Axsome Therapeutics (NASDAQ:AXSM) Announces Earnings Results, Misses Expectations By $0.41 EPS

Axsome Therapeutics (NASDAQ:AXSM) released its earnings results on Monday. The company reported ($1.26) EPS for the quarter, missing the consensus estimate of ($0.85) by ($0.41), FiscalAI reports. The firm had revenue of $191.20 million during the quarter, compared to analysts’ expectations of $191.10 million. Axsome Therapeutics had a negative return on equity of 246.90% and a negative net margin of 26.59%.The firm’s quarterly revenue was up 57.4% on a year-over-year basis.

Here are the key takeaways from Axsome Therapeutics’ conference call:

• FDA approved Auvelity for agitation associated with Alzheimer’s disease (first‑in‑class) and Axsome raised the Auvelity franchise peak sales outlook to at least $8 billion, roughly split between MDD and ADA.
• Axsome reported Q1 revenue of $191.2 million (up 57% YoY) with Auvelity net product revenue of $153.2 million, and ended the quarter with about $305 million in cash, which management says funds operations into cash‑flow positivity under the current plan.
• Management substantially expanded commercial reach — Auvelity sales force to ~630 reps and Symbravo to ~150 reps, with improved payer coverage (Auvelity ~86% of lives) to support the June launch for Alzheimer’s agitation and broader uptake.
• Pipeline advancement — NDA submitted for AXS‑12 (cataplexy/narcolepsy), multiple Phase III initiations imminent (AXS‑05 smoking cessation, solriamfetol programs, AXS‑14 fibromyalgia), and acquisition of AXS‑20 (PDE10A) for schizophrenia and Tourette syndrome.
• Near‑term margin pressure — SG&A rose to $185 million (driven by pre‑launch and sales expansion), R&D increased to $52.7 million, net loss widened to $64.5 million, and gross‑to‑net discounts remain elevated (Auvelity/Sunosi low‑mid 50s; Symbravo high 70s), which could weigh on near‑term profitability.

Axsome Therapeutics Stock Performance

Shares of NASDAQ AXSM opened at $223.06 on Wednesday. Axsome Therapeutics has a 1 year low of $96.09 and a 1 year high of $234.29. The firm has a market cap of $11.47 billion, a P/E ratio of -59.80 and a beta of 0.59. The stock has a fifty day moving average price of $171.73 and a two-hundred day moving average price of $163.34. The company has a debt-to-equity ratio of 1.38, a quick ratio of 1.48 and a current ratio of 1.55.

More Axsome Therapeutics News

Here are the key news stories impacting Axsome Therapeutics this week:

• Positive Sentiment: Robust top-line beat — 1Q revenue surged ~57% YoY to $191.2M driven by AUVELITY ($153.2M) and SUNOSI ($33.9M), showing commercial traction that supports future growth expectations. Axsome 1Q 2026 Financial Results
• Positive Sentiment: Analyst upside — several firms raised price targets (notably Mizuho to $310, Wells Fargo to $255, Baird to $246, Morgan Stanley to $242), increasing near‑term upside expectations and supporting sentiment. Analyst Coverage & Price Target Moves
• Positive Sentiment: Pipeline & catalysts remain in play — AUVELITY label expansions, pending NDAs (e.g., AXS‑12) and additions to the pipeline keep medium/long‑term growth optionality for investors. Business Update & Pipeline Highlights
• Neutral Sentiment: Management outreach — company to participate in investor conferences (BofA fireside chat, etc.), which could provide more color but have uncertain immediate impact. Investor Conference Participation
• Neutral Sentiment: Deep-dive materials available — full earnings/call transcripts and slide deck released; useful for investors who want to parse sequential trends and guidance. Earnings Call Transcript & Analysis
• Negative Sentiment: Earnings miss and profitability concerns — GAAP EPS of ($1.26) missed consensus (~$0.85 loss); negative margins and ROE raise near‑term profitability concerns despite revenue strength. Q1 Loss Widens; Revenues Jump (Zacks)
• Negative Sentiment: Insider selling — COO Mark Jacobson reduced holdings via sales (SEC filings show transactions on May 4–5), which can be interpreted negatively by some investors even if small relative to institutional ownership. COO Insider Sales
• Negative Sentiment: Skepticism on sustainability — analysts and commentators flag sequential sales softness for key products and question the ambitious long‑term peak revenue targets management cited. Earnings Review & Skepticism (Seeking Alpha)

