• Arrowhead Pharmaceuticals reported first-quarter 2026 results showing sales of US$264.03 million versus US$2.5 million a year earlier and net income of US$30.81 million, while also being added to the S&P MidCap 400 and its health care and biotechnology subsectors after leaving the S&P SmallCap 600.
• The move from a loss per share of US$1.39 to earnings of US$0.22, alongside index reclassification into the mid-cap benchmarks, highlights a rapid shift in Arrowhead’s scale and financial profile.
• Now we’ll consider how Arrowhead’s sharp swing to quarterly profitability reshapes its earlier investment narrative built around future potential.

Capitalize on the AI infrastructure supercycle with our selection of the 34 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow.

Arrowhead Pharmaceuticals Investment Narrative Recap

To own Arrowhead today, you need to believe its RNAi platform and partnered products can turn recent profitability into something durable, while recognizing that near term value still hinges on clinical and commercial traction for key cardiometabolic assets like plozasiran. The first quarter swing to a US$30.81 million profit and inclusion in the S&P MidCap 400 are encouraging signals, but they do not remove the execution risk tied to late stage trials, competitive pressure and partner dependent revenue.

The most relevant recent development here is Arrowhead’s move into the S&P MidCap 400, alongside its health care and biotechnology subsectors. This shift can broaden the shareholder base via index-linked buying and may modestly support liquidity around upcoming catalysts such as Phase 3 readouts and partner launch progress. However, it does not change the underlying scientific, regulatory or reimbursement risks that still drive the long term Arrowhead story.

Yet against this strong quarter, investors should be aware that partner reliance and trial outcomes could still...

Arrowhead Pharmaceuticals’ narrative projects $398.8 million revenue and $64.0 million earnings by 2028.

Uncover how Arrowhead Pharmaceuticals' forecasts yield a $64.08 fair value, in line with its current price.

Exploring Other Perspectives

Some of the most pessimistic analysts were assuming revenue might shrink about 48.6 percent per year and still reach only US$77.9 million by 2028, which is a very different view from a thesis built around diversified late stage RNAi assets and partner support. Your own take on this latest US$264.03 million quarter could shift how reasonable that bearish path still looks, so it is worth comparing these extremes before you decide where you stand.

Explore 3 other fair value estimates on Arrowhead Pharmaceuticals - why the stock might be worth over 2x more than the current price!

Build Your Own Arrowhead Pharmaceuticals Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arrowhead Pharmaceuticals research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Arrowhead Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arrowhead Pharmaceuticals' overall financial health at a glance.

No Opportunity In Arrowhead Pharmaceuticals?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• Outshine the giants: these 28 early-stage AI stocks could fund your retirement.
• Invest in the nuclear renaissance through our list of 85 elite nuclear energy infrastructure plays powering the global AI revolution.
• Find 53 companies with promising cash flow potential yet trading below their fair value.

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.