• Earlier this week, Exelixis released its second quarter 2025 results, disclosed total revenue of US$568.26 million for the quarter, reaffirmed full-year earnings guidance, and announced the completion of buybacks totaling 5.06% of shares outstanding across two repurchase programs.
• Despite quarterly revenue falling year over year, net income and earnings per share improved for the first half, while the company's buyback activity signals management's commitment to shareholder returns.
• We’ll explore how reaffirmed guidance and the conclusion of sizable share repurchases could influence Exelixis’s long-term investment outlook.

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Exelixis Investment Narrative Recap

To hold Exelixis shares, you have to believe in the company’s ability to extend its success beyond dependence on CABOMETYX, particularly as it faces potential market changes and competition. This quarter’s results and reaffirmed guidance do not materially alter the most important short-term catalyst, the continued uptake of CABOMETYX in new oncology indications, nor do they reduce the biggest risk: overreliance on this one drug despite pipeline progress.

The recent completion of share buybacks covering over 5% of outstanding shares is the standout announcement, returning capital to investors while underscoring management’s confidence amid ongoing revenue pressures. However, for those focused on growth, these buybacks may not address concerns around future revenue sources as the product mix remains highly concentrated.

On the other hand, investors should be aware that even as buybacks support per-share metrics, the risk of future revenue pressure from ...

Read the full narrative on Exelixis (it's free!)

Exelixis' outlook forecasts $3.1 billion in revenue and $1.2 billion in earnings by 2028. This scenario implies a 12.0% annual revenue growth rate and an earnings increase of about $598 million from the current $602.3 million.

Uncover how Exelixis' forecasts yield a $45.37 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community estimate Exelixis’s fair value anywhere from US$36.07 to US$215.68 per share. As debate continues about long-term revenue diversification beyond CABOMETYX, consider how varied outlooks can influence your own expectations and research.

Explore 8 other fair value estimates on Exelixis - why the stock might be worth just $36.07!

Build Your Own Exelixis 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 Exelixis research is our analysis highlighting 3 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.

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