Analyst Upgrades and Downgrades

AXSM has been the topic of several analyst reports. Morgan Stanley raised their price objective on Axsome Therapeutics from $217.00 to $242.00 and gave the stock an “equal weight” rating in a report on Tuesday. Mizuho raised their price target on Axsome Therapeutics from $228.00 to $310.00 and gave the stock an “outperform” rating in a research note on Tuesday. Wolfe Research started coverage on Axsome Therapeutics in a report on Monday, February 23rd. They issued an “outperform” rating and a $230.00 price target for the company. HC Wainwright upped their price objective on shares of Axsome Therapeutics from $270.00 to $290.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, UBS Group raised their target price on shares of Axsome Therapeutics from $251.00 to $259.00 and gave the stock a “buy” rating in a research report on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Axsome Therapeutics has an average rating of “Moderate Buy” and a consensus price target of $251.26.

Insider Transactions at Axsome Therapeutics

In other news, COO Mark L. Jacobson sold 233 shares of the company’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $228.18, for a total value of $53,165.94. Following the completion of the sale, the chief operating officer owned 4,517 shares in the company, valued at $1,030,689.06. This represents a 4.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Ari Maizel sold 7,500 shares of the firm’s stock in a transaction dated Wednesday, April 22nd. The shares were sold at an average price of $182.42, for a total value of $1,368,150.00. Following the transaction, the insider directly owned 7,500 shares of the company’s stock, valued at $1,368,150. This represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 72,628 shares of company stock valued at $12,205,662. Corporate insiders own 20.60% of the company’s stock.

Hedge Funds Weigh In On Axsome Therapeutics

Large investors have recently made changes to their positions in the business. Wellington Management Group LLP lifted its position in shares of Axsome Therapeutics by 84.1% during the 3rd quarter. Wellington Management Group LLP now owns 1,334,560 shares of the company’s stock valued at $162,082,000 after acquiring an additional 609,516 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Axsome Therapeutics by 45.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,509,870 shares of the company’s stock worth $275,763,000 after purchasing an additional 472,422 shares during the period. Invesco Ltd. raised its position in shares of Axsome Therapeutics by 73.3% during the third quarter. Invesco Ltd. now owns 990,557 shares of the company’s stock worth $120,303,000 after purchasing an additional 419,008 shares during the period. Adage Capital Partners GP L.L.C. lifted its holdings in shares of Axsome Therapeutics by 831.3% during the second quarter. Adage Capital Partners GP L.L.C. now owns 447,000 shares of the company’s stock valued at $46,662,000 after purchasing an additional 399,000 shares during the last quarter. Finally, Marshall Wace LLP lifted its holdings in shares of Axsome Therapeutics by 566.5% during the third quarter. Marshall Wace LLP now owns 378,024 shares of the company’s stock valued at $45,911,000 after purchasing an additional 321,308 shares during the last quarter. Institutional investors own 81.49% of the company’s stock.

About Axsome Therapeutics

Axsome Therapeutics, Inc is a clinical-stage biopharmaceutical company dedicated to developing novel therapies for central nervous system (CNS) disorders. The company focuses on small-molecule drugs designed to address unmet medical needs in areas such as depression, migraine, narcolepsy and fibromyalgia. Axsome employs a precision medicine approach, leveraging pharmacologic innovation to target underlying mechanisms of disease and improve patient outcomes.

Axsome’s pipeline includes several late-stage and approved product candidates.