Arrowhead Pharmaceuticals, Inc. (ARWR) AI Stock Analysis

Arrowhead Pharmaceuticals, Inc. develops RNA interference (RNAi) therapeutics designed to address unmet medical needs across challenging diseases. Its clinical pipeline includes ARO-AAT, which is in Phase II clinical trials for liver diseases linked to alpha-1 antitrypsin deficiency. The company is advancing ARO-APOC3 and ARO-ANG3 in clinical stages for hypertriglyceridemia and dyslipidemia, while ARO-HSD completed Phase 1/2 trials for liver diseases. Arrowhead is also developing ARO-DUX4 for facioscapulohumeral muscular dystrophy, ARO-XDH for uncontrolled gout, ARO-COV for COVID-19, and ARO-RAGE and ARO-MMP7 for respiratory conditions. The company collaborates strategically with partners including Janssen Pharmaceuticals, Inc. and Takeda Pharmaceuticals U.S.A., Inc.

Arrowhead demonstrated substantial top-line volatility across recent fiscal years. Revenue stood at $138.3M in FY2021 and rose 75.9% to $243.2M in FY2022, before edging down 1.0% to $240.7M in FY2023. Revenue fell 98.5% in FY2024 to $3.6M with net income of -$599.5M, before rebounding 23258.2% to $829.4M in FY2025. This drove a 5-year revenue CAGR of 56.6% from FY2020 to FY2025. In FY2025, operating margin reached 11.9% and net income was -$1.6M, supported by a gross margin of 100.0% alongside R&D expense of $607.2M. For the latest quarter ended June 30, 2026, quarterly revenue growth was 171.0% year-over-year, while trailing twelve months revenue reached $669.5M with an operating margin of -226.0%.

As of June 30, 2026, Arrowhead held $1.60B in cash and short-term investments against total debt of $864.1M, yielding net cash of $737.9M. The company maintains liquidity with a current ratio of 5.90, while shareholders' equity stands at $465.5M and total assets total $2.11B, resulting in a debt-to-equity ratio of 1.86. Free cash flow improved to $156.9M in FY2025 from -$604.3M in FY2024, supported by operating cash flow of $179.6M. Capital expenditures were $22.7M in FY2025, and share count expanded 37.2% over 5 years.

Arrowhead trades at an enterprise value of $8.84B and a market cap of $7.90B. Its forward P/E of 111.1x trades well above the 17.3x forward P/E median of its US-listed Healthcare peers. The company's price-to-sales multiple is 11.8x, compared to the peer median of 4.1x, and its EV/EBITDA stands at 27.9x versus the peer median of 12.0x. Price to book is 20.6x. Over the past year, Arrowhead returned 43.4%, outperforming the S&P 500 return of 16.8%, but its 5-year return of -15.5% lagged the S&P 500 return of 83.0%.

Analyst sentiment is positive, with 10 Strong Buy, 4 Buy, and 1 Hold ratings, and no Sell or Strong Sell recommendations. The mean price target of $107.71 suggests 92.7% upside relative to the last close of $55.90. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $464.1M and EPS of -$3.51. For the following fiscal year, 15 analysts expect revenue of $328.2M and EPS of -$4.98. Arrowhead beat EPS estimates in 3 of the last 4 quarters, with the next earnings date scheduled for November 24, 2026.

This page is an AI-written research summary of Arrowhead Pharmaceuticals, Inc. (ARWR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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