Ligand Pharmaceuticals (NASDAQ:LGND) Releases Quarterly Earnings Results, Beats Expectations By $0.56 EPS

Ligand Pharmaceuticals (NASDAQ:LGND) released its quarterly earnings results on Thursday. The biotechnology company reported $2.02 earnings per share for the quarter, topping analysts’ consensus estimates of $1.46 by $0.56, FiscalAI reports. Ligand Pharmaceuticals had a return on equity of 5.71% and a net margin of 19.34%.The business had revenue of $59.67 million for the quarter, compared to analysts’ expectations of $55.59 million. During the same quarter in the prior year, the firm posted $1.27 EPS. The company’s revenue was up 39.5% compared to the same quarter last year. Ligand Pharmaceuticals updated its FY 2026 guidance to 8.000-9.000 EPS.

Here are the key takeaways from Ligand Pharmaceuticals’ conference call:

• Ligand delivered a breakout 2025 with adjusted EPS up 42% and royalty revenue up 48%, reporting core revenue of $240M (ex?Pelthos) and ending the year with over $1 billion in deployable capital.
• Commercial royalties from FILSPARI, Ohtuvayre, CAPVAXIVE and QARZIBA were the primary growth drivers (FILSPARI US sales $322M; Ohtuvayre ~ $506M; CAPVAXIVE $755M FY), supporting continued royalty scaling into 2026.
• Palvella’s QTORIN rapamycin produced highly significant Phase 3 MLM results with strong tolerability, setting up an NDA in H2 2026 and a potential first?in?class approval that Ligand estimates could translate to roughly $100M–$300M peak annual royalties.
• Management reaffirmed 2026 guidance (adjusted EPS $8–$9; royalty revenue $200–$225M) but cautioned the midpoint growth is muted by a 2025 one?time out?license fee and a modest, risk?adjusted $4M FSGS royalty assumption reflecting a delayed PDUFA.
• Ligand is accelerating business development and has launched a systematic portfolio?management approach, adding late?stage opportunities (e.g., lasofoxifene, Castle Creek D?Fi) intended to drive further royalty growth and deal origination.

Ligand Pharmaceuticals Trading Up 2.5%

Shares of Ligand Pharmaceuticals stock traded up $4.78 during mid-day trading on Thursday, hitting $196.17. 256,576 shares of the stock were exchanged, compared to its average volume of 171,359. Ligand Pharmaceuticals has a twelve month low of $93.58 and a twelve month high of $212.49. The stock has a market capitalization of $3.86 billion, a price-to-earnings ratio of 94.77 and a beta of 1.14. The company has a 50-day simple moving average of $193.50 and a 200 day simple moving average of $185.01. The company has a current ratio of 24.69, a quick ratio of 24.30 and a debt-to-equity ratio of 0.47.

Ligand Pharmaceuticals News Roundup

Here are the key news stories impacting Ligand Pharmaceuticals this week:

• Positive Sentiment: Q4 results beat — Non?GAAP EPS of $2.02 and revenue of $59.7M topped Street estimates, showing 39.5% Y/Y revenue growth and stronger margins; this supports upside to current valuation. Ligand Pharmaceuticals Non?GAAP EPS of $2.02 beats
• Positive Sentiment: Very bullish FY?2026 earnings guide — management reiterated guidance for adjusted EPS of $8.00–$9.00 (well above the prior consensus ~$4.85), signaling material profit growth ahead and likely driving buying interest. Ligand Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Analyst support — at least one sell?side note flagged upside potential after the results and guide, reinforcing short?term bullish momentum. Ligand Stock Expected to Rise, HC Wainwright Says
• Neutral Sentiment: Revenue guidance is a wide range ($245M–$285M) that spans below and above consensus (~$266M); while EPS guide is strong, the revenue band leaves execution uncertainty that could temper enthusiasm. Ligand: Q4 Earnings Snapshot
• Negative Sentiment: Intraday volatility / profit?taking noted — some outlets highlighted a pullback (reported declines intraday) as investors digest the guidance range and rich valuation (LGND carries a high P/E), which could pressure the stock in the near term. Why LGND Stock Is Down 5.99%

Analysts Set New Price Targets

A number of research firms have commented on LGND. Oppenheimer boosted their target price on Ligand Pharmaceuticals from $190.00 to $250.00 and gave the stock an “outperform” rating in a research report on Monday, November 3rd. Royal Bank Of Canada lifted their price target on Ligand Pharmaceuticals from $234.00 to $235.00 and gave the stock an “outperform” rating in a research note on Wednesday, December 10th. Stifel Nicolaus increased their price objective on shares of Ligand Pharmaceuticals from $220.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, December 10th. Citigroup began coverage on shares of Ligand Pharmaceuticals in a report on Tuesday, December 9th. They set a “buy” rating and a $270.00 target price for the company. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Ligand Pharmaceuticals in a research report on Monday, December 29th. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Ligand Pharmaceuticals presently has an average rating of “Moderate Buy” and an average price target of $240.67.

Insider Buying and Selling

In other Ligand Pharmaceuticals news, CFO Octavio Espinoza sold 1,804 shares of Ligand Pharmaceuticals stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $188.31, for a total value of $339,711.24. Following the completion of the sale, the chief financial officer directly owned 26,186 shares of the company’s stock, valued at approximately $4,931,085.66. The trade was a 6.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John W. Kozarich sold 467 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $195.91, for a total value of $91,489.97. Following the completion of the transaction, the director owned 43,187 shares of the company’s stock, valued at $8,460,765.17. This trade represents a 1.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 3,205 shares of company stock valued at $611,192. Company insiders own 7.00% of the company’s stock.

Hedge Funds Weigh In On Ligand Pharmaceuticals

Several institutional investors have recently added to or reduced their stakes in LGND. Royal Bank of Canada boosted its stake in Ligand Pharmaceuticals by 25.8% in the 1st quarter. Royal Bank of Canada now owns 6,120 shares of the biotechnology company’s stock worth $644,000 after buying an additional 1,256 shares during the last quarter. AQR Capital Management LLC acquired a new stake in shares of Ligand Pharmaceuticals in the first quarter worth approximately $344,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Ligand Pharmaceuticals by 8.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,660 shares of the biotechnology company’s stock worth $1,121,000 after acquiring an additional 809 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Ligand Pharmaceuticals by 9.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 55,327 shares of the biotechnology company’s stock valued at $5,817,000 after purchasing an additional 4,926 shares during the period. Finally, Jane Street Group LLC increased its position in Ligand Pharmaceuticals by 176.2% during the first quarter. Jane Street Group LLC now owns 36,922 shares of the biotechnology company’s stock worth $3,882,000 after purchasing an additional 23,553 shares during the last quarter. 91.28% of the stock is currently owned by institutional investors and hedge funds.

Ligand Pharmaceuticals Company Profile

Ligand Pharmaceuticals, Inc is a biopharmaceutical company that acquires, develops and out-licenses proprietary technologies designed to help pharmaceutical and biotechnology companies discover and develop novel medicines. Operating primarily through its research services and royalty-generating businesses, Ligand focuses on building a diversified portfolio of technology platforms and partnering with industry leaders to advance therapeutic candidates across multiple disease areas.

The company’s product offerings center around several core platforms.