Ligand Pharmaceuticals (NASDAQ:LGND) Announces Quarterly Earnings Results, Beats Expectations By $0.40 EPS

Ligand Pharmaceuticals (NASDAQ:LGND) announced its quarterly earnings data on Thursday. The biotechnology company reported $2.37 earnings per share for the quarter, beating the consensus estimate of $1.97 by $0.40, FiscalAI reports. Ligand Pharmaceuticals had a return on equity of 20.06% and a net margin of 67.88%.The firm had revenue of $63.69 million during the quarter, compared to analyst estimates of $61.30 million. During the same period in the previous year, the company earned $1.60 earnings per share. Ligand Pharmaceuticals’s quarterly revenue was up 33.8% on a year-over-year basis. Ligand Pharmaceuticals updated its FY 2026 guidance to 9.000-9.500 EPS.

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

• Second-quarter results exceeded growth expectations, with total revenue up 34% year over year to $64 million, royalty revenue up 32% to $48 million, and adjusted diluted EPS up 48% to $2.37.
• The recently closed XOMA Royalty acquisition adds more than 120 assets, including seven commercial programs and approximately 14 late-stage clinical programs, and is expected to contribute about $0.50 of adjusted EPS in the second half of 2026 and $1.50 in 2027.
• Ligand raised the low end of 2026 adjusted EPS guidance to $9.00 while maintaining the $9.50 upper end, reaffirmed royalty revenue guidance of $225 million-$250 million, and retains approximately $700 million of deployable capital plus expected operating cash flow exceeding $200 million in 2026.
• Management highlighted a catalyst-rich 18-month period, including up to seven pivotal readouts and potential approvals or label expansions for products such as QTORIN rapamycin, OJEMDA, volixibat, and VABYSMO, while acknowledging the inherent binary risk of clinical development.
• Mirum’s volixibat program in primary sclerosing cholangitis faces a timeline delay after the FDA recommended a Phase III trial; Ligand said the company is pursuing further discussions and now targets a potential submission in the first half of 2027.

Ligand Pharmaceuticals Stock Performance

LGND traded down $6.99 during trading on Friday, reaching $293.15. 313,611 shares of the company were exchanged, compared to its average volume of 300,344. The stock has a market cap of $5.87 billion, a P/E ratio of 31.35, a PEG ratio of 2.71 and a beta of 1.13. The firm has a 50 day moving average of $285.97 and a 200 day moving average of $235.30. The company has a current ratio of 34.52, a quick ratio of 20.95 and a debt-to-equity ratio of 1.16. Ligand Pharmaceuticals has a 52 week low of $137.14 and a 52 week high of $326.63.

Insider Buying and Selling

In other Ligand Pharmaceuticals news, Director Stephen L. Sabba sold 2,145 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $254.00, for a total value of $544,830.00. Following the sale, the director directly owned 33,629 shares in the company, valued at approximately $8,541,766. This trade represents a 6.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John L. Lamattina sold 4,591 shares of the business’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $250.88, for a total transaction of $1,151,790.08. Following the transaction, the director directly owned 26,969 shares of the company’s stock, valued at approximately $6,765,982.72. This trade represents a 14.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 35,231 shares of company stock valued at $9,199,401 in the last three months. 5.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Ligand Pharmaceuticals

Large investors have recently made changes to their positions in the company. Maryland State Retirement & Pension System grew its stake in shares of Ligand Pharmaceuticals by 2.2% in the 4th quarter. Maryland State Retirement & Pension System now owns 2,872 shares of the biotechnology company’s stock valued at $543,000 after buying an additional 61 shares in the last quarter. CIBC Private Wealth Group LLC raised its position in Ligand Pharmaceuticals by 86.3% during the third quarter. CIBC Private Wealth Group LLC now owns 149 shares of the biotechnology company’s stock valued at $26,000 after acquiring an additional 69 shares in the last quarter. Cerity Partners LLC raised its position in Ligand Pharmaceuticals by 5.4% during the fourth quarter. Cerity Partners LLC now owns 1,531 shares of the biotechnology company’s stock valued at $289,000 after acquiring an additional 79 shares in the last quarter. Blair William & Co. IL raised its position in Ligand Pharmaceuticals by 1.0% during the fourth quarter. Blair William & Co. IL now owns 8,474 shares of the biotechnology company’s stock valued at $1,602,000 after acquiring an additional 88 shares in the last quarter. Finally, Wellington Management Group LLP lifted its stake in Ligand Pharmaceuticals by 1.3% in the fourth quarter. Wellington Management Group LLP now owns 8,426 shares of the biotechnology company’s stock valued at $1,593,000 after acquiring an additional 110 shares during the last quarter. Institutional investors and hedge funds own 91.28% of the company’s stock.

Analysts Set New Price Targets

LGND has been the subject of several research reports. Citigroup began coverage on Ligand Pharmaceuticals in a research report on Tuesday, July 21st. They issued a “buy” rating and a $387.00 target price for the company. Stifel Nicolaus upped their price target on Ligand Pharmaceuticals from $255.00 to $332.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Weiss Ratings downgraded shares of Ligand Pharmaceuticals from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, May 15th. Royal Bank Of Canada lifted their price objective on shares of Ligand Pharmaceuticals from $340.00 to $345.00 and gave the stock an “outperform” rating in a report on Friday. Finally, HC Wainwright boosted their target price on shares of Ligand Pharmaceuticals from $289.00 to $358.00 and gave the company a “buy” rating in a research note on Thursday. Seven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $336.57.

Trending Headlines about Ligand Pharmaceuticals

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

• Positive Sentiment: Ligand reported second-quarter adjusted EPS of $2.37, beating analysts’ $1.95 consensus estimate, while revenue of $63.69 million exceeded expectations of $60.87 million. Revenue increased 33.8% year over year, and EPS rose from $1.60 in the prior-year quarter. Ligand Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its fiscal 2026 adjusted EPS outlook to $9.00-$9.50, above the $8.13 analyst consensus. The outlook implies continued earnings growth and supports the investment case for Ligand’s royalty-focused business model. Ligand Pharmaceuticals Q2 Adjusted Earnings, Revenue Rise; 2026 Adjusted EPS Outlook Lifted, Revenue Outlook Reaffirmed
• Positive Sentiment: Royal Bank of Canada raised its price target from $340 to $345 and maintained an “outperform” rating. HC Wainwright also lifted its target from $289 to $358 and assigned a “buy” rating, signaling that analysts see further upside. Analyst Price Target Updates
• Neutral Sentiment: Ligand reaffirmed fiscal 2026 revenue guidance of $270 million-$310 million. Although the midpoint is below the $287.5 million consensus estimate, the range remains consistent with the company’s previous outlook and may reflect the timing of royalty and licensing revenue. Ligand Pharmaceuticals 2026 Q2 Results Presentation
• Negative Sentiment: The stock’s decline following the earnings beat suggests investors may have been looking for a larger revenue outlook increase or may be locking in gains after the shares’ strong run. The mixed revenue guidance could be limiting the immediate reaction to the otherwise favorable results. Biopharma Royalty Powerhouse Dips Despite Beat-and-Raise Quarter

About Ligand Pharmaceuticals

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.