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

Ligand Pharmaceuticals (NASDAQ:LGND) announced its quarterly earnings results on Thursday. The biotechnology company reported $2.02 earnings per share for the quarter, beating analysts’ consensus estimates of $1.46 by $0.56, FiscalAI reports. Ligand Pharmaceuticals had a net margin of 19.34% and a return on equity of 5.71%. The company had revenue of $59.67 million for the quarter, compared to analyst estimates of $55.59 million. During the same quarter last year, the business earned $1.27 EPS. Ligand Pharmaceuticals’s revenue for the quarter was up 39.5% on a year-over-year basis. 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 Stock Performance

NASDAQ LGND traded up $4.78 during trading hours on Thursday, reaching $196.17. The company’s stock had a trading volume of 256,576 shares, compared to its average volume of 171,359. The company has a current ratio of 24.69, a quick ratio of 24.30 and a debt-to-equity ratio of 0.47. The business has a 50-day simple moving average of $193.50 and a 200 day simple moving average of $185.01. Ligand Pharmaceuticals has a 52 week low of $93.58 and a 52 week high of $212.49. The stock has a market cap of $3.86 billion, a PE ratio of 94.77 and a beta of 1.14.

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%

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on LGND. Citigroup assumed coverage on shares of Ligand Pharmaceuticals in a research report on Tuesday, December 9th. They set a “buy” rating and a $270.00 target price for the company. Oppenheimer raised their price target on shares of Ligand Pharmaceuticals from $190.00 to $250.00 and gave the company an “outperform” rating in a report on Monday, November 3rd. Weiss Ratings restated a “hold (c)” rating on shares of Ligand Pharmaceuticals in a research note on Monday, December 29th. Benchmark upped their price target on shares of Ligand Pharmaceuticals from $175.00 to $220.00 and gave the company a “buy” rating in a report on Friday, November 7th. Finally, Stifel Nicolaus upped their target price 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. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $240.67.

Insider Activity at Ligand Pharmaceuticals

In related news, Director John W. Kozarich sold 467 shares of the company’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $195.91, for a total transaction of $91,489.97. Following the completion of the transaction, the director directly owned 43,187 shares in the company, valued at $8,460,765.17. This represents a 1.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Octavio Espinoza sold 1,804 shares of the stock in a transaction on Friday, December 12th. The stock was 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 in the company, valued at $4,931,085.66. This represents a 6.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 3,205 shares of company stock valued at $611,192 over the last ninety days. Corporate insiders own 7.00% of the company’s stock.

Hedge Funds Weigh In On Ligand Pharmaceuticals

Institutional investors have recently modified their holdings of the company. CIBC Private Wealth Group LLC increased its stake in shares of Ligand Pharmaceuticals by 86.3% in the third quarter. CIBC Private Wealth Group LLC now owns 149 shares of the biotechnology company’s stock valued at $26,000 after purchasing an additional 69 shares during the period. Kestra Advisory Services LLC acquired a new stake in Ligand Pharmaceuticals in the 4th quarter valued at approximately $31,000. JPL Wealth Management LLC bought a new stake in Ligand Pharmaceuticals during the 3rd quarter valued at $52,000. Persistent Asset Partners Ltd acquired a new position in Ligand Pharmaceuticals during the 4th quarter worth $150,000. Finally, State of Wyoming bought a new position in shares of Ligand Pharmaceuticals in the fourth quarter worth $169,000. Institutional investors own 91.28% of the company’s stock.

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.