Madrigal Pharmaceuticals (NASDAQ:MDGL) Issues Earnings Results, Beats Expectations By $0.69 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) announced its quarterly earnings data on Thursday. The biopharmaceutical company reported ($1.99) earnings per share for the quarter, topping the consensus estimate of ($2.68) by $0.69, FiscalAI reports. Madrigal Pharmaceuticals had a negative return on equity of 50.15% and a negative net margin of 27.32%.The firm had revenue of $364.25 million during the quarter, compared to analysts’ expectations of $352.13 million. During the same period in the previous year, the business posted ($1.90) EPS. The company’s quarterly revenue 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 Trading Down 9.8%

MDGL traded down $53.77 during midday trading on Thursday, reaching $493.11. 1,487,641 shares of the company were exchanged, compared to its average volume of 269,116. The stock has a market capitalization of $11.37 billion, a P/E ratio of -38.52 and a beta of -1.05. Madrigal Pharmaceuticals has a one year low of $290.00 and a one year high of $615.00. The stock’s 50-day simple moving average is $517.48 and its 200 day simple moving average is $499.27. The company has a debt-to-equity ratio of 0.63, a quick ratio of 3.16 and a current ratio of 3.50.

Insider Transactions at Madrigal Pharmaceuticals

In other news, Director Richard S. Levy sold 5,682 shares of the company’s stock in a transaction dated 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 sale, the director directly owned 22,015 shares of the company’s stock, valued at $11,347,411.60. This represents a 20.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available 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 Madrigal Pharmaceuticals stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $495.74, for a total transaction of $516,561.08. Following the transaction, the insider directly owned 10,033 shares in the company, valued at $4,973,759.42. The trade was a 9.41% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 7,568 shares of company stock valued at $3,880,711. 17.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

A number of hedge funds and other institutional investors have recently made changes to their positions in MDGL. Hsbc Holdings PLC bought a new stake in shares of Madrigal Pharmaceuticals in the 2nd quarter valued at $309,000. Qube Research & Technologies Ltd bought a new position in Madrigal Pharmaceuticals during the second quarter worth about $1,163,000. Sei Investments Co. grew its stake in Madrigal Pharmaceuticals by 73.6% in the second quarter. Sei Investments Co. now owns 17,542 shares of the biopharmaceutical company’s stock valued at $5,309,000 after acquiring an additional 7,438 shares during the period. The Manufacturers Life Insurance Company grew its stake in Madrigal Pharmaceuticals by 2.1% in the second quarter. The Manufacturers Life Insurance Company now owns 23,416 shares of the biopharmaceutical company’s stock valued at $7,087,000 after acquiring an additional 471 shares during the period. Finally, Bayesian Capital Management LP bought a new stake in shares of Madrigal Pharmaceuticals in the second quarter worth about $418,000. 98.50% of the stock is owned by institutional investors.

More Madrigal Pharmaceuticals News

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

• Positive Sentiment: Revenue and EPS beat expectations. Madrigal reported second-quarter revenue of $364.25 million, up 71.2% year over year and above the $352.13 million consensus estimate. Its loss of $1.99 per share was also narrower than analysts’ expected $2.68 loss. Madrigal Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Commercial performance remains a key strength. The substantial year-over-year revenue increase supports the continued launch and adoption of Madrigal’s MASH therapy, Rezdiffra, and provides evidence of growing demand for the company’s lead product. Madrigal Second-Quarter 2026 Results
• Positive Sentiment: Wells Fargo maintained a constructive view. Analysts at Wells Fargo assigned MDGL an Overweight rating, indicating expectations for further upside despite near-term volatility. Wells Fargo Overweight Rating
• Neutral Sentiment: Management’s earnings call and presentation provided additional corporate updates. Investors are focused on product execution, commercial expansion and the company’s progress toward improving operating results. Q2 2026 Earnings Call Transcript
• Negative Sentiment: Madrigal remains unprofitable. Although the quarterly loss beat estimates, the company continues to report negative net margin and return on equity, while analysts expect a full-year loss. That ongoing cash-burn and execution risk may be weighing on the shares, particularly after their strong prior performance. Madrigal Q2 2026 Earnings

Analysts Set New Price Targets

Several equities research analysts have recently commented on MDGL shares. Citigroup reiterated an “outperform” rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 17th. Bank of America cut their price objective on shares of Madrigal Pharmaceuticals from $550.00 to $542.00 and set a “neutral” rating on the stock in a report on Thursday, June 11th. Truist Financial raised their price objective on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a “buy” rating in a research note on Wednesday, May 13th. HC Wainwright reaffirmed a “buy” rating and set a $620.00 target price on shares of Madrigal Pharmaceuticals in a report on Wednesday, May 6th. Finally, Evercore set a $649.00 target price on shares of Madrigal Pharmaceuticals in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $688.33.

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.