Madrigal Pharmaceuticals (NASDAQ:MDGL) Posts Earnings Results, Beats Estimates By $2.92 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) issued its quarterly earnings data on Tuesday. The biopharmaceutical company reported $1.83 earnings per share for the quarter, beating analysts’ consensus estimates of ($1.09) by $2.92, Zacks reports. Madrigal Pharmaceuticals had a negative return on equity of 27.93% and a negative net margin of 10.89%. The business had revenue of $431.27 million for the quarter, compared to the consensus estimate of $404.17 million. During the same period last year, the business earned ($5.08) EPS.

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

• REZDIFFRA sales continued to accelerate: Third-quarter net sales rose 50% year over year to $431.3 million, bringing year-to-date sales to $1.1 billion and an annualized run rate above $1.7 billion. Active patients nearly doubled year over year to more than 55,850.
• Management estimates the U.S. F2/F3 MASH market will grow by more than 30% in 2026, while diagnosis and treatment penetration remain around 10% each. The company sees substantial long-term runway, supported by REZDIFFRA’s expected patent protection through 2045.
• Madrigal expects a late-2027 readout for its 845-patient MAESTRO-NASH-OUTCOMES trial in F4C MASH, with events accruing and dropout rates tracking expectations. The company plans to initiate the larger, CSPH-enriched MAESTRO-CSPH Phase III trial in the first half of 2027, but results are not expected until the early 2030s.
• The company reported its first profitable quarter, with net income of $55.4 million and positive operating cash flow for the second consecutive quarter; cash stood at $961.8 million. Management expects to remain focused on growth and may move in and out of profitability as it funds commercial expansion, F4C trials, and pipeline programs.
• Madrigal plans to initiate three Phase II combination trials in 2027 involving resmetirom with a DGAT2 inhibitor, an oral GLP-1 agonist, and a PNPLA3-targeting siRNA. The company says its broader pipeline now includes more than 10 resmetirom combination programs.

Madrigal Pharmaceuticals Stock Performance

Shares of NASDAQ MDGL traded up $6.57 during trading hours on Thursday, hitting $407.00. 554,080 shares of the company’s stock were exchanged, compared to its average volume of 347,786. Madrigal Pharmaceuticals has a 1-year low of $353.54 and a 1-year high of $615.00. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.20 and a quick ratio of 2.94. The stock has a market capitalization of $9.40 billion, a price-to-earnings ratio of -68.00 and a beta of -0.98. The company’s 50-day moving average price is $492.40 and its 200-day moving average price is $498.45.

More Madrigal Pharmaceuticals News

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

• Positive Sentiment: Madrigal announced new real-world Rezdiffra data for presentation at AASLD 2026, reporting improvements in liver stiffness and cardiometabolic health markers. A separate report highlights improvements across four studies, adding to evidence supporting the drug’s use in MASH. Company announcement Study coverage
• Positive Sentiment: Recent Q3 results showed a swing to profit, with EPS of $1.83 versus the consensus estimate of a $1.09 loss, and revenue of $431.27 million topping expectations. Rezdiffra sales were reported above $1 billion, reinforcing the commercial growth case. Q3 results coverage
• Positive Sentiment: Analyst sentiment is favorable: HC Wainwright initiated coverage with a Strong Buy rating, while Canaccord raised its target to $633, Truist lifted its target to $743 and reaffirmed Buy, and Citi raised its target to $760. These ratings may support expectations for further upside, though targets are not guarantees. HC Wainwright coverage
• Negative Sentiment: Two law firms announced investigations into potential securities-law violations involving Madrigal. These are investigations, not findings of wrongdoing, but the headlines could add uncertainty for investors. Investigation announcement

Insider Activity at Madrigal Pharmaceuticals

In other news, CEO William Sibold sold 5,221 shares of the firm’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $542.39, for a total value of $2,831,818.19. Following the sale, the chief executive officer owned 197,746 shares in the company, valued at approximately $107,255,452.94. This trade represents a 2.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Shannon Kelley sold 664 shares of the business’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $514.97, for a total transaction of $341,940.08. Following the transaction, the general counsel directly owned 11,474 shares in the company, valued at $5,908,765.78. This trade represents a 5.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 12,247 shares of company stock valued at $6,581,182. 17.60% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

MDGL has been the subject of a number of recent analyst reports. Barclays decreased their target price on Madrigal Pharmaceuticals from $964.00 to $962.00 and set an “overweight” rating for the company in a research report on Monday, August 3rd. Weiss Ratings reissued a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a research report on Thursday, October 15th. The Goldman Sachs Group began coverage on shares of Madrigal Pharmaceuticals in a research note on Thursday, September 24th. They issued a “buy” rating and a $704.00 price objective for the company. UBS Group restated a “buy” rating and issued a $735.00 price objective on shares of Madrigal Pharmaceuticals in a research note on Wednesday, October 14th. Finally, HC Wainwright assumed coverage on shares of Madrigal Pharmaceuticals in a report on Wednesday. They set a “strong-buy” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $706.87.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Madrigal’s lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.