaqCM:CGEN) opened 2026 with Q1 revenue of US$2.2 million and a loss of US$7.7 million in net income, equal to an EPS loss of US$0.08, against a trailing twelve month EPS of US$0.37 on revenue of US$72.7 million. Over recent quarters the company has seen revenue move from US$1.5 million in Q4 2024 to US$2.3 million in Q1 2025, then to US$1.3 million in Q2 2025, US$1.9 million in Q3 2025, a one off spike to US$67.3 million in Q4 2025, and US$2.2 million this quarter. EPS shifted from a loss of US$0.07 to a profit of US$0.60 before returning to a loss of US$0.08 in Q1 2026, leaving investors weighing how durable the recent profitability is in light of the volatility in margins.

See our full analysis for Compugen.

With the headline numbers on the table, the next step is to see how this earnings print lines up with the key bullish and bearish narratives that have built up around Compugen over the past year.

US$72.7m trailing revenue hinges on one Q4 spike

• Over the last twelve months, Compugen reported US$72.7 million in revenue, but US$67.3 million of that came from Q4 2025, with the other quarters ranging between US$1.3 million and US$2.3 million.
• Consensus narrative talks about partnerships and immunotherapy demand supporting future revenue, yet the data shows that most of the trailing twelve month top line is tied to one period, which creates tension with the idea of steady growth:
  • Outside the Q4 2025 spike, quarterly revenue sat near US$2 million, so any expectation of more stable revenue would likely depend on how repeatable similar payments are.
  • Analysts in the balanced view highlight milestones and royalties as a driver, and this revenue pattern looks consistent with that, but it also underlines how much future results may hinge on a few large payments rather than a broad base of recurring sales.

Net loss of US$7.7m against TTM profit of US$34.9m

• Q1 2026 showed a net loss of US$7.7 million and a basic EPS loss of US$0.08, while the trailing twelve month figures still show net income of US$34.9 million and EPS of US$0.37.
• Bulls point to the company becoming profitable over the last year and five year annualized earnings growth of 37.8%, but this latest loss and the forecasts for falling earnings pressure that view:
  • The trailing period shows profit, yet Q1 2026 returns to a loss similar in size to prior quarters before the Q4 2025 spike, which challenges the idea that profitability is already embedded in the regular run rate.
  • Forward figures in the dataset show earnings expected to decline by an average of 32.9% per year, so the bullish focus on historical growth now sits alongside projections that point in the opposite direction.

Compugen’s bulls argue that the recent profitable year is a turning point, while the latest loss keeps the debate open about how durable that shift really is, and you can see how they frame that case in more detail in the 🐂 Compugen Bull Case.

Low 7.4x P/E with DCF fair value of US$10.29 vs price of US$2.73

• The stock trades on a trailing P/E of 7.4x, below the US Biotechs industry at 17.3x, and the supplied DCF fair value of US$10.29 sits well above the current share price of US$2.73.
• Bears highlight that, even with this low multiple, forecasts for revenue and earnings declining by 11.6% and 32.9% per year make the valuation signals harder to interpret:
  • The combination of a low P/E and a DCF fair value far above the share price suggests a wide gap between trailing numbers and what the market is willing to pay.
  • Given the forecast declines and the reliance on large milestone payments in recent results, skeptics focus on whether the current multiple is simply reflecting the risk that future revenue and earnings may not resemble the trailing figures.

Skeptical investors often point to the low P/E and the large gap to the DCF fair value as a sign that forecast declines are weighing heavily on expectations, and the full cautious case lays out that argument in 🐻 Compugen Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Compugen on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of risks and rewards in this update is hard to ignore, so it makes sense to look through the full picture yourself now and weigh up the 2 key rewards and 1 important warning sign.

See What Else Is Out There

Compugen’s story includes a reliance on one large Q4 payment, a recent return to losses, and forecasts that point to falling revenue and earnings.

If that concentration risk and earnings pressure leave you wanting steadier stories, compare this setup against 66 resilient stocks with low risk scores and see how more resilient balance sheets and cash flows can change your risk profile.

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.