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.

Capital allocation is shareholder-friendly and confident: $948M of buybacks (up 45.3%) shrank the float, and the company funds an $825M R&D program entirely from operating cash flow of $884M (up 26.3%). This lets Exelixis advance a deep pipeline without dilution or debt — the lead asset zanzalintinib is under FDA review for certain forms of colorectal cancer with an extensive late-stage program (CRC, ccRCC/nccRCC, NET, meningioma), plus phase-1 'best-in-class' candidates including a USP1 inhibitor, ADCs and a PD-L1/NKG2A bispecific.