EXEL

Exelixis is a rare profitable, self-funding oncology company built around its flagship cabozantinib (CABOMETYX) franchise. FY2026 revenue grew 7.0% to $2.32B while net income jumped 50.1% to $783M and diluted EPS rose 58.0% to $2.78, with the EPS outpacing net income thanks to a 7.2% reduction in shares outstanding. Profitability is exceptional for biotech — 37.6% operating margin, 33.7% net margin and a 36.2% ROE — and the balance sheet is pristine: no long-term debt, $482M cash (up 122.0%) and just 0.32x liabilities/equity. CABOMETYX net product revenue grew 18% to $2.11B on a 16% increase in units sold, driven by durable demand for the nivolumab combination in first-line RCC and the new NET indication.

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