News · Madrigal Pharmaceuticals, Inc. (MDGL) · Healthcare

Madrigal Pharmaceuticals falls 8.1% after third-quarter results show first profitable quarter

Session of November 3, 2026 · Published November 4, 2026 · 4 min read

What happened

Madrigal (MDGL) fell 8.1% to close at $396.32 on November 3, 2026, after reporting third-quarter results that showed GAAP earnings of $1.83 per share as strong Rezdiffra sales lifted revenue. The company reported net sales of $431.3 million for the quarter, disclosed year-to-date net sales of $1.1 billion, and said it had delivered its first profitable quarter. Madrigal said its patient count and prescriber base expanded, and it issued a corporate update alongside the financial release, according to GlobeNewsWire and Seeking Alpha.

Closing price over the last 30 trading sessions. On November 3, 2026, MDGL closed at $396.32, down 8.1% on the day and 22.7% lower than 30 sessions earlier.

How big was the move

The stock fell 8.1% on the day and fell 10.0% over the last five sessions. Trading volume was 6.3 times its 20-day average, making the session notable for both size and participation. The day’s decline was 3.6 times a typical daily move for this stock and was 8.7 percentage points worse than the Healthcare sector median, which rose 0.6% on the same day. The S&P 500 rose 0.4% on the session, and Madrigal’s market value was $9.94 billion at the close.

Each bar is one day's price change; the outlined bar is November 3, 2026. A typical daily move over the past year was 2.7%, so the latest move equals 3.0 times that. Moves outside the dashed lines (about 5.5%) are unusual.

Because the company released quarterly results that day, the earnings update was the direct cause of the retreat. The stock’s beta of 0.39 indicates it tends to move less than the market, yet Thursday’s drop shows company-specific news can still trigger outsized intraday moves. In the past five years the stock had 21 sessions with a decline of at least 8.1%; twenty trading days later the median result was a gain of 13.0%, and 17 of 21 were higher, a historical pattern some traders use when weighing a short-term buy versus wait decision.

The technical picture

The stock traded below its key moving averages, 11.8% below its 20-day moving average, 19.9% below its 50-day moving average, and 20.6% below its 200-day moving average. The 50-day average was below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) read 21, below 30, a level often called oversold. Madrigal was 35.6% below its 52-week high and had fallen 19.7% over one month and 22.9% over three months.

Closing price over the past year. MDGL ends the period 34.3% below its 52-week high, below its 50-day average ($494.64) and below its 200-day average ($499.10).

Volatility was 35% annualized over 60 days, the lowest reading of the past five years, suggesting recent price swings had compressed even as the shares moved sharply lower on the earnings day. That mix of low measured volatility and an acute earnings-day decline can signal that much of the stock’s usual fluctuation has quieted, but company news still provokes abrupt directional moves.

Fundamentals and valuation

For the four quarters through September 30, 2026, Madrigal reported revenue of $1.43 billion, up 92.8% from a year earlier. The company’s gross margin stood at 91.0%, down from 95.3% a year earlier, and operating margin was 10.7%, down from 41.5% a year earlier. Diluted earnings per share for the period was $-5.98. Free-cash-flow margin was 11.8%, and return on invested capital was 37.0%.

Quarterly revenue by period end. The latest quarter brought $431M, 50.1% more than the same quarter a year earlier.

The balance sheet showed net cash of $160.4 million. Share count over one year increased by 34.8%, a significant dilution investors must weigh against growth in sales and cash flow. Valuation by free-cash-flow yield stood at 1.7%, reflecting a relatively low yield versus the company’s cash generation and placing a premium on continued growth and margin recovery.

PromtFinance scores present a mixed picture: Stability 98 (Exceptional), Value 57 (Neutral), Growth 45 (Neutral), Quality 40 (Weak), Momentum 34 (Weak), and Revisions 53 (Neutral). The high Stability score contrasts with weaker Momentum and Quality readings, underscoring a split between a strong cash position and recent operational or sentiment headwinds.

Earnings and analyst expectations

Madrigal’s last report, released November 3, 2026, showed earnings per share of $1.83 against $-0.86 expected, 312.0% above estimates, and the company has beaten estimates for three consecutive quarters. The firm’s average surprise over the last four reports is listed as 100.0% below estimates, and the typical two-day reaction after recent reports was a rise of 1.0%. The next report is scheduled for February 18, 2027.

Diluted earnings per share by quarter. The latest quarter shows $1.83, against -$5.08 in the same quarter a year earlier.

Analysts’ consensus price target was $684.80, 72.8% above the closing price, based on 25 analysts; 88% of them rate the stock Buy or Strong Buy, and the consensus rating is Buy. That gap between the average target and the market price highlights differing views on how quickly sales and margins will translate into sustained earnings and cash flow expansion.

What to watch

February 18, 2027: next scheduled earnings report
Year-to-date net sales of $1.1 billion and quarterly net sales of $431.3 million for Rezdiffra in Q3 2026
Free-cash-flow margin of 11.8% and free-cash-flow yield of 1.7%
Net cash of $160.4 million and share count increase of 34.8% over one year
PromtFinance Stability score of 98 (Exceptional)

Full MDGL analysis: scores, chart and financials →