Exelixis Stock Soars on Impressive Quarterly Performance

Exelixis has delivered a standout performance in the third quarter of 2025, substantially exceeding investor forecasts. While numerous biotechnology firms grapple with inconsistent results, this oncology-focused enterprise demonstrates a clear path to sustained expansion. The critical question for investors is whether this positive trajectory can be maintained.

The company's financial health was prominently displayed in its latest earnings report. Revenue climbed to $597.76 million, a significant 10.8% increase compared to the same period last year. Earnings per share reached $0.78, comfortably surpassing the $0.68 consensus estimate from market analysts. These figures not only highlight the firm's operational excellence but also confirm persistent, strong demand for its cancer therapeutics.

Market Experts Revise Price Targets Upward

The compelling quarterly data captured immediate attention on Wall Street, prompting several financial institutions to upgrade their valuations for Exelixis shares.

• TD Cowen presented the most optimistic outlook, raising its target to $51.
• HC Wainwright lifted its price objective from $46 to $49.
• UBS also increased its forecast, moving from $35 to $40.

The collective average price target among 18 covering analysts now stands at $44.61, suggesting a potential upside of more than 25% from current trading levels.

Should investors sell immediately? Or is it worth buying Exelixis?

Flagship Drug CABOMETYX Captures Market Share

The cornerstone of this success is CABOMETYX, Exelixis's leading therapeutic product. The drug generated $520 million in sales last quarter, representing a robust 19% growth. More notably, CABOMETYX was the sole product in its class to expand its market presence, growing its share from 42% to 46%. This performance underscores the treatment's continued clinical importance and the effectiveness of the company's commercial strategy. Furthermore, Exelixis has demonstrated disciplined financial management through optimized research spending and a more precise annual forecast.

Strong Institutional Backing and Capital Return

Confidence in the long-term corporate strategy is evident in the company's shareholder base. Institutional investors now hold 85.27% of all shares, a strong indicator of the firm's credibility. Prominent asset managers, including Bank of America and Raymond James, augmented their holdings during the second quarter.

Adding to shareholder value, the company is actively engaged in a share repurchase initiative, buying back $301.8 million of its own stock in the second quarter alone. This action not only signals management's belief in the company's future prospects but also provides a direct benefit to remaining investors.

With scheduled appearances at major healthcare conferences in the coming week, Exelixis remains in the spotlight, offering further opportunities to articulate its growth narrative. All eyes are now on whether this biotech standout can sustain its impressive ascent.