Ironwood Pharmaceuticals raised its 2026 financial outlook after another strong quarter, led by continued growth in U.S. sales of constipation and irritable bowel syndrome drug LINZESS. The company also reported higher revenue and profit for the third quarter and said it is expanding the global site network for its confirmatory Phase 3 trial of apraglutide, an experimental treatment for short bowel syndrome with intestinal failure.
Key details
- 2026 LINZESS sales outlook increased: Ironwood now expects U.S. net sales of LINZESS to reach $1.20 billion to $1.25 billion, up more than 35% from 2025. The company said year-to-date sales through September were $880 million, already above full-year 2025 sales.
- The revised outlook also lifts broader financial targets: Ironwood raised its 2026 total revenue guidance to $485 million to $510 million and expects adjusted EBITDA to exceed $350 million. This is the second consecutive quarter in which the company has increased its full-year guidance.
- LINZESS growth reflects price and demand: The company attributed the performance primarily to improved net price and mid-single-digit growth in prescriptions.
- Third-quarter revenue and earnings rose: Total revenue was $133.0 million, compared with $122.1 million a year earlier. GAAP net income increased to $59.8 million from $40.1 million, while diluted GAAP earnings per share were $0.36, versus $0.23.
- Profitability measures also improved: Adjusted EBITDA reached $97.9 million, up from $81.8 million a year earlier and a company record. Non-GAAP net income was $60.0 million, compared with $41.9 million in the third quarter of 2025.
- Expenses were lower year over year: Total costs and expenses fell to $39.9 million from $46.6 million.
- Apraglutide trial work is progressing: Ironwood said its STARS-2 confirmatory Phase 3 trial is ongoing. Planned applications to international health authorities have been submitted and are either under review or approved; the company’s current focus is activating trial sites in the U.S. and internationally.
What changes for investors
The higher outlook reflects stronger expected LINZESS sales and lifts Ironwood’s full-year revenue and adjusted EBITDA targets. The company’s quarterly results also show higher revenue and earnings alongside lower costs. For apraglutide, the update concerns trial-site expansion and regulatory applications; it does not report a new clinical result.