Investing
Ironwood (IRWD) Stock Jumps 10% on Raised 2026 Guidance
Ironwood Pharmaceuticals stock rose 10.3% on Nov. 5 after Q3 revenue of $133 million and a raised 2026 outlook for Linzess sales and adjusted EBITDA.
Ironwood Pharmaceuticals (NASDAQ: IRWD) shares were up 10.3% in regular trading on November 5, 2026, after the company reported third-quarter results and raised its full-year 2026 forecasts. The biggest change was its outlook for U.S. sales of its constipation drug Linzess, now $1.20 to $1.25 billion versus $1.15 to $1.20 billion before.
What Ironwood Pharmaceuticals reported
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Total revenue | $133.0 million | $122.1 million | +9.0% |
| GAAP net income | $59.8 million | $40.1 million | +49.3% |
| Diluted earnings per share | $0.36 | $0.23 | +56.5% |
| Adjusted EBITDA | $97.9 million | $81.8 million | +19.7% |
| Linzess U.S. net sales | $324.9 million | $314.9 million | +3.2% |
Adjusted EBITDA is profit before interest, taxes, depreciation and amortization, also excluding stock-based pay and restructuring costs. The quarter's figure was a company record. Ironwood also lifted its full-year total revenue guidance (its own forecast) to $485 to $510 million from $460 to $485 million, and adjusted EBITDA to more than $350 million from more than $310 million. This is the second quarter in a row it has raised guidance.
Total costs and expenses fell to $39.9 million from $46.6 million, mainly because selling and administrative costs roughly halved to $11.6 million. Cash generated from operations was $130.8 million, up from $47.6 million a year earlier.
Why the stock rose 10.3%
The move was about four and a half times a typical day's swing for the stock. The raised outlook likely mattered most: year-to-date Linzess U.S. net sales of $880 million already exceed all of 2025, which CEO Tom McCourt credited to "improved net price and mid-single-digit prescription demand growth." Profitability on the drug also improved, with Linzess commercial margin at 79.8% versus 75.9% a year earlier.
What to watch next
-
Site activation for the STARS-2 Phase 3 trial of apraglutide, planned at more than 100 sites in 22 countries, with a regulatory filing targeted for 2029.
-
Whether full-year 2026 results land within the raised revenue and adjusted EBITDA ranges.
-
The CEO handover on January 1, 2027, when Chief Commercial Officer Tammi Gaskins succeeds Tom McCourt.
FAQ
Who sells Linzess and how does Ironwood earn from it?
Ironwood co-commercializes Linzess in the U.S. with AbbVie, and the two share U.S. brand profits equally. That share made up $129.9 million of Ironwood's $133.0 million quarterly revenue.
How much debt and cash does Ironwood have?
Ironwood repaid $60.0 million on its revolving credit facility in the quarter, leaving $325.0 million outstanding as of September 30, 2026. It held $86.4 million in cash and cash equivalents, down from $215.5 million at the end of 2025.
Sources
This article is for information only and is not investment advice.