Ironwood Pharmaceuticals, Inc. (IRWD) AI Stock Analysis
IRWD AI stock analysis summary
AI ResearchIronwood Pharmaceuticals, Inc. develops gastrointestinal therapies, led by its flagship linaclotide treatment. The company generated $389.3M in trailing twelve-month revenue with a 70.2% operating margin. Its balance sheet shows negative shareholders' equity of -$161.8M and net debt of $317.7M as of June 30, 2026.
- Market cap
- $578.3M
- Revenue (TTM)
- $389.3M
- P/E
- 4.5x fwd 12.3x
- 1Y return
- 125.8% S&P 500 16.8%
- Avg. target
- $6.10 74.3% vs last close
Bull case
- Ironwood generated $127.0M in free cash flow in FY2025 while maintaining a 100.0% gross margin.
- The company's trailing twelve-month operating margin of 70.2% significantly exceeds the US-listed Healthcare peer median of 14.0%.
- Consensus analyst projections expect EPS to expand 384.0% to $1.21 for the fiscal year ending December 31, 2026.
Bear case
- Revenue has contracted over longer periods, with annual sales declining from $413.8M in FY2021 to $296.2M in FY2025, yielding a 5-year CAGR of -5.3%.
- Ironwood reported negative shareholders' equity of -$161.8M and net debt of $317.7M as of June 30, 2026.
- Shares have dropped 74.4% over the past 5 years and sit 12.9% below their 200-day moving average.
What Ironwood Pharmaceuticals does
Ironwood Pharmaceuticals, Inc. is a healthcare company focused on the development and global commercialization of gastrointestinal products. Its flagship product is linaclotide, marketed as LINZESS in the United States and Mexico and as CONSTELLA in Canada and the European Union, approved for irritable bowel syndrome with constipation and chronic idiopathic constipation. The company is advancing pipeline candidates including IW-3300 for visceral pain conditions and CNP-104 for biliary cholangitis. Ironwood collaborates with strategic partners including AbbVie Inc., AstraZeneca AB, and Astellas Pharma Inc. to develop and commercialize linaclotide globally.
Growth and profitability
Annual revenue decreased from $413.8M in FY2021 to $296.2M in FY2025, representing a 5-year revenue CAGR of -5.3%. The company reported net income of -$1.00B in FY2023 with an operating margin of -213.5%, which improved to net income of $880,000 in FY2024 and $24.0M in FY2025 alongside a 100.0% gross margin. Over the trailing twelve months, revenue totaled $389.3M with an operating margin of 70.2% and EPS of $0.77. For the latest quarter ending June 30, 2026, quarterly revenue grew 32.6% year-over-year while quarterly earnings expanded 125.7%.
Balance sheet and cash flow
As of June 30, 2026, Ironwood held $79.1M in cash and short-term investments alongside total debt of $396.9M, resulting in net debt of $317.7M. Total assets stood at $285.1M against negative shareholders' equity of -$161.8M, with a current ratio of 6.06. In FY2025, operating cash flow reached $127.0M and free cash flow was $127.0M, while capital expenditures were $34,000. Over five years, the company's share count changed by -0.1%.
Valuation and performance
Ironwood carries a market capitalization of $578.3M and an enterprise value of $1.02B. The stock trades at a trailing P/E of 4.5x and a forward P/E of 12.3x, both below the US-listed Healthcare median figures of 24.6x and 17.3x, respectively. Its enterprise value-to-EBITDA ratio is 4.2x versus the peer median of 12.0x, and its price-to-sales ratio is 1.5x compared to the peer median of 4.1x. Over the past year, the stock returned 125.8%, outperforming the S&P 500 return of 16.8%, but fell 74.4% over five years.
What analysts expect
Wall Street analysts hold 1 Strong Buy, 1 Buy, and 2 Hold ratings on the stock. The mean price target of $6.10 represents a 74.3% premium over the last close of $3.50 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.21 on revenue of $471.4M. For the subsequent year, 3 analysts estimate EPS of $1.50 on revenue of $494.1M. Ironwood has beaten EPS estimates in 2 of the last 4 quarters and is scheduled to report earnings next on November 9, 2026.
Key risks and what to watch
- Total debt of $396.9M significantly exceeds cash and short-term investments of $79.1M as of June 30, 2026.
- Earnings have demonstrated past volatility, swinging to net income of -$1.00B in FY2023 before recovering to $24.0M in FY2025.
- Short interest represents 10.3% of the public float, indicating negative sentiment among some investors.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this IRWD AI stock analysis
This page is an AI-written research summary of Ironwood Pharmaceuticals, Inc. (IRWD). 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.
Related: IRWD income statement, IRWD balance sheet, IRWD key metrics, IRWD analyst forecast, IRWD chart. See the IRWD stock overview for the latest quote and news.
IRWD AI stock analysis FAQ
What is Ironwood Pharmaceuticals' primary commercial therapy?
The company's main commercial therapy is linaclotide, marketed as LINZESS in the United States and Mexico and CONSTELLA in Canada and the European Union for IBS-C and CIC. Linaclotide helped drive trailing twelve-month revenue to $389.3M.
Does Ironwood Pharmaceuticals pay a dividend?
Ironwood Pharmaceuticals does not pay a regular dividend. In FY2025, the company generated $127.0M in operating cash flow and expended $34,000 on capital expenditures.
What is the consensus price target for IRWD stock?
The mean analyst price target is $6.10, which sits 74.3% above the October 16, 2026, closing price of $3.50. The stock has 1 Strong Buy, 1 Buy, and 2 Hold ratings.
When does Ironwood Pharmaceuticals report its next quarterly earnings?
Ironwood's next earnings release is scheduled for November 9, 2026. The company has beaten consensus EPS forecasts in 2 of the past 4 quarters.