Madrigal Pharmaceuticals (NASDAQ:MDGL) Posts Earnings Results, Beats Estimates By $0.69 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) released its quarterly earnings data on Thursday. The biopharmaceutical company reported ($1.99) EPS for the quarter, topping analysts’ consensus estimates of ($2.68) by $0.69, FiscalAI reports. Madrigal Pharmaceuticals had a negative net margin of 25.32% and a negative return on equity of 55.04%. The company had revenue of $364.25 million during the quarter, compared to the consensus estimate of $352.13 million. During the same period last year, the firm earned ($1.90) EPS. The firm’s revenue for the quarter was up 71.2% compared to the same quarter last year.

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

• Rezdiffra sales and patient growth remained strong: Second-quarter net sales reached $364.3 million, up 71% year over year, with more than 49,000 active patients at quarter-end and over 50,000 reached in July. Management said it remains comfortable with consensus growth expectations for the rest of 2026.
• The U.S. addressable F2/F3 MASH market has expanded nearly 50% since year-end 2023, while diagnosis and treatment penetration remain low. Madrigal expects double-digit market growth for the foreseeable future and views the untreated F4C population as potentially capable of doubling Rezdiffra’s opportunity.
• Madrigal reported progress in extending Rezdiffra’s commercial life and building its pipeline, including new patents supporting F2/F3 protection through 2045 and additional F4C protection into the 2040s. The company expects to initiate three Phase II combination trials in 2027 involving an oral GLP-1, a DGAT2 inhibitor, and an siRNA targeting PNPLA3.
• The F4C MAESTRO-NASH Outcomes trial continues to accrue events and remains on track for a 2027 readout, but executives did not provide a more precise timing estimate or confirm the final event threshold. Management emphasized that the trial is pioneering and that event-rate uncertainty makes timing difficult to narrow.
• Despite strong revenue growth, the company posted a second-quarter net loss of $57.9 million, while cash, restricted cash, and marketable securities declined to $838.9 million from $988.6 million at year-end 2025. SG&A is expected to rise in 2026 as Madrigal continues commercial investment, and European revenue is expected to remain negligible because of reimbursement and pricing uncertainty.

Madrigal Pharmaceuticals Price Performance

Shares of NASDAQ MDGL traded down $25.79 during mid-day trading on Friday, hitting $467.32. 795,230 shares of the stock were exchanged, compared to its average volume of 332,407. Madrigal Pharmaceuticals has a twelve month low of $290.00 and a twelve month high of $615.00. The stock’s fifty day simple moving average is $516.48 and its two-hundred day simple moving average is $499.05. The company has a debt-to-equity ratio of 0.63, a quick ratio of 3.16 and a current ratio of 3.50. The company has a market cap of $10.78 billion, a P/E ratio of -36.25 and a beta of -1.05.

Key Headlines Impacting Madrigal Pharmaceuticals

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

• Positive Sentiment: Rezdiffra continues to drive strong revenue growth. Second-quarter revenue reached $364.25 million, up 71.2% year over year and above the $352.13 million analyst consensus, reflecting continued demand for the company’s MASH drug. Madrigal Pharmaceuticals Reports Second-Quarter 2026 Financial Results and Provides Corporate Updates
• Positive Sentiment: The quarterly loss was narrower than expected. Madrigal reported a loss of $1.99 per share, beating estimates ranging from $2.55 to $2.68 per share, although the loss was wider than the $1.90-per-share loss recorded a year earlier. Madrigal Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Analyst support remains favorable. Wells Fargo assigned Madrigal an Overweight rating, providing a positive signal for the company’s outlook. Madrigal Earns Overweight Rating from Wells Fargo
• Neutral Sentiment: Madrigal’s earnings call and quarterly presentation highlighted Rezdiffra’s contribution to the business and the company’s ongoing development efforts, but investors are weighing the pace of the commercial launch against the stock’s elevated valuation. Madrigal Q2 2026 Earnings Call Transcript
• Negative Sentiment: Shares fell despite the earnings beat. Investors appear concerned that Rezdiffra’s commercial growth is moderating, making the strong year-over-year revenue increase less compelling and raising expectations for evidence of sustained prescribing and sales momentum. MDGL Stock Down Despite Q2 Beat

Insider Activity at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, Director Richard S. Levy sold 5,682 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $515.44, for a total value of $2,928,730.08. Following the completion of the transaction, the director owned 22,015 shares in the company, valued at approximately $11,347,411.60. The trade was a 20.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Soergel sold 1,042 shares of the business’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $495.74, for a total value of $516,561.08. Following the completion of the transaction, the insider directly owned 10,033 shares in the company, valued at approximately $4,973,759.42. This represents a 9.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 7,568 shares of company stock worth $3,880,711 over the last three months. 17.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

A number of hedge funds have recently added to or reduced their stakes in the stock. Wellington Management Group LLP lifted its position in shares of Madrigal Pharmaceuticals by 14.1% during the fourth quarter. Wellington Management Group LLP now owns 461,402 shares of the biopharmaceutical company’s stock worth $268,693,000 after purchasing an additional 56,947 shares in the last quarter. Invesco Ltd. boosted its position in Madrigal Pharmaceuticals by 21.9% in the 4th quarter. Invesco Ltd. now owns 365,314 shares of the biopharmaceutical company’s stock valued at $212,737,000 after buying an additional 65,749 shares during the last quarter. Bank of America Corp DE raised its position in shares of Madrigal Pharmaceuticals by 12.7% during the second quarter. Bank of America Corp DE now owns 277,221 shares of the biopharmaceutical company’s stock worth $83,898,000 after acquiring an additional 31,260 shares during the last quarter. Polar Capital Holdings Plc lifted its stake in shares of Madrigal Pharmaceuticals by 17.6% during the third quarter. Polar Capital Holdings Plc now owns 265,154 shares of the biopharmaceutical company’s stock valued at $121,616,000 after acquiring an additional 39,744 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its holdings in Madrigal Pharmaceuticals by 2.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 219,099 shares of the biopharmaceutical company’s stock valued at $127,590,000 after acquiring an additional 5,447 shares during the last quarter. Institutional investors own 98.50% of the company’s stock.

Analysts Set New Price Targets

Several research firms recently issued reports on MDGL. HC Wainwright reissued a “buy” rating on shares of Madrigal Pharmaceuticals in a research report on Friday. Evercore set a $649.00 price objective on Madrigal Pharmaceuticals in a report on Thursday, May 7th. Piper Sandler reiterated an “overweight” rating on shares of Madrigal Pharmaceuticals in a research note on Wednesday, June 24th. Citigroup restated an “outperform” rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 17th. Finally, Canaccord Genuity Group upped their price target on Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the company a “buy” rating in a research report on Wednesday. Fourteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $688.20.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the development of innovative therapies for cardiovascular, metabolic and liver diseases. The company’s pipeline centers on novel, liver-directed agents designed to address significant unmet medical needs, with an emphasis on nonalcoholic steatohepatitis (NASH) and related metabolic disorders.

The lead product candidate, resmetirom (MGL-3196), is an orally administered, selective thyroid hormone receptor-β agonist in Phase 3 development for the treatment of NASH.