Arcus Biosciences (NYSE:RCUS) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Arcus Biosciences (NYSE:RCUS) announced its quarterly earnings results on Tuesday. The company reported ($1.02) EPS for the quarter, missing the consensus estimate of ($0.92) by ($0.10), FiscalAI reports. The firm had revenue of $17.00 million for the quarter, compared to analysts’ expectations of $29.49 million. Arcus Biosciences had a negative net margin of 142.91% and a negative return on equity of 65.77%. The business’s quarterly revenue was down 39.3% on a year-over-year basis. During the same quarter in the prior year, the business posted ($1.14) EPS.

Here are the key takeaways from Arcus Biosciences’ conference call:

• Arcus now has full ownership of casdatifan and says its phase III PEAK-1 (second-line CAS + cabozantinib) is enrolling rapidly, targeting full enrollment by year-end 2026 and a frontline phase III start by year-end.
• The company highlights differentiated clinical data for casdatifan — ARC-20 100 mg monotherapy showed a confirmed ORR of 45% and a median PFS of 15.1 months in late-line cohorts — and argues this superior pharmacodynamic profile explains competitive advantages versus belzutifan.
• Arcus reports a strong balance sheet with $876 million in cash and a runway into at least H2 2028, expects about $600M at year-end 2026, and plans to focus >80% of portfolio spend on CAS by 2027 while reducing overall R&D/headcount.
• Non-oncology programs and other oncology studies remain active — the PRISM-1 Phase III quemliclustat pancreatic trial is fully enrolled with a H1 2027 readout, AB102 (MRGPRX2 antagonist) is expected to enter the clinic in Q3 2026, and oral TNF and CCR6 candidates are planned for 2027 — all carry typical clinical risk/uncertainty.
• The company announced discontinuation of STAR-121 (domvanalimab + zim + chemo in 1L NSCLC) for futility, a setback for the anti-TIGIT program, although exploratory zim + chemo data were consistent with expectations.

Arcus Biosciences Stock Down 1.9%

RCUS stock traded down $0.51 during trading on Wednesday, reaching $25.55. 806,252 shares of the company traded hands, compared to its average volume of 1,251,659. Arcus Biosciences has a 12 month low of $7.06 and a 12 month high of $28.72. The business has a 50 day simple moving average of $22.69 and a 200 day simple moving average of $21.97. The company has a market capitalization of $3.21 billion, a price-to-earnings ratio of -7.75 and a beta of 0.87. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.36 and a current ratio of 4.36.

Institutional Investors Weigh In On Arcus Biosciences

A number of institutional investors have recently added to or reduced their stakes in RCUS. AQR Capital Management LLC boosted its holdings in Arcus Biosciences by 253.9% in the first quarter. AQR Capital Management LLC now owns 90,954 shares of the company’s stock worth $714,000 after acquiring an additional 65,254 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Arcus Biosciences by 10.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,572 shares of the company’s stock worth $297,000 after acquiring an additional 3,565 shares in the last quarter. Millennium Management LLC boosted its holdings in Arcus Biosciences by 29.2% in the first quarter. Millennium Management LLC now owns 1,194,622 shares of the company’s stock worth $9,378,000 after acquiring an additional 270,253 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in Arcus Biosciences by 106.2% in the first quarter. Goldman Sachs Group Inc. now owns 914,208 shares of the company’s stock worth $7,177,000 after acquiring an additional 470,755 shares in the last quarter. Finally, Strs Ohio acquired a new stake in Arcus Biosciences in the first quarter worth about $67,000. Institutional investors own 92.89% of the company’s stock.

Arcus Biosciences News Summary

Here are the key news stories impacting Arcus Biosciences this week:

• Positive Sentiment: Truist upgraded Arcus to a “strong‑buy,” which may support the stock by drawing renewed analyst interest and buyer demand. Truist upgrade report
• Positive Sentiment: Company provided a pipeline update and slide deck highlighting a “clear path” for its casdatif program and other clinical-stage assets — potential near‑term clinical readouts or regulatory milestones could be upside catalysts. BusinessWire press release
• Neutral Sentiment: Transcripts and a full conference call are available (Seeking Alpha, InsiderMonkey, Yahoo) for investors who want management commentary and Q&A detail on program timelines, cash runway, and commercialization strategy. Earnings call transcript
• Negative Sentiment: Q1 results disappointed: reported EPS of -$1.02 vs. consensus -$0.92 and revenue of $17.0M — well below analyst expectations and down ~39% year‑over‑year. The miss, plus negative margins and ROE, is the primary driver of downside pressure as it raises near‑term execution and growth concerns. Q1 financial results and release

Analyst Upgrades and Downgrades

Several brokerages have recently commented on RCUS. HC Wainwright restated a “buy” rating and set a $32.00 price target on shares of Arcus Biosciences in a research note on Monday, March 2nd. Morgan Stanley restated an “equal weight” rating and set a $20.00 price target (down from $23.00) on shares of Arcus Biosciences in a research note on Thursday, January 8th. Wall Street Zen upgraded Arcus Biosciences from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. Truist Financial raised Arcus Biosciences to a “strong-buy” rating in a research report on Monday. Finally, Leerink Partners set a $47.00 price objective on Arcus Biosciences in a research report on Monday, April 20th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $32.44.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel cancer immunotherapies. The company’s research platform centers on modulating tumor microenvironments and immune checkpoints through both small-molecule and antibody-based candidates. Arcus aims to enhance antitumor immune responses by targeting pathways such as the adenosine axis and inhibitory receptors on immune cells.

The company’s lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist being evaluated in combination with anti-PD-1 therapy, and domvanalimab, an anti-TIGIT monoclonal antibody